IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
Electronics Corporation of India Limited, Hyderabad – Petitioner
Versus
The Appellate Authority under Payment of Gratuity Act, 1972 and Deputy Chief Labour Commissioner and Others – Respondents
W.P. Nos. 15706, 15840, 15843 of 2018
Decided On : 03-06-2024
ORDER :
1. Heard learned Senior Designate Counsel Mr.G.Vidya Sagar, representing the learned counsel appearing on behalf of the petitioner on record and Mr.P.V.Krishnaiah, learned counsel appearing on behalf the respondents.
PRAYER:
2. The petitioner approached the court seeking prayer as under:
3. The petitioner approached the court seeking prayer as under:
4. The petitioner approached the court seeking prayer as under:
5. PERUSED THE RECORD:
“The petitioner is Electronics Corporation of India Limited, Hyderabad, is a Central Public Sector undertaking. Respondents retired from the petitioner- Corporation on attaining the age of superannuation on various dates prior to May, 2010. Respondents filed applications before the 2nd respondent for a direction for payment of difference of gratuity amount on the ground that they are entitled to gratuity with the ceiling limit of Rs.1O.00 lacs w.e.f. 01.01.2007 instead of Rs.3.50 lacs.
The 2nd respondent-Controlling Authority under the Payment of Gratuity Act, 1972, allowed the claim of the respondents on the premise that they are entitled to gratuity as they are governed by the ECIL Gratuity Trust Rules including the ceiling limit as applicable to the ECIL employees. That the petitioner-EClL has already paid the gratuity at the ceiling limit of Rs.3.50 lacs, the 2nd respondent directed to pay the remaining amounts of enhanced rates of gratuity with interest at 10% as prescribed by the Government of India notification No. S.O.874 (4), dated 01-10 -1984. Aggrieved by the same, writ petition was preferred by the petitioner being WP No. 1253 of 2O18 and this Court disposed of the same with an observation to avail the remedy of filing appeal to the 1st respondent. It is stated that the petitioner-EClL filed appeal before the 1st respondent-appellate Authority and the 1st respondent, by the impugned order dated 16-04-2018 confirmed the order of the 2nd respondent-Controlling Authority. Hence, the writ petition.
Sri P. Vidya Sagar, learned senior cou
The Office Memorandum dated 26.11.2008 is advisory and does not impose a binding obligation on public sector undertakings to pay enhanced gratuity prior to the amendment of the Gratuity Act.
The office memorandum dated 26.11.2008 is binding on the Corporation and constitutes an agreement under Section 4(5) of the Payment of Gratuity Act, 1972.
The entitlement to gratuity under amended provisions pertains to revisions of remuneration, asserting that benefits granted previously cannot be denied based on affordability post-amendment.
Employees are entitled to gratuity per the Payment of Gratuity Act, 1972 despite other internal regulations, unless an exemption is formally established.
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