Employees of corporations and local bodies are entitled to gratuity under the Payment of Gratuity Act, 1972, and not under state government pension rules.

HIGH COURT OF TRIPURA

AGARTALA

WP(C) 204/2021

Sri Samir Kumar Ghosh

----Petitioner(s)

Versus

The State of Tripura and 3 others

----Respondent(s)

For the Petitioner(s)

:

Mr. P. Roy Barman, Sr. Advocate

Mr. S. Bhattacharjee, Advocate

For Respondent(s)

:

Mr. A. Bhaumik, Advocate

Mr. D. Sarma, Additional GA

HON’BLE MR. JUSTICE ARINDAM LODH

Order

09/01/2023

Heard Mr. P. Roy Barman, learned senior counsel assisted by Mr. S.

Bhattacharjee, learned counsel appearing for the petitioner. Also heard Mr.

D. Sarma, learned Additional GA appearing for the respondents-State and

Mr. A. Bhaumik, learned counsel appearing for the respondents-Agartala

Municipal Corporation (for short “AMC”).

The grievance of the petitioner is that in pursuance of a judgment

passed by a Division Bench of this Court, he was paid gratuity to the ceiling

limit of Rs. 10 lakh in terms of The Payment of Gratuity Act, 1972. On

computation, the respondents-AMC paid him Rs. 7,18,608/-, but, the

petitioner has filed the present writ petition raising his grievance that his

entire length of service has not been considered in quantifying his gratuity.

Learned senior counsel appearing for the petitioner has submitted that

the petitioner had rendered 40 years of service with the AMC. He joined his

service on 01.01.1976 and retired on 31.12.2015. According to the

petitioner, he is entitled to gratuity amount of Rs. 10 lakh, if his total length

of service i.e. 40 years is calculated for determining the total amount of

gratuity.

Mr. Bhaumik, learned counsel appearing for the respondents-AMC

has submitted that according to State government Revised Pension Rules,

the petitioner is not entitled to get gratuity under the provision of the

Payment of Gratuity Act, 1972. His death-cum-retirement gratuity shall be

considered in terms of Tripura State Civil Services (Revised Pension) Rules,

2009.

It is now well settled that the employees of the Corporation or any

other local bodies are entitled to and guided by ceiling limit as prescribed

under the Payment of Gratuity Act, 1972. The State government Rules shall

not be applicable to the employees of such Corporation and local bodies .

Moreso, in earlier round of litigations, it was clearly held by a Division

Bench of this court that the petitioner’s gratuity will be governed by

Payment of Gratuity Act, 1972 and in compliance of that judgment and

order, the petitioner was paid gratuity considering the ceiling limit of Rs. 10

lakh since he retired from service in the year 2015.

In the light of above, I direct the respondents-AMC to recalculate the

gratuity amount, the petitioner is entitled to after considering his total length

of service i.e. 40 years under the Corporation. The remaining gratuity

amount, if any, according to his entitlement, shall be paid within a period of

3 (three) months from today.

With the aforesaid observations and direction, the instant writ petition

stands allowed and thus disposed.

JUDGE

Saikat