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Supreme Court of India

SR. SUPERINTENDENT OF POST OFFICESversusGURSEWAK SINGH & ORS.

Citation
2019 INSC 387
Decided
15 March 2019
Disposal
Appeal(s) allowed

Holding

A Gramin Dak Sewak is not an ‘employee’ under the Payment of Gratuity Act, 1972 and, because the 2011 Rules expressly bar gratuity on voluntary resignation, he is not entitled to gratuity.

Issues considered

  • Whether a Gramin Dak Sewak is an ‘employee’ as defined in Section 2(e) of the Payment of Gratuity Act, 1972 and thus entitled to gratuity under that Act.
  • Whether a Gramin Dak Sewak is eligible for gratuity under the Gramin Dak Sewak (Conduct and Engagement) Rules, 2011 when he resigns voluntarily.

Legislation cited

Subjects

Payment of Gratuity Actemployee definitionextra‑departmental agentgratuity entitlementvoluntary resignationstatutory interpretationestablishmentservice rules vs. statute

Judgment

                        [2019] 2 S.C.R. 1025                              1025


           SR. SUPERINTENDENT OF POST OFFICES                             A
                                  v.
                   GURSEWAK SINGH & ORS.
                   (Civil Appeal No. 3150 of 2019)
                          MARCH 15, 2019                                  B
    [UDAY UMESH LALIT AND INDU MALHOTRA, JJ.]
      Payment of Gratuity Act, 1972:
      ss. 4(1) and 2(e) – Gramin Dak Sewak – Payment of gratuity
under the 1972 Act – Entitlement of – Held: Gramin Dak Sewak-
                                                                          C
respondent No. 1 not entitled to payment of gratuity – s. 2(e) defining
term ‘employee’ specifically excludes persons who are governed by
any Act, or Rules providing for payment of Gratuity – Gramin Dak
Sewaks are engaged as Extra Departmental Agents, a post governed
by the Gramin Dak Sewak Rules, 2011, having a separate provision
for payment of Gratuity to the Extra Departmental Agents – Thus,          D
Gramin Dak Sewak is not an “employee” under the 1972 Act – In
terms of r. 6(13) no Gratuity is payable if an Extra-Departmental
Agent quits the agency on his own – On facts, respondent No. 1
tendered his resignation and order accepting his resignation was
passed u/r. 6(13) permitting respondent no. 1 to quit the services of
                                                                          E
the Gramin Dak Sewak as per his voluntary resignation – Thus,
respondent no. 1 became disentitled from the payment of gratuity
under the 2011 Rules applicable to Gramin Dak Sewaks – Gramin
Dak Sewak (Conduct and Engagement) Rules, 2011 – rr. 6(1), 6(13),
3-A (i).
                                                                          F
      Allowing the appeals, the Court
      HELD: 1.1 Section 1(3)(b) of the Payment of Gratuity Act,
1972 Act applies to every ‘establishment’ within the meaning of
“any law” for the time being in force. The Post Office Act, 1898
would fall under the expression ‘law’ in Section 1(3)(b). Thus,
the Post & Telegraphs Department would be an ‘establishment’              G
under the 1972 Act. [Para 9.1][1043-D, G]
      1.2 Section 4(1) of the 1972 Act, provides for payment of
Gratuity to an employee on the termination of his employment,
subject to the condition that he must have rendered a minimum
                                                                          H
                                 1025
1026               SUPREME COURT REPORTS                [2019] 2 S.C.R.


