High Court Rejects IIT-Bombay's Appeal Against Gratuity Payment to Three Workers

High Court Rejects IIT-Bombay's Appeal Against Gratuity Payment to Three Workers
The Bombay High Court has dismissed an appeal by the Indian Institute of Technology (IIT) Bombay, which sought to challenge orders from the Assistant Labour Commissioner (Central), who acted as the Controlling Authority. This authority had directed the institute to pay gratuity to three contract workers under the Payment of Gratuity Act.
The case involves Raman Sukar Garase, one of the three workers who had been granted relief by the authority. Garase, who reportedly died by suicide in May this year, had been engaged in a protracted legal battle for his gratuity rights following his retirement in 2018 after 39 years of service as a gardener. The delay in receiving funds for medical expenses was cited as a possible factor contributing to his suicide.
Previously, the Controlling Authority’s order, which mandated IIT-Bombay to pay gratuity totalling ₹1.89 lakh to Lad, ₹2.35 lakh to Ingle, and ₹4.28 lakh to Garase, had been upheld by both the Appellate Authority and the Deputy Chief Labour Commissioner (Central). However, IIT-Bombay had challenged these rulings, asserting that it was not liable for gratuity payments, arguing that the workers were employed by a contractor.
Senior advocate Gayatri Singh and advocate Sudha Bharadwaj, representing the workers, contended that the workers had been associated with the institute for an extended period, working under successive contracts since 1999. They pointed out that the institute’s involvement in payroll and supervision indicated control over the workers' employment.
Justice Sandeep V Marne, in his ruling, noted that if multiple contractors were to deny gratuity for the same workers, it would lead to evasion of gratuity obligations by simply rotating contractors. The judge emphasized that IIT-Bombay could not evade liability by merely changing contractors and cited the institute’s involvement in the employment arrangement.
After reviewing all arguments, the court directed IIT-Bombay to honour the gratuity dues awarded by the authorities, including interest, and instructed that any owed amounts be paid to the legal heirs of Garase within two months.