Tag: Employee benefits

Supreme Court Rules No Compassionate Job if Retiral Benefits Accepted
15Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules No Compassionate Job if Retiral Benefits Accepted

The Supreme Court ruled that for a missing person, the date of civil death is legally presumed to be after seven years from disappearance, not the date they went missing, as per Section 108 of the Indian Evidence Act, 1872. A court decree declaring death merely recognizes this presumption without fixing an earlier date. This legal presumption is central to claims dependent on establishing the date of death. Facts Of The Case: The case involved a claim for compassionate appointment by Shubham, the son of Gulab Mahagu Bawankule, an employee of the Nagpur Municipal Corporation. Gulab went missing on September 1, 2012. During the period of his disappearance, he was treated as being in continuous service and was duly retired on January 31, 2015. His family received all retiral ben...
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Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation
31Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation

The Supreme Court clarified that for computing compensation in motor accident claims, the deceased's income includes all allowances, regardless of taxability. Future prospects for a permanent employee below 40 are to be added at 50%. Income tax deduction, if applicable, must be calculated as per the actual tax slab rates for the relevant year. Facts Of The Case: The case originated from a motor accident claim filed by the dependents of a 27-year-old engineer employed with the Power Grid Corporation of India, who died in an accident. The Motor Accident Claims Tribunal awarded compensation of approximately ₹88.20 lakhs. This computation included his full monthly salary of ₹53,367 (comprising basic pay, DA, and other allowances), applied a multiplier of 18, added 50% for future prospe...
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Supreme Court Directs Independent Officer to Verify Arrears, Stop Illegal Recoveries from Workers
28Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Directs Independent Officer to Verify Arrears, Stop Illegal Recoveries from Workers

This Supreme Court judgment addresses contempt proceedings for non-compliance with a prior Supreme Court order modifying an industrial tribunal award. The Court appoints an auditor to resolve wage calculation discrepancies, assess excess payment recoveries, and determine statutory gratuity interest. It refrains from intervening in a separate High Court matter concerning provident fund dues, affirming the High Court's competence on that issue. Facts Of The Case: The contempt petition arose from the Brihanmumbai Municipal Corporation's (BMC) non-compliance with a Supreme Court judgment dated April 7, 2017. That judgment had modified an Industrial Tribunal award, which originally directed the BMC to grant permanent status and retrospective benefits to approximately 2,700 sanitation workers ...
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Who Gets Paid First? Supreme Court Reopens Case on Priority Between Employee Provident Fund and Secured Lenders
30Sep By The Legal ChamberNo Comments
Supreme Court

Who Gets Paid First? Supreme Court Reopens Case on Priority Between Employee Provident Fund and Secured Lenders

The Supreme Court remanded the matter to the High Court to determine the priority of charges between the EPFO, under Section 11(2) of the Employees' Provident Fund Act, 1952, and secured creditors, including Axis Bank, under Section 35 of the SARFAESI Act, 2002. The core legal issue for fresh adjudication is the conflict between the statutory first charge of EPFO dues and the primacy claimed by secured creditors. Facts Of The Case: M/s Acropetal Technologies Pvt. Ltd. defaulted on its Employees' Provident Fund (EPF) dues from July 2013. The EPFO determined a liability and, upon learning the company's properties were to be auctioned by various banks, invoked its priority under the EPF Act. The EPFO specifically asserted a first charge over the 'Attibele property' being auctioned by Axis B...
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Supreme Court: Delayed Payment Not Always Contempt, But Bank Must Pay for Protracted Litigation
20Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Delayed Payment Not Always Contempt, But Bank Must Pay for Protracted Litigation

The Supreme Court declined to initiate contempt proceedings, finding the delayed payment of dues, while a violation, was not wilful. It reinforced that contempt jurisdiction cannot be used to adjudicate new claims like pension, which were not part of the original decree. The Court, however, awarded compensatory costs for the protracted litigation. Facts Of The Case: A.K. Jayaprakash, a manager at Nedungadi Bank Ltd., was dismissed from service in 1985 on grounds of alleged irregularities in sanctioning loans and delays in reporting. He challenged this dismissal under the Tamil Nadu Shops and Establishment Act, 1947. The Deputy Commissioner of Labour initially set aside the dismissal and ordered his reinstatement. This decision was repeatedly challenged by the Bank, first in the Madras Hi...
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Supreme Court Landmark Ruling: Awards Pension to Temporary Railway Employee’s Family
12Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Landmark Ruling: Awards Pension to Temporary Railway Employee’s Family

The Supreme Court ruled that temporary railway employees completing over one year of continuous service are entitled to family pension under Rule 75 of the Railway Pension Rules, 1993, regardless of regularization. The Court emphasized that legislative intent protects dependents of deceased employees, rejecting the 10-year threshold argument and directing arrears payment with ₹5 lakh ex-gratia relief under Article 142. Facts Of The Case: The case involves Mala Devi, widow of Om Prakash Maharaj, a temporary railway employee who died in service after 9 years and 8 months of continuous work. Appointed as a "Summer Waterman" in 1986, he later cleared screening tests and was deputed as a Guard/Shuntman before his fatal accident in 1996. While Mala Devi received ex-gratia payment and compassio...
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Teachers’ Gratuity Rights Clarified: Supreme Court Decides Between State Rules and Payment of Gratuity Act
7Aug By The Legal ChamberNo Comments
Supreme Court

Teachers’ Gratuity Rights Clarified: Supreme Court Decides Between State Rules and Payment of Gratuity Act

The Supreme Court ruled that aided school teachers in Maharashtra are governed by the Maharashtra Civil Services (Pension) Rules, 1982 (under Article 309) for gratuity, not the Payment of Gratuity Act, 1972. The Court held that since their pay and service conditions are state-regulated, they fall under the more beneficial state scheme, which includes pension and death-cum-retirement gratuity (DCRG). Legal heirs need not produce a heirship certificate if nominated, but must submit an indemnity undertaking. Interest at 7% was mandated for delayed payments. Facts Of The Case: The petitioner, Vikram Ghongade, is the son of a deceased teacher employed at an aided school in Maharashtra. His mother passed away while in service, and he sought gratuity under the Payment of Gratuity Act, 1972. How...
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