Important Point
In the matter of computation of Gratuity in respect of employee of Rajasthan Agricultural University, Rajasthan Service Rules are not applicable unless same are specifically adopted by the University and as such dearness allowance and adhoc dearness allowance have to be taken into account while calculating gratuity.

Judgment

S.N. Phukan, J.-This appeal is directed against the judgment and order of the Division Bench of the Rajasthan High Court at Jodhpur dated 12.9.95 passed in Special Appeal No. 572 of 1995. By the impugned judgment the Division Bench dismissed the special appeal filed by the present appellant namely Rajasthan Agricultural Universi­ty constituted by Rajasthan Agricultural University, Bikaner Act, 1987. Initially by an Act Udaipur University was constituted which was renamed as Mohanlal Sudhadia University. Later Mohanlal Sukhadia University was bifurcated and present appellant university was founded by an Act of Legislature.

2. The respondent herein was an employee of the appellant university and retired from service on superannuation on 9th December, 1992. He was granted provisional pension which was subsequently reduced. Another grievance of the respondent was that the gratuity was calcu­lated only on the basic pay instead of calculating on the pay last drawn including the dearness allowance and adhoc dearness allowance in accordance with the provisions of relevant rules. The respondent, therefore, prayed that an appropriate writ/direction be issued direct­ing the appellant-University to finalise the retiral benefits such as pension, gratuity and other retiral dues on the basic of actual last pay drawn, dearness and ad hoc dearness allowances.

3. In the counter filed before the High Court by the present appel­lant-university the actual date of retirement was disputed and accord­ing to the appellant, the respondent herein actually retired on 30th November, 1992. Regarding provisional pension it was urged before the High Court that provisional pension was granted on the basis of under­taking given by the respondent that excess benefits, if any, would be refunded. It was also urged that provisional pension was found to be more than what was due. Regarding rules of the university the plea taken before the High Court was that rules stood amended as per rules of the State Government and as the Government rules define the emoluments as basic pay for the purpose of payment of gratuity, no payment of gratuity on dearness allowance can be allowed. Various other pleas had been taken and it is not necessary to state at this stage and we shall deal with those submissions at the appropriate stage, if necessary.

4. The learned Single Judge in Writ Petition No. 3242 of 1993 by order dated 9.3.1995 inter alia was of the view that the rules regarding the calculation of basic pay in respect of Government employee would not be applicable in case of employee working under the university and therefore, for the purpose of calculation of gratuity of the respond­ent who was an employee of university, rules of the university shall have to be taken into consideration. It was directed that in terms of the rules of the university while working out gratuity of the respond­ent apart from the basic pay, amount of dearness allowance and adhoc dearness allowance should be counted.

5. Being aggrieved appeal was filed before the Division Bench which was dismissed as stated above.

6. We have heard Mr. Altaf Ahmed, learned Addl. Solicitor General for the appellant and Mr. Pallav Shishodia, learned counsel for the re­spondent. We may state here that after the argument was over written submissions were filed on behalf of both the parties.

7. To appreciate the contentions raised before us, we may quote below relevant portions of rules etc. The notes 1 and 2 of rule 11 of the University of Udaipur (Sukhadia University) Payment of Gratuity to Employees Rules, 1979 run as follows:-

“1. In the case of an University employee retiring on or after 31.3.1986, the term emolument wherever it occurs under these rules shall mean the emoluments which he was drawing immediately before retirement or on death from the service and include the following for purpose of calculation:-

(a) Pay as defined in Rule 7(24) of RSR,

(b) the a