The court affirmed that gratuity calculations under officers' regulations may exceed statutory limits provided by the Payment of Gratuity Act, emphasizing adherence to predefined compensatory structures.

For the Respondent No. 4 : Mr. Subhas Chandra Sarkar Hearing concluded on : 22.07.2025 Judgment on : 04.08.2025 Shampa Dutt (Paul), J.:

1. The writ application has been preferred challenging the order dated

31.10.2023 passed by the respondent no. 2, the Assistant Labour Commissioner (Central), Kolkata and the Controlling Authority under the Payment of Gratuity Act, 1972 and further the order dated 17.03.2025 passed by respondent no. 3, the Deputy Chief Labour Commissioner (Central) Kolkata and the Appellate Authority under the Payment of Gratuity Act, 1972 .

2. The petitioner’s case is that it is a banking company and a nationalized bank operating within India.

3. The petitioner states that the employee being the respondent no. 4 herein joined the service of the petitioner Bank on 01.10.1980 and superannuated on 31.07.2016 after serving for a period of 34 years and 09 months and 30 days.

4. It is further stated that the service of the respondent No. 4 was governed by the UCO Bank (Officers’) Service Regulation, 1979 and upon superannuation the respondent No. 4 was paid gratuity in terms of the said Regulations to the tune of Rs. 11,48,106.66/-. It is further stated that the ceiling limit under the Payment of Gratuity Act, 1972 as on 31.07.2016 was Rs. 10 lakhs. Therefore, the respondent No. 4 was paid gratuity in better terms than that of the Payment of Gratuity Act, 1972 .

5. The respondent No. 4 accepted such gratuity without any demur or reservations whatsoever.

6. The respondent No. 4, after a lapse of about 5 years from the date of his retirement applied for additional gratuity before the Bank in Form-I dated 31.08.2021, claiming gratuity to the tune of Rs. 15,01,038 and ultimately filed a claim before the respondent No. 2 in Form-N dated 21.09.2021.

7. The respondent no. 2 being the Controlling Authority, on hearing the parties determined the gratuity as per OSR which is as follows:-

“DETERMINATION OF GRATUITY AS PER OSR Through discussion, in a nutshell, it is apparent that the calculation of the gratuity for service rendered by the applicant in the opponent’s establishment should be based on the last salary drawn, including DA and special allowance. Hence, the determination of gratuity is given below.

1. Date of appointment: 01-10-1980

2. Date of superannuation: 31-07-2016

3. Length of service rendered: 34 Years, 09 months & 30 days. .

(i.e. 35 years as per section 4 (2) of the PG Act.)

Last wages drawn.

a) Basic pay = 64270.00 b) Dearness Allowance = 26993.40 c) Fixed Personal Pay (FPP) = 1650.00 d) Professional Qualification Pay (PQP) = 00.00 e) Special Allowance = 6427.00 f) Special Allowance with DA = 2699.34 Total Salary Wages = 102039.74 Gratuity payable as per P.G. Act = 2060417.82 (Last wages drawn x 15/26x Length of Service)

Subject to maximum limit gratuity payable: = (Ten lakh only)

1. Amount of Gratuity payable as per OSR, 1979 (a) Up to 30 years (102039.74x 15) = 1530596.10 (b) Above 30 years (102039.74/2 X 5) = 255099.35 Total (a+b) = 1785695.45

2. Amount of Gratuity already paid = 1148070.00

3. Differential amount of gratuity to be paid = 637625.45 The issue of the ceiling limit of payable gratuity under the Payment of Gratuity Act does not arise in this case because the applicant has chosen to pay gratuity under the officer’s regulations. As a result, the gratuity ceiling will not be applicable because the applicant is entitled to a higher gratuity if the same is found to be higher. The payment of gratuity in officers’ regulations shall be made if the aforesaid calculation is higher.

ORDER

The application is allowed in the circumstances mentioned above and I hereby direct the non-applicant to pay the balance amount of gratuity amounting to Rs.637625.45