ANIL BHANDARI Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) BRIEF facts of the case are that the petitioner was working as Senior Assistant in the United Indian Insurance Company Limited (respondent No. 1) at its Jodhpur Branch till he took voluntary retirement on 19. 11. 1997 after completion of more than 20 years of service. The petitioner's service conditions are governed by the General Insurance (Rationalisation and Revenue of Pay Scales and other conditions of Service of Supervisory, clerical and subordinate Staff) Scheme, 1974 as amended time to time. The principal scheme was published by Notification No. S. O. 326 (E) dated 27. 5. 1974. For these conditions, approval was accordance by the Central Government. It is relevant to mention here that the said scheme was amended about 30 times from 1974 to 1999 which is clear from the explanatory memorandum, copy of which is placed in this file at page No. 50. By amendment dated 27. 8. 1998 benefit of Special Allowance was granted to Class III and Class IV employees of the General Insurance Corporation of India and its subsidiary companies with effect from 1. 7. 1976. The employees drawing basic salary of Rs. 5500/- and above were entitled for special allowance of Rs. 170/- per month but with a condition that in case the employees will opt for the Special Allowance, then his conveyance allowance will stand reduced from Rs. 100/- to Rs. 50/- only. Though the petitioner took voluntary retirement with effect from 19. 11. 1997 and the Notification mentioned above was issued on 27. 8. 1998 still the petitioner was admitted for benefit of special allowance with effect from 1. 7. 1996 after deduction of and recovery of conveyance allowance at the rate of Rs. 50/- per month and the petitioner was paid the arrears calculated on the basis of Special Allowance. The petitioner was also paid arrears of difference amount accrued on account of grant of special pay against the head "leave encashment," "pension," "gratuity" etc. While computing revision, this Special Allowance was also taken into consideration. Petitioner placed on record the salary certificate and payment order sheets of revised gratuity and pension.

(3.) ACCORDING to the learned counsel for the petitioner, right accrued to the petitioner by virtue of coming into force of provision for grant of Special Allowance by Notification dated 27. 8. 1998. The Notification dated 22. 6. 2000 nowhere withdraws the benefit of Special Allowance which was granted by the Notification dated 27. 8. 1998. It is also submitted that a bare reading of Notification dated 22. 6. 2000, it is clear that by this Notification the 6th schedule has not been replaced but has been modified only. Learned counsel for the petitioner referred various clauses contained in the Notification dated 22. 6. 2000 whereas the learned counsel for the respondents submits that by scheme dated 22. 6. 2000 amendments have been made and the pay scales have been revised and this revision has been done after taking into account the various allowances which stand merged in the revised pay scale and the allowances which are given in the 7th schedule only remained applicable to the employees which is clear from the reading of 7th schedule. In 7th schedule, various allowances like functional allowance, other functional allowance, dearness allowance, allowance for technical qualification, graduation allowance, house rent allowance, city compensatory allowance with fixed personal allowance and many other allowances have been kept. The amount of the cycle allowance has been raised but the Special Allowance which was available in schedule 6th has not been kept in 7th schedule, therefore, the petitioner has no right to claim the personal allowance or the benefit on the basis of his claim of enhanced gratuity.