INDIAN OVERSEAS BANK Vs. REGIONAL LABOUR COMMISSIONER (C) AND APPELLATE AUTHORITY
LAWS(SC)-2018-11-113
SUPREME COURT OF INDIA
Decided on November 29,2018

INDIAN OVERSEAS BANK Appellant
VERSUS
Regional Labour Commissioner (C) And Appellate Authority Respondents

JUDGEMENT

- (1.) Heard learned counsel for the appellant-Bank as well as learned counsel for the respondents.
(2.) This appeal has been filed against the judgment and order dated 28th April, 2009 passed by the High Court of Judicature at Madras in Writ Appeal No.95 of 2008 whereby the High Court dismissed the appeal filed by the appellant-Bank.
(3.) The brief facts of the case necessary to be noticed for deciding the present appeal are as follows: The third respondent joined the appellant-Bank on 30th December, 1957 and retired as an officer of the bank on 31st May, 1994. The gratuity payable to the third respondent at the time of retirement as per Section 4(3) of the Payment of Gratuity Act, 1972 was Rs.1,00,000/- (Rupees one lac) which was the maximum gratuity payable under the Act in 1994 till substituted and increased to Rs.3,50,000/- in 1998 by an amendment, more than three years after the termination of his employment. A settlement was arrived at between the Indian Banks' Association and the Apex Level Officers Association. According to these terms of settlement, the payment of arrears of gratuity would be effective w.e.f. 1st November, 1994. The third respondent was paid his arrears of salary consequent upon revision w.e.f 1st July, 1993 till 31st May, 1994. As far as gratuity was concerned, the benefit of the revised salary was to be taken into account only for employees who retired on or after 1st November, 1994. The respondent No.3 was informed that his gratuity has been paid as per his last basic pay and nothing was due to him. The third respondent filed an application before the Controlling Authority claiming an amount of Rs.85,400/- with interest being the difference in gratuity based on the revised salary. The difference in cut-off date for gratuity was challenged by various similarly situated employees before the High Court of Madras. The High Court vide judgment dated 31st August, 2002 upheld the cut-off date 1st November, 1994 for gratuity. The Controlling Authority by order dated 21st March, 2003 directed the payment of difference in gratuity based on the salary revision as Rs.85,400/-. The bank filed an appeal which was dismissed on 27th April, 2005. Thereafter the Writ Petition was filed before the High Court which was dismissed on 20th November, 2007. A Writ Appeal filed by the bank also met the same fate. ;


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