 A     of 5 years’ continuous service. Section 2(e) of the 1972 Act,
       however specifically excludes persons who are governed by any
       Act, or Rules providing for payment of Gratuity. Section 4 of the
       1972 Act, states that “Gratuity shall be payable to an employee”.
       The term ‘employee’ is defined by Section 2(e) of the 1972 Act.
       Section 2(e) of the 1972 Act excludes persons who hold a post
 B
       with the Central or State Government and are governed by any
       other Act or rules providing for payment of gratuity. Gramin Dak
       Sewaks are engaged as Extra Departmental Agents, a post
       governed by the Gramin Dak Sewak (Conduct and
       Engagement) Rules, 2011. These Rules have a separate provision
 C     for payment of Gratuity to the Extra Departmental Agents. A
       Gramin Dak Sewak is not an “employee” under the 1972 Act.
       [Para 9.2-9.4][1035-H; 1037-D-F]
              1.3 The 2011 Rules provide that Gramin Dak Sewaks are
       Extra-Departmental Agents, who are outside the Civil Service of
 D     the Union, and shall not claim to be at par with the Central
       Government Employees. The Extra-Departmental Agents are
       engaged by the Department of Posts & Telegraphs to cater to
       the postal requirements in the rural and remote areas. The system
       avails the services of schoolmasters, shopkeepers, landlords, and
       such other persons in a village who have a reasonable standard
 E     of literacy, and adequate means of livelihood, and can therefore
       assist the Department on a part-time basis by way of gainful
       avocation, to provide service to the rural communities for their
       postal requirements. Rule 3-A(i) of the 2011 Rules provides that
       the Gramin Dak Sewaks shall not be required to perform duties
 F     beyond a maximum period of 5 hours a day. This shows the
       avocational nature of the service. Rule 6(1) of the 2011 Rules
       provides for payment of gratuity to Gramin Dak Sewaks. However,
       Rule 6(13) states that no Gratuity is payable if an
       Extra-Departmental Agent quits the agency on his own.
       [Para 10.1][1037-H; 1038-A-D]
 G
             1.4 In the instant case, respondent No. 1 tendered his
       resignation in 2014. The appellant-Department accepted his
       resignation. The order accepting the resignation of respondent
       No. 1 was passed under Rule 6(13) permitting respondent No. 1
       to quit the services of the Gramin Dak Sewak as per his voluntary
 H
    SR. SUPTD. OF POST OFFICES v. GURSEWAK SINGH                       1027


resignation. As a consequence of his resignation, respondent           A
No. 1 became disentitled from the payment of Gratuity under the
statutory 2011 Rules applicable to Gramin Dak Sewaks.
[Para 10.2][1038-E; 1039-A-B]
      1.5 The impugned Orders passed by the High Court are
set-aside. [Para 11][1039-B]                                           B
      Senior Superintendent of Post Officers, Jalandhar
      Division, Jalandhar v. Darshan Ram (through LRs) &
      Ors. 2014 (9) SCT 120 (DB) ; Senior Superintendent
      of Post Officers v. Smt. Sham Duiari & Ors. 2006 (3)
      SCT 577 ; State of Punjab v. Labour Court Jalandhar              C
      (1980) 1 SCC 4 : [1980] 1 SCR 953 ; Superintendent
      of Post Officers v. PK Rajamma (1997) 3 SCC 94 ;
      Union of India v. Kameshwar Prasad (1997) 11 SCC
      650 - referred to.
                      Case Law Reference                               D
2014 (9) SCT 120 (DB)          referred to            Para 4.6
2006 (3) SCT 577               referred to            Para 4.6
[1980] 1 SCR 953               referred to            Para 8.1
(1997) 3 SCC 94                referred to            Para 9.4         E
(1997) 11 SCC 650              referred to            Para 9.4
      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3150
of 2019.
      From the Judgment and Order dated 01.12.2017 of the High Court   F
of Punjab & Haryana at Chandigarh in LPA No. 1612 of 2017.
                               WITH
      Civil Appeal No. 3151 of 2019
      Vikramjit Banerjee, ASG., R. Balasubramanian, V. V. V.
Pattabhiram, P. V. Yogeswaran, Nachiketa Joshi, Vaibhav Chadha,        G
Risabh Jain, Gurmeet Singh Makker, Advs. for the Appellant.
     Bharat Sangal (A.C.), Ms. Babita Kushwaha, Ms. Isha Gupta,
Ms. Anindita Deka, Advs. for the Respondents.

                                                                       H
1028                SUPREME COURT REPORTS                     [2019] 2 S.C.R.


