Non-payment of retirement benefits constitutes deprivation of property under Article 300A of the Constitution.

ORDER:

Petitioner was appointed as a daily-wage conductor on

18.02.1986, regularized on 26.12.1986, promoted in 2012, and retired on 31.08.2018 after rendering 32 years, 6 months, and 13 days of service. As per the Payment of Gratuity Act, 1972 , any service of six months or more should be treated as a full year. However, gratuity was wrongly calculated from the date of regularization, granting only 32 years of service instead of 33 years from the actual date of joining. While the petitioner received 90% gratuity, provident fund, and other benefits, key dues such as the remaining 10% gratuity, earned leave encashment (170 days), final month’s salary (₹55,000), and 2013 pay-scale arrears (₹1,25,000 + interest) remain unpaid, allegedly pending caste certificate verification, despite petitioner submitting all required no-dues and vigilance clearance certificates. There is no provision under TSRTC regulations to withhold leave encashment. Further, the petitioner relied on the Judgment dated 14.08.2013, passed by the Hon’ble Supreme Court in Civil Appeal No. 6770 of 2013 , which held that non-payment of retirement dues amounts to deprivation of property under Article 300A of the Constitution of India. Non-payment of these benefits gravely affects the petitioner’s livelihood, particularly as TSRTC employees receive only a nominal provident fund pension. Hence, this Writ Petition.

2. Heard Sri A.G.Satyanarayana Rao, learned counsel for the petitioner and Sri N.Srushman Reddy, learned Standing Counsel for TSRTC for respondents. Perused the record.

3. Learned counsel for the petitioner, while making submissions on lines of the writ affidavit, requested this Court to direct the respondents to pay balance 10% gratuity and difference of gratuity calculated for 33 years of service, Encashment for 170 days of Earned Leave, Rs.55,000/- towards last month salary, Rs.1,25,000/- towards arrears of Revision of Pay Scales, 2013 bond amount which carries interest at 8.75% p.a., with interest at 9% per annum from the date of superannuation till the date of payment and to issue Medical Scheme Card.

4. Learned Standing Counsel for respondents opposed the same and stated that the petitioner had already retired from service after receiving the balance of the retirement benefits. Therefore, there is no merit in filing this writ petition, and the same is liable to be dismissed.

5. Upon careful consideration of the material on record and the submissions made by the learned counsel for both parties, this Court finds that the petitioner rendered continuous service from 18.02.1986. Accordingly, he is entitled to have his gratuity calculated from that date. As per Section 2A of the Payment of Gratuity Act, 1972 , any service of six months or more in a year is to be treated as a full year. The respondents have erred in reckoning the petitioner’s service only from the date of his regularization, i.e., 26.12.1986, thereby depriving him of credit for one full year of service. Further, the record reveals that the petitioner submitted all requisite no-dues and vigilance clearance certificates prior to his retirement. The respondents’ contention that caste certificate verification was pending is not a valid ground for withholding statutory retirement benefits. There is no enabling provision in the TSRTC regulations that authorizes such withholding. Moreover, the Hon’ble Supreme Court, in Civil Appeal No. 6770 of 2013 , has unequivocally held that non-payment of retirement benefits amounts to deprivation of property under Article 300A of the Constitution of India.

6. Accordingly, the Writ Petition is allowed. The respondents are directed to pay the bala