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2004 (1) TMI 639

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..... important question of law against the teachers as a class that they do not fall within the definition of 'employee' as contained in Section 2(e) of the Act and hence can raise no claim to gratuity under the Act. The definition of employee contanned in section 2(e) of the Act of 1972 reads as under- '2(e). 'employee' means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, olifield, plantation, port, railway company or shop, to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity]. [Italics giving emphasis] One of the learned Judges of the High Court in his separate concurring opinion held that as gratuity payable to teachers employed in schools of Ahmedabad Municipal Corporation are governed by statutory regulations known as 'Gratuity Regulations of the Munici .....

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..... given freely voluntarily or without recompense. It is sort of financial assistance to tide over post-retiral hardships and inconveniences. The following important words and expressions in the definitions clause 2(e) are before us for consideration and interpretation in the light of the arguments advanced which project different points of view:- 2(e). '2(e). 'employee' means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, olifield, plantation, port, railway company or shop, to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work......................... whether or not such person is employed in a managrial or administrative capacitv [Italics giving emphasis] The learned counsel appearing for the Teacher's Association and also the learned Amicus Curiae very strenuously urged that a beneficial, purposeful and wide interpretation should be placed on the definition of employee in section 2(e) of the Act particularly in the light of the fact that earlier in the definition clause, there was an income limit of wages being not more than Rs. 2.300 per month, for extending coverage of gratuity benefit .....

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..... ll the words 'skilled', 'semi-skilled', 'unskilled', 'manual', 'supervisory', 'technical', or 'clerical', because of the commas in between them have to be read disjunctively and they all qualify the word 'work' which is mentioned at the end of all these words. We have critically examined the definition clause in the light of the arguments advanced on either side and have compared it with the definitions given in other labour enactments. On the doctrine of 'pari matreria, reference to other statutes dealing with the same subject or forming pan of the same system is a permissible aid to the construction of provisions in a statute. See the following observations contained in Principles of Statutory Interpretation by G.P. Singh [8th Ed.]-Synopsis 4 at pg. 235 to 239:- 'Statutes in Pari Materia:- It has already been seen that a statute must be read as a whole as words are to be understood in their context. Extension of this rule of context permits reference to other statutes in pari materia i.e. statutes dealing with the same subject matter or forming part of the same system. Viscount Simonds in a passage already noticed conceived it to be a right and duty to construe every word of .....

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..... ned in section 2(i) of the Minimum Wages Act. 1948 came up for consideration before this Court in the case of Haryana Unrecognised Schools' Association v. State of Haryana, [1996] 4 SCC 225. In section 2(i) of the Minimum Wages Act. the word 'employee is defined to mean: 'any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in a scheduled employment in respect of which minimum rates of wages have been fixed". This Court held that as teachers are not employed for any skilled or unskilled, manual or clerical work, it is not open to the State Government to include their employment as a scheduled employment under the Minimum Wages Act. The relevant observations need to be quoted:- "A combined reading of sections 3, 2 (i) and 27 of the Minimum Wages Act. 1948 and the Statement of Objects and Reasons of the legislation makes it explicitly clear that the State Government can add to either part of the Schedule any employment where persons are employed for hire or reward to do any work skilled or unskilled, manual or clerical. If the persons employed do not do the work of any skilled or unskilled or of a manual or clerical nature then it .....

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..... xpansive. It has to be understood as excluding 'teachers' who are not doing any kind of skilled or unskilled, manual, supervisor), managerial, administrative, technical or clerical work. It is not disputed that by notification dated 3rd April. 1997. issued in exercise of powers, under section l(3)(c) of| the Payment of Gratuity Act, 1972. the Gratuity Act is extended to educational institutions in which ten or more persons are employed or were employed on any day preceding 12 months. I he relevant part of the notification leads as under:- IN EDUCATIONAL INSTITUTIONS 'Notification No. 5-42013/1/95-SS II. Dated 3rd APRIL 1997-In exercise of the powers conferred by CI. (c) of sub-clause (3) of Sec 1 of the Payment of Gratuity Act. l972, (39 of 1972). the Central Government hereby specifies the educational institutions in which ten or more persons are employed or were employed on any day preceding 12 months as a class of establishments to which the said Act shall apply effect from the date of publication of this notification. Provided that nothing contained in this notification shall effect the operation of the notification of the Ministry of Labour S.O. 239 dated 8th Janua .....

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..... words found in immediate connection with them. The actual order of these three words in juxtaposition indicates that meaning of one takes colour from the other. The rule is explained differently; 'that meaning of doubtful words may be ascertained by reference to the meaning of words associated with it.' [See Principles of Statutory Interpretation by Justice G.P. Singh (8th E.d.), Syn. 8 at pg. 379. The word 'unskilled' is opposite of the word 'skilled' and the word 'semi- skilled', seems to describe a person who falls between the two categories i.e. he is not fully skilled and also is not completely unskilled but has some amount of skill for the work for which he is employed. The word 'unskilled' cannot, therefore, be understood dissociated from the word 'skilled' and 'semi-skilled to read and construe it to include in it all categories of employees irrespective of the nature of employment. If the Legislature intended to cover all categories of employees for extending benefit of gratuity under the Act, specific mention of categories of employment in the definition clause was not necessary at all. Any construction of definition clause which renders it superfluous or otiose has t .....

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