JAHANGIR JAMSHED MUNIR,J. - (1.) The question involved in this writ petition is: whether interim relief being paid to an employee immediately before his retirement would fall within the meaning of 'wages' defined under Section 25 of the Payment of Gratuity Act, 1972 for the purpose of calculation of his gratuity, under Section 4(2)?
(2.) The third respondent was employed with the petitioner-corporation in the month of December, 1972 and retired voluntarily from service in the month of July, 2005. He opted to retire under the Voluntary Retirement Scheme offered by the Corporation (for short the 'VRS'). At the time of his retirement in the month of July, 2005 respondent No. 3 held the post of Assistant Manager (Finance) with the petitioner corporation.
(3.) The case of the petitioner in short is that at the time of his voluntary retirement, he was paid gratuity that was calculated taking into consideration his basic pay + dearness allowance. However, a sum of Rs. 800/- per month that he was in receipt of at that time, by way of interim relief, was not included in his wages last drawn for the purpose of calculation of his gratuity. Respondent No. 3, admittedly rendered 32 years of service and taking the said respondent's wages last drawn to be his basic pay at the time, that is a sum of Rs. 3500/- per month + dearness allowance, that at the relevant time was at sum of Rs. 10,606/-, his wages last drawn were determined at a figure of Rs. 14,106/-. In whatever manner gratuity was calculated, the petitioner corporation reckoned the sum payable to the third respondent in gratuity at a figure of Rs. 2,22,222/-. This figure in whatever manner calculated by the petitioner according to their rules, and not in accordance with the Payment of Gratuity Act, 1972 (for short the 'Act'), did not take into reckoning a sum of Rs. 800/- per month, that respondent No. 3 received by way of interim relief.;