IMPORTANT POINT
The definition of 'pay' for gratuity calculation includes special allowances, and the interest rate cannot be reduced below statutory provisions.

JUDGMENT :

RITU BAHRI, C.J.

1. Since a common issue is involved in this bunch of writ petitions, it is being disposed of by a common judgment.

2. For the sake of brevity, the facts of WPMB No. 75 of 2023 Babu Ram Kashyap Vs. Canara Bank (Erstwhile Syndicate Bank) are being taken-up for consideration.

3. The petitioner has challenged the order dated 29.11.2021 passed by the Appellate Authority/Deputy Chief Labour Commissioner (Central), Dehradun under Payment of Gratuity Act, 1972 (hereinafter referred to as the PG Act).

4. The petitioner preferred a claim for grant of Service Gratuity after seeking VRS on 10.11.2014 in terms of the Bank after completing active service of 36 years 3 months and 12 days, but his claim for gratuity was not decided and he approached the Controlling Authority for issuing appropriate direction to the Bank for deciding the claim. The Bank decided the claim vide order dated 06.05.2019 (Annexure PA-1) and an amount of Rs. 11,87,100.00 (Rs. Eleven Lacs Eighty Seven Thousand One Hundred Only) was granted as the Service Gratuity. It was stated that it has been calculated as per Syndicate Bank Officers Service Regulations, 1979 (for short “SBOSR”). The calculation of the gratuity has been done by observing in the order dated 06.05.2019 as under:

“For purpose of calculating Gratuity as per Syndicate Bank Officers Service Regulation, the eligible component of pay are: Basic Pay + Stagnation Pay + Basic components of EPP + PQP + other allowances (ranking for PF only) shall be considered.

Further we wish to inform you that “The Regulation 46(2) of Syndicate Bank (Officers) Service Regulation, 1979, read as the amount of gratuity payable to Officer shall be one month “pay” for every completed year of service subject to maximum of 15 months of pay. Provided that where an officer has completed more than 30 years of service, he shall be eligible by way of gratuity for additional amount @ on half of months pay for each completed year of service beyond 30 years. Therefore, it is relevant to peruse the definition of “Pay” and “salary” which defines “Pay” as basic pay including stagnation increment and “Salary” means the aggregate of the pay and DA.”

5. The Bank has, vide impugned order dated 06.05.2019, declined the claim of 45 days additional amount of pension for each completed year of service after completion of 30 years’ service and has allowed only 15 days additional amount for each completed year of service after completion of 30 years’ service by the officer. Against the impugned order dated 06.05.2019 (Annexure P-1), the petitioner approached the Controlling Authority after registration. The registered case number is Case No. D-36(32)/2019-ALC.

6. As per the order, the gratuity was awarded to the tune of Rs. 15,22,042/-. The claim of the petitioner for additional sum of 45 days for each completed year after completion of service of 30 years was not allowed and a final order was passed by the Controlling Authority, which is as under:

“Final Order”

In view of the above mentioned legal points, I am of considered opinion that the appellant Sh. Babu Ram Kashyap is entitled to receive total gratuity of 15,22,042/-(Rupees Fifteen Lakh Twenty Two Thousand & Forty Two Only) as the higher amount of gratuity as per the service Regulations of the bank. As the applicant has already received Rs. 11,87,100/-, he need to be paid further amount of gratuity equivalent to Rs. 3,34,942/-(Rupees Three Lakh Thirty Four Thousand Thirty & Nine Hundred & Forty Two Only), by the Respondent (The General Manager, Syndicate Bank, Head Office, Manipal) within 30 days from receipt of this order along with simple interest @ 7% p.a. from 12.10.2014.”

7. With respect to length of service, the gratuity was calculated for a period of three years beyond 30 years i.e. till 33 years. The petitioner, in the present case, has put in service of 36 years, three months and twelve days. The petitioner is also aggrieved that the benefit of six of years of service bey