SUPREME COURT OF INDIA
ANIL R. DAVE, ADARSH KUMAR GOEL, JJ.
Vice Chairman & Managing Director, A.P. State Essential Commodities Corporation Ltd. & Anr. – Appellants
Vs.
C.V. Viswanatham & Anr. – Respondents
Interlocutory Application No. 3 of 2016 & Civil Appeal No. 1220 of 2016 (Arising out of SLP(C) No. 5113 of 2015)
Decided On : 12-02-2016
Superannuation - Payment of Gratuity - Summary: The court modified the impugned judgment to direct the appellants to pay a sum of Rs.2 Lakhs to the respondent, in addition to the Rs.1 Lakh already paid, as full and final settlement of the claim. The respondent had attained the age of superannuation and had worked for only 5 or 6 years before superannuation. The appeal was allowed with no order as to costs, and contempt proceedings were quashed.
Fact of the Case:
The respondent had attained the age of superannuation and had worked for 5 or 6 years before superannuation. The appellants were directed to pay a sum of Rs.2 Lakhs to the respondent, in addition to the Rs.1 Lakh already paid, as full and final settlement of the claim.
Finding of the Court:
The court allowed the appeal with no order as to costs, and quashed the contempt proceedings due to the disposal of the main matter.
Issues: Payment of gratuity, superannuation, settlement of claim, initiation of contempt proceedings
Ratio Decidendi: The respondent's attainment of superannuation and limited years of service before superannuation influenced the court's decision to modify the judgment and direct the payment of Rs.2 Lakhs as full and final settlement of the claim.
Final Decision: The appeal was allowed with no order as to costs, and contempt proceedings were quashed.
JUDGMENT :
Anil R. Dave, J.
1. Mr. K. Sita Rama Rao, learned counsel appearing on behalf of Mr. Shree Pal Singh, leaned Advocate-on-record, has submitted that he is appearing for Respondent No.1. Respondent No.2, being a proforma party, is deleted from the array of parties at the risk of the appellants.
2. Heard the learned counsel for the parties.
3. Leave granted.
4. Looking at the facts that the respondent has admittedly attained the age of superannuation and he had hardly worked for 5 or 6 years before his superannuation, we modify the impugned judgment to the effect that in all a sum of Rs.2 Lakhs (Rupees Two Lakhs only) shall be paid by the appellants to the respondent, within three months from today. We also note the fact that up till now a sum of Rs.1 Lakh (Rupees One Lakh only) has already been paid to the respondent. The aforestated amount of Rs.2 Lakhs is in addition to the amount of Rs. 1 Lakh, which has already been paid and that will be towards full and final settlement of the claim which could have been made by the respondent.
5. The appeal is disposed of as allowed with no order as to costs.
6. In view of disposal of the main matter, there is no issue with regard to initiation of contempt proceedings and therefore, the contempt proceedings are quashed. With these observations, I.A.No.3/2016 stands disposed of.
7. Pending application, if any, stands disposed of.
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