Madarsa Teacher Can't Be Denied Gratuity For Not Opting To Retire At 60: Allahabad HC

The Allahabad High Court has firmly held that a madarsa teacher cannot be denied gratuity merely because she did not formally opt to retire at the age of 60 and instead continued in service until she turned 62. Justice Irshad Ali quashed the order of the Principal Secretary, Minority Welfare Department, which had rejected the gratuity claim of Smt. Raisa Khan , a teacher who served over two decades.

A Teacher's Long Battle for Gratuity

Smt. Raisa Khan was appointed as an Assistant Teacher at Madarsa Ahle Sunnat Merajul Uloom in Faizabad on 16 August 1992. She retired on 31 March 2019 after uninterrupted service. Upon retirement, her gratuity—a retiral benefit she had earned—was not released despite repeated representations to the District Minority Welfare Officer and higher authorities.

She first approached the High Court in Writ Petition No. 7351 (S/S) of 2020, which was disposed of on 15 February 2023 with a direction to submit a comprehensive representation to the Principal Secretary. In compliance, she submitted her claim, but it was rejected through an order dated 13 September 2023. The sole ground: she had not exercised the option to retire at 60 and had served till 62.

The State's Defense: Lack of Option

The respondents argued that teachers of Arabic/Persian Madarsas are governed by specific Government Orders of 1993, 2004, 2011, and 2018. They claimed the petitioner failed to submit the requisite option within the prescribed period and was therefore ineligible for gratuity. They further contended that she had been extended service benefits up to 62 years and all other admissible dues had been paid. The denial of gratuity, they insisted, was consistent with the applicable rules.

Court's Reasoning: Continued Service Cannot Be Used Against Employee

Justice Irshad Ali rejected this logic, observing that the respondents themselves had permitted the petitioner to continue in service beyond 60. “Thus, the circumstance which has been relied upon for denying gratuity is, in substance, the very circumstance which enabled the petitioner to render further service to the institution,” the court noted.

The judgment emphasized that gratuity is a distinct retiral benefit that cannot be denied without a sustainable legal foundation. “Payment of other retiral or service dues cannot, by itself, amount to a valid determination that gratuity was not payable. Gratuity constitutes a distinct retiral benefit and its denial must have a sustainable legal foundation,” the court held.

Precedents that Paved the Way

The court relied heavily on two key judicial pronouncements. In University College Ret. Teachers Welfare Association vs. State of U.P. (decided on 1 October 2024), the Lucknow Bench quashed Government Orders dated 30 March 1993 and 4 February 2004 to the extent they denied gratuity to teachers who opted to continue for extended periods. That judgment directed payment of gratuity with interest at 6% per annum.

Additionally, the Supreme Court in State of U.P. vs. Smt. Priyanka (Civil Appeal No. 3639 of 2022) upheld entitlement to death-cum-retirement gratuity, describing it as a “benevolent scheme.” The High Court found no reason to distinguish the petitioner’s case from those covered by these precedents.

Final Order: Gratuity with 6% Interest

Allowing the writ petition, Justice Irshad Ali quashed the impugned order dated 13 September 2023 and directed the respondents to determine and release the gratuity payable to Smt. Raisa Khan within three months of receiving a certified copy of the order. The court explicitly directed that the non-exercise of the option to retire at 60 shall not be treated as a ground for denial. The petitioner is also entitled to interest at 6% per annum from the date of her superannuation (31 March 2019) until actual payment.

The judgment reinforces the principle that retiral benefits earned through long service cannot be withheld on technical grounds, especially when the employee was permitted to serve the extended period by the same authorities.