NDLI: Independent Schools` Federation of India (regd.) Vs. Union of India and Another

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1972 Payment of Gratuity Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 Referred Case 12 Referred Case 13 Referred Case 14 Referred Case 15
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Payment of Gratuity Act, 1972: ss. 1(3)(c), 2(e), 13, 13A – Payment of Gratuity (Amendment) Act, 2009 – Amendment to s. 2(e) and insertion of s. 13A to the 1972 Act with retrospective effect from 3.04.1997 vide the Amendment Act of 2009 whereby benefit of gratuity to the teachers of private schools who have rendered continuous service for not less than 5 years, on their superannuation, retirement or resignation, or on their death or disablement due to accident or disease – Constitutional validity of – High Court dismissed the petitions of the several private schools challenged the constitutional validity of the amendments – In appeal before this Court, challenged on the ground that the Amendment Act, 2009 overrules the judicial decision in Ahmedabad Private Primary Teachers’ Association, 2004 and violates the doctrine of separation of powers; and that the retrospective amendments are unreasonable, excessive and harsh, and thus, unconstitutional – On appeal, Held: Legislature has constitutional powers to amend the language of the provision that was the subject matter of the court decision, and such an amendment does not overrule the court decision – Overruling assumes a decision based on the same law – In the instant case, law is amended, and the defects are removed or cured, the law has changed, and therefore, the earlier interpretation is no longer applicable and becomes irrelevant – Doctrine of separation of powers demarcates the exclusive domains of the legislature, which enacts the laws, and the courts which interpret the enacted law – When the legislature acts within its power to usher in a valid law and rectify a legal error, even after a court ruling, the legislature exercises its constitutional power to enact the law and does not overrule an earlier court decision – As regards the challenge, that the retrospective amendments are unreasonable there are upper-cap limits on payment of gratuity –Though gratuity is computed with reference to years of service, in view of upper cap limit, the payment towards gratuity cannot exceed the specified amount, even if the employee would be entitled to higher amount in view of the years of the service rendered to the employer – Hence, the amendment is not unreasonable or harsh – The teachers were discriminated to be denied benefit of gratuity, a terminal benefit, which was payable to other employees of the private schools/ educational institutions, including those engaged in administrative and managerial work – Amendment with retrospective effect remedies the injustice and discrimination suffered by the teachers on account of a legislative mistake – Amendment was necessary to ensure that something which was due and payable to the teachers is not denied to them due to a defect in the statute. Retroactive effect and retrospective operation – Distinction between – Discussed.
Judge	Hon'ble Mr. Justice Sanjiv Khanna
Neutral Citation	2022 INSC 879
Petitioner	Independent Schools` Federation Of India (regd.)
Respondent	Union Of India And Another
SCR	[2022] 13 S.C.R. 776
Judgement Date	2022-08-29
Case Number	8162

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Independent Schools` Federation of India (regd.) Vs. Union of India and Another

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