Aided School Teacher's Post Akin To Post Under State Govt; Gratuity Governed By State Rules : Supreme Court

Observing that a teacher working in a government-aided school is holding a post similar to a post under the State Government, the Supreme Court held that the gratuity of an aided-school teacher would not be governed by the Payment of Gratuity Act, 1972 (“1972 Act”), but by the State service rules relating to pay and allowances.

The bench comprising Justices Sudhanshu Dhulia and K. Vinod Chandran heard the case where the Appellant's mother (now deceased) was a teacher in the Maharashtra government's aided school. Upon her death, being her nominee, the Appellant claimed gratuity under the 1972 Act, but his claim was rejected till the High Court. Following this, he moved to the Supreme Court.

The Respondent-State argued that since the salary and pension benefits of aided school teachers are paid by the state government, they are akin to government employees and thus covered under the Maharashtra Civil Services (Pension Rules), 1982 (“1982 Rules”) for payment of Death-cum-Retirement Gratuity (“DCRG”).

The definition of employee under Section 2(e) of the Payment of Gratuity Ac excludes a person holding a post under the Government.

The judgment authored by Justice Chandran declined to grant gratuity benefits under the Payment of Gratuity Act, 1972, to the son of a deceased teacher. Instead, the Court directed that the benefits be granted under the 1982 Rules. It reasoned that although the appellant's late mother served in a government-aided school and was not a state government employee, her post was equivalent in nature to one held under the state government, as her service conditions were governed by state-framed rules, thereby entitling her legal heirs to post-death benefits under the 1982 Rules.

“It must be observed that a teacher in an aided school for all practical purposes is akin to a post under the State Government. Pertinent is the fact that the posts in aided schools are either sanctioned by the Government or approved in accordance with the Rules and pay and allowances are also paid by the Government. The aided school teachers are also entitled to some of the conditions of service as are applicable to Government teachers, with entitlement of pension, provident fund and gratuity as applicable, in accordance with the Rules brought out under Article 309 of the Constitution of India. Though strictly speaking the teachers may not be holding a post under the State Government, it is akin to a post under the State Government, at least for the monetary benefits of pay and allowances, while in service, as also pension and other benefits on retirement.”, the court observed.

Thus, the Court permitted the Appellant to approach the First Respondent with an application for payment of DCRG in accordance with the Rules of 1982 along with an undertaking to indemnify the Government and the Society which runs the aided school from any claims made by any other legal heir, by a notarised affidavit.

The Court allowed the petition with the aforesaid modification.

Cause Title: VIKRAM BHALCHANDRA GHONGADE VERSUS THE HEADMISTRESS GIRLS HIGH SCHOOL AND JUNIOR COLLEGE, ANJI (MOTHI), TAH. AND DISTT. WARDHA & ORS.

Citation : 2025 LiveLaw (SC) 696

Click here to read/download the judgment

Appearance:

For Petitioner(s) Petitioner-in-person

For Respondent(s) Mr. Satyajit A. Desai, Adv. Mr. Siddharth Gautam, Adv. Mr. Abhinav K. Mutyalwar, Adv. Mr. Sachin Singh, Adv. Mr. Ananya Thapliyal, Adv. Ms. Anagha S. Desai, AOR Ms. Yugandhara Pawar Jha, Adv. Mr. Siddharth Dharmadhikari, Adv. Mr. Aaditya Aniruddha Pande, AOR Ms. Lavanya Dhawan, Adv.