S.B. Sinha, J. - (1.) Leave granted.
(2.) Appellant is a statutory corporation constituted under the Road Transport Corporation Act, 1950. It has its own scheme in terms whereof gratuity is being paid at the rate of 30 days basic pay for each completed year of service. Government Servants are, however, entitled to gratuity calculated on the basis of 15 days basic pay for each completed year of service. Such is the position also under the Payment of Gratuity Act, 1972 (for short "the Act").
(3.) Disputes and differences having arisen by and between the workmen of the Corporation and the management, a settlement was arrived at on 17.07.1999. The said settlement was valid for the period 1.01.1988 and 31.12.1991. It expired on 31.12.1991, Clause (5) whereof postulated: Dearness Allowance The rates of Dearness allowance shall be on par with the rates sanctioned by the State Government to its employees from time to time and from the same date. The enhanced Dearness Allowance shall be paid in cash. If during the currency of this settlement, the Government of Karnataka were to merge any portion of Dearness Allowance presently being paid to its employees, that portion of the Dearness Allowance so merged will also be reckoned at appropriate levels by the corporation for determining the Dearness Allowance, House Rent Allowance, City Compensatory Allowance and Gratuity payable to the employees of the corporation, but shall not be reckoned for other purposes. ;