- (1.) The question involved in the present writ petition is as to whether the petitioners who are the retired employees of the Punjab State Warehousing Corporation (hereinafter referred to as the Corporation) are entitled to the gratuity under the Revised Gratuity Scheme of 1976, or in the alternative, whether they are entitled to benefits under the gratuity scheme as applicable to the employees of the Punjab Government (hereinafter referred to as the Government) after the adoption of the recommendations of the Third Pay Commission by the Corporation.
(2.) Petitioner were in employment with the corporation in managerial or administrative capacity. Petition No. 1 retired on 31.7.1985, whereas petitioners No. 2,3 and 4 retired on 31.1.1986, 31.10.1986 and 30.4.1987 respectively. As per the averments made in the writ petition. Various Corporations prior to coming into force of payment of Gratuity Act, 1972 (hereinafter referred to as the 1972 Act) had framed schemes for regulating payment of gratuity to their employees and were implementing the same. