1. The three petitioners having taken voluntary retirement on 29th August, 1997, 31st July, 1997 & 11th July, 1997 respectively from the respondent no.3 National Project Construction Corporation (NPCC), a Government of India Enterprise, seek a writ of mandamus directing the respondent no.3 NPCC to grant to them the benefit of the increase in the maximum gratuity payable from Rs.1,00,000/- to Rs.2,50,000/-. Rule was issued in the petition on 16th August, 2000. The respondent no.3 NPCC has filed a counter affidavit and to which a rejoinder has been filed by the petitioners. The counsel for the respondents no.1 & 2 Union of India, without filing any counter affidavit has made submissions opposing the writ petition.

2. It is the case of the petitioners that the 5th Pay Commission in its interim report recommended inter alia the raising of ceiling on the amount of retirement / death gratuity from Rs.1,00,000/- to Rs.2,50,000/-; that the respondent Union of India issued an office memorandum dated 14th July, 1995 conveying its decision, to in accordance with the said recommendation, enhance the maximum amount of gratuity payable under the Central Civil Services (Pension) Rules 1972 in the case of Central government employees to Rs.2,50,000/- with effect from 1st April, 1995; however, the ordinance amending the provisions of the Gratuity Act to enhance the ceiling of gratuity therein from Rs.1,00,000/- to Rs.2,50,000/- was brought belatedly in the year 1997 only, with effect from 24th September, 1997; that the respondent no.3 NPCC on the basis of the said ordinance issued a circular dated 15th October, 1997 raising the ceiling of gratuity from Rs.1,00,000/- to Rs.2,50,000/- effective from 24th September, 1997. The petitioners, who as aforesaid took voluntary retirement before 24th September, 1997, thus did not get the benefit of the enhanced gratuity.

3. It is the case of the petitioners that pursuant to the recommendations of the 4th Pay Commission in the year 1984 also, though the pay scales of the central government employees were enhanced but the pay scales of the employees of the various public sector undertakings were not increased; the associations of employees of various public sector undertakings had filed writ petitions in the various High Courts and also in the Supreme Court in this regard; that ultimately the Government of India vide letter dated 7th April, 1986 informed the Supreme Court that the question with regard to the revision of pay structure and other emoluments and conditions of service in respect of public sector employees shall be referred to a high powered committee; the said high powered committee submitted its report to the Supreme Court and the Supreme Court vide its judgment dated 3rd May, 1990 in Writ Petition No.13044/1984 and other connected writ petitions inter alia directed that the pay revision in respect of the public sector employees in respect of whom the recommendations were then being directed to be implemented, shall thereafter take place as and when similar changes are effected for the Central government employees. The petitioners thus contend that in accordance with the said direction of the Supreme Court, the petitioners being the employees of a public sector undertaking as the respondent no.3 NPCC is, also became entitled to enhanced gratuity w. e. f. 1st April, 1995 in accordance with the office memorandum dated 14th July, 1995 (supra) of the Government of India. The petitioners on the said basis claim that on the date of their voluntary retirement in the year 1997, even though prior to the amendment in the Gratuity Act, they became entitled to payment of enhanced gratuity.

4. The petitioners in the writ petition have also averred that they cannot be discriminated against vis-à-vis the employees of the Government of India in the matter of payment of gratuity and claim that the ordinance amending the Gratuity Act w .e. f. 24th September, 1997 instead of w. e. f. 1st Ap