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Supreme Court of India

BIRLA INSTITUTE OF TECHNOLOGYversusTHE STATE OF JHARKHAND & ORS.

Citation
2019 INSC 1413
Decided
9 January 2019

Holding

The Court found a prima facie error in the earlier judgment and stayed its operation pending rehearing.

Summary

The Supreme Court allowed the appeal of Birla Institute of Technology against the State of Jharkhand on 7 January 2019, relying on the decision in Ahmedabad Pvt. Primary Teachers Association v. Administrative Officer. During the hearing it emerged that Parliament had subsequently amended the definition of “employee” under section 2(e) of the Payment of Gratuity Act by the 2009 Amendment Act, giving it retrospective effect from 3 April 1997. This amendment, which was not disclosed to the bench, could materially affect the legal position of the parties. The Court therefore found a prima facie error in the earlier judgment, stayed its operation, and ordered the matter to be reheard before an appropriate bench. The stay remains in force pending the rehearing.

Issues considered

  • Whether the amendment to the definition of ‘employee’ under s.2(e) of the Payment of Gratuity Act, made retrospectively, affects the correctness of the earlier judgment allowing the appeal.
  • Whether the earlier judgment should be stayed pending a fresh consideration in light of the amendment.

Legislation cited

Subjects

Payment of Gratuity Actdefinition of employeeretrospective amendmentstay of judgmentsuo motu jurisdictionCivil appealSupreme Court of India

Judgment

310                      [2019]REPORTS
               SUPREME COURT    1 S.C.R. 310               [2019] 1 S.C.R.


A                     BIRLA INSTITUTE OF TECHNOLOGY
                                        v.
                   THE STATE OF JHARKHAND & ORS.
                         (Civil Appeal No. 2530 of 2012)
B                             JANUARY 09, 2019
                     [ABHAY MANOHAR SAPRE AND
                        R. SUBHASH REDDY, JJ.]
             Payment of Gratuity Act – s.2(e) – Matter listed suo motu –
C     In this matter i.e. in Civil Appeal No. 2530 of 2012, judgment was
      passed on 7.1.2019 as reported in [2019] 1 S.C.R. 21 whereby
      appeal was allowed by relying on the decision in Ahmedabad Pvt.
      Primary Teachers Association v. Administrative Officer & Ors. –
      During the course of hearing of the appeal, it was not brought to
      the notice of the bench that pursuant to the decision in Ahmedabad
D     Pvt. Primary Teachers Association, the legislative amendment was
      made to the definition of “employee” under s.2(e) of the Payment
      of Gratuity Act with retrospective effect from 3.4.1997 – Prima facie,
      there is error in judgment dated 7.1.2019 – Operation of the
      judgment is stayed till the matter is reheard finally by appropriate
E     bench – Registry is directed to list the matter for rehearing before
      appropriate bench.
            Ahmedabad Pvt. Primary Teachers Association v.
            Administrative Officer & Ors. (2004) 1 SCC 755 :
            [2004] 1 SCR 470 – referred to.
F                             Case Law Reference
            [2004] 1 SCR 470          referred to             Para 2
            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2530
      of 2012.
G           From the Judgment and Order dated 02.04.2008 of the High
      Court of Jharkhand at Ranchi in LPA No. 53 of 2007.
            Shambo Nandy, Arijit Mazumdar, Ms. N. Annapoorani, Advs. for
      the Appellant.
            Anil Kumar Jha, Sunil Roy, Advs. for the Respondents.
H
                                       310
      BIRLA INSTITUTE OF TECHNOLOGY v. THE STATE OF                              311
                      JHARKHAND

       The following Order of the Court was passed:                              A
                                  ORDER
      On 07.01.2019 this Court delivered the judgment allowing the
appeal and setting aside the order of the High Court impugned therein.
      Today, we have listed the matter suo motu. The reason being that           B
during the course of hearing of the appeal it was not brought to the
notice of the Bench that 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             C
2009 with retrospective effect from 03.04.1997.
      In other words, though the definition was amended in 2009 by Act
No.47 of 2009, yet the same was given retrospective effect from
03.04.1997 so as to bring the amended definition on Statute Book, from
03.04.1997.                                                                      D
       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. It is for this reason, we prima facie find
error in the judgment and, therefore, are inclined to stay the operation of      E
our judgment dated 07.01.2019 passed in this appeal
      The judgment dated 07.01.2019 shall not be given effect to till the
matter is reheard finally by the appropriate Bench.
      The Registry is directed to list this matter for rehearing before the
                                                                                  F
appropriate Bench comprising of Hon’ble Mr.Justice Abhay Manohar
Sapre and Hon’ble Ms. Justice Indu Malhotra as early as possible.


Devika Gujral                              – Operation of earlier judgment stayed.
                                           – Matter to be reheard.                 G




                                                                                 H


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