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2022 (5) TMI 468 - SC - Indian Laws


Issues Involved:
1. Applicability of the Payment of Gratuity Act, 1972 to Anganwadi workers/helpers.
2. Definition and scope of 'establishment' under the Payment of Gratuity Act, 1972.
3. Status of Anganwadi workers/helpers as employees.
4. Interpretation of social security legislations.
5. Impact of the Ameerbi judgment on the current case.
6. Role and duties of Anganwadi workers/helpers.
7. Financial implications for the State.

Detailed Analysis:

1. Applicability of the Payment of Gratuity Act, 1972 to Anganwadi Workers/Helpers
The Supreme Court examined whether Anganwadi workers/helpers (AWWs/AWHs) appointed under the Integrated Child Development Scheme (ICDS) are entitled to gratuity under the Payment of Gratuity Act, 1972 (the 1972 Act). The Court concluded that the 1972 Act, being a social security welfare legislation, applies to AWWs/AWHs. The Court emphasized that the Act recognizes the need for protection against loss of income due to unemployment arising out of incapacity to work due to old age, invalidity, etc.

2. Definition and Scope of 'Establishment' Under the Payment of Gratuity Act, 1972
The Court analyzed whether Anganwadi centers qualify as 'establishments' under Section 1(3)(b) and Section 1(3)(c) of the 1972 Act. It was determined that Anganwadi centers are indeed 'establishments' within the meaning of Clause (b) of Section 1(3) as they involve systematic and organized activities carried out with the cooperation of employer and employees. Additionally, the centers were considered educational institutions under Clause (c) of Section 1(3) due to their role in providing pre-school education and nutrition education.

3. Status of Anganwadi Workers/Helpers as Employees
The Court examined whether AWWs/AWHs qualify as employees under Section 2(e) of the 1972 Act. It was found that AWWs/AWHs are employed for wages, and their remuneration, although termed 'honorarium', falls within the definition of 'wages' under Section 2(s) of the 1972 Act. The Court rejected the argument that AWWs/AWHs are part-time voluntary workers, noting their extensive duties and responsibilities.

4. Interpretation of Social Security Legislations
The judgment emphasized the need for a liberal and beneficial interpretation of social security legislations. It stated that such laws should be interpreted to extend the widest possible benefit to the intended beneficiaries. The Court referred to the principle of Beneficial Interpretation, which advocates for a more extended meaning of statutory provisions to fulfill the legislative intent.

5. Impact of the Ameerbi Judgment on the Current Case
The Court distinguished the present case from the Ameerbi judgment, which dealt with whether AWWs/AWHs hold civil posts and are entitled to protection under Article 311 of the Constitution. The Court clarified that the Ameerbi case did not address the applicability of the 1972 Act to AWWs/AWHs and thus had no bearing on the current issue.

6. Role and Duties of Anganwadi Workers/Helpers
The judgment detailed the significant role of AWWs/AWHs in the ICDS scheme, highlighting their contributions to child nutrition, health, and education. The Court noted that AWWs/AWHs are responsible for a wide range of tasks, including pre-school education, nutritional support, health check-ups, and community engagement, making their work essential and full-time.

7. Financial Implications for the State
The Court acknowledged the financial burden on the State due to the payment of gratuity to AWWs/AWHs but emphasized the importance of extending social security benefits to these workers. The judgment directed the State authorities to take necessary steps to extend the benefits of the 1972 Act to eligible AWWs/AWHs within three months and awarded simple interest at the rate of 10% per annum on overdue gratuity amounts.

Conclusion
The Supreme Court allowed the appeals, setting aside the Division Bench judgment of the Gujarat High Court and restoring the judgment of the learned Single Judge. It was held that the provisions of the Payment of Gratuity Act, 1972 apply to Anganwadi workers/helpers working in Anganwadi centers, and the State authorities were directed to extend the benefits of the Act to eligible workers.

 

 

 

 

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