2022 (5) TMI 468 - SC - Indian Laws

Supreme Court expands Gratuity Act to Anganwadi workers, orders State to provide benefits

MANIBEN MAGANBHAI BHARIYA Versus DISTRICT DEVELOPMENT OFFICER DAHOD & ORS.

The Supreme Court allowed the appeals, overturning the Gujarat High Court's decision and reinstating the Single Judge's ruling. It held that the Payment ... As per MR. AJAY RASTOGI, J. Rights of the contesting Appellants working as Anganwadi workers/helpers to claim gratuity under the provisions of Payment of Gratuity Act, 1972 - ICDS scheme - whether the applicability of gratuity being a social security measure, be extended to the employees who served the establishment in an organized or unorganized sector and, in one way or the other, contributing in the sustainable development of the nation? - HELD THAT:- The time has come when the Central Government/State Governments has to collectively consider as to whether looking to the nature of work and exponential increase in the Anganwadi centers and to ensure quality in the delivery of services and community participation and calling upon Anganwadi workers/helpers to perform multiple tasks ranging from delivery of vital services to the effective convergence of various sectoral services, the existing working conditions of Anganwadi workers/helpers coupled with lack of job security which albeit results in lack of motivation to serve in disadvantaged areas with limited sensitivity towards the delivery of services to such underprivileged groups, still being the backbone of the scheme introduced by ICDS, time has come to find out modalities in providing better service conditions of the voiceless commensurate to the nature of job discharged by them - Appeal allowed. As per Abhay Shreeniwas Oka, J. Whether Anganwadi workers and Anganwadi helpers appointed to work in Anganwadi centres set up under the Integrated Child Development Scheme (ICDS) are entitled to gratuity under the Payment of Gratuity Act, 1972? - HELD THAT:- Anganwadi centres have been entrusted with the onerous responsibility of implementing some of the most important and innovative provisions of the 2013 Act. It can be said that Anganwadi centres perform a pivotal role in discharging the statutory obligation of the State to provide nutritional support to pregnant women, lactating mothers and children in the age group of 6 months to 6 years. A free meal is provided to pregnant mothers during pregnancy and 6 months after childbirth through the Anganwadi centres. In the case of children in the age group of 6 months to 6 years, an age-appropriate free meal is to be provided in Anganwadi centres. In addition, the important duty of providing free meals to the children who suffer from malnutrition has been entrusted to Anganwadi centres. The free meals to be provided through Anganwadi centres must satisfy the nutritional requirements and standards specified in Schedule II of the 2013 Act. Therefore, Under Sub-section (2) of Section 5, there is a provision that every Anganwadi centre shall have a proper facility of cooking meals, drinking water and sanitation - The AWWs and AWHs constitute the backbone of Anganwadi centres and therefore, this onerous responsibility of extending benefits under the 2013 Act to the beneficiaries is on them. Anganwadi centres are responsible for ensuring the healthy growth of the children in the age group of 6 months to 6 years and the children who suffer from malnutrition. One of the important functions of Anganwadi centres is to conduct pre-primary education activities for the children of the age group of 3 to 6 years by following the pre-school timetable and by using the pre-school kit. That is the specific provision in the Government Resolution dated 25th November 2019. It is also provided therein that the Anganwadi children admitted to primary schools shall be issued a certificate of pre-primary education signed by the Child Development Programme Officer - Anganwadi centres are also running pre-primary schools for children in the age group of 3 to 6 years. The educational activity of running pre-school is an integral part of Anganwadi centres. AWWs and AWHs who are managing the Anganwadi centres have a duty to look after pre-primary schools as well. We may also note here that on 8th March 2018, the Government of India has launched the National Nutrition Mission by the name 'The Prime Minister's Overarching Scheme for Holistic Nourishment'. The responsibility of implementing a part of the scheme is of the Anganwadi centres. Under the National Education Policy, 2020, there is a proposal to make available Early Childhood Care and Education (ECCE) to children having socio-economic disadvantaged backgrounds. It is provided that ECCE will be extended through Anganwadi centres. Applicability of decision in the case of STATE OF KARNATAKA AND ORS VERSUS AMEERBI AND ORS [2006 (12) TMI 525 - SUPREME COURT] - HELD THAT:- In the case of Ameerbi, this Court dealt with the issue whether AWWs and AWHs were holding civil posts. The issue was whether the original applications filed by AWWs before the State Tribunal established under the Administrative Tribunals Act, 1985 were maintainable. This Court held that the posts of AWWs were not statutory posts and the same have been created in terms of ICDS. Therefore, there was no relationship of employer and employee between the State Government and AWWs. It was held that the AWWs do not carry on any function of the State. It was observed that no Recruitment Rules have been framed for appointing AWWs - the Anganwadi centres established under ICDS have been given statutory status under the 2013 Act. Moreover, Under Sections 4, 5 and 6 of the 2013 Act, the Anganwadi centres perform statutory duties under the 2013 Act. There exists no manner of doubt that the 1972 Act will apply to Anganwadi centres and in turn to AWWs and AWHs - the learned Single Judge was right in holding that the 1972 Act was applicable to AWWs and AWHs. The Controlling Authority has granted simple interest at the rate of 10% on the overdue gratuity amounts. All eligible AWWs and AWHs shall be entitled to the benefit of interest. Appeal allowed. 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/HelpersThe 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, 1972The 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 EmployeesThe 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 LegislationsThe 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 CaseThe 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/HelpersThe 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 StateThe 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.ConclusionThe 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.