 A           The Judgment of the Court was delivered by
             INDU MALHOTRA, J.
             1. Leave granted in both the special leave petitions.
             2. A common question of law arises in both the appeals which
 B     are being disposed of by a common judgment. The facts in Sr.
       Superintendent of Post Offices v. Gursewak Singh & Ors. are being
       considered as the lead case.
             3. The present Civil Appeal has been filed against the Order
       dated 01.12.2017 passed by a Division Bench of the Punjab & Haryana
 C     High Court at Chandigarh in LPA No. 1612 of 2017.
             4. The factual matrix of the case, briefly stated, is as under:
                 4.1. On 26.06.1991, Respondent No. 1 was engaged as a
                      Gramin Dak Sewak i.e. an Extra-Departmental Agent,
                      to work on a part-time basis in the Postal Department at
 D                    Faridkot, Punjab.
                 4.2. In 2014, Respondent No. 1 voluntarily resigned from
                      the said part-time job. On 28.08.2014, the Department
                      accepted the resignation, and Respondent No. 1 was
                      discharged with immediate effect.
 E               4.3. Respondent No. 1 approached the Controlling Authority-
                      cum-Assistant Labour Commissioner, Central Jalandhar,
                      seeking gratuity under the Payment of Gratuity Act, 1972
                      (herein after referred to as “the 1972 Act”).
                 4.4.The Appellant – Department took the stand that
 F                   Respondent No. 1 was not entitled to ex-gratia gratuity
                     under the Gramin Dak Sewak (Conduct & Engagement)
                     Rules, 2011 as he had voluntarily resigned from the job.
                     The Controlling Authority-cum-Assistant Labour
                     Commissioner, Central Jalandhar, vide Order
 G                   dated 21.09.2015, allowed the claim of Respondent
                     No. 1 and directed the Department to pay an amount of
                     Rs. 1,06,021/- along with Interest @ 10% p.a. from
                     28.08.2014.


 H
        SR. SUPTD. OF POST OFFICES v. GURSEWAK SINGH                             1029
                     [INDU MALHOTRA, J.]

               4.5. The Department filed an Appeal u/S. 7(7) of the 1972         A
                    Act, against the Order dated 21.09.2015 before the
                    Deputy Chief Labour Commissioner (Central) Kendriya
                    Sadan, Chandigarh.
                      The Appellate Authority vide Order dated 17.05.2016
                    dismissed the Appeal filed by the Appellant –                B
                    Department, and upheld the Order dated 21.09.2015
                    passed by the Controlling Authority-cum-Assistant
                    Labour Commissioner, Central Jalandhar.
               4.6. The Department filed C.W.P. No. 11412 of 2017 before
                    the Punjab & Haryana High Court at Chandigarh under
                    Article 226/227 of the Constitution against the Order        C
                    dated 17.05.2016.
                      The learned Single Judge vide Oder dated 23.05.2017
                   dismissed the Writ Petition filed by the Department relying
                   upon earlier judgments passed by the same High Court
                   in Senior Superintendent of Post Officers, Jalandhar          D
                   Division, Jalandhar v. Darshan Ram (through LRs)
                   & Ors.1 and Senior Superintendent of Post Officers
                   v. Smt. Sham Duiari & Ors.2
               4.7. The Department challenged the Order dated 23.05.2017
                    passed by the Single Judge by way of LPA No. 1612            E
                    of 2017 before the Punjab & Haryana High Court at
                    Chandigarh.
                        The division bench of the Punjab & Haryana High
                    Court at Chandigarh on 01.12.2017, dismissed the LPA
                    filed by the Department on the ground that SLPs filed        F
                    against the earlier judgments had been dismissed by this
                    Court. As a consequence, the judgment of the learned
                    Single Judge did not warrant interference.
               4.8. The Department has filed the present Appeal to challenge
                    the Judgment and Order dated 01.12.2017 passed by a          G
                    division bench of the High Court.
      5. We have heard the learned ASG Mr. Vikramjit Banerjee for
the Appellant – Department. Mr. Bharat Sangal, Advocate
was appointed as Amicus Curiae vide Order dt. 10.12.2018 to represent
1
    2014 (9) SCT 120 (DB)                                                        H
2
    2006 (3) SCT 577
1030                SUPREME COURT REPORTS                     [2019] 2 S.C.R.


