Dear friends,
This topic remains a bone of contention still now only because some people have a strong premise that the decision of one High Court on a particular issue is not binding on the other High Court. It is also equally true that a division bench of a High Court cannot overrule the earlier decision of another bench of the same Court on the same issue and the only option available is to refer it to a larger bench. At the same time, it cannot be simply brushed aside on pure technical grounds that uniformity of dispensation of justice has to be ensured while interpreting the provisions of a Central Law which applies across the country alike. Therefore, in the absence of a judgment of the Supreme Court or any High Court on the interpretation of the provision of a Central Law, no harm in following the ratio decidendi of the judgment of a single High Court which alone had the opportunity of adjudicating up on such an issue of the same Central Law.
Moreover, if we juxtapose the definition of the term " continuous service " under sec.25B of the ID Act,1947 and under sec.2A of the PG Act,1972 both are similar only. To some extent the latter is more beneficial to the employee in as much as it covers the spell of unauthorised absence not declared as break in service under the service regulations.
How the term " continuous service" u/s 25-B of the IDA,1947 should be interpreted had already been well set down by the Supreme Court in Surendar Kumar Verma v. Central Government Industrial Tribunal [1980(4) SCC 433 ] and Mohanlal v. Bharat Electronics Ltd., [ AIR 1981 SC 1253 ].
The interpretation of sec.2-A of the PGA,1972 by the Madras High Court in Mettur Beardsell Ltd. v. the Regional Labor Commissioner (Central) [1998 LLR 1072 ] is based on the rule of beneficent construction of interpretation of statutes only and similar to those of the Apex Court in the cases mentioned supra though no direct reference to them in the judgment, if I remember correct.
Reverting back to the newly enacted Code on Social Security,2020 in this regard, section 54 of the Code which deals with continuous service for the purpose of gratuity is verbatim the same that of sec.2-A of the PGA,1972. Hence, contrary to the opinion of our learned friend Mr.Prabhat, the judicial interpretation of the same terms pertaining to old and new laws on the same subject will hold good.
Therefore, if the employer refuses to pay gratuity to the poster on the wrong premise of non-binding nature of the Madras High Court decision to claims of gratuity from other states, the poster is sure to get it with interest on adjudication .