UNION OF INDIA Vs. Y N R RAO

JUDGEMENT

(1.) THE matter is finally heard by consent and disposed of by this order. Respondent, who was working as Chief Engineer (MES), retired from service on the afternoon of 31-3-1995. His date of birth is 9-3-1937. On his retirement, the respondent was paid a sum of rupees one lakh being the maximum amount of retirement gratuity payable under Rule 50 (1) of the central Civil Services (Pension) Rules. According to respondent he is entitled to payment of Rs. 1,51,210/- as retirement gratuity. He contended that though Rule 50 provided the maximum amount of retirement gratuity as rs. 1,00,000/-, it was increased to Rs. 2,50,000/- by official memorandum dated 14-7-1995. He contended that the increased limit will apply to his case. He gave representations dated 24-11-2000 and 1-2-2001 contending that the retirement gratuity should not be restricted to Rs. 1,00,000/- and he should be paid the full retirement gratuity calculated as per Rule 50 (1 ). The said contention was rejected by the department by endorsement dated 31 -3-2001.

(2.) FEELING aggrieved, respondent approached the Central Administrative tribunal, Bangalore Bench, in O. A. No. 816 of 2001.

(3.) RULE 50 of the Central Civil Services (Pension) Rules deals with retirement/death gratuity. Sub-rule (l) (a) of that Rule provides that a government servant, who has completed five years' qualifying service and has become eligible for service gratuity, shall, on his retirement, be granted retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service, subject to a maximum of 161/2 times the emoluments. The first proviso to sub-rule (1) which was in force till the end of 31st day of March, 1995 provided that the amount of retirement gratuity payable under the said Rule shall in no case shall exceed rupees one lakh. The said limit was increased to Rs. 2,50,000/- by official memorandum dated 14-7-1995, with retrospective effect from 1-4-1995. Therefore, if a government servant retired with effect from 1-4-1995 he will be entitled to the benefit of the increased ceiling limit. On the other hand, if a government servant retired on 31-3-1995, he will not be entitled to the benefit of such increased limit. Therefore, the question is whether a person retiring on the afternoon of 31-3-1995 can be said to retire with effect from 1-4-1995 as contended by the respondent.