Birla Institute of Technology Vs. The State of Jharkhand and Ors. - (Supreme Court) (07 Jan 2019)

Teacher is not an employee, he/she is not entitled to claim any gratuity amount from his employer under the Payment of Gratuity Act, 1972

MANU/SC/0014/2019

Service

This appeal is directed against the final judgment passed by the High Court whereby the Division Bench of the High Court dismissed the LPA filed by the Appellant herein. The Appellant is a premier technical educational institute of repute in the country. It is known as "Birla Institute of Technology" (BIT). Respondent No. 4 joined the Appellant-Institute as Assistant Professor on 16.09.1971 and superannuated on 30.11.2001 after attaining the age of superannuation.

Respondent No. 4 then made a representation to the Appellant and prayed therein for payment of gratuity amount which, according to Respondent, was payable to him by the Appellant under the Payment of Gratuity Act, 1972 ("The Act"). The Appellant, however, declined to pay the amount of gratuity as demanded by Respondent No. 4. Respondent No. 4, therefore, filed an application before the controlling authority under the Act against the Appellant and claimed the amount of gratuity which, according to him, was payable to him under the Act. The short question, which arises for consideration in present appeal, is whether the Courts below were justified in holding that Respondent No. 4 was entitled to claim gratuity amount from the Appellant (employer) under the Act.

As rightly argued by the learned Counsel for the Appellant, the issue involved in this appeal remains no longer res integra and is decided by this Court in Ahmadabad Pvt. Primary Teachers Association v. Administrative Officer and Ors. in favour of the Appellant. The question arose for consideration in the case of Ahmadabad Pvt. Primary Teachers Association as to whether "Teacher" could be regarded as an "employee" Under Section 2(e) of the Act and, if so, whether he/she is entitled to claim gratuity amount from his employer in accordance with the provisions of the Act. The two-Judge Bench examined this question in detail. Justice D.M. Dharmadhikari speaking for the Bench held that a teacher is not an employee within the meaning of the expression "employee" as defined Under Section 2(e) of the Act and hence he/she is not entitled to claim any gratuity amount from his employer under the Act.

Respondent No. 4, who was also a teacher and worked with the Appellant as such, was not eligible to claim gratuity amount from the Appellant (BIT) under the Act. The High Court though took note of the decision rendered in the case of Ahmadabad Pvt. Primary Teachers Association but erred in distinguishing it on the ground that it is applicable only to the primary teachers working in primary schools and since the case at hand is not a case of a primary teacher, it has no application to this case.

The High Court failed to see that, this Court had examined the expression "teacher" qua the expression "employee" defined in Section 2(e) of the Act and then held that "teacher" is not an employee within the meaning of Section 2(e) of the Act. Therefore, present Court cannot concur with the view taken by the High Court, which is not in conformity with the law laid down by this Court in the case of Ahmadabad Pvt. Primary Teachers Association. The impugned order is set aside. Appeal allowed.

Relevant : Ahmedabad Pvt. Primary Teachers Association v. Administrative Officer and Ors. MANU/SC/0032/2004

Tags : GRATUITY PAYMENT DIRECTION