N S KRISHNA Vs. BHARAT HEAVY ELECTRICALS LIMITED

JUDGEMENT

(1.) We have heard learned counsel for both the sides at length and we propose to dispose of this writ petition at this stage.

(2.) The present petition is filed by Shri N.S. Krishna, who had joined as an Accountant on 10.7.1974 in the establishment of respondent No.1, Bharat Heavy Electricals Limited. He worked with Bharat Heavy Electricals Limited till 2.7.1976 and with the consent of his employer, viz. M/s. Bharat Heavy Electricals Limited he joined respondent No.2, State Trading Corporation of India Limited, after 2.7.1976. The provisions of the Gratuity Act, 1972 are made applicable to respondent No.1, M/s.Bharat Heavy Electricals Limited and a Scheme under the said Act was introduced in M/s.Bharat Heavy Electricals Limited when the petitioner was working there.

(3.) The petitioner had sought voluntary retirement when he was serving with respondent No.2 on 2.7.1991. According to him the respondent No.1 had not transferred the amount payable by respondent No.1 under the Gratuity Act, 1972 for the period during which he worked with respondent No.1. According to him, as per the Memorandum dated 23.6.1988 issued by the Bureau of Public enterprises when an employee moves from one public enterprise to another with the consent of the management of the concerned enterprise, the former would extinguish its liability towards the payment of gratuity for the period of service rendered by the employee by making a lump sum payment equivalent to the gratuity earned by him to the latter as if the employee had retired from its service. It is further claimed that under the said memorandum the condition of mimimum qualifying service of five years specified under the Act would not be invoked when such transfer takes place with the consent of both the employers. Therefore, after his retirement he made a claim with both respondent Nos.1 & 2 but as they did not make any payment to him on account of the claim of gratuity, he has filed the present petition.