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2022 Supreme(Jhk) 1123

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SHREE CHANDRASHEKHAR, RATNAKER BHENGRA, JJ.
Bharat Roy, son of Late Suraj Nath Roy – Appellant
Versus
The Union of India – Respondent
LPA No. 29 of 2016
Decided on : 11-10-2022

Advocates:
Advocate Appeared:
For the Appellants :Mr. Vijay Bahadur Singh, Advocate
For the Respondents:Mr. Anil Kumar Sinha, Mr. Arbind Kumar Sinha, Advocate

Headnote:

Constitution of India, 1949 – Article 12 – Payment of Gratuity (Amendment) Act 2010 – Section 4 – Industrial Disputes Act – Section 18 – Enhancement of Gratuity – Amendment – Executives and non-unionized – Application was filed by Bharat persons were holding post of Chargeman and Assistant Personnel Garden Reach Shipbuilders & Engineers Limited and fall unionized category – Held, Court case of connection with fixation of seniority revision takes becomes imperative because benefit has to be allowed within financial resources available with Government – No provision under Gratuity Act or any judgment to effect that contrary appointed gazette notification benefit flowing from amendment Payment of Gratuity from a retrospective – Appeal dismissed.

ORDER :

Shree Chandrashekhar, J.

WP(S) No. 5204 of 2011 was filed by Bharat Roy, Debjayoti Banerjee and Baban Ram. These persons were holding the post of Chargeman and Assistant Personnel (HR) under the Garden Reach Shipbuilders & Engineers Limited and fall under the unionized category.

2. WP(S) No.6846 of 2011 was filed by 16 persons who accepted the voluntary retirement with effect from 31st October 2009. They were working in various capacity such as Assistant, Fitter, Pipe Fitter, Clerk, Welder, Gas Cutter, Machinist, Store Keeper, Rigger etc. and they also fall under the unionized category.

3. Both the writ petitions were dismissed by an order dated 27th November, 2015 on the ground that the writ petitioners belong to a distinct class, different from Board-level officials, Executives and non-unionized Supervisors.

4. Against the order dated 27th November 2015 passed in WP(S) No. 5204 of 2011, the present Letters Patent Appeal has been filed by the persons who have now superannuated from service. The appellant Nos.1 & 3 have retired on 30th April 2010 and the appellant No.2 has superannuated with effect from 1st January, 2009. The appellants have challenged the office memorandum dated 26th November 2008 issued by the Ministry of Heavy Industries and Public Enterprises on the basis of which enhancement of gratuity amount from Rs.3,50,000/- to Rs.10,00,000/- for the Executives and non-unionized Supervisors was made payable from 1st January 2007. They have also challenged the circular dated 2nd August 2010 by which the aforesaid enhancement in the gratuity amount has been restricted to Boardlevel Executives and non-unionized employees.

5. The representations made by the appellants seeking parity in enhancement of gratuity with effect from 1st January 2007 was rejected by the competent authority by an order dated 19th February 2011 and, therefore, this order has also been challenged by the appellants.

6. The Garden Reach Shipbuilders & Engineers Limited contested the writ petition mainly on two grounds: (i) enhancement of gratuity amount from Rs.3,50,000/- to Rs.10,00,000/- with effect from 1st January 2007 was, in fact, wage revision and not pursuant to amendment in sub-section (3) to section 4 of the Payment of Gratuity Act and (ii) the amendment in subsection (3) to section 4 of the Payment of Gratuity Act has been made effective from 24th May 2010 and by that date the appellants had already superannuated from service.

7. The relevant paragraphs of counter-affidavit filed on behalf of the respondent Nos. 2 to 4 are extracted below:

    “6. That the Payment of Gratuity Act 1972 was amended vide the Payment of Gratuity (Amendment) Act 2010 (Act No.15 of 2010). Assent of President was received on 17th May 2010 and the same was published in the Gazette of India on May 18, 2010 whereby in sub-section (3) of Section 4 of the Payment of Gratuity Act, 1972 for the word "Three Lakhs and fifty thousand rupees", the word "Ten Lakhs rupees" was substituted.

The Ministry of Labour and Employment, Government of India vide Notification No. S.O.1217 (E) appointed 24th day of May, 2010 as the date on which the said Act shall come into force. The same was also published in the Gazette of India dated May 24th, 2010.

7. That a Circular being HR/OS/INT/617/10 dtd. 2nd September, 2010 was Circulated by Director (Personnel) of Respondent No.-2.

8. That on the representation dated 15th January, 2010 of Sri A.K. Nag and 47 others on the subject of effective date of Gratuity the General Manager (HR&A) of Respondent No. 2 has after considering the entire pros and cons intimated Sri A.K. Nag vide letter no. HR/IR/279/11 dated 19th February, 2011 that the effective date of enhanced Gratuity is effective from 24th May, 2010 to the Unionised category of employees of GRSE Ltd.

9. That time and again the retired operatives requested to maintain one effective date for implementation of enhanced Gratuity. The matter was thoroughly examined and duly informed to Ministry of D

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