The High Court dismissed the petition, holding that the Payment of Gratuity Act applies to Municipalities under a Central Government notification and overrides State Pension Rules. The court also rejected the limitation defence relying on precedent.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH : NAGPUR
WRIT PETITION NO. 6339 OF 2022
Municipal Council, Pusad, Dist. Yavatmal and anr. Vs. Sau. Kusum w/o Vijay Ubale
Office notes, Office Memoranda of Coram, appearances, Court's orders or directions and Registrar's orders.
Court's or Judge's Orders.
Mr. P.P. Deshmukh, Advocate for petitioners. Mr. Tejas Patil, Advocate for respondent.
CORAM : N.R. BORKAR, J.
DATE : 04.10.2024.
The respondent herein, who was the employee of the petitioner-Municipal Council, had filed an application under the provisions of the Payment of Gratuity Act, 1972. The Controlling Authority under the Act by order dated 18.09.2019 directed the petitioners to pay Rs.1,91,184/- towards gratuity.
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“10. In terms of the above said Section 1(3)(c) of the Act, the Central Government has published a notification on 08.01.1982 and specified Local Bodies in which ten or more persons are employed, or were employed, on any day of the preceding twelve months as a class of establishment to which this Act shall apply. The said Notification dated 08.01.1982 reads as under:-
“New Delhi, the 8 th January, 1982
NOTIFICATION
S.O. No. 239….In exercise of the powers conferred by clause (c) of sub-section (3) of section 1 of the Payment of Gratuity Act, 1972 (39 of 1972), the Central Government hereby specified ‘local bodies’ in which ten or more persons are employed, or were employed, on any day preceding twelve months, as a class of establishments to which the said Act shall apply with effect from the date of publication of this notification in the Official Gazette.
Sd/-
(R. K. A. Subrahmanya) Additional Secretary
(F. No. S-70020/16/77-FPG)
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makes it abundantly clear that the Act is applicable to the local bodies i.e., the Municipalities. Section 14 of the Act has given an overriding effect over any other inconsistent provision in any other enactment. The said provision reads as under:
“ 14. Act to override other enactments, etc. – The provisions of this Act or any rule made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument or contract having effect by virtue of any enactment other than this Act.”
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payment of gratuity is in fact in the interest of the employees. Thus, the gratuity would be payable under the Act. Such is the view taken by the Controlling Authority.”
9. The writ petition is dismissed.
(N.R. BORKAR, J.)
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2 issues framed by the court
Is the Payment of Gratuity Act, 1972 applicable to employees of a Municipal Council governed by State Civil Services Pension Rules?
Whether the application under the Gratuity Act was barred by limitation?
Colour shows how this judgement treated each authority
Nagar Ayukt Nagar Nigam, Kanpur Vs. Mujib Ullah Khan and anr.Relied on¶16
Nagar Ayukt Nagar Nigam, Kanpur Vs. Mujib Ullah Khan and anr. reported in (2019) 6 SCC 103 · Who else cites this
Municipal Corporation of Delhi Vs. Dharam Prakash Sharma and anr.Referred¶13
Municipal Corporation of Delhi Vs. Dharam Prakash Sharma and anr. (1998) 7 SCC 221 · Who else cites this
Dnyanoba Vishnu Sawant and Ors. Vs. M/s. Sitaram Mills Unit of National Textile Corporation and anr.Relied on¶39
Dnyanoba Vishnu Sawant and Ors. Vs. M/s. Sitaram Mills Unit of National Textile Corporation and anr. reported in 2017 II CLR 414
2 provisions across 1 enactments
Municipal Council, Pusad, Dist. Yavatmal
Kusum w/o Vijay Ubale
N.R. BORKAR
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
