PARGAT SINGH Vs. ZILA PARISHAD AND ANOTHER

JUDGEMENT

(1.) The writ petition challenges the order passed by the Appellate Authority under the Payment of Gratuity Act at the instance of an employee who had retired from service from Zila Parishad, Amritsar. By the impugned order, the Appellate Authority had set aside the order passed by the Controlling authority which allowed the claim of the employee for an additional amount of Rs. 98,289.50 over and above 1 lac which has already been disbursed to him as gratuity. The basis of the claim for the workman was that the Government of Punjab, Department of Rural Development, Punjab allowed for grant of revised pay scales to the employees of Panchayat Samiti on the basis of recommendations of the 4th Pay Commission. The Financial Department's notification dated 16.1.1998 approving the recommendations of the Pay Commission was allowed to be adopted for the employees of the Panchayat Samiti/Zila Parishad in the Punjab State. This notification which was adopted for Zila Parishad according to the employee enabled him to obtain the recommendation as an interim measure to the Government employees as regards dearness allowances and gratuity. By circular dated 13.12.1996 issued by the Government of Punjab the Government had accepted the interim recommendation of the 4th Pay Commission to increase the retirement gratuity/death gratuity raising the maximum limit of gratuity from 1 lac to Rs. 2.5 lacs w.e.f. 1.4.1995. According to the employee, he had been superannuated on 31.5.1997 and he was therefore, entitled to the additional amount which was applied as per the interim award of 4th Pay Commission.

(2.) The contention of the workman was that as per Section 155 of the Punjab Panchayati Raj Act, an employee of Panchayat Samiti was entitled to obtain pension or gratuity on terms which shall not be more than those prescribed for persons for service of the State Government. The employee therefore, claimed that at all times, the gratuity payable was on parity with what was extended to the civil servants of the Punjab Government and when the interim award provided for an enhancement of the maximum amount of Rs. 2.5 lacs, that benefit should have been availed to the employee as a person who as an employee of the Zila Parishad. This claim of the employee was not acceded to on a demand that necessitated him to apply to the Controlling Authority under the Payment of Gratuity Act. The case had been instituted against the Zila Parishad represented through Administrator-cum-Dy. Commissioner, Amritsar Deputy Commissioner was the Chief Executive Officer of the Zila Parishad as per Section 195 of the Panchyati Raj Act. The Controlling Authority upheld the contention of the employee and ordered the payment of Rs. 98,289.50 with 10% simple interest w.e.f. 31.05.1997 till the date of payment of entire amount of 1,98,289.50.

(3.) An appeal had been filed by the Zila Parishad through its Deputy Chief Executive Officer, Zila Parishad, Amritsar challenging the order of the Controlling Authority. The appeal was allowed when the Appellate Authority had ruled that the employees of the Zila Parishad cannot obtain gratuity on similar terms as the government servants. The employees were not even entitled to pension which was available for the Civil servants of the Punjab Government and therefore, they cannot demand parity with government servants as regards gratuity. The other contention was that the 4th Pay Commission's recommendations were applied to the employees of Zila Parishad by department's notification that allowed for gratuity to a maximum of 3.5 lacs only to persons who had been superannuated on 24.09.1997. Since the employee had been superannuated earlier namely on 31.05.1997, the benefit of the 4th Pay Commission could not be extended to the employee. This order of the Appellate Authority allowing the appeal is subject of challenge before this Court.