R. Janardhana Rao v. A. P. Dairy Development Co-operative Federation Ltd, Hyderabad
2000-08-11
ELIPE DHARMA RAO
body2000
DigiLaw.ai
ELIPE DHARMA RAO, J. ( 1 ) THIS writ petition is filed seeking a writ of mandamus to declare the prescription of cut-off date viz. , 19-11-1991 and limit the eligibility to the payment of gratuity prescribed in the Group Gratuity scheme to employees retiring on or after the said date in the orders of the respondent federation in circular letter No. 2779/ggs/ 90 dated 24-2-1992 as void, without jurisdiction, illegal and arbitrary; and consequently direct the respondent to extend the uniform gratuity facility based on the formula applied to the Group Gratuity scheme introduced through Life Insurance corporation of India without limiting the eligibility to employees of the respondent retiring on or after 19-11-1991 and pay the difference of the amount to the petitioners and pass such other order or orders. ( 2 ) THE brief facts as stated by the petitioners are that the petitioners No. 1 to 5, who are the employees of the State government viz. , Animal Husbandry department, were transferred to the Andhra pradesh Dairy Development Corporation through G. O. Ms. No. 647 P and RD dated 16-8-1977. They retired from service on 31-8-1987, 31 -3-1991: 31 -5-1990: 28-2-1987 and 31-12-1989 respectively. ( 3 ) THE petitioners who were the erstwhile Government employees have opted for Pension Scheme, whereas the other employees have been covered by the employees Provident Fund Scheme. Therefore the employees of the respondent- federation were divided into above two categories. So far as the payment of gratuity is concerned, it is payable to both the category of employees in accordance with the DCRG Regulations, 1974 adopted by the respondent Federation on 15-6-1976. ( 4 ) THE respondent-Federation to cover its gratuity liability to its employees, entered into an agreement with the Life Insurance corporation of India, which is called Group gratuity Scheme. Under the arrangement with LIC of India, gratuity payable to the employees of the respondent-federation is calculated according to a formula i. e. , (157 26 multiplied by pay plus DA multiplied by the number of completed years of service) or rupees one lakh which ever is less. In accordance with this formula, the gratuity is computed and LIC of India pays the said amount as and when the benefit of gratuity becomes due and payable on retirement/ death of any employee of the respondent- federation.
In accordance with this formula, the gratuity is computed and LIC of India pays the said amount as and when the benefit of gratuity becomes due and payable on retirement/ death of any employee of the respondent- federation. The entire gratuity liability is fully covered bv the Group Gratuity Scheme of LIC of India: and the gratuity amount is being paid by the LIC of India to the respondent in accordance with the formula stated above; and the respondent-federation is actually paying much lesser amount as gratuity to those employees who were erstwhile Government employees on their retirement or death in accordance with the government rules applicable to them. The amounts actually paid as gratuity to the petitioners and payable to them and the amount as per Group Gratuity Scheme with lic of India are set out in the table hereunder: