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2005 Supreme(All) 1116

IN THE HIGH COURT OF ALLAHABAD
SHISHIR KUMAR
DEV RAJ SINGH - Appellant
Versus
FATEHPUR DISTRICT CO-OPERATIVE BANK LTD. - Respondents
C. M. W. P 52253 Of 2000
Decided On : 07/05/2005

Advocates Appeared:
Suman Sirohi

The court established that the U.P. Co-operative Societies Employees Service Regulations, 1975, superseded the agreement dated October 12, 1966, and the employees had impliedly opted for the benefits provided under the regulations.

Headnote:

Gratuity Payment Dispute - Payment of Gratuity Act, 1972 - Section 4

Fact of the Case:

The petitioner sought a writ of mandamus to direct the respondent-Bank to pay gratuity at the rate of one month wages per year of service. The dispute revolved around whether the gratuity was payable at the rate of one month wages per year of service as per the agreement and resolution or at the rate of 15 days wages per year of service as per the Payment of Gratuity Act, 1972.

Finding of the Court:

The court found that the U.P. Co-operative Societies Employees Service Regulations, 1975, which allowed gratuity equivalent to not more than 15 days salary for every completed year of service, superseded the agreement dated October 12, 1966. The employees had impliedly opted for the benefits provided under the regulations and were estopped from claiming the gratuity as per the agreement.

Issues: The issues included the validity of the agreement in light of the regulations, the applicability of the Payment of Gratuity Act, and the employees' entitlement to gratuity as per the agreement.

Ratio Decidendi: The court held that the regulations superseded the agreement, and the employees had impliedly opted for the benefits provided under the regulations. The agreement could not be relied upon for claiming the benefit under the Payment of Gratuity Act, 1972.

Final Decision: The writ petition was dismissed as the court found no justification to invoke its jurisdiction under Article 226 of the Constitution of India.

( 1 ) AS the similar questions of law and facts are involved in the aforesaid writ petitions, therefore, they are being decided together.

( 2 ) BY means of the present Writ Petition (27256 of 1996) the petitioner, has approached this Court for issuing a writ of mandamus directing the respondent-Bank to pay to the petitioners gratuity calculated at the rate of one month wages (inclusive of dearness allowance)per year of the service and also interest at the rate of 18% on the ground of delay in the payment of the total money due to the petitioner.

( 3 ) THE controversy involved in the present writ petition is that whether payment of gratuity on the retirement of the petitioner was payable at the rate of one month wages per year service or it was payable at the rate of 15 days wages per year of service as provided in the Payment of Gratuity Act, 1972. It may be stated that the state Government in exercise of its powers under Section 4-K of the Industrial Disputes act, 1947 (hereinafter referred to as the U. P. Act), had referred the matter for adjudication to the Industrial Tribunal at Allahabad, relating to the conditions of service of the employees of the various Co-operative Banks spread over in almost all the districts of Uttar Pradesh. The aforesaid dispute was decided by the Presiding officer of the Industrial Tribunal and his award is commonly known as Joshi Award. It may also be stated that some of the Co-operative banks entered into an agreement either with the u. P. Bank Employees Union, which had sponsored the dispute on behalf of the employees of the Banks or with the workmen strength in the banks. It may be stated that respondent-Bank had passed a resolution in respect of demands of workmen, who had been referred for adjudication. The resolution dealing with the question of gratuity and certain other matters has been filed as Annexure-1 to the writ petition. The question of payment of gratuity has been dealt with at Issue No. 7 and it has been provided that the employees would be paid gratuity at the rate of one month wages inclusive of dearness allowance on the retirement and such gratuity will be payable only to the employees, who have completed 15 years of service in the employment of the Bank. On the basis of the aforesaid resolution an agreement was reached with the workmen employed in the Bank on October 12, 1966, the agreement has been signed by 40 employees and an officer of the respondents-Bank. A copy of the same has been filed as Annexure-2 to the writ petition. Petitioner submits that the petitioner reached the age of retirement on december 31, 1995 and as such gratuity became payable to him on the basis of the aforesaid agreement and the banks resolution. On May 15, 1996, the respondent-Bank addressed a letter to the petitioner. A copy of the same has been filed as Annexure-3 to the writ petition. A perusal of the aforesaid letter clearly goes to show that the amount payable as gratuity was calculated at Rs. 99,750. 00 and after making various deductions a sum of Rs. 61,243. 51 was paid to the petitioner. It may be stated that this collection of the amount payable as gratuity was not made in terms of agreement and the banks resolution and instead it was calculated at the rate of 15 days wages per year of service. Petitioner addressed a letter dated june 5, 1996 in which the petitioner made the grievance that the details of the amount have not been mentioned and, therefore, the details may be supplied to the petitioner. It has further been protested that gratuity should have been calculated at the rate of one month wages per year of service. The Bank has notified letter dated May 15, 1996 in which it has been stated that the amount of Rs. 38,506. 49 has been credited to his account with the Bank. The petitioner protested to the effect that the petitioner has not been paid gratuity calculated at the rate at which it was to be paid in accordance with the resolution of the Bank and the agreement with the wor





















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