Amarjit Singh vs Punjab State Civil Supplies Corporation Limited

Mr. Rajiv Narain Raina, J. (Oral)—Heard learned counsel for the parties.

To the extent gratuity is claimed by the petitioner, this petition must succeed. To claim such benefit, learned counsel for the petitioner relies appropriately on the case law in Narinder Dev Sharma v. State of Punjab & another, 1996 (1) SCT 623; L.R. Dhawan v. State of Haryana & others, 1996 (3) SCT 11 and Ram Narain Dua v. Dakshin Haryana Bijli Vitran Nigam Ltd. & others, 2007 (1) SCT 161. This is because the respondents admit that no charge-sheet was served on the petitioner prior to his retirement and therefore, gratuity could not have been withheld. Neither can gratuity be withheld by initiating inquiry under Rule 2.2(b) of the Punjab Civil Services Rules, Volume II after employee retires and departmental proceeding were not contemplated during service. This is for the reason that gratuity is a one-time payment which falls due and payable on the date of retirement and is not a recurring right like pension. However, an enquiry based on a charge-sheet issued after retirement under Rule 2.2(b) can be conducted and concluded. The charge-sheet was issued in this case on 02.04.2013 for an incident of alleged misconduct which occurred during the period 2009-10, while the petitioner retired from service on 30.04.2011. To that extent no court directions are called for in this petition to draw the curtains on the departmental proceedings.

For the foregoing reasons, this petition is allowed while setting aside the impugned decision withholding gratuity for no rhyme or reason. Since the amount of gratuity has been withheld for the wrong reason, the petitioner would be entitled to interest on delayed payment @ 8.7% p.a. i.e. the rate payable on long term fixed deposits sitting invested in nationalised Banks.

Accordingly, the principal outstanding amount of gratuity together with interest thereon as awarded be computed and paid to the petitioner within six weeks from the date of receipt of certified copy of this order. Failing which interest will run at the rate of 12% on the entire principal amount of gratuity till payment.