RAJA KURUP Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Both writ petitions have been filed impugning the order passed in Ext.P13 dtd. 25/10/2012 by the Appellate Authority under Sec. 7(7) of the Payment of Gratuity Act 1972 (for short, 'Gratuity Act') read with Rule 18(1) of the Payment of Gratuity (Central) Rules 1972 (for short, 'Gratuity Rules').

(2.) The 1st respondent/employee in W.P.(C) No.1993/2013 [the petitioner in W.P.(C) No.6381/2013] commenced his service with the petitioner/Bank on 13/5/1974 and was superannuated on 31/3/2011 after rendering service for 37 years 8 months and 19 days, which included temporary service.

(3.) The Controlling Authority held that the Fixed Personal Allowance, Special Balancing Allowance, and Special Compensatory Allowance would be 'other allowances' as defined in Sec. 2(s) of the Gratuity Act and the said components could not be included as part of wages for the payment of gratuity. It was also said that certain components of wages, other than the Basic Pay and Dearness Allowance, were also included as part of 'wages' by virtue of Bipartite Settlement which provided for including those components for the purpose of calculation of superannuation benefits though they could be termed as 'other allowances', which would come within the scope of sub-sec. (5) of Sec. 4 of the Act. Therefore, the benefits could not be expected to be extended to the employee beyond what was agreed to by the Federation and the Bank Management under various Bipartite Agreements.