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2024 Supreme(HP) 404

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
RANJAN SHARMA, J.
 
Sh. Bhumi Singh - Petitioner
Versus
Himachal Pradesh Tourism Development Corporation - Respondent
CWP No.9480 of 2023
Decided on : 03-01-2024
 

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Om Prakash Goel, Advocate
For the Respondent:Ms. Shilpa Sood, Advocate

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.

Headnote:(A) Constitution of India - Articles 14, 16, and Article 300-A - Payment of Gratuity (Amendment) Act, 2018 - The petitioner retired as a Driver on 31.03.2020 and sought enhanced gratuity as per revised pay rules - The maximum gratuity limit was increased from Rs.10,00,000/- to Rs.20,00,000/- with effect from 01.01.2016 - The petitioner is entitled to revised gratuity based on the amendment - Delay in payment resulting in withholding benefits is unconstitutional. (Paras 5-9)

(B) Statutory Rights - Non-release of benefits after retirement without authority of law violates fundamental rights guaranteed under Articles 14, 16, and 300-A. (Paras 5, 12)

Facts of the case:
The petitioner retired after 20 years of service and claimed enhanced gratuity as per the revised pay rules and the Payment of Gratuity (Amendment) Act, 2018, which the Respondent-Corporation had unlawfully delayed.

Findings of Court:
The Court directed the Respondent-Corporation to consider the petitioner's claim and release the enhanced gratuity and leave encashment within four months, along with statutory interest due.

Issues: Whether the petitioner is entitled to the increased gratuity as per the amended act and whether the withholding of gratuity is lawful.

Ratio Decidendi: Delay in releasing the admissible benefit without proper grounds is illegal and violates the petitioner’s rights.

Result: Writ petition disposed of in favor of the petitioner.

Table of Content
1. entitlement to enhanced gratuity post-retirement. (Para 3 , 4)
2. arguments for enhanced gratuity under various rules. (Para 5 , 6 , 8)
3. past judgments relevant for current case. (Para 7 , 9 , 10)
4. court directive for timely release of dues. (Para 11 , 12 , 13)

JUDGMENT :

Ranjan Sharma, J.

1. Notice. Mr. Shivank Singh Panta, learned counsel, 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 31.03.2020 from the post of Driver from the Respondent-Corporation, has filed the writ petition with the following prayer(s):-

“(a) That a writ of mandamus or any other appropriate writ order or directions may kindly be issued directing the respondents to release the revised higher amount of gratuity and leave encashment in favour of the petitioner in terms of the revised pay rules as well as the payment of gratuity (amendment) Act, 2018 alongwith interest @ 9% per annum.

(b) That a writ in the nature of Mandamus or any other appropriate writ order or directions may kindly be issued directing the respondent to release the arrears on account of the delayed period payment alonwith interest @ 9% per annum.”

4. Case of the petitioner is that he retired from service of the Respondent-Corporation as a Driver on 31.03.2020 and he was sanctioned the Gratuity amounting to Rs.10,00,000/- (Ten Lakhs) on 18.07.2020 (Annexure P-3). 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 25.02.2023 giving the revised retiral benefits i.e. revised pension, revised gratuity, revised commuted pension and revised leave encashment to its employees w.e.f. 01.01.2016. Paras 6.1 and 6.2 of the Office Memorandum dated 25.02.2023, dealing with the admissibility of “Retirement Gratuity/DCRG” whereby the maximum admissible amount of DCRG of Rs.10,00,000/- (Rupees Ten Lakhs) was allowed to Rs.20,00,000/- (Rupees Twenty Lakhs) w.e.f. 01.01.2016, reads as under:-

6.1 The rates for payment of death gratuity shall be revised as under:-

Length of qualifying service Rate of Death Gratuity
Less than one year2 times of monthly emoluments
One year or more but less than 5 years6 times of monthly emoluments
5 years or more but less than 11 years12 times of monthly emoluments
11 years or more but less than 20 years20 times of monthly emoluments
20 years or moreHalf month’s emoluments for every completed six-monthly period of qualifying service subject to a maximum of 33 times of emoluments.

6.2 The maximum limit of retirement gratuity and death gratuity is enhanced from Rs.10 Lakhs to Rs.20 Lakh. The revised rates of retirement gratuity and death gratuity shall be admissible w.e.f. 01.01.2016. 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 dated 25.02.2022, issued by the State Government was adopted by the Respondent-Corporation then, the employees of the Corporation were eligible for maximum amount of Revised Gratuity/DCRG of Rs.20,00,000/- (Twenty Lakhs) w.e.f. 01.01.2016.

In these circumstances, learned counsel for petitioner submits that once the petitioner retired on 31.03.2020, then the petitioner is entitled to the Revised/Enhanced Gratuity, under the CCS (Pension) Rules of Rs.12,99,586/-(Rupees Twelve Lakh Ninety Nine Thousand Five Hundred Eighty Six) on the date of retirement i.e. on 31.03.2020 but the Respondent- Corporation has withheld/not-released the “admissible amount of Revised Gratuity” till day. He further submits that the non-release/withholding of Revised Enhanced Gratuity without notice, without hearing when, neither any departmental proceedings nor any

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