SRINIVASAN Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) THIS writ appeal is directed against the order of a learned single Judge of this Court made in W. P. No. 21998 of 1993 dated September 13, 1995 dismissing the writ petition filed by the writ petitioners/appellants herein who had retired from service before the scheme in question was introduced. There the learned Judge held that the writ petitioners cannot claim the benefits of the scheme which was not in existence, while they were in service.

(2.) THE Government of India by its Ministry of Industry and the Department of Public Enterprises introduced a new scheme called Death-cum-Retirement Gratuity Scheme for the Employees of Public Sector Enterprises on July 23, 1988. According to the scheme the revised ceiling for payment of gratuity on retirement or in the event of death of the concerned employees is effective from January 1, 1986. The Scheme formulates basic terms and conditions of gratuity scheme for public undertakings. Its clause 4 (a) reads thus :

(3.) MR. B. Ramamurthy, learned counsel for the appellant contended that it is mandatory on the part of the second respondent to pay gratuity to all the employees after January 1, 1986 in the manner mentioned in the scheme. However, the management formulated a scheme after several years after receiving the said Memorandum for its supervisory employees for granting gratuity as per the memorandum mentioned above with effect from July 1, 1993 instead with effect from January 1, 1986, the said decision of the 2nd respondent is arbitrary and illegal and opposed to the principles of natural justice. It is also contended that the petitioners and the other employees of the 2nd respondent who retired from January 1, 1986 to July 1, 1993 cannot be treated in a different manner after they having served for a number of years.