Central Administrative Tribunal

Principal Bench

New Delhi

OA No.3584/2018

Reserved on:13.12.2018

Pronounced on:19.12.2018

Hon’ble Ms. Praveen Mahajan, Member (A)

Shri Sunil Kumar Mehra

61 years, Group ‘A’

S/o Shri Surendra Mohan Lal

Retd. Chief Town Planner,

East Delhi Municipal Corporation

5035/3, Sant Nagar, Karol Bagh

New Delhi – 110 005.

... Applicant

(By Advocate: Applicant in person)

VERSUS

East Delhi Municipal Corporation

Through Commissioner, East Delhi Municipal Corporation

419, Udyog Sadan, Patparganj Industrial Area

Delhi – 110 092.

...Respondent

(By Advocate: Shri Umesh Joshi)

O R D E R

The applicant in the OA retired from East Delhi Municipal

Corporation after attaining the age of superannuation on

30.11.2017. Through the medium of this OA, the applicant seeks

intervention of the Tribunal to direct the respondent to pay his

retiral benefits i.e. Gratuity and Commutation of Pension amount

w.e.f. 01.12.2017, with interest, till the date the pending amount

is paid by the respondents to the applicant.

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2. It is not disputed by the respondents that the applicant

worked as Chief Town Planner with the respondents. The

respondents submit that leave encashment and GPF alongwith

GIS due to applicant has been paid to the applicant however

EDMC has not been able to pay full and final dues to the retiring

employees (including the applicant) due to paucity of funds.

3. During the course of hearing, the applicant in person,

agitated the issue of non receipt of his legal retiral dues –

namely, his gratuity and commutation amount of pension.

4. The learned counsel for the respondents Shri Umesh Joshi

informed the bench that the EDMC is facing acute shortage of

funds and is not able to generate enough funds to meet even the

expenditure of salaries to its employees. Resultantly, many

employees have entered into litigation and the respondents

(EDMC) in many cases are facing frequent bank attachments

which further delays the payments to the employees.

The

learned counsel submitted that to overcome this crisis the EDMC

has evolved a method of queue based system on first come first

served basis. As a result, gratuity and commutation pension of

only those employees, who retired on or before 31.12.2015 has

been made. He also mentioned that non implementation of Delhi

Finance Commission recommendations by the Government

(GNCTD) is the main cause of the financial crunch.

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5. The applicant in the OA has placed reliance on the decision

of the Hon’ble High Court of Chhattisgarh, Bilaspur (Karnail

Singh Vs. General Manager, Bishrampur) in W.A. No.56/2017

dated 17.03.2017 as well as the decision of the Hon’ble Apex

Court in the case of Y.K.Singla Vs. Punjab National Bank &

Ors. Civil Appeal No.9087/2012 (arising out of SLP (Civil)

No.14570 of 2012) wherein it has been held that mandate of the

Gratuity Act, 1972 has to be followed in toto by the respective

respondents. In case the payment is not made to the retiring

employee within the stipulated period of 30 days the employer is

bound statutorily to pay the interest on the gratuity amount.

6. The applicant in person had also filed a complaint before

the National Human Rights Commission regarding non releasing

of terminal benefits. The respondents had also approached the

Hon’ble High Court of Delhi in the matter of East Delhi

Municipal Corporation Vs. Shri Vinod Kumar Khurana WP(C)

No.5714/2018 which was disposed of on 25.05.2018 directing

that the Commissioner, EDMC may explain the financial crisis of

EDMC before NHRC on 29.05.2018, however, the copy of the

judgment is not on record.

7. I have gone through the facts of the case and considered

the rival submissions carefully. It is indeed unfortunate that

Senior Citizens like the applicant, are being denied their rightful

dues for no fault