Case Note & Summary
The Supreme Court dismissed appeals filed by retired employees of Heavy Water Plant, Department of Atomic Energy, Tuticorin, who sought coverage under the Payment of Gratuity Act, 1972 for enhanced gratuity benefits -- The Court upheld the High Court judgment that HWP employees, being Central Government servants appointed under CCS Rules and governed by CCS (Pension) Rules, 1972, are excluded from the definition of 'employee' under Section 2(e) of PG Act -- The Court rejected arguments that HWP is an industrial establishment distinct from Central Government, finding it functions directly under the Ministry -- The Court also applied the principle of estoppel as employees had accepted retirement benefits under CCS Rules without protest at the time of retirement
Headnote
The Supreme Court considered Civil Appeals arising from retired employees of Heavy Water Plant, Department of Atomic Energy, Government of India, Tuticorin -- The appeals challenged the High Court judgment which held that HWP employees are not covered by Section 2(e) of the Payment of Gratuity Act, 1972 -- The Court examined the statutory framework including the Atomic Energy Act, 1962, Payment of Gratuity Act, 1972, and CCS (Pension) Rules, 1972 -- The Court held that employees appointed by Government of India, DAE, holding civil posts under Central Government and governed by CCS Rules fall within the exclusion clause of Section 2(e) of PG Act -- Section 14 of PG Act cannot be invoked as employees never qualified as 'employees' under the Act -- Heavy Water Board functions directly under Ministry and employees are Central Government servants -- Principle of estoppel applies as employees accepted retirement benefits under CCS Rules without protest
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Issue of Consideration: Whether employees of Heavy Water Plant, Department of Atomic Energy, Government of India, Tuticorin are covered by the provisions of the Payment of Gratuity Act, 1972
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Final Decision
The Supreme Court dismissed all civil appeals and upheld the impugned judgment of the High Court -- The Court held that employees of Heavy Water Plant, being Central Government servants appointed under CCS Rules and governed by CCS (Pension) Rules, 1972, are excluded from the definition of 'employee' under Section 2(e) of Payment of Gratuity Act, 1972 -- The Court rejected the applicability of Section 14 of PG Act as employees never qualified under the Act's definition -- The Court applied principle of estoppel as employees had accepted retirement benefits under CCS Rules without protest
