Gujarat High Court Dismisses Municipal Corporation's Petition Challenging Gratuity Award Due to Smallness of Amount. Court declines to interfere with Controlling Authority's order granting Rs.91,298/- gratuity under Payment of Gratuity Act, 1972, on ground of low quantum, without entering into merits.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The petitioner, Commissioner of Junagadh Municipal Corporation, challenged the order dated 19.7.2025 passed by the Controlling Authority under the Payment of Gratuity Act, 1972 in Gratuity Application No.10 of 2025, which awarded gratuity of Rs.91,298/- with 10% interest to the respondent No.1, Govindbhai Dahyabhai Gori. The petitioner also challenged the appellate order dated 5.1.2026 passed by the Appellate Authority, Rajkot in Gratuity Appeal No.192 of 2025, which confirmed the Controlling Authority's order. The High Court noted that the total amount involved was very small, less than Rs.1,00,000/-. Considering the smallness of the amount, the Court opined that the petition did not warrant consideration under its writ jurisdiction. Accordingly, the petition was dismissed on that ground alone, with a clarification that this dismissal should not be considered as a precedent in other petitions. The Court did not enter into the merits of the case. The petitioner-Municipality was directed to deposit the gratuity amount as awarded by the Controlling Authority and to disburse it to the respondent No.1 after verifying bank details and following due procedure, through RTGS/NEFT, within eight weeks from the date of receipt of the order. Pending civil applications, if any, were disposed of, and interim relief, if any, stood vacated.

Headnote

A) Gratuity - Smallness of Amount - Writ Jurisdiction - Payment of Gratuity Act, 1972 - The High Court dismissed the petition solely on the ground that the amount involved (Rs.91,298/-) was small and did not warrant exercise of writ jurisdiction, clarifying that the dismissal should not be treated as a precedent and that the merits were not examined. (Paras 3-6)

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Issue of Consideration

Whether the High Court should entertain a writ petition challenging a gratuity award of a small amount (Rs.91,298/-) under its writ jurisdiction.

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Final Decision

The petition is dismissed on the ground of smallness of amount, with clarification that it shall not be treated as a precedent. The petitioner-Municipality is directed to deposit the gratuity amount as awarded and disburse it to respondent No.1 within eight weeks.

Law Points

  • Smallness of amount
  • writ jurisdiction not warranted
  • no precedent value
  • gratuity award
  • Payment of Gratuity Act
  • 1972
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Case Details

2026 LawText (GUJ) (03) 854

R/SPECIAL CIVIL APPLICATION NO. 2835 of 2026

2026-03-03

Hemant M. Prachchhak

2026:GUJHC:16538

Ms Sejal K Mandavia for Petitioner, Ms Roshni Patel AGP for Respondents 2,3

Commissioner, Junagadh Municipal Corporation

Govindbhai Dahyabhai Gori & Ors.

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Nature of Litigation

Writ petition challenging orders of Controlling Authority and Appellate Authority under the Payment of Gratuity Act, 1972.

Remedy Sought

Petitioner sought to quash the order dated 19.7.2025 of the Controlling Authority granting gratuity of Rs.91,298/- with 10% interest and the appellate order dated 5.1.2026 confirming it.

Filing Reason

Petitioner was aggrieved by the gratuity award and the dismissal of its appeal.

Previous Decisions

Controlling Authority granted gratuity of Rs.91,298/- with 10% interest on 19.7.2025; Appellate Authority confirmed the order on 5.1.2026.

Issues

Whether the High Court should entertain a writ petition challenging a gratuity award of a small amount (Rs.91,298/-) under its writ jurisdiction.

Submissions/Arguments

Petitioner raised various grounds in the memo of petition; however, the Court did not consider them on merits due to smallness of amount.

Ratio Decidendi

A writ petition challenging a gratuity award involving a small amount (less than Rs.1,00,000/-) does not warrant consideration under the High Court's writ jurisdiction, and such dismissal should not be treated as a precedent.

Judgment Excerpts

Considering the smallness of amount, this Court is of the opinion that the petition does not warrant consideration under its writ jurisdiction. Accordingly, only on the ground of smallness of amount with a further clarification that this may not be considered as precedent in other petitions, the petition is dismissed.

Procedural History

Controlling Authority under Payment of Gratuity Act, 1972 passed order on 19.7.2025 in Gratuity Application No.10 of 2025 granting gratuity of Rs.91,298/- with 10% interest. Petitioner appealed to Appellate Authority, Rajkot, which dismissed the appeal on 5.1.2026 in Gratuity Appeal No.192 of 2025. Petitioner then filed the present writ petition before the High Court.

Acts & Sections

  • Payment of Gratuity Act, 1972:
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