Counselence Connect - Counselence

Counselence Connect

Our newsletter, Counselence Connect, released every week, gives a crisp, succinct update on changes in laws brought about by actions of legislature, government, and courts. Each Connect will be relevant for corporates and would not take more than 5 minutes to read.

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Supreme Court on Wages under Gratuity Act

Reading Time: 2 Minutes

Supreme Court, in the Fertilizer Corporation case, held that ad hoc payment made as per interim orders does not form part of ‘wage’ under Payment of Gratuity Act. This Connect highlights the facts and reasoning of the Court.

Aug 1, 2022

Madras HC on Survival of Arbitration Clauses in Terminated Agreements

Reading Time: 2 Minutes

The Madras High Court in the case of Rajasthani Marble and Another. v. K. Kumar and Others, held that when an arbitration agreement is between contracting parties in the form of a clause or covenant in a contract, the termination of the contract does not terminate the arbitration agreement.

Jul 25, 2022

Delhi HC On Forfeiture Of Gratuity

Reading Time: 3 Minutes

The Delhi High Court in two Union Bank of India cases observed in March 2022 that an employer has the right to forfeit gratuity of its employee sunder Section 4(6)(a) of the Payment of Gratuity Act, 1972 to the extent of loss or damaged caused by the employee. However, the damage must be quantified, opportunity afforded to employees to present their case and be heard before forfeiture.

Jul 18, 2022

Supreme Court on Claim for Back Wages

Reading Time: 3 Minutes

Supreme Court, in the case of Allahabad Bank and Others vs. Avtar Bhushan Bhartiya, clarified the legal position on proof of gainful employment while claiming reinstatement with back wages. It held that in the first instance, there is an obligation on the part of an employee to plead that he is not gainfully employed. It is only then that the burden would shift upon the employer to make an assertion and establish that the employee was gainfully employed. This Connect highlights the changed views of the apex court and its reasoning in this case.

Jul 11, 2022

Delhi HC on Apprentices Demand for Regularising Employment.

Reading Time: 3 Minutes

In the recent case of Shiwang Tripathi vs. Union of India, the Delhi High Court dismissed the demand of apprentices for regularisation of employment and upheld the right of the employer, National Insurance Co. to exercise discretion under Section 22 of the Apprentices Act, 1961.

Jul 4, 2022

SC on Non-Applicability of Equality to Wills

Reading Time: 3 Minutes

Supreme Court in Swarnalatha case held that in the matter of appreciating the genuineness of execution of a will, there is no place for court to see whether the distribution made by the testator was fair and equitable to all of his children and the court must not apply Article 14 to dispositions under a will.

Jun 27, 2022

SC on Interpretation of Contracts

Reading Time: 4 Minutes

Executive Summary: Supreme Court, while interpreting the commissioning date of an electricity project in Bangalore Electricity Supply Company Limited Vs. E.S. Solar Power Pvt. Ltd. and Ors, reiterated the established principle of interpretation of contracts that there is no scope for adopting either a liberal or a narrow approach, whatever that may mean. The exercise which must be undertaken is to determine what the words used in the contract mean.

Jun 20, 2022

SC on Delay in Decreeing Suit for Specific Performance

Reading Time: 3 Minutes

The SC in the case of A.R. Madana Gopal held that specific performance cannot be denied on sole grounds of delay caused by court process and escalation of prices.

Jun 13, 2022

Bombay HC on Unfair Labour Practices

Reading Time: 3 Minutes

In the case of Shankar Bhimrao Kadam and Ors. vs. Tata Motors Limited, the High Court of Bombay held the Employer accountable for ‘unfair labour practices’ and directed it to compensate the petitioners who were former employees hired on temporary basis.

Jun 6, 2022

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