 A     the interest of the Respondents who did not appear, despite service being
       effected on them.
              We have perused the pleadings and written submissions
       filed by both parties.
             6. The issues which arise for consideration are as follows:
 B
                  6.1. Whether a Gramin Dak Sewak is an ‘employee’ as per
                       Section 2(e) of the 1972 Act, and is entitled to payment
                       of Gratuity under this Act?
                  6.2. Whether a Gramin Dak Sewak is eligible for payment
 C                     of Gratuity under the 2011 Rules upon voluntary
                       resignation?
            7. The learned ASG appearing on behalf of the Department
       submitted that :
                  7.1. The Gramin Dak Sewaks constitute a unique
 D                    department of posts. The persons working as Gramin
                      Dak Sewaks are not regular departmental employees
                      but “extra-departmental agents”, who work on a part
                      time basis for a few hours every day; and, have an
                      independent source of livelihood. They are permitted to
                      work upto the age of 65 years.
 E
                  7.2. The Gramin Dak Sewaks are governed by the 2011
                       Rules, which form a complete and separate code
                       providing for the recruitment, gratuity, conduct, and
                       disciplinary proceedings of Gramin Dak Sewaks.
 F                         The terms and conditions of their engagement are
                       governed by Rule 3-A of the 2011 Rules, which reads as
                       under :
                          “3-A Terms and Conditions of Engagement
                         (i)    A Sevak shall not be required to perform
 G                              duty beyond a maximum Period of 5 hours
                                in a day;
                         (ii)   A Sevak shall not be retained beyond 65
                                years of age;

 H
SR. SUPTD. OF POST OFFICES v. GURSEWAK SINGH                      1031
             [INDU MALHOTRA, J.]

          (iii)   A Sevak shall have to give an undertaking       A
                  that he has other sources of income besides
                  the allowances paid or to be paid by the
                  Government for adequate means of
                  livelihood for himself and his family;
          (iv)    A Sevak can be transferred from one post        B
                  unit to another post/unit in public interest;
          (v)     A Sevak shall be outside the Civil Service of
                  the Union;
          (vi)    A Sevak shall not claim to be at par with the
                  Central Government employees;                   C

          (vii) Residence in post village/delivery
                jurisdiction of the Post Office within one
                month after selection but before engagement
                shall be mandatory for a Sevak:;
                                                                  D
                    Failure to reside in place of duty for GDS
                  BPM & within delivery jurisdiction of the
                  Post Office for other categories of Gramin
                  Dak Sevaks after engagement shall be
                  treated as violative of conditions of
                  engagement and liable for disciplinary          E
                  action under Rule 10 of the Conduct rules,
                  requiring removal/dismissal;
          (viii) Post Office shall be located in the
                 accommodation to be provided by Gramin
                 Dak Sevak Branch Postmaster suitable for         F
                 use as Post Office premises;
          (ix)    Combination of duties of a Sevak shall be
                  permissible;”
                                           (emphasis supplied)
                                                                  G
        A reading of Rule 3-A(iii) of the 2011 Rules, makes it
    abundantly clear that a Gramin Dak Sewaks must have an
    independent means of livelihood. The Gramin Dak Sewaks
    are engaged on a part-time basis for a maximum of 3 to 5

                                                                  H
1032          SUPREME COURT REPORTS                     [2019] 2 S.C.R.


