ORDER

In C.A. Nos. 2762-2788 of 1988

The respondents were holding the post of Part-time Village Officers in the State of Andhra Pradesh. Under an Ordinance dated 6.1.1984, the posts of Part-time Village Officers in the State of Andhra Pradesh were abolished. The Ordinance was replaced by the Part-time Village Officers Abolition Act being Act No. 8 of 1985. Sections 3 and 5 of the said Act provide as follows :

"3. The posts of part-time Village Officers in the State of Andhra Pradesh are hereby abolished with effect on and from the date of commencement of this Act, and every person who holds the post of part-time Village Officer in any part of the State of Andhra Pradesh shall, with effect on and from such date, cease to hold such post."

"5. (1) Every person who ceases to hold post of part-time Village Officer by reason of section 3, shall be paid an amount for the total service put in by him as part-time Village Officer and such amount shall be determined in accordance with the provisions of sub-section (2).

(2) The amount referred to in sub-section (1) shall be calculated at the rate of one-half of the monthly emoluments for every year of total service put in by the person referred to in sub-section (1).

Explanation. - For the purposes of this Section,

(a) Where the total service,-

(i) includes a period which is a portion of a year; or

(ii) is a period less than a year; the amount payable for the period referred to in sub-Clauses (i) or sub-clause (ii), as the case may be shall be an amount bearing to the amount payable for one year of total service, the same proportion as the said period bears to a period of one year of total service."

2. Prior to the abolition of the posts of Village Officers, under G.O. Ms. No. 1772 dated 18.4.1980, the Government of Andhra Pradesh had framed a scheme for gratuity which was applicable to the village Officers and the Village servants. The Scheme inter alia, provides as follows

(i) Gratuity shall be paid at the rate of one months pay (Honorarium) for every completed year of service to the Village Officers and Village Servants subject to a maximum of 20 months pay.

(ii) The gratuity is payable in the event of death, there being no age of superannuation in respect of these categories or at the time of demitting office after attaining the age of 58 years in the case of Village Officers and 60 years in the case of Village Servants after giving a notice to the appointing authority."

3. By another G.O. Ms. No. 3420 dt. 1.8.1980, the Government of Andhra Pradesh had formulated a Family Benefit Scheme for Village Officers which, inter alia, provides as follows;

"1. (i) Every Village Officer shall be required to pay a contribution of Rs. 5/- per month till he attains the age of 58 years.

(ii) Every Village Servants shall pay a contribution of Rs. 3/- per month till he attains the age of 58 years.

2. (i) In the case of death of Village Officer while in service and before he attains the age of 58 years a sum of Rs. 7500 (Rupees Seven thousand five hundred only) shall be paid to the nominee of the deceased as specified in the said scheme;

(ii) In the case of death of a Village Servant while in service and before attaining the age of 58 years a sum of Rs. 5000/- shall be paid to the nominee of the deceased as specified in the said scheme.

(iii) In the case of any Village Officer or Village Servant demitting office on attaining the age of 58 years by giving a notice to the competent authority the actual amount of contribution representing interest shall be paid to him or his nominee in the event of death."

4. On the abolition of the posts of Part-time Village Officers, the respondents were paid compensation calculated in the manner provided under section 5 of the said Act. The respondents filed a writ petition before the Andhra Pradesh High Court claiming gratuity under G.O.Ms. dated 18.4.1980 and the benefit of the Family Benefit Scheme under G.O.Ms. No. 3420 dated 1.8.1