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The Hon’ble High Court of Delhi, while referring to the judgments in the case of Union of India v. Ramesh Chand [W.P.(C.) 6115/2021 and Union of India v. Manik Lal Banerjee, (2006) 9 SCC 643, through a learned bench of Justice Prathiba M. Singh, upheld that in the case of workmen who are governed by the CCS Rules, the applicability of the Gratuity Act would have to be considered by the Authorities concerned, in the case of Management Of CPWD Vs Sh Bhori Lal & Ors. [W.P.(C) 13330/2021 & Cm Appl. 41999/2021].

The writ challenged the impugned order passed by the Appellate Authority under the Payment of Gratuity Act, 1972 (hereinafter “Gratuity Act”) dated 23rd February, 2021 in Gratuity Appeal No. 36(08)/2021 P.A.DYV. The said appeal was dismissed on the ground of delay as being beyond limitation in terms of Section 7(7) of the Gratuity Act. The original impugned order by the Controlling Authority, bearing No. ALC II 36(25)/2016 dated 25th August, 2020, awarded a sum of Rs.2,38,430/- along with simple interest at 10% to the Workman, from the exact date of retirement of the Workman till the date the amount of gratuity actually paid.

The submissions of Ms. Sarika Singh, learned Counsel appearing for the Petitioner were three-fold: (i) that the delay ought to have been condoned and the matter ought to be heard on merits; (ii) that the Gratuity Act would not apply and the Central Civil Services (Pension) Rules, 1972 (hereinafter “CCS Rules”), would be applicable to the Workman; and (iii) that there is no evidence of the Workman having worked with the Petitioner for a period of eight years and eight months. Thus, she submitted that the award of the said amount by the Controlling Authority was untenable.

The Hon’ble Court, after hearing the parties and a perusal of the record, stated that “This Court has in Union of India v. Ramesh Chand [W.P.(C.) 6115/2021, decided on 6 th July, 2021], taking into consideration the decision in Union of India v. Manik Lal Banerjee, (2006) 9 SCC 643, held that in the case of workmen who are governed by the CCS Rules, the applicability of the Gratuity Act would have to be considered by the Authorities concerned. These are legal issues which go to the root of the matter. The legal issues raised by the Petitioners deserve to be adjudicated upon by the Appellate Authority. The delay of approximately four months in filing the appeal before the Appellate Authority is accordingly condoned. Notice is not being issued to the Workman in this matter as that would lead to further costs to the Workman. Accordingly, the delay is condoned with payment of Rs.10,000/- as costs to the Workman by the Petitioner, on the first date of hearing before the Appellate Authority. Subject to such payment being made to the Workman in time, the appeal shall be adjudicated upon by the Appellate Authority on merits keeping in mind the grounds raised by the Petitioner and the facts discussed herein above, as also the judgment cited above. The Appellate Authority to dispose of the matter within a period of three months from the first date of hearing, after dealing by the all ground raised by the Petitioner. Let the Petitioner and Workman appear before the Appellate Authority on 6th January, 2022.”

Click here to read the Judgment

Judgment Reviewed by – Aryan Bajaj