BIRLA INSTITUTE OF TECHNOLOGY versus THE STATE OF JHARKHAND & ORS.

BIRLA INSTITUTE OF TECHNOLOGY versus THE STATE OF JHARKHAND & ORS.

The retrospective amendment to the Payment of Gratuity Act by Amending Act No. 47 of 2009 brings teachers into the definition of 'employee', making respondent No.4 entitled to gratuity. Pendency of constitutional challenge to the amendment does not affect entitlement unless the Act is declared ultra vires, which is not the case here.

Parties
Appellant: Birla Institute of Technology; Respondents: The State of Jharkhand & Ors.; Teacher/claimant: Respondent No.4 (Assistant Professor)
Jurisdiction
India
Judgment Date
07 March 2019
Procedural Posture
Civil Appeal / Final Judgment on Appeal From Jharkhand High Court
Outcome
appeal dismissed
Legal Topics
Gratuity, Definition of Employee, Constitutionality of Statute, Retrospectivity of Legislation
Labour Law Education Law Constitutional Law Gratuity Definition of Employee Constitutionality of Statute Retrospectivity of Legislation

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Parties

Birla Institute of Technology

Appellant

The State of Jharkhand & Ors.

Respondents

Respondent No.4 (Assistant Professor)

Teacher/claimant

Procedural Posture

Civil Appeal / Final Judgment on Appeal From Jharkhand High Court

Legal Issues

  1. 1 Whether teachers are entitled to gratuity under the Payment of Gratuity Act, 1972 as amended
  2. 2 Whether the constitutional validity of the Payment of Gratuity (Amendment) Act, 2009 affects the right to claim gratuity while pending in court

Ratio Decidendi

The retrospective amendment to the Payment of Gratuity Act by Amending Act No. 47 of 2009 brings teachers into the definition of 'employee', making respondent No.4 entitled to gratuity. Pendency of constitutional challenge to the amendment does not affect entitlement unless the Act is declared ultra vires, which is not the case here.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs quantified at Rs.25,000/- payable by the appellant to respondent No.4.