Bombay High Court
Raghunath Koraga Kottary vs The General Manager, Best Undertaking on 8 April, 2024
Author: Sandeep V. Marne
Bench: Sandeep V. Marne
2024:BHC-AS:16869
Neeta Sawant 8-WP-8765-2019.docx
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 8765 OF 2019
Raghunath Koraga Kottary } ..Petitioner
V/S.
The General Manager, BEST Undertaking } ..Respondent
Mr. K.P. Anilkumar a/w. Mr. Amit Saple, Ms. Priyanka Kumar and Chinmay
Apte, for the Petitioner.
Mr. Vishal Talsania a/w. Mr. Bhavesh Wadhwani i/by. M.V. Kini & Co., for the
Respondent.
CORAM : SANDEEP V. MARNE, J.
Dated : 8 APRIL 2024.
P.C. :
1) The Petitioner has fled this petition challenging the Judgment
and Order dated 12 February 2019 passed by the Appellate Authority under the Payment of Gratuity Act, 1972 partly allowing the Appeal fled by the Respondent-Undertaking and modifying the Order dated 11 April 2017 passed by the Controlling Authority. The Controlling Authority had directed payment of Gratuity of Rs.12,65,846/- to the Petitioner alongwith interest at the rate of 10% p.a. from the date of resignation i.e. 11 January 2007 till realisation of the amount. The folly committed by the Controlling Authority ___Page No. 1 of 4____ 8 April 2024 ::: Uploaded on - 10/04/2024 ::: Downloaded on - 11/04/2024 02:02:51 ::: Neeta Sawant 8-WP-8765-2019.docx in considering the salary of the Petitioner at Rs.68,000/- has been corrected by the Appellate Authority by directing that the correct amount of salary to be considered for determination of amount of Gratuity is Rs.9,375 plus Dearness Allowance of Rs.6,046.32/-. Accordingly, the Appellate Authority has held that the correct amount of Gratuity payable to the Petitioner is Rs.3,83,967/- alongwith interest at the rate of 10% p.a. from the date of resignation. It appears that the Petitioner was erroneously paid Rs.90,991/- and the Appellate Authority had therefore directed deduction of said amount of Rs.90,991/- from Gratuity amount of Rs.3,83,967/-.
2) I have heard Mr. Anilkumar, the learned counsel appearing for the Petitioner and Mr. Talsania, the learned counsel appearing for the Respondent-Undertaking.
3) It appears that the main grouse of Petitioner is that the Appellate Authority has not taken into consideration, the revised basic pay of the Petitioner which he was entitled to in view of the Circular dated 18 January 2013, under which BEST implemented revised pay scales in respect of the period from 1 April 2006 to 31 March 2011 and for the period from 1 April 2011 to 31 January 2016. According to Mr. Anilkumar, since the Petitioner resigned from service on 11 January 2007, he needs to be granted the beneft of revised pay fxation as per the Circular dated 18 January 2013, which is made applicable in respect of the Ofcers serving during 1 April 2006 to 31 March 2011.
4) Mr. Talsania, has taken instructions in that regard and has reported to this Court that the basic salary of the Petitioner would be revised ___Page No. 2 of 4____ 8 April 2024 ::: Uploaded on - 10/04/2024 ::: Downloaded on - 11/04/2024 02:02:51 ::: Neeta Sawant 8-WP-8765-2019.docx to Rs.20,270/- after granting him the beneft of Circular dated 18 January 2013. He would further submit that after applying the formula for payment of gratuity, the gratuity amount payable to the Petitioner would be Rs.4,01,807/-. According to Mr. Talsania, the Respondent-Undertaking is willing to pay diference of Rs.17,840/- to the Petitioner.
5) Mr. Anilkumar joins issue with the calculations presented to the Court by Respondent-Undertaking by contending that as per the formula prescribed by BEST, in addition to basic salary and Dearness Allowance, the Respondents must also add the amount of VDA, FDA and Special Allowance for computing the amount of gratuity. Reliance in this regard is placed on the information obtained under the Right to Information Act vide letter dated 25 October 2023, under which an information is given that in respect of the period from 1 April 2006 to 31 March 2011, the formula applied for determining the amount of gratuity is basic pay + VDA + FDA + Special Allowance multiplied by applicable days for length of service further multiplied by number of completed days of service and the entire fgure being divided by the number 26. On the other hand, according to Mr. Talsania, while determining the revised basic salary, the amounts payable under FDA, VDA and Special Allowance are subsumed and accordingly the salary of the Petitioner is determined at Rs.20,270/-. According to Mr. Talsania, the correct formula to be applied for determining the amount of gratuity would be Basic Salary plus Dearness Allowance divided by 26, which fgure is then multiplied by number of days and number of years of service.
6) Reliance by the Petitioner on the information supplied to him on 25 October 2023 appears to be clearly misplaced. A vague information was ___Page No. 3 of 4____ 8 April 2024 ::: Uploaded on - 10/04/2024 ::: Downloaded on - 11/04/2024 02:02:51 ::: Neeta Sawant 8-WP-8765-2019.docx sought about the formula applicable during the period from 1 April 2006 to 31 March 2011. However, the Circular dated 18 January 2013 clearly states that while determining the revised basic pay of Ofcers, VDA, FDA and Special Allowance is subsumed while determining the revised basic salary of Rs.20,270/- payable to the Petitioner under the Circular dated 18 January 2013. The same is after adding the amounts towards FDA + VDA + Special Allowance. The Petitioner cannot seek gratuity on the basis of revised basic pay (which includes FDA + VDA + Special Allowance) and thereafter demand addition of amounts towards FDA + VDA + Special Allowance once again towards payment of gratuity.
7) In my view, therefore the Respondent-Undertaking has correctly determined revised gratuity of Rs.4,01,807/- by granting beneft of Circular dated 18 January 2013 to the Petitioner.
8) The Writ Petition is accordingly disposed of by modifying the Order passed by the Appellate Authority to the extent that the correct amount of gratuity payable to the Petitioner would be Rs.4,01,807/-. The said amount of Rs.4,01,807/- be paid to the Petitioner after deducting the amount of Rs.90,911/- alongwith interest at the rate of 10% p.a. from the date of resignation. With the above directions, the Writ Petition is disposed of.
[SANDEEP V. MARNE, J.] ___Page No. 4 of 4____ 8 April 2024 ::: Uploaded on - 10/04/2024 ::: Downloaded on - 11/04/2024 02:02:51 :::