Orissa HC in the case of Chairman-Cum-Managing… Versus Controlling Authority

Case Covered:

Chairman-Cum-Managing…

Versus

Controlling Authority

Facts of the Case:

The Orissa Mining Corporation Ltd. (hereinafter referred to as the ‘Corporation’) calls into question the legality of the direction given by the Controlling Authority under the Payment of Gratuity Act, 1972 (in short ‘Act’) directing payment of gratuity to Himanshu Sekhar Satpathy (hereinafter referred to as ’employee’).

The employee joined the Corporation as a trainee Accounts Officer on September 13, 1987, worked as ad hoc Accounts officer from April 1, 1988, to May 17, 1989, and as a regular Accounts officer from May 18, 1989, till September 19, 1992. Thereafter he resigned and joined another organization. Claim for gratuity was made by him on the ground that he had rendered more than five years of continuous service to be entitled to gratuity. Controlling authority held that he was entitled to gratuity. Corporation assails the correctness of the conclusion on the ground that under the Orissa Mining Corporation Employees Gratuity Fund Rules (hereinafter referred to as ‘the Corporation Rules’) apprentices and trainees were not eligible to get gratuity and, therefore, the claimant-employee was not entitled to any gratuity.

The decision of the Court:

Notwithstanding the prescription in the Corporation Rules, an employee putting in five years of continuous service as provided in Section 4(1) would be entitled to the benefits under the Act. It is accepted by learned counsel for Corporation that the employees have rendered more than five years of continuous service. Since Rule 4(d) is inconsistent with the Act same has to be altered. A similar direction was given to Som Prakash Rekhi v. Union of India and Anr. (1981-I-LLJ-79). The learned counsel for the corporation states that necessary alteration shall be made within a month from today. The claimant-employee is entitled to gratuity in view of the analysis made above. Let the payment be made to him within six weeks from today.

The writ application is accordingly disposed of. No cost.

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