JUDGMENT

Shivaraj V. Patil, J.-Petitioners in the first writ petition are the individual pensioners and the petitioners in the second writ petition are associations representing the pensioners. Facts giving rise to the filing of the writ petitions and the questions of law raised are similar.

2. The petitioners in these writ petitions have sought for a declaration that the employees of the State Bank of India are entitled to enhanced gratuity of Rs. 2.50 lakhs with effect from 1.4.1995 and Rs. 3.50 lakhs with effect from 1.1.1996, and for direction to the respondent-State Bank of India to give enhanced gratuity amount to the retired employees with interest.

3. The basis for their claim is the recommendation of the 5th Pay Commission, the speech made by Union Finance Minister while presenting the Central Government Budget for the year 1997-98 and the Central Government and other several Government sector undertakings giving revised ceiling on gratuity with effect from 1.4.1995 and 1.1.1996. The claim for payment of enhanced gratuity amount is made by the employees who retired prior to 24.9.1997. The respondents contested the claim of the petitioners stating that the petitioners were en