- (1.) The instant appeal under Clause X of the Letters Patent is directed against the judgment dated 06.07.2010 rendered by learned Single Judge disposing of two writ petitions involving the issue as to whether the writ petitioner-respondents No. 3 and 4 were entitled to payment of gratuity, full leave encashment and contributory provident fund by calculating the same at the rate of 10% of the salary. The learned Single Judge has adjudicated on the issue of contributory provident fund and no adjudication was felt necessary because the balance gratuity and leave encashment were paid during the pendency of the writ proceedings.
(2.) Brief facts of the case are that the writ petitioner-respondents were employees of the appellant college, which is a private aided institution. They had joined service on various dates and have retired on attaining the age of superannuation. The detail of writ petitioner-respondents 3 to 9 showing their date of appointment and retirement is given in the following table :- JUDGEMENT_424_LAWS(P&H)4_20111.html
(3.) The appellant is affiliated with the Panjab University and the service conditions of its employees are governed by the conditions of service and conduct of teachers in non-government affiliated colleges as incorporated in Panjab University Calendar. The appellant-college also receives 95% aid from the respondent-State of Punjab and in matters concerning disciplinary action, its employees are governed by the provisions of Punjab Affiliated Colleges (Security of Service of Employees) Act, 1974. When the management refused to pay them full benefits of leave encashment, gratuity and the contributory provident fund then, they approached this Court for payment of complete and full financial benefits. The learned Single Judge after noticing that the payment of balance gratuity and full leave encashment along with interest has been made by the appellant voluntarily during the pendency of the writ petitions then, no necessity was felt to decide the issues concerning entitlement of the writ petitioner-respondents. The only question decided by the learned Single Judge is whether the writ petitioner-respondents were entitled to contributory provident fund by calculating the same at the rate of 10% of the salary in contrast to the benefit conceded by the appellant namely that it was payable at the rate of 8% of the basic pay. In support of their claim the writ petitioner/respondents have placed reliance on the provisions of Para 12.3 Chapter VIII (E) Vol.I of Panjab University Calendar as also Para 3 of Annexure II of the Policy instructions dated 21.03.1979, which defined pay to mean pay plus all allowances excluding house rent allowance. The view of the learned Single Judge is discernible from the concluding para of the judgment :- "Since there is no dispute regarding the admissibility of benefit of Contributory Provident Fund which is to be calculated at the rate of 10% of the salary which has been termed to include pay and all allowances except the house rent allowance in terms of Para 12.3 of the Panjab University Calendar Chapter VIII (E) Vol.I, the Court is of the opinion that the writ petition deserves to succeed. The Court is also of the opinion that respondent No. 4 could not have withheld such a benefit from the petitioners on the ground of paucity of funds. It, therefore, directs respondent No. 4 to release the amount due to the petitioners by calculating it in accordance with the terms of Rule 12.3 Para 2 forthwith and release these benefits to the petitioners within 2 months from today. The respondent State of Punjab shall reimburse this amount after such a payment has been made within a period of three months from the time when a claim for such a reimbursement is lodged with them. There shall be no deviation in making such payments by the respondents whether it is in the shape of payment to the petitioners in the first instance by respondent No. 4 or in the shape of reimbursement by respondent Nos. 1 to respondent No. 4. The amount shall be released to the petitioners alongwith interest at the rate of 9% from the date when it became due. The other benefits such as leave encashment and gratuity which were released to the petitioners belatedly shall also carry interest at the rate of 9% p.a. from the date when they were due till the date when the payment was made. The liability to pay the same would be of respondent No. 4. Both petitions stands allowed.";