 A         hours a day. Rule 3-A(v) and (vi) stipulate that a Gramin
           Dak Sewak shall be outside the Civil Service of the Union,
           and shall not claim to be at par with the servants of the
           Government.
       7.3. It was further submitted on behalf of the Appellant –
 B          Department that the part-time employment of Gramin Dak
            Sewaks is governed by a separate scheme, since they do not
            form part of the regular cadre, and cannot be treated to be in
            the main service or class of service. Gratuity is payable to
            them in accordance with the Gramin Dak Sewak (Conduct
            & Engagement) Rules, 2011.
 C
               Rule 6(1) of the 2011 Rules provides for payment of ex
           gratia gratuity to Gramin Dak Sewaks. Rule 6(13) of the
           2011 Rules provides that no gratuity is payable to a Gramin
           Dak Sewak, if he resigns from the agency on his own, except
           on medical grounds.
 D
               Rule 6(1) and (13) of the 2011 Rules read as under :
            “(1) Payment of ex-gratia gratuity. – The question of
            grant of some kind of purely ex gratia monetary grant
            to ED Agents working in the Indian Posts and
            Telegraphs Department on termination of their services
 E          has been under consideration for a long time. It has
            been decided as follows :-
            1. ED Agents as defined in P & T Extra Departmental
               Agents (Conduct and Service) Rules, 1964, whose
               services are terminated otherwise than (i) for
 F             unsatisfactory word or (ii) as a measure of
               disciplinary action or (iii) in consequence of their
               being appointed in a regular post under the P & T
               Department, may be sanctioned monetary grants
               termed as ‘Gratuity’, provided that they have put in
               not less than ten years of continuous satisfactory
 G
               service as Ed Agents.”
            “(13) No gratuity to ED Agent who quits the agency on
            his own. – The question of extending the benefit of grant
            of ex gratia gratuity to ED Agents who have to resign
            on account of circumstances beyond their control was
 H
        SR. SUPTD. OF POST OFFICES v. GURSEWAK SINGH                           1033
                     [INDU MALHOTRA, J.]

                 taken up with the Ministry of finance. It has been            A
                 decided that no ex gratia gratuity will be paid to ED
                 Agents in such cases. It is, therefore, clarified that
                 according to the present orders, gratuity is payable only
                 if the services of an ED Agent are terminated in
                 consequence of an action of the department, subject to
                                                                               B
                 their fulfillment of the other prescribed conditions and
                 that no gratuity is payable if an ED Agent quits the
                 agency on his own. The services of an ED Agent should
                 not be terminated when he himself quits the job. In such
                 cases, an order permitting the ED Agent to quit the
                 services on his own should be issued so that the order        C
                 may not be construed as an order of termination of
                 service. “
                                                    (emphasis supplied)
       8. Mr. Bharat Sangal, learned Amicus Curiae, represented
the interest of the Respondents before this Court. The learned Counsel         D
inter alia submitted that :
               8.1. The Payment of Gratuity Act, 1972 applies to every place
                    defined as an ‘establishment’ within the meaning of any
                    law for the time being in force in a state.
                        To determine the applicability of the Payment of       E
                   Gratuity Act, 1972 it must be seen whether the place is
                   defined as an establishment under the law applicable to
                   the State. Reliance was placed on the judgment of State
                   of Punjab v. Labour Court Jalandhar3 wherein this
                   Court held that an establishment falling within the         F
                   definition of Section 2(ii)(g) of the Payment of Wages
                   Act, 1936 would be covered by the Payment of Gratuity
                   Act, 1972.
                        It was contended that the Postal Department is an
                   establishment within the meaning of the term used in
                                                                               G
                   Section 2(ii)(g) of the Payment of Wages Act, 1936 and
                   the 1972 Act, would be applicable to its employees.
               8.2. Section 1(3) of the 1972 Act, provides for payment of
                   gratuity to employees of every factory, mine, oilfield,
3
    (1980) 1 SCC 4                                                             H
1034     SUPREME COURT REPORTS                     [2019] 2 S.C.R.


 A         plantation, port, railway company, shop or establishment.
           Section 1(3) of the 1972 Act reads as under :
               “1.Short title, extent,          application     and
               commencement.-
               (3) It shall apply to-
 B
               (a) every factory, mine, oilfield, plantation, port
               and railway company;
               (b) every shop or establishment within the
               meaning of any law for the time being in force in
 C             relation to shops and establishments in a State, in
               which ten or more persons are employed, or were
               employed, on any day of the preceding twelve
               months;
               (c) such other establishments or class of
 D             establishments, in which ten or more employees
               are employed, or were employed, on any day of
               the preceding twelve months, as the Central
               Government may, by notification, specify in this
               behalf.”
                                              (emphasis supplied)
 E
       8.3. It was further submitted that Section 14 of the 1972
            Act, specifically provides that the Act would apply
           “notwithstanding anything inconsistent therewith
           contained       in    any     other     enactment”.
           Section 14 of the 1972 Act reads as under :
 F
               “14. Act to override other enactments, etc.—
               The provisions of this Act or any rule made
               thereunder shall have effect notwithstanding
               anything inconsistent therewith contained in any
               enactment other than this Act or in any instrument
 G             or contract having effect by virtue of any
               enactment other than this Act.”
       8.4. Section 4(1)(b) of the 1972 Act provides that gratuity
            would be payable to an employee even on his resignation.
            Thus, any rule barring payment of gratuity to an employee
 H
        SR. SUPTD. OF POST OFFICES v. GURSEWAK SINGH                           1035
                     [INDU MALHOTRA, J.]

