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2023 Supreme(Online)(DEL) 17243

$~31 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 01st May, 2023 + W.P.(C) 4564/2020 MADHU BANSAL ..... Petitioner Through: Mr. Akshat Gupta, Dr. Swaroop George, Mr. Sarthak Gupta and Mr. Tanmay Cheema, Advocates versus LIFE INSURANCE CORPORATION OF INDIA & ANR.

..... Respondents Through: Mr. Kamal Mehta, Advocate for R-1.

CORAM:

HON’BLE MS. JUSTICE JYOTI SINGH

JUDGEMENT

JYOTI SINGH, J. (ORAL)

1. Present writ petition has been filed seeking the following reliefs:-

“A) To issue a writ in the nature of Mandamus directing the officials of Respondent no. 1 to immediately release the Gratuity amount due to the Petitioner or in case the Gratuity amount due to the Petitioner can’t be calculated then maximum permissible gratuity amount should be paid to the Petitioner with interest at the rate of 18% per annum from the date on which she became eligible for payment of Gratuity without any delay, so that the Petitioner can realise her Gratuity which is her hard earned benefit; AND B) Pass any other orders/ directions as this Hon’ble Court may deem fit in the facts and circumstances of the case and in the interests of equity, justice and good conscience.”

2. Facts are in a narrow compass. Petitioner was appointed as an LIC Agent under Life Insurance Corporation of India (Agents) Regulations, 1972 (hereinafter referred to as the ‘Regulations 1972’). Her agency was terminated with Life Insurance Corporation of India/Respondent No. 1 w.e.f. 01.11.1994. According to the Petitioner, she remained an active agent for close to 19 years and therefore became eligible for payment of gratuity when she attained the age of 60 years on 15.08.2011 under Regulations 1972, as she fulfilled the criteria of working continually for fifteen or more qualifying years between 29.10.1975 and 01.11.1994.

3. It is averred that a Notification was issued by the Department of Financial Services, Ministry of Finance, Government of India on 23.01.2008, whereby maximum amount of gratuity permissible to an agent of LIC was enhanced to Rs.2 lacs. As per Regulations 1972, the amount of gratuity payable to the Petitioner by Respondent No. 1 is to be calculated as per eligible rate i.e. it is directly linked to the renewal commission earned by the Petitioner in fifteen agency years immediately preceding the relevant date i.e. 15.08.2011. Therefore, the amount of renewal commission earned by the Petitioner is to be looked into starting from 01.11.1979 till 31.10.1994, which information is readily available with Respondent No. 1, as they are legally bound to maintain and keep all accounts being a Statutory Body.

4. Petitioner was asked to submit TDS Forms (‘Form-16’) by a letter dated 24.12.2010, issued by Branch Manager of the concerned Branch, for the years 1978-1994 towards her claim for gratuity, even though there was no such requirement. Being a housewife, Petitioner had not retained the old records and was unable to submit the required Form. Number of RTI applications have been filed by the Petitioner seeking information on the status of her application for release of gratuity over the years, the last one being an appeal under the Right to Information Act, 2005 in 2019, however, till date Respondent No.1 has not released gratuity in favour of the Petitioner.

5. Contention of learned counsel appearing on behalf of the Petitioner is that the action of Respondent No. 1 in not releasing the gratuity amount to the Petitioner is illegal and arbitrary as it is a settled law that terminal benefits cannot be withheld by an employer. Petitioner is entitled to receive gratuity under Regulations 1972 having served as an agent of Respondent No. 1 continually for over fifteen qualifying years. If Respondent No. 1 has not retained the relevant records for calculation of the amount payable, Petitioner cannot be faulted and/or deprived of her gratuity.

6. Mr. Kamal Mehta, learned counsel appearing on behalf of Respondent No. 1 takes a preliminary objection to the maintainability of the writ petition on ground of delay and laches. It is submitted that Petitioner worked as LIC Agent with Respondent No. 1 from 29.10.1975 till 31.10.1994. Agency of the Petitioner has been twice terminated during the said period but was reinstated. Since Petitioner could not attain the minimum business guarantee, her agency was again terminated w.e.f. 01.11.1994. Petitioner

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