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2024 Supreme(P&H) 52
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUVIR SEHGAL, J.
Harbans Lal Sharma – Appellant
Versus
Punjab State Federation Cooperative House Building Societies and Others – Respondents
RSA No. 795 of 1993
Decided On : 02-02-2024
Advocate Appeared:
For the Appellant : S.S. Joshi.
Entitlement to gratuity under the Punjab State Cooperative Housing Federation Service Rules, 1976 is contingent upon a minimum of 10 years of service, and once a resignation is accepted and communicated, it cannot be withdrawn.
Headnote:
Resignation - Gratuity Entitlement - Punjab State Cooperative Housing Federation Service Rules, 1976 - Rule 2, Rule 3 - The court discussed the plaintiff's entitlement to gratuity under the Rules, emphasizing the requirement of a minimum of 10 years of service for eligibility. It highlighted the conditions for gratuity on resignation due to health grounds and concluded that the plaintiff did not fulfill the requisite period of service, thus dismissing the appeal.
Fact of the Case:
The plaintiff, an Office Assistant, resigned on health grounds and sought gratuity from the defendant. The defendant accepted the resignation but denied the gratuity claim. The plaintiff filed a suit for declaration of entitlement to gratuity.
Finding of the Court:
The court found that the plaintiff did not meet the minimum 10 years of service required for gratuity entitlement under the Rules. It held that once a resignation is accepted and communicated, it cannot be withdrawn, and dismissed the appeal.
Issues: Entitlement to gratuity, validity of resignation, fulfillment of service conditions, withdrawal of resignation
Ratio Decidendi: The court emphasized the requirement of a minimum of 10 years of service for gratuity entitlement and the inability to withdraw a resignation once accepted. It concluded that the plaintiff did not fulfill the requisite period of service and affirmed the lower court's decision.
Final Decision: The appeal was dismissed with no order as to costs.
JUDGMENT :
SUVIR SEHGAL, J.
1. Plaintiff-appellant is before this Court by way of the instant second appeal challenging concurrent finding of fact recorded by both the Courts below.
2. Pleaded case of Harbans Lal Sharma, plaintiff-appellant is that he joined the office of the defendant-respondents on 11.07.1980 as an Office Assistant and he submitted his resignation, on health ground, which was accepted vide order dated 31.08.1989. On 24.10.1989, he wrote to defendant No. 1 for release of gratuity which was followed by registered notice dated 30.11.1989. By office order dated 06.12.1989 defendant No. 1 admitted the claim for gratuity but did not release it. Another letter was sent, but by communication dated 29.06.1990 defendant-respondent No. 1 informed that he is not entitled to gratuity. Whereupon, plaintiff-appellant filed a suit for declaration to the effect that he is entitled to gratuity w.e.f. 31.08.1989 along with future interest at the rate of 15% per annum, in the alternative, declaration was sought to the effect that the letter dated 31.08.1989, whereby his resignation was accepted, is illegal, null and void.
3. Upon being served, defendant-respondents filed a written statement taking various preliminary submissions, including an objection that the suit is barred as the plaintiff has not served statutory notice under Section 79 of the Punjab Cooperative Societies Act, 1961. On merits, it was admitted that the resignation was accepted on 31.08.1989, however, it is denied that he was forced to submit his resignation. Claim for gratuity was specifically denied on the ground that plaintiff-appellant had not worked for the requisite period. Replication was filed by the plaintiff-appellant reiterating his stand. After framing of issues and leading of evidence by the parties, trial Court by judgment and decree dated 25.02.1992 dismissed the suit. Aggrieved, plaintiff-appellant filed a first appeal, which was dismissed by the learned Additional District Judge, Barnala on 05.03.1993. Thereafter, Plaintiff-appellant has approached this Court by way of present appeal.
4. By relying upon the Punjab State Cooperative Housing Federation Service Rules, 1976 (for short “the Rules”) counsel for the appellant has contended that as the plaintiff-appellant had resigned on health ground, he is entitled to gratuity at the scale prescribed and provided in the Rules. He urges that a request was made to the respondents to keep the resignation pending so as to enable the plaintiff-appellant to complete the requisite period and become eligible for grant of gratuity, but it was not acceded to.
5. I have considered the submissions made by counsel for the appellant-plaintiff.
6. Rule 2 and 3 of the Rules are relevant for the purposes of determining the submissions made and are reproduced hereunder:
“2. Definitions:
In these rules unless the context otherwise requires:
(a) “Registrar” means the Registrar, Cooperative Societies, Punjab.
(b) “Qualifying service” means 10 years satisfactory continuous service in the Federation.
(c) “Pay” means the average of the salary inclusive of other remunerations drawn as salary during the last 10 months.
3. (a) On retirement an employee may be allowed gratuity equal to one month’s pay for each completed year of qualifying service subject to a maximum of 15 months but if an employee of the Federation has put in satisfactory service of over 25 years an extra amount by way of additional gratuity @ one month’s pay for each completed year of satisfactory service beyond 25 years may be paid to the employee of the Federation.
(b) On death of an employee while in service of the Federation one month’s pay for each completed year of satisfactory service on (sic or) a fraction there of subject to maximum of 15 month pay be paid to his/her, widow/widower, sons, and minor and unmarried daughters.
(c) On an employee becoming at any time during his service physically or mentally incapable as decided by competent authority approved by the