                    who resigns, would be contrary to Section 14 read with     A
                    Section 4(1)(b) of the 1972 Act.
               8.5. It was further submitted that the Department of Posts,
                    Gramin Dak Sewak (Conduct and Employment) Rules,
                    2001 were superseded and replaced by the Department
                    of Posts, Gramin Dak Sewak (Conduct and
                                                                               B
                    Engagement) Rules, 2011.
                      Under the amended 2011 Rules the term “employment
                    appointment” has been replaced by “engagement”. The
                    amended Rule 6 pertains to payment of ex gratia Gratuity
                    to Gramin Dak Sewaks.
                                                                               C
       9. The first issue to be determined is whether a Gramin Dak
Sewak is an ‘employee’ as per Section 2(e) of the 1972 Act, and is
entitled to payment of Gratuity under this Act?
            9.1. Section 1(3)(b) of the 1972 Act applies to every
                 ‘establishment’ within the meaning of “any law” for the
                 time being in force.                                          D
                     This Court in State of Punjab v. Labour Court
                 Jalandhar4 has held that there is no reason for limiting
                 the meaning of the expression ‘law’ in Section 1(3)(b) of
                 the 1972 Act.
                    The Postal Department is as an establishment under         E
                 Section 2(k) of the Indian Post Office Act, 1898 which
                 reads as under :
                     “2. Definitions.-
                       (k) the expression “Post Office” means the
                       department, established for the purposes of             F
                       carrying the provisions of this Act into effect and
                       presided over by the Director General.”
                                                       (emphasis supplied)
                        The Indian Post Office Act, 1898 would fall under
                                                                               G
                    the expression ‘law’ in Section 1(3)(b). Consequently,
                    the Post & Telegraphs Department would be an
                    establishment under the 1972Act.
               9.2. Section 4(1) of the 1972 Act, provides for payment of
                    Gratuity to an employee on the termination of his
4
    (1980) 1 SCC 4                                                             H
1036     SUPREME COURT REPORTS                   [2019] 2 S.C.R.


 A         employment, subject to the condition that he must have
           rendered a minimum of 5 years’ continuous service.
             Section 4(1) of the 1972 Act reads as under :
               “4. Payment of Gratuity.-
 B             (1) Gratuity shall be payable to an employee on
               the termination of his employment after he has
               rendered continuous service for not less than five
               years,-
               (a) on his superannuation, or
 C             (b) on his retirement or resignation,
               (c) on his death or disablement due to accident
               or disease:
               Provided that the completion of continuous service
               of five years shall not be necessary where the
 D
               termination of the employment of any employee
               is due to
               death or disablement:
               Provided further that in case of death of the
 E             employee, gratuity payable to him shall be paid
               to his nominee or, if no nomination has been made,
               to his heirs, and where any such nominees or heirs
               is minor, the share of such minor, shall be
               deposited with the Controlling Authority who shall
               invest the same for the benefit of such minor in
 F             such bank or other financial institution, as may
               be prescribed, until such minor attains majority.
               Explanation.- For the purposes of this section,
               disablement means such disablement as
               incapacitates an employee for the work which he
 G             was capable of performing before the accident
               or disease resulting in such disablement.”
                                               (emphasis supplied)
       9.3. Section 4 of the 1972 Act, states that “Gratuity shall
            be payable to an employee”.
 H
     SR. SUPTD. OF POST OFFICES v. GURSEWAK SINGH                          1037
                  [INDU MALHOTRA, J.]

