BHABENDRA NATH SARMA Vs. STATE OF ASSAM

JUDGEMENT

(1.) Heard Mr. B Sarmah, learned counsel for the petitioners, Mr. JK Goswami, learned Additional Senior Government Advocate for the respondent No. 1 being the Department of Public Enterprises, Mr. P Naik, learned counsel for the respondent No. 2, Finance Department, Mr. G Choudhury, learned counsel for the respondents No. 3, 4 and 5 being the authorities in the Assam Financial Corporation and Mr. AN Mondal, learned counsel for the respondent No. 6 being the authorities in the Life Insurance Corporation of India.

(2.) All the petitioners herein served as Staff Officers, Assistant Managers in the respondent Assam Financial Corporation (in short AFC) and had retired from service upon attaining the age of superannuation on different dates during the years 2018, 2019 and 2020. By the impugned communications, the petitioners were informed by the respondents in the AFC that the death-cum-retirement gratuity they would be entitled upon their superannuation from service would be limited to Rs.7,00,000.00 while allowing the revision of pay scale as per the Revision of Pay (RoP) Rules, 2017. The petitioners contend that the payment of death-cum-retirement gratuity benefit is governed by the Payment of Gratuity Act 1972 (in short Act of 1972) as amended from time to time and therefore, their entitlement for the gratuity benefit would be as provided under the Act of 1972.

(3.) The respondents in the AFC on the other hand relies upon the Assam Financial Corporation (Payment of Gratuity of Employees) Regulation, 1964 (in short Regulation of 1964) as well as the Assam Financial Corporation (Amendment) Staffs Regulation 2007 (in short Regulation of 2007). As per the respondents in the AFC in paragraph 35 of their affidavit in opposition, the stand taken is that the last amendment to the Staff Regulation was made in the year 2007, wherein the maximum gratuity payable was fixed at Rs.7,00,000.00. Accordingly, it is the stand that the entitlement of the petitioners would be a maximum of Rs.7,00,000.00 and not beyond that.