Case Note & Summary
The Supreme Court, on 09.01.2019, suo motu listed Civil Appeal No.2530 of 2012 (Birla Institute of Technology v. State of Jharkhand & Ors.) to reconsider its judgment dated 07.01.2019. The earlier judgment had allowed the appeal and set aside the High Court's order, relying on Ahmedabad Pvt. Primary Teachers Association v. Administrative Officer & Ors. (2004) 1 SCC 755. However, the Court noted that this precedent had necessitated a retrospective amendment to Section 2(e) of the Payment of Gratuity Act, 1972 by Amending Act No.47 of 2009, effective from 03.04.1997. This amendment was not brought to the Bench's attention during the hearing, leading to a prima facie error in the judgment. Consequently, the Court stayed the operation of its earlier judgment and directed that it shall not be given effect until rehearing by an appropriate Bench comprising Justices Abhay Manohar Sapre and Indu Malhotra. The Registry was directed to list the matter for rehearing as early as possible.
Headnote
A) Payment of Gratuity Act - Retrospective Amendment - Section 2(e) - Definition of Employee - The Court suo motu stayed its own judgment dated 07.01.2019 because the retrospective amendment to Section 2(e) by Act No.47 of 2009 (effective from 03.04.1997) was not brought to its notice during the hearing, which had relevance to the decision. (Paras 1-4)
Issue of Consideration
Whether the judgment dated 07.01.2019 allowing the appeal was vitiated by non-consideration of the retrospective amendment to Section 2(e) of the Payment of Gratuity Act, 1972 by Act No.47 of 2009.
Final Decision
The Court stayed the operation of its judgment dated 07.01.2019 and directed that it shall not be given effect until rehearing. The matter was directed to be listed before a Bench comprising Justices Abhay Manohar Sapre and Indu Malhotra for rehearing as early as possible.
Law Points
- Retrospective amendment
- Payment of Gratuity Act
- Section 2(e)
- Suo motu review
- Error apparent on record
Case Details
Civil Appeal No.2530 of 2012
Abhay Manohar Sapre, R. Subhash Reddy
Shambo Nandy, Arijit Mazumdar, N. Annapoorani, Anil Kumar Jha, Sunil Roy
Birla Institute of Technology
The State of Jharkhand & Ors.
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Nature of Litigation
Civil appeal against the order of the High Court; subsequent suo motu reconsideration by the Supreme Court.
Remedy Sought
The appellant sought to set aside the High Court's order; later, the Court suo motu sought to correct an error in its own judgment.
Filing Reason
The Court found that its earlier judgment dated 07.01.2019 was passed without considering the retrospective amendment to Section 2(e) of the Payment of Gratuity Act.
Previous Decisions
The Supreme Court delivered judgment on 07.01.2019 allowing the appeal and setting aside the High Court's order.
Issues
Whether the judgment dated 07.01.2019 was vitiated by non-consideration of the retrospective amendment to Section 2(e) of the Payment of Gratuity Act.
Submissions/Arguments
Not mentioned; the Court acted suo motu.
Ratio Decidendi
A judgment based on a precedent that has been superseded by a retrospective amendment, without considering that amendment, is prima facie erroneous and warrants suo motu review and stay.
Judgment Excerpts
On 07.01.2019 this Court delivered the judgment allowing the appeal and setting aside the order of the High Court impugned therein.
the judgment of this Court in Ahmedabad Pvt. Primary Teachers Association vs. Administrative Officer & Ors. (2004) 1 SCC 755 on which the reliance was placed for allowing the appeal necessitated the Parliament to amend the definition of 'employee' under Section 2(e) of the Payment of Gratuity Act by Amending Act No.47 of 2009 with retrospective effect from 03.04.1997.
Keeping in view the amendment made in the definition of Section 2(e), which as stated above was not brought to the notice of the Bench, this issue was not considered though had relevance for deciding the question involved in the appeal.
we prima facie find error in the judgment and, therefore, are inclined to stay the operation of our judgment dated 07.01.2019 passed in this appeal
Procedural History
The Supreme Court delivered judgment on 07.01.2019 allowing the appeal. On 09.01.2019, the Court suo motu listed the matter and stayed its own judgment, directing rehearing.
Acts & Sections
- Payment of Gratuity Act, 1972: Section 2(e)
- Payment of Gratuity (Amendment) Act, 2009: Act No.47 of 2009
