SUDHIR CHANDRA SARKAR Vs. TATA IRON AND STEEL COMPANY LIMITED
LAWS(SC)-1984-3-13
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on March 27,1984

SUDHIR CHANDRA SARKAR Appellant
VERSUS
TATA IRON AND STEEL COMPANY LIMITED Respondents

JUDGEMENT

- (1.) Appellant, an employee of Tata Iron and Steel Company Limited ('Company' for short has been chasing a mirage : to wit to recover a paltry sum of Rs. 14040/- being the amount of gratuity to which he was entitled for the continuous service rendered by him from December 31, 1929 till August 31, 1959 : under what are styled as Retiring Gratuity Rules, 1937 ('Gratuity Rules for short) from the Company and in this wholly unequal fight he laid down his life before enjoying the pittance to which he was entitled after three decades of loyal service. What a dreadful return for abject loyalty When the appellant retired by resignation from service he was paid his provident fund dues but gratuity which he was entitled to be paid under the relevant rules was not paid to him. When the appellant claimed payment of gratuity, the respondent turned deaf ears to it. Appellant served a notice dated September 6, 1981 calling upon the respondent to pay the amount of gratuity being Rs. 14040/-. The Company did not respond to the notice Thereupon the appellant filed M. S. No, 452 of, 1962 in the court of Subordinate Judge. at Jamshedpur.
(2.) The respondent appeared and contested the suit inter alia contending that in terms of the contract of service and particularly having regard to the relevant rules under which gratuity can be claimed the same is payable on certification of satisfactory service by the head of the department, and it is payable at the absolute discretion of. the Company irrespective of whether the employee has or has not performed all or any of the conditions stated in the rules and no employee howsoever otherwise eligible is entitled as of right to any payment under the rules.
(3.) The learned trial Judge framed the issues on which parties were at variance. The learned Judge held that the plaint does disclose a cause of action and the plaintiff was entitled to claim and recover the amount of gratuity with interest thereon. Accordingly, the suit was decreed against the Company directing it to pay the amount claimed in the plaint with future interest at 6% per annum with costs.;


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