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2013 Supreme(Del) 1468

IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J. MEHTA, J.
LT. COL. (RETD.) MR. S.S. DUBEY – Petitioner
Versus
THE DIRECTOR OF EDUCATION AND ORS. – Respondents
W.P.(C) No.110/2008
Decided On : 7th November, 2013

Advocates:
Advocate Appeared:
Mr. H.K. Chaturvedi, Advocate.
Ms. Sana Ansari, Advocate for respondent No.1. Ms. Parul Babbar, Advocate for respondent Nos. 2 and 3.

An employee receiving pension is entitled to only one gratuity, and the applicability of gratuity laws depends on the type of educational institution.

Headnote:

Gratuity - CCS Pension Rules - Rule 49, Rule 50

Fact of the Case:

The petitioner seeks payment of both service gratuity and retirement gratuity as per CCS Pension Rules. The petitioner had earlier served in the military and is receiving pension for that service. The Director of Education's order suggested that both gratuities were payable simultaneously.

Finding of the Court:

The court held that the petitioner is entitled to only one gratuity, i.e., retirement gratuity, under the Payment of Gratuity Act, 1972. The circular providing for payment of both service gratuity and retirement gratuity to an employee receiving pension is illegal.

Issues: Interpretation of CCS Pension Rules regarding entitlement to service gratuity and retirement gratuity, and applicability of Payment of Gratuity Act, 1972 to educational institutions.

Ratio Decidendi: Pension and service gratuity are alternative to each other, and an employee receiving pension is entitled to only one gratuity. The Payment of Gratuity Act, 1972 applies to private unaided schools, and CCS Pension Rules apply to government schools.

Final Decision: The relief as prayed for in the writ petition cannot be granted, and the petition is dismissed.

JUDGMENT

VALMIKI J. MEHTA, J (ORAL)

1. The petitioner by means of this writ petition seeks the relief of payment of both the service gratuity and the retirement gratuity as provided in Rules 49 and 50 of the CCS (Pension) Rules, 1972. Petitioner claims that both the amounts in terms of Rules 49 and 50 are payable (and not only one of the amounts of retirement gratuity) in spite of the fact that petitioner is getting pension for his earlier services rendered in the military/Army prior to his being employed by the respondent no.3/Army Public School. Rules 49 and 50 of the CCS Pension Rules are therefore required to be interpreted, and the same read as under:-

“Rule 49. Amount of Pension

(1) In the case of a Government servant retiring in accordance with the provisions of these rules before completing qualifying service of ten years, the amount of service gratuity shall be calculated at the rate of half month’s emoluments for every completed six monthly period of qualifying service.

(1-A) The Dearness Allowance admissible on the date of retirement shall also be treated as emoluments for the purpose of sub-rule(1);

(2) In the case of a Government servant retiring in accordance with the provisions of these rules after completing the qualifying service of not less than ten years, the amount of pension shall be calculated at fifty per cent of emoluments or average emoluments, whichever is more beneficial to him, subject to a minimum of three thousand and five hundred rupees per mensem and a maximum of forty-five thousand rupees per mensem.

(2-A) In addition to pension admissible in accordance with sub-rule (2), after completion of eight years of age or above, additional pension shall be payable to the retired Government servant in the following manner:-

Age of pensioner Additional pension

From 80 years to less than 85 years 20% of basic pension

From 85 years to less than 90 years 30% of basic pension

From 90 years to less than 95 years 40% of basic pension

From 95 years to less than 100 years 50% of basic pension

100 years or more 100% of basic pension.

(3) In calculating the length of qualifying service, fraction of a year equal to three months and above shall be treated as a completed one half-year and reckoned as qualifying service.

(4) The amount of pension finally determined under sub-rule (2), shall be expressed in whole rupees and where the pension contains a fraction of a rupee, it shall be rounded off to the next higher rupee.

Rule 50. Retirement/Death Gratuity

(1) (a) A Government servant, who has completed five years qualifying service and has become eligible for service gratuity or pension under Rule 49, shall, on his retirement, be granted 1[retirement gratuity] equal to one-fourth of his emoluments for each completed six monthly period of qualifying service, subject to a maximum of 16½ times the emoluments.

1[(b) If a Government servant dies while in service, the death gratuity shall be paid to his family in the manner indicated in sub-rule (1) of Rule 51 at the rates given in the Table below, namely:-

Length of qualifying service Rate of death gratuity

(i) Less than 1 year ... ... 2 times of emoluments.

(ii) One year or more but less than 5 years ... ... 6 times of emoluments.

(iii) 5 years or more but less than 20 years ... ... 12 times of emoluments.

(iv) 20 years or more ... ... Half of emoluments for every

completed six-monthly

period of qualifying service

subject to a maximum of 33

times of emoluments.

Provided that the amount of retirement gratuity or death gratuity payable under this rule shall in no case exceed [ten lakh rupees;]

Provided further that where the amount of retirement or death gratuity as finally calculated contains a fraction of a rupee, it shall be rounded off to the next higher rupee.]

(2) If a Government servant, who has become eligible for a service gratuity or pension, dies within five years from the date of his retirement from service including compulsory r
































































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