IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
RANJAN SHARMA, J.
Ram Lal – Appellant
Versus
HPTDC and others - Respondents.
CWP No.195 of 2024
Decided on : 11-01-2024
Gratuity - Retirement Benefits - CCS (Pension) Rules, 1972, Payment of Gratuity Act, 1972 - 6.1, 6.2, Rule 50(1)(b), Section 7(3A) - The court discussed the admissibility of Retirement Gratuity/DCRG, the maximum limit of retirement gratuity and death gratuity, and the entitlement of the petitioner to revised gratuity and leave encashment. The court also highlighted the statutory interest on retiral benefits under Rule 65 of the CCS (Pension) Rules and Section 7(3A) of the Payment of Gratuity Act.
Fact of the Case:
The petitioner, a retired employee, filed a writ petition seeking the release of admissible amount of Revised-Enhanced Gratuity and Revised Leave Encashment, along with statutory interest on retiral benefits.
Finding of the Court:
The court found that the petitioner was entitled to the revised gratuity and leave encashment as per the relevant rules and judgments. The court directed the respondents to release the benefits and statutory interest within a specified time frame.
Issues: The issues involved the entitlement of the petitioner to revised gratuity and leave encashment, the withholding of benefits by the Respondent-Corporation, and the applicability of statutory interest on retiral benefits.
Ratio Decidendi: The court held that the petitioner was entitled to the revised gratuity and leave encashment as per the relevant rules and judgments. The court also emphasized the obligation of the Respondent-Corporation to release the benefits and statutory interest within a specified time frame.
Final Decision: The court directed the respondents to consider and release the admissible amount of Revised-Enhanced Gratuity and Revised Leave Encashment to the petitioner, along with statutory interest, within four months from the date of the judgment.
JUDGMENT :
Ranjan Sharma, J.
Notice. Mr. Shivank Singh Panta, Advocate appears and waives service of notice on behalf of the respondents.
2. With the consent of the parties, the instant writ petition, is taken up for disposal, at this stage, in view of the order(s) intended to be passed hereinafter.
3. The petitioner, having retired on 30.06.2021, as Commi-II, has filed the writ petition with the following prayer(s):-
4. Case of the petitioner is that he retired from service of the Respondent-Corporation as a Commi-III on 30.06.2021 after his superannuation, the State Government issued the H.P. Civil Services (Revised Pay) Rules on 03.01.2022, revising the pay scales of its employees w.e.f. 01.01.2016; and thereafter the State Authorities issued another Office Memorandum on 25.2.2023 giving the revised retiral benefits i.e. revised pension, revised gratuity, revised commuted pension and revised leave encashment to its employees w.e.f. 1.01.2016. Paras 6.1 and 6.2 of Office Memorandum dated 25.2.2023, dealing with admissibility of “Retirement Gratuity/DCRG” whereby the maximum amount of DCRG of Rs.10,00,000/- (Rupees Ten Lakhs) was enhanced to Rs.20,00,000/-(Rupees Twenty Lakhs) w.e.f. 01.01.2016, reads as under:-
| Length of qualifying service | Rate of Death Gratuity |
| Less than one year | 2 times of monthly emoluments |
| 5 years or more but less than 11 years | 12 times of monthly emoluments |
| 11 years or more but less than 20 years | 20 times of monthly emoluments |
| 20 years or more | Half month’s emoluments for every completed sixmonthly period of qualifying service subject to a maximum of 33 times of emoluments. |
The first proviso under Rule 50(1)(b) of CCS (Pension) Rules, 1972 shall stand modified to this extent.”
5. Learned counsel for the petitioner submits once the Office Memorandum(s) dated 03.01.2022 giving revised pay scale w.e.f.01.01.2016 and the Office Memorandum dated 25.2.2023, giving revised retiral benefits w.e.f 01.01.2016 to the employees of the State Government have been adopted by the Respondent-Corporation then, the employees of the Corporation, including the petitioner is eligible for admissible amount of Revised Gratuity/DCRG, out of the enhanced limit of Gratuity of Rs.20,00,000/- (Twenty Lakhs) w.e.f. 01.01.2016.
6. In these circumstances, learned counsel for petitioner submits that once the petitioner retired on 30.6.2021, then the petitioner is entitled to the Revised/Enhanced Gratuity, under the CCS(Pension) Rules on the date of retirement but the Respondent-Corporation has revised an amount of Rs. 1,00,000/-(Rupees One Lakh Only) whereas the “admissible amount of Revised Gratuity” has been withheld till day. He further submits that the non-release/withholding of Revised Enhanced Gratuity without giving prior notice, without giving personal hearing is illegal. Learned counsel for the petitioner submits that once neither any departmental proceedings nor any criminal prosecution was pending or date of retirement then, denial or withholding revised Gratuity is illegal. It is further submitted that once no Government-Corporation Dues are outstanding against the petitioner on the date of retirement then, the withholding, non release of “admissible amount of Revised Gratuity”, without the authority of law, is violative of Articles 14, 16 and Article 300-A of the Constitution of India.
7. Learned counsel for the petitioner further submits that in view of the non-release/withhold
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The non-payment of enhanced gratuity and leave encashment as per the amendment is unconstitutional and must be resolved by the Respondent-Corporation within a specified timeline.
The central legal point established in the judgment is the entitlement of employees to revised retirement benefits as per government notifications and the obligation of the employer to release the be....
The undisputed entitlement of an employee to retiral benefits and the court's authority to direct the release of such benefits with statutory interest within a specified time frame.
The revised ceiling limit of gratuity under the Payment of Gratuity Act, 1972 applies to all employees, overriding state regulations that set lower limits.
Once full amount of gratuity becomes payable to the employee due to the consequences of law, then the right to get statutory interest in terms of Section 7(3A) of the Payment of Gratuity Act, cannot ....
Retiral benefits, including gratuity and pension, constitute vested property rights under Article 300A; delayed payment breaches the right to livelihood under Article 21, and employers must timely se....
The withholding of retiral benefits, including gratuity and leave encashment, based on a pending criminal case, must be in accordance with the relevant statutory provisions and cannot be applied retr....
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