JULIUS K J Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge involved in this writ petition is as to the proper method of calculating gratuity payable to the petitioner, particularly as to the computation of the "per day wage" as contemplated under the relevant scheme. The question is whether it has to be arrived at by dividing the monthly wages by the deviser of 30 (the total number of days in the month) or by 26 (after excluding the four Sundays/holidays). It is also in dispute whether the petitioner is justified in taking a 'U' turn to contend that the computation of the "per day wages" shall only be in conformity with the stipulation under the statute i.e., Section 4(2) of the Payment of Gratuity Act ('Act' in short) after praying for and obtaining the benefit under a Scheme.

(2.) The petitioner while working as Assistant Executive Engineer (Electrical) under the second respondent retired from the service on 30-06-1997 after attaining at the age of superannuation. In fact, the second respondent being an autonomous body and separate legal entity/the CCS. (Pension) Rules are not applicable as such. However, the Board of Trustees, on the basis of a resolution passed has adopted the CCS. (Pension) Rules, which govern the service conditions, particularly as to the retirement benefits payable to the employees. However, in the case of gratuity, it is contended by the second respondent that the benefits payable to the workers/employees were under the provisions of the Act, calculation under the Act being more beneficial and as a natural consequence, the amounts payable thereunder had to be limited to the maximum amount of Rs. one lakh as stipulated thereunder.

(3.) Pursuant to retirement of the petitioner, the benefits were worked out under the Act, the calculation according to the second respondent being more favourable to the employees and the maximum amount of Rs. one lakh was disbursed to him. After obtaining this amount, the petitioner approached this Court stating that he was eligible to get muchhigher benefits under Exhibit P1 scheme. It is to be noted that the maximum amount of gratuity payable under both the Payment of Gratuity Act, 1972 as well as under the CCS. (Pension) Rules were originally Rs. one lakh. The Pension Rules were amended and the maximum ceiling was enhanced to Rs. 2.5 lakhs with effect from 1-4-1995, whereas, the Act was amended raising the ceiling initially to Rs. 2.5 lakhs and thereafter, to Rs. 3.5 lakhs with effect from 24-9-2007.