New Delhi, Apr 7 (PTI) The Supreme Court Thursday said that ad hoc payment made to the employees pursuant to the interim orders does not form part of “wages” for calculating gratuity.
A bench of Justices Hemant Gupta and V Ramasubramanian said that a party who is in the enjoyment of an interim order is bound to lose its benefit when the ultimate outcome of the case goes against him.
The top court was hearing a batch of appeals on the issue of whether ad hoc payment made to the workers pursuant to the interim orders passed by this Court could form part of “wages” within the meaning of the expression under Section 2(s) of the Payment of Gratuity Act, 1972.
The bench said whenever the State or its instrumentalities come up with appeals challenging small benefits granted to individual litigants, this Court applies the test of proportionality to see whether the quantum of benefits granted to the individual concerned, justifies the examination of the question of law, at the cost of that little man from a far off place.
“The refusal of this Court to go into the question of law in such cases, cannot be treated as tantamounting to answering the question of law in a particular manner,” the bench said.
The apex court allowed the appeals and set aside the orders of the High Courts holding that the ad hoc payment made pursuant to the interim orders by this Court will form part of the wages.
“However, in view of the efflux of time and taking into account the fact that few employees are now no more, we direct the Management not to effect any recovery, if payment has already been made to any of the respondents or their families,” the bench said. PTI PKS RKS RKS
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.