Private employees with periodic hikes deemed permanent: High court | India News
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BHOPAL/JABALPUR: Madhya Pradesh high court said in a recent judgment that a person in a non-govt job getting periodic pay hikes or annual increments can be considered a permanent employee, while partly allowing a revision petition for increase in compensation in a road accident. The high court increased the compensation by over Rs 2.7 lakh.
Petitioner Anjum Ansari had challenged the compensation awarded by a tribunal in a claim under the Motor Vehicles Act, arguing that she deserved higher amount as her deceased husband taught in a private college affiliated to Rajiv Gandhi Praudyogiki Vishwavidyalaya (MP’s umbrella tech university).Since he was a permanent employee of the college, the claims court should have computed the amount of “future prospects” at a 15% rate rather than a 10% rate, the petition argued.
The respondents contended that only govt employees are considered permanent employees and employee of a private college cannot be treated as such.
Justice A K Paliwal cited a five-judge bench SC order in National Insurance Company vs Pranay Sethi and said, “If a person is in such a job wherein his salary is increased periodically / receives annual increment etc., such a person would be treated as being in permanent job.”
Justice Paliwal said the claims court had erred in calculating ‘future prospects’ component at 10% and not 15%, as provided in law, and ordered an increase of Rs 2,72,260 in the compensation awarded to Anjum. Her compensation now comes to Rs 36.9 lakh.
Petitioner Anjum Ansari had challenged the compensation awarded by a tribunal in a claim under the Motor Vehicles Act, arguing that she deserved higher amount as her deceased husband taught in a private college affiliated to Rajiv Gandhi Praudyogiki Vishwavidyalaya (MP’s umbrella tech university).Since he was a permanent employee of the college, the claims court should have computed the amount of “future prospects” at a 15% rate rather than a 10% rate, the petition argued.
The respondents contended that only govt employees are considered permanent employees and employee of a private college cannot be treated as such.
Justice A K Paliwal cited a five-judge bench SC order in National Insurance Company vs Pranay Sethi and said, “If a person is in such a job wherein his salary is increased periodically / receives annual increment etc., such a person would be treated as being in permanent job.”
Justice Paliwal said the claims court had erred in calculating ‘future prospects’ component at 10% and not 15%, as provided in law, and ordered an increase of Rs 2,72,260 in the compensation awarded to Anjum. Her compensation now comes to Rs 36.9 lakh.
