SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2024 Supreme(MP) 773

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
VIJAY KUMAR SHUKLA, J.
R.P. Singh – Petitioner 
Versus 
The State of Madhya Pradesh And Others – Respondents
Writ Petition No. 30570 of 2023 With Writ Petition No. 30572 of 2023, Writ Petition No. 30890 of 2023, Writ Petition No. 30891 of 2023, Writ Petition No. 31865 of 2023
Decided On : 24-09-2024

Advocates Appeared:
For the Petitioner: Shri Peyush Jain.
For the Respondents: Shri Prakhar Trivedi - P.L, Shri Prasanna R. Bhatnagar, Adv.

The M.P. State Seed Certification Agency operates as an autonomous body, separate from State government rules, allowing it to establish its rules regarding gratuity and employee benefits.

Headnote:(A) Seeds Act, 1966 - Section 8 - M.P. Society Registrikaran Adhiniyam, 1973 - M.P. Civil Services (Pension) Rules, 1976 - Gratuity claim - Petitioners retired prior to cut-off date of 10/4/2023, seeking enhanced gratuity of Rs.20,00,000/- under a State circular. Agency determined gratuity enhancement only applicable post cut-off date as per its internal rules and financial considerations. Court found no merit in claims, ruling the Agency operates independently of State directives governing its employees. (Paras 4-10)

(B) Legal Entity - The autonomy of the M.P. State Seed Certification Agency under Section 8 of the Seeds Act - It is not a department of the State; rather a registered society with its own governance structures (Paras 7, 10).

Findings of Court:
The Court upheld the legitimacy of the Agency’s decisions regarding gratuity payment and categorization of employees regarding post-retirement benefits.

Issues: Applicability of State rules to an autonomous body and validity of cutoff dates for benefits.

Ratio Decidendi: The Agency's autonomy allowed it to legislate its terms; therefore, State circulars do not apply automatically. The Supreme Court's precedence supported the Agency's position.

Result: Petitions dismissed.

Table of Content
1. factual background of gratuity claims. (Para 2 , 3)
2. arguments regarding entitlement to gratuity. (Para 4 , 5)
3. court's analysis on agency autonomy. (Para 7 , 8 , 9)
4. court ruling on entitlement based on retirement date. (Para 10)
5. conclusion on dismissal of petitions. (Para 11)

ORDER :

VIJAY KUMAR SHUKLA, J.

Regard being held to the similitude of the issue involved in the present case they are being decided by the common order for the sake of convenience, the facts are noted from W.P No.30750/2024.

2. By the instant petition, the petitioners are seeking a direction to the respondent Nos.2&3 to pay remaining Rs.10,00,000/- towards gratuity. Though the prayer is also made for payment of 60 days leave encashment amount but the same has not been pressed during the course of argument and the petition has been confined only to the relief of grant of remaining Rs.10,00,000/- towards gratuity.

3. Draped in brevity, the facts of the case are that the petitioner retired from the post of Deputy Seed Certification Officer on 31/2/2022. He was appointed on the post of Seed Certification Inspector (category 2) in the establishment of respondent Nos.2&3 on 7/10/1985. He was granted permanent status on 30/12/1987. Later he was promoted to the post of Deputy Seed Certification Officer. The petitioners are retired employees prior to 10/4/2023 from the service of respondent Nos.2 & 3.

4. It is argued that the petitioners are entitled for enhanced gratuity amount limit from Rs.10,00,000/- to Rs.20,00,000/- as per the circular dated 26/10/2017 issued by the State Government in terms of M.P. Civil Services (Pension) Rules, 1976 (hereinafter to be referred to as the Rules, 1976), Annexure P-4. The decision of the respondent Agency granting enhanced gratuity amount of Rs.20,00,000/- to the employees who died or retired on 10/4/2023 or thereafter, is illegal, arbitrary and contrary to the Rules and circulars issued by the State Government. It is further argued that previously all the circulars issued by the State Government have been followed by the respondent Nos.2 & 3. Even the gratuity as per the Rules, 1976 and circular of the Government of Rs.10,00,000/- has been granted but remaining Rs.10,00,000/- has been arbitrarily denied. In support of his submission he has referred the circular, Annexure P-4 issued by the State Government addressed to all the departments of the Government directing for payment of gratuity of Rs.20,00,000/- w.e.f 1/1/2016. The petitioner retired on 31/1/2023 and, therefore, was entitled for gratuity of Rs.20,00,000/- as per the circular dated 26/10/2017, Annexure P-4.

5. The respondent Nos.2&3 filed reply and denied the claim of the petitioners and submitted that the M.P Seed Certification Agency is an autonomous body established under Section 8 of the SEEDS ACT , 1966 and registered under M.P. Society Registrikaran Act, 1973. The Rules framed by the State Government are not ipso facto applicable to them. He relied on the Rules framed by the M.P. State Seed Certification Agency called Service RECRUITMENT RULES , 1990 (hereinafter to be referred to as the RECRUITMENT RULES , 1990). It was further stated that the Board of Director who is a competent authority under the Rules has taken a decision considering the financial condition of the Agency that the circular of the Government regarding payment of gratuity of Rs.20,00,000/- shall be applicable to the employees who retired/died on 10/4/2023 or thereafter. In regard to claim of the petitioner for benefit of 300 days leave encashment instead of 240 days submitted that the competent authority/Managing Director passed the order dated 27/4/2023 and implemented the memo dated 6/8/2018 w.e.f 10/4/2023 and the same was also made applicable for those employees retired on or after 10/4/2023 and the employees who retired prior to 10/4/2023 would be entitled for encashment of 240 days leave.

6. I have heard learned counsel for the parties at length.

7. The question tha

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top