CHIEF OFFICER BILLIMORA NAGARPALIKA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) PER H. K. RATHOD, J. Heard learned advocate Ms. Jirga D. Jhaveri for the petitioner Nagarpalika and learned advocate Mr. A. K. Clerk for respondents workmen.

(2.) IN all these petitions, the petitioner -Bilimora Nagarpalika has challenged the order passed by the controlling authority under the payment of Gratuity Act, 1972 (for short "the Act" ). The respondents workmen in each petition approached the controlling authority claiming the amount of gratuity under the Act and in those applications, the controlling authority has decided that workmen are entitled to amount of gratuity according the provisions of the Act. Accordingly, the controlling authority has calculated the amount and directed the petitioner Nagarpalika to pay the amount of gratuity to the concerned employees with 12% interest within a period of 30 days from the date of receipt of order from the controlling authority.

(3.) LEARNED advocate Ms. Jhaveri appearing on behalf of petitioner Nagarpalika submitted that Section 2 (e) of the Act provides definition of "employee". She further submitted that the nagarpalika is having its own gratuity rules, therefore, the provisions of the Act are not applicable to the concerned employees. The rules framed by the petitioner Nagarpalika have been approved by the State Government as per Annexure-B to the petition. She relied upon rule-5 which provides the mode of calculation of the amount of gratuity to the concerned employee. According to her, as per the Rules, the amount of gratuity is paid to the concerned employee. Therefore, no payment is to be made by petitioner to the concerned employees. She also raised contention that petitioner nagarpalika being a local authority and therefore, provisions of the Act are not applicable. She also submitted that the controlling authority has not considered the gratuity Rules which are at Annexure-B and relying upon the provisions of the Act, the controlling authority decided the issue against the petitioner Nagarpalika. Section 2 (e) of the act reads as under: