Introduction:

The Bombay High Court provides clarity on gratuity calculation for employees transferred from one institute to another under the same management, emphasizing the need for fairness in summary suits. In a case involving Ravi Bhadrappa Randale’s employment transition from Terna Polytechnic to Terna Engineering College, the court dismisses employers’ writ petitions challenging the gratuity entitlement. The judgment underscores the interconnectedness of service spells, rejecting the bifurcation of gratuity amounts. The ruling ensures that gratuity is based on the last drawn salary at the time of final cessation of service, recognizing the continuous employment period.

Arguments:

Employers, represented by Terna Polytechnic and Terna Engineering College, contend for gratuity division based on separate services, citing the absence of continuity. Randale argues for unified calculation, emphasizing the interconnection between his service spells and the absence of a fresh recruitment process.

Court’s Judgement:

Justice Sandeep V Marne dismisses the writ petitions, upholding the continuous service of Randale from 1992 to 2011. The court rejects the bifurcation of gratuity amounts, deeming the spells of service interconnected due to common management. It directs Terna Engineering College to pay the entire gratuity amount based on the last drawn wages as of July 21, 2011. The judgment ensures fairness, recognizing the employee’s entitlement to the complete gratuity amount.