                      The term ‘employee’ is defined by Section 2(e) of    A
                  the 1972 Act, as under :
                      “2. Definitions.- In this Act, unless the context
                      otherwise requires,-
                      (e) “employee” means any person (other than an
                      apprentice) who is employed for wages, whether       B
                      the terms of such employment are express or
                      implied, in any kind of work, manual or otherwise,
                      in or in connection with the work of a factory,
                      mine, oilfield, plantation, port, railway company,
                      shop or other establishment to which this Act        C
                      applies, 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;”
                                                                           D
                                                    (emphasis supplied)
                 Section 2(e) of the 1972 Act, however specifically
excludes persons who are governed by any Act, or Rules providing for
payment of Gratuity.
           9.4. Section 2(e) of the 1972 Act excludes persons who          E
                hold a post with the Central or State Government and
                are governed by any other Act or rules providing for
                payment of gratuity.
                     Gramin Dak Sewaks are engaged as Extra
                Departmental Agents, a post governed by the 2011
                Rules. 5 These Rules have a separate provision for         F
                payment of Gratuity to the Extra Departmental Agents.
                    A Gramin Dak Sewak is not an “employee” under
                the 1972 Act. The first issue is answered accordingly.
       10. The second issue is whether a Gramin Dak Sewak is eligible
for payment of Gratuity upon voluntary resignation under the 2011 Rules?   G
            10.1.The 2011 Rules provide that Gramin Dak Sewaks are
                 Extra-Departmental Agents, who are outside the Civil
                 Service of the Union, and shall not claim to be at par
5
 Superintendent of Post Officers v. PK Rajamma; (1997) 3 SCC 94
See also Union of India v. Kameshwar Prasad; (1997) 11 SCC 650             H
1038     SUPREME COURT REPORTS                     [2019] 2 S.C.R.


 A          with the Central Government Employees. The Extra
            Departmental Agents are engaged by the Department
            of Posts & Telegraphs to cater to the postal requirements
            in the rural and remote areas. The system avails the
            services of schoolmasters, shopkeepers, landlords, and
            such other persons in a village who have a reasonable
 B
            standard of literacy, and adequate means of livelihood,
            and can therefore assist the Department on a part-time
            basis by way of gainful avocation, to provide service to
            the rural communities for their postal requirements.
                 Rule 3-A(i) of the 2011 Rules provides that the
 C          Gramin Dak Sewaks shall not be required to perform
            duties beyond a maximum period of 5 hours a day. This
            shows the avocational nature of the service.
                 Rule 6(1) of the 2011 Rules provides for payment
            of gratuity to Gramin Dak Sewaks. However, Rule
 D          6(13) states that no Gratuity is payable if an Extra
            Departmental Agent quits the agency on his own.
       10.2.In the present case, Respondent No. 1 tendered his
            resignation in 2014. The Appellant – Department
            accepted his resignation vide letter dated 28.08.2014.
            The Order dated 28.08.2014 accepting the resignation
 E          of Respondent No. 1 reads as under :
               “ The unconditional resignation dated nil
               submitted by Sh. Gursewak Singh from the post
               of GDSBPM Assa Butter in a/c with Bariwala SO
               is hereby accepted with immediate effect.
 F
               Usual charge Reports should be sent to all
               concerned.
                                                             Sd/-
                               THE SUPDT OF POST OFFICES
                                           FARIDKOT DIVISION
 G
                                          FARIDKOT – 151203 “
                                               (emphasis supplied)
           The Order was passed under Rule 6(13) permitting
       Respondent No. 1 to quit the services of the Gramin Dak
       Sewak as per his voluntary resignation.
 H
      SR. SUPTD. OF POST OFFICES v. GURSEWAK SINGH                             1039
                   [INDU MALHOTRA, J.]

                  As a consequence of his resignation, Respondent No. 1        A
             became disentitled from the payment of Gratuity under the
             statutory 2011 Rules applicable to Gramin Dak Sewaks. The
             second issue is answered accordingly.
     11. The Impugned Orders passed by the High Court in both the
Appeals are hereby set-aside.                                                  B
       We acknowledge the valuable assistance provided by the
learned Amicus Curiae Mr. Bharat Sangal in representing the interest
of the Respondents.
        Pending applications in both the Appeals, if any, are dismissed.
                                                                               C
        The Appeals are allowed accordingly.

Nidhi Jain                                                  Appeals allowed.




                                                                               D




                                                                               E




                                                                               F




                                                                               G




                                                                               H


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