Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Payment of Gratuity Act 1972 – s.2(s) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Payment of Gratuity Act, 1972 – s.2(s) – Whether ad hoc payment made by Management to the workers pursuant to interim orders passed by Supreme Court in a previous round of litigation could form part of “wages” within the meaning of the expression u/ s.2(s) of the Payment of Gratuity Act, for the purpose of calculating gratuity, especially in the light of the order passed by Supreme Court in the case of Shri Kashi Prasad Tripathi – Held: The order passed in the case of Shri Kashi Prasad Tripathi does not deal with this question – s.2(s) of the Act defines wages – Irrespective of whether what was earned has been paid or remained payable, the same is included in the definition, provided it is in accordance with the terms and conditions of his employment – In the instant case, the employees initiated the first round of litigation (writ petitions) before various High Courts, for grant of the benefit of revision of pay scales, on ground that the employees of other PSUs were granted revision on par with the Government servants – Thus, what was claimed in the first round of litigation was not what was payable in accordance with the terms and conditions of employment – Therefore, the Supreme Court (to which the writ petitions got transferred) was clear in its interim order as to how the ad hoc payment ordered thereunder should be treated – Even in the final order (vide which the writ petitions were eventually dismissed), the Supreme Court made it clear that what was paid was only ad hoc – In a recent Supreme Court decision, it was clarified that wages mean and include basic wages and Dearness Allowance and nothing else – Ad hoc payment made pursuant to the interim orders by Supreme Court will not form part of the wages – Labour Laws. Payment of Gratuity Act, 1972 – s.2(s) – Definition of “wages” – Held: The definition of the expression is in 3 parts, the first part indicating the meaning of the expression, the second part indicating what is included therein and the third part indicating what is not included therein – Labour Laws. Judgment /Order – Interim order – Party who secured it, failed in the final stage – Effect – Held: A party who is in enjoyment of an interim order, is bound to lose the benefit of such interim order when the ultimate outcome of the case goes against him. Practice and Procedure – Appeals before Supreme Court, of State or instrumentalities of State against individual litigants – Refusal of Supreme Court to go into question of law in such cases – Held: Cannot be treated as tantamounting to answering the question of law in a particular manner – Whenever the State or instrumentalities of State come up with appeals challenging small benefits granted to individual litigants, the Supreme Court applies the test of proportionality to see whether the quantum of benefits granted to the individual concerned, justifies the examination of the question of law, at the cost of that little man from a far off place – Doctrines/Principles – Test of proportionality |
Judge | Hon'ble Mr. Justice V. Ramasubramanian |
Neutral Citation | 2022 INSC 403 |
Petitioner | Chairman-cum-managing Director Fertilizer Corporation Of India Ltd. And Anr. |
Respondent | Rajesh Chandra Srivastava And Ors. |
SCR | [2022] 3 S.C.R. 84 |
Judgement Date | 2022-04-07 |
Case Number | 2260 |
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