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2023 Supreme(Tri) 63

HIGH COURT OF TRIPURA AGARTALA
Arindam Lodh, J.
Samir Kumar Ghosh - Appellant
Versus
State of Tripura & Ors. - Respondents
Writ Petition (C) 204 of 2021
Decided On : 09-01-2023

Advocates appeared:
P. Roy Barman, Advocate, S. Bhattacharjee, Advocate, A. Bhaumik, Advocate, D. Sarma, Advocate

Employees of local bodies are entitled to gratuity based on the Payment of Gratuity Act, 1972, and not State pension rules.

Headnote:(A) Payment of Gratuity Act, 1972 - Employees of Corporation entitled to gratuity governed by Act irrespective of State government Rules - Court directed recalculation of gratuity based on total length of service of 40 years. (Paras 2, 5, 6)

Facts of the case:
Petitioner, after 40 years of service, was paid gratuity of Rs. 7,18,608/- while claiming entitlement of full ceiling limit under the Act.

Findings of Court:
Respondents-AMC directed to recalculate gratuity considering total service and resolve excess amount within 3 months.

Issues: Whether the petitioner’s full service length should be considered for gratuity under the Payment of Gratuity Act, 1972?

Ratio Decidendi: Court reaffirming that local body employees' gratuity is governed by the Payment of Gratuity Act, 1972 and not State government pension rules.

Result: Writ petition allowed.

Table of Content
1. petitioner's grievance regarding gratuity computation. (Para 2)
2. arguments about entitlement to gratuity based on service duration. (Para 3 , 4)
3. clarification on gratuity entitlement under applicable law. (Para 5)
4. court's direction for recalculation and approval of gratuity. (Para 6 , 7)

JUDGMENT

Arindam Lodh, J. - Heard Mr. P. Roy Barman, learned senior counsel assisted by Mr. S. Bhattacharjee, learned counsel appearing for the petitioner. Also heard Mr. D. Sarma, learned Additional GA appearing for the respondents-State and Mr. A. Bhaumik, learned counsel appearing for the respondents-Agartala Municipal Corporation (for short 'AMC').

2. The grievance of the petitioner is that in pursuance of a judgment passed by a Division Bench of this Court, he was paid gratuity to the ceiling limit of Rs. 10 lakh in terms of The Payment of Gratuity Act, 1972. On computation, the respondents-AMC paid him Rs. 7,18,608/-, but, the petitioner has filed the present writ petition raising his grievance that his entire length of service has not been considered in quantifying his gratuity.

3. Learned senior counsel appearing for the petitioner has submitted that the petitioner had rendered 40 years of service with the AMC. He joined his service on 01.01.1976 and retired on 31.12.2015. According to the petitioner, he is entitled to gratuity amount of Rs. 10 lakh, if his total length of service i.e. 40 years is calculated for determining the total amount of gratuity.

4. Mr. Bhaumik, learned counsel appearing for the respondents-AMC has submitted that according to State government Revised Pension Rules, the petitioner is not entitled to get gratuity under the provision of the Payment of Gratuity Act, 1972. His death-cum-retirement gratuity shall be considered in terms of Tripura State Civil Services (Revised Pension) Rules, 2009.

5. It is now well settled that the employees of the Corporation or any other local bodies are entitled to and guided by ceiling limit as prescribed under the Payment of Gratuity Act, 1972. The State government Rules shall not be applicable to the employees of such Corporation and local bodies. Moreso, in earlier round of litigations, it was clearly held by a Division Bench of this court that the petitioner's gratuity will be governed by Payment of Gratuity Act, 1972 and in compliance of that judgment and order, the petitioner was paid gratuity considering the ceiling limit of Rs. 10 lakh since he retired from service in the year 2015.

6. In the light of above, I direct the respondents-AMC to recalculate the gratuity amount, the petitioner is entitled to after considering his total length of service i.e. 40 years under the Corporation. The remaining gratuity amount, if any, according to his entitlement, shall be paid within a period of 3 (three) months from today.

7. With the aforesaid observations and direction, the instant writ petition stands allowed and thus disposed.

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