The decision on the grant of the benefit of the enhanced ceiling in the Gratuity has to be taken in the first instance by the concerned CPSE since it relates to affordability, and the CPSE must consider the financials and make a decision. The effective date of enhanced gratuity and the coverage of the employees under the Notification must be determined in accordance with the relevant O.M. and Notification.

JUDGMENT

Jyoti Singh, J. (Oral)

C.M. APPL. 2467/2023

1. Present application has been preferred on behalf of the Petitioners seeking condonation of delay of 135 days in filing the rejoinder.

2. Issue notice.

3. Ms. Anjana Gosain, learned counsel accepts notice on behalf of Respondents No. 1 to 4.

4. Mr. Puneet Taneja, learned counsel accepts notice on behalf of Respondent No. 5.

5. For the reasons stated in the application, the same is allowed.

6. Delay of 135 days in filing the rejoinder is condoned.

7. Rejoinder is taken on record.

8. Another copy of the rejoinder has been handed over to learned counsel for Respondent No. 5 during the course of hearing.

9. Application stands disposed of.

W.P.(C) 2753/2019

10. Present writ petition has been filed on behalf of the Petitioners seeking the following reliefs:

"I. Issue a writ of mandamus thereby directing the Respondents herein to extend the benefit of enhanced gratuity amount to the Petitioners who have retired on or after 01.01.2017 as per O.M. No. W-02/0028/2017-DPE(WC)-GL-XIII/17 dated 03.08.2017 issued by the Min. of Heavy Industries &Public Enterprises (Dept. Of Public Enterprises) and quash the Office Order No. 477/2018 dated 22.05.2018 issued by the Respondent No. 5; and

II. Issue a Writ of mandamus directing the Respondents to release the remaining gratuity amount lying with the Respondents as per the increased gratuity amount of Rs.20 lakhs to the Petitioners herein;"

11. Factual score emerging from the narrative in the writ petition is that Petitioners joined the services of Respondent No. 5/Pawan Hans Limited between the years 1986 to 1989 and after serving for several decades, without a blemish in service, retired on various dates between 01.01.2017 to 28.02.2018. Payment of Gratuity Act, 1972 (hereinafter referred to as the `1972 Act') was enacted on 16.09.1972 as a welfare legislation and envisages payment of lump sum amount to an employee at the time of retirement in view of the years of service rendered by the employee with the concerned employer/establishment. Under Section 4(3) of 1972 Act, the amount of Gratuity is to be paid as per the ceiling limit notified from time to time by the Central Government.

12. Respondent No. 5 is a Mini Ratna-I category Central Public Sector Undertaking under the administrative control of Ministry of Civil Aviation/Respondent No. 1. It was incorporated on 15.10.1985 as the Helicopter Corporation of India with the objective of providing helicopter support services to oil sectors for offshore exploration operations, services in remote areas and charter services for tourism promotion. The 1972 Act admittedly applies to employees of Respondent No. 5. On 24.05.2010, the 1972 Act was amended by the Payment of Gratuity (Amendment) Act, 2010 and the limit of Gratuity payable was enhanced from Rs.3.5 lakhs to Rs.10 lakhs w.e.f. 24.05.2010.

13. On 19.11.2015, Report of the 7th CPC was submitted to the Central Government wherein number of recommendations were made with regard to the pay structures, retiral benefits etc. of the Central Government employees. In line with the recommendations, the Central Government decided to review and revise the existing structure of salary and emoluments of employees working as Executives in various Central Public Sector Enterprises (`CPSEs') and in this view, appointed 3rd Pay Revision Committee (PRC) on 09.06.2016 headed by Justice Satish Chandra (Retd.) to consider the 7th CPC recommendations.

14. Government of India issued an O.M. dated 04.08.2016 vide which various modifications were made qua Central Government employees governed by CCS (Pension) Rules, 1972, whereby inter alia Gratuity limit was enhanced from Rs.10 lakhs to Rs.20 lakhs retrospectively w.e.f. 01.01.2016. On 21.11.2016, the 3rd PRC submitted its report to the Central Government i.e. Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises and in view of the report, Government issued O.M. dated 03.08.