High Court Jharkhand High Court

Ashok Kumar Malhotra vs M/S. Coal India Ltd. & Ors. on 7 July, 2011

Jharkhand High Court
Ashok Kumar Malhotra vs M/S. Coal India Ltd. & Ors. on 7 July, 2011
                                  W.P.(S) No.371 of 2004
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         In the matter of an application under Article 226 of the Constitution of India
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        Ashok Kumar Malhotra                             ...    ...     Petitioner
                              Versus
          M/s Coal India Ltd.& ors.                      ...    ...     Respondents
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          For the Petitioner        : M/s M.K. Laik, Sr. Advocate & Smita Mitra, Adv.
          For the Respondents       : Mr. Amit Kumar Sinha, Advocate
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                                          PRESENT

                                 HON'BLE MR. JUSTICE R.R. PRASAD

By Court:                 Heard learned counsel appearing for the petitioner and learned

counsel appearing for the respondents.

This application has been filed on the representative capacity,

wherein prayer has been made to direct the authorities to make payment of

Rs.3,50,000/- as Gratuity to the employees of the BCCL, who got retired

before 24.09.1997.

Learned counsel submits that an Office Memorandum was

issued by the Ministry of Personnel, Public Grievances & Pension, Govt. of

India, New Delhi on 14th July, 1995, whereby maximum limit of retirement

Gratuity/death Gratuity was raised from Rs.1,00,000/- to Rs. 2,50,000/- w.e.f.

1st April, 1995. Subsequently, that limit under Office Memorandum dated

31.08.1998 (Annexure-5) was extended to Rs.3,50,000/- w.e.f. 24.09.1997, but

there has been no justification in putting the cut off date, as 24.09.1997, rather

it should have been on 01.04.1995 as the government with effect from that day

had enhanced the maximum limit of Gratuity from Rs.1,00,000/- to 2,50,000/-

but by putting effective date as 24.09.1997, it has created a separate class

without there being any reasonableness and hence, the authority be directed

to make payment of the Gratuity to the maximum limit of Rs.3,50,000/- even to

the persons, who got retired before 24.09.1997.

I do not find any merit in the submission advanced on behalf of

the petitioner.

It is true that by an Office Memorandum issued by the Ministry of

Personnel, Public Grievances & Pension, Govt. of India, New Delhi, a
maximum limit of retirement Gratuity/death Gratuity was enhanced from

Rs.1,00,000/- to 2,50,000/- w.e.f. 01.04.1995. Subsequently, vide Office

Memorandum dated 31.08.1998 (Annexure-5), the said limit was further

enhanced from Rs.2,50,000/- to Rs.3,50,000/- w.e.f. 24.09.1997. That Office

Memorandum was issued only when there was an amendment in sub Clause 3

of Section 4 of the Payment of Gratuity Act whereby maximum limit of the

Gratuity was enhanced to Rs.3,50,000/- which was published in the Official

Gazette on 24.09.1997. The said amendment was brought by virtue of the Act

11 of 1998 w.e.f. 24.09.1997 and as such it can not be given effect to prior to

24.09.1997 and, therefore, if the BCCL has taken decision that the maximum

limit of Gratuity to the extent of Rs.3,50,000/- would be payable w.e.f.

24.09.1997, it is absolutely in consonance with the provision of the Act.

Thus, I do not find any merit in this writ application. Accordingly it

is dismissed.

(R.R. Prasad, J.)

Jharkhand High Court, Ranchi
Dated 7th July, 2011,
Ravi/ N.A.F.R.