The central legal point established in the judgment is the importance of accurately determining the service entry date, continuous service, and last drawn wages for the calculation of gratuity under the Payment of Gratuity Act, 1972.

Ram Mohan Reddy, J.

1. Karnataka State Road Transport Corporation aggrieved by the order dated 8-3-2012 Annexure-C of the Appellate Authority determining Rs. 2,12,381.00 as gratuity, has presented this writ petition. Learned Counsel for the petitioner advances the following contentions.--

(i) The petitioner-Corporation issued an endorsement Ex. R.3 recording 16-12-1978 as the date of entry into service of the respondent-workman on the basis of orders passed by this Court in writ petition and in writ appeal although his name was found in the Badali list as on 4-2-1976, Ex. P.1, and put in total service of 22 years 10 months 17 days, out of which 10 months and 13 days was excluded as period of absence, salary without leave, suspension and other such orders and therefore, the respondent had worked for 22 years and 13 days.

(ii) The respondent-workman retired on 31-3-2005, whence, was paid Rs. 1,23,646/- and an additional sum of Rs. 5,500/- totaling to Rs. 1,29,140/- reckoning Rs. 5,620/- as the last basic pay drawn by the workman and the gratuity calculated in accordance with the KSRTC Servants Gratuity Regulations.

(iii) That in accordance with the Payment of Gratuity Act, 1972, the respondent-workman is entitled to Rs. 1,19,117/- by reckoning Rs. 5,620/- as the last drawn basic pay to which D.A. of Rs. 3,765/- when added, the total is Rs. 9,385 and applying the formula i.e. 15 x 22/26 would result in the said gratuity amount.

(iv) The Appellate Authority without any justification reckoned the last drawn basic pay as Rs. 5,620/- to which was added D.A. of Rs. 3,990/- to arrive at Rs. 9,610/- and reckoning the period of service rendered as 22 years and 10 months determined gratuity at Rs. 2,12,381/- and after deducting the amounts paid directed payment of Rs. 83,241/- with interest at 10% P.A.

2. Per contra, the learned Counsel for the contesting respondent-workman submits: (i) That records relating to discharge of duties while on the Badali list in the custody of the petitioner-Corporation, which when not placed before the Controlling Authority, the period of active service eligible for determining gratuity was reckoned from 16-12-1978 to 31-3-2005. Learned Counsel submits that the endorsement Annexure-R3 issued by the petitioner-Corporation is inapplicable for determining continuous service under Section 2-A of the Payment of Gratuity Act, 1972; (ii) it is submitted that adverse interference is to be drawn that the workman did discharge duties while on the Badli rolls, with effect from 4-2-1976, in the absence of petitioner-Corporation placing on record Part VI of the Service Register for reckoning continuous service; (iii) in the absence of relevant material to establish that as on 1-1-2000 the pay of the respondent when fixed, after merger of the D.A., was Rs. 4,465/- is also not indicating what was the percentage of D.A. allegedly merged and what was the pay scale attached to the post as on 1-1-2000, the Appellate Authority justifiably reckoned Rs. 5,620/- as the last drawn wages and added D.A. of Rs. 3,990/-; (iv) learned Counsel submits that the adding of the D.A. to the last drawn pay is in accordance with law.

3. Having heard the learned Counsel for the parties, perused the pleadings and examined the order of the Appellate Authority, the question for decision making is:

Whether in the facts and circumstances of the case, the order of the Appellate Authority is just, legal and proper?

4. There can be no doubt that person enlisted in the badali list of the petitioner-Corporation is entitled, in terms of the memorandum of settlement, to be brought on time scale of pay or on probation immediately on the completion of continuous service of 180 days or 240 days, subject to availability of vacancies. Therefore, the conditions precedent to bring an employee on time scale of pay or probation is that he should have completed 180 days or 240 days of continuous service and the existence of vacancies.

5. Though by endorsement dated 22-12-