IN THE HIGH COURT OF GAUHATI, (Assam, Nagaland, Mizoram and Arunachal Pradesh)
Soumitra Saikia, R.M. Chhaya, JJ.
Assam Gramin Vikash Bank, Represented by its Chairman - Appellant
Versus
Smt. Babita Gupta, Wife of Diwakar Roy - Respondent
W.A. No. 275 Of 2021
Decided On : 05-09-2022
Payment of Gratuity Act, 1972 – Section 4,14 – Regional Rural Banks Act, 1976 - section 30 - Assam Gramin Vikash Bank (Officers and Employees) Service Regulations, 2010 - Regulation 72(1),72(2),72(2)(d) – Appeal - Gratuity - Act to override other enactments, etc - Power to make regulation – Sub-section (2) of section 30 of Rural Banks Act further provides that every regulation shall be forwarded to Central Government and that Government shall cause the same to be laid before each House of Parliament, while it is in session, for a total period of thirty days and when both Houses agree, regulation shall thereafter have effect (Para 9).
Findings of the Court: Question which arose for consideration in the aforesaid writ petitions and the writ appeals, which are relied upon by the learned counsel for the respondent/original petitioner, was the higher amount of gratuity to be paid to the respondent employees and, therefore, those judgments shall have no application to the facts of the present case wherein the very eligibility of the respondent/original petitioner for gratuity has been questioned as the respondent/original petitioner has, admittedly, not completed 10 years of service on her resignation but has completed only 5 years and 10 months, which disentitles her from the benefit of gratuity as provided under Regulation 72(2) (d). Lower or higher amount of gratuity, as provided under Regulation 72(1) of 2010 Regulation would arise only when the employee is otherwise eligible for gratuity - therefore, even though the learned Single Judge came to the conclusion that the respondent/original petitioner would not be entitled to receive gratuity under Regulation 72(2) of the 2010 Regulation, has committed an error in directing the appellant bank to process the payment of gratuity to respondent/original petitioner under section 4 of the 1972 Act.
Result: Appeal allowed
JUDGMENT :
R.M. Chhaya, J.-
1. Feeling aggrieved and dissatisfied by the judgment and order dated 09.03.2021 passed by the learned Single Judge in Writ Petition (Civil) No. 1697/2018, the original respondents have preferred this writ appeal.
2. Heard Mr. S. Dutta, learned senior counsel assisted by Ms. S. Mochahari, appearing for the appellant, and Ms. D. Borgihain, learned counsel, with Ms. G. Purkayastha, appearing for the respondent.
3. The following noteworthy facts arise out of this appeal:
(ii) The said decision taken by the appellant came to be challenged by the respondent by way of filing the present writ petition mainly on the ground that as per section 4 of the Payment of Gratuity Act, 1972 (hereinafter referred to as “1972 Act” for the sake of brevity), as the respondent has completed 5 years of service, she would be entitled to gratuity. In the writ petition, the respondent/original petitioner, relying upon the chronology of service rendered by her, further contended that as per the provisions of the 1972 Act and, more particularly, section 14 of the 1972 Act, the 2010 Regulations cannot be brought into effect to deny the benefit confirmed by section 4 of the 1972 Act. It is also contended by the respondent/ original petitioner that as she has put in 5 years 10 months service, she would be entitled to gratuity equivalent to an amount or more than 5 months’ salary. In the writ petition it was also contended by the respondent/original petitioner that the appellant/original respondent have misconstrued the provisions contained in Regulation 72 of the 2010 Regulation and have thus deprived the respondent/original petitioner from her legitimate right of payment of gratuity and, inter alia, prayed as under:
“In the premises aforesaid it is therefore, humbly prayed that Your Lordships may be pleased to admit this petition and call for the records, issue a Rule calling upon the respondents to show cause as to why the relief sought for in this application should not be granted and on cause or causes being shown and on hearing the parties and perusal of records be pleased to direct the respondent authorities to pay the gratuity due to the petitioner on her resignation from service and calculated as per Regulation 72(3) of the Service Regulation of 2010 along with interest and/or pass any other such order or orders as Your Lordships may deem fit and proper.”
(iii) The appellant herein/original respondent filed a detailed affidavit-in-opposition and denied the contentions raised by the respondent/original petitioner. The learned Single Judge came to the conclusion that as the respondent has not fulfilled the conditions of eligibility as per Re
Employees of bank were found to be eligible for gratuity as per 1972 Act and, hence, they were found to be entitled to benefit of Regulation 72(1) of 2010 Regulation.
The main legal point established in the judgment is that the entitlement to gratuity under a specific regulation and a general act was determined based on the fulfillment of conditions of eligibility....
The Payment of Gratuity Act, 1972, is a beneficial welfare legislation that overrides internal service regulations. Forfeiture of gratuity is strictly limited to the specific conditions prescribed un....
The court established that the interpretation of gratuity provisions must favor the employee, ensuring better terms under the applicable regulations.
The definition of 'pay' for gratuity calculation includes special allowances, and the interest rate cannot be reduced below statutory provisions.
Gratuity cannot be withheld in cases of termination by punishment without evidence of financial loss to the employer.
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