Case Note & Summary
The Petitioner, Noor Mohammed Abdul Rehman Mulla, a retired employee, challenged the judgment and order dated 26 March 2021 passed by the Industrial Court, Mumbai in Appeal No.55 of 2019. The Industrial Court had allowed the appeal filed by the Respondents, BCJ Hospital and its CEO, under Section 7(vii) of the Payment of Gratuity Act, 1972, setting aside the order dated 26 July 2019 of the Controlling Authority & Labour Court, Mumbai, which had held the Petitioner entitled to gratuity of Rs.2,69,165/- with 10% interest. The Petitioner had worked for the Respondents for about 30 years. The Respondents contended that the Petitioner had abandoned service, but the Controlling Authority found that the Petitioner had worked continuously and was entitled to gratuity. The Industrial Court reversed this, holding that the Petitioner had abandoned service. The High Court examined the evidence and found that the Respondents failed to prove abandonment. The Court noted that the Petitioner had worked for 30 years and there was no material to show intention to abandon. The Court held that the burden to prove abandonment lies on the employer, which was not discharged. The High Court allowed the petition, set aside the Industrial Court's order, and restored the Controlling Authority's order granting gratuity with interest.
Headnote
A) Gratuity - Continuous Service - Abandonment - Payment of Gratuity Act, 1972, Sections 4, 7 - The issue was whether the Petitioner, who worked for 30 years, was entitled to gratuity despite the employer's claim of abandonment. The Court held that the employer failed to prove abandonment, and the Petitioner's continuous service entitled him to gratuity. (Paras 1-11) B) Gratuity - Burden of Proof - Abandonment - Payment of Gratuity Act, 1972, Section 4 - The burden to prove abandonment lies on the employer. The Court held that mere absence without evidence of intention to abandon does not disentitle an employee to gratuity. (Paras 8-10)
Issue of Consideration
Whether the Industrial Court erred in setting aside the Controlling Authority's order granting gratuity to the Petitioner on the ground of abandonment of service.
Final Decision
The High Court allowed the petition, set aside the Industrial Court's order dated 26 March 2021, and restored the Controlling Authority's order dated 26 July 2019 granting gratuity of Rs.2,69,165/- with interest at 10% per annum.
Law Points
- Gratuity entitlement
- continuous service
- abandonment of service
- burden of proof
- Payment of Gratuity Act
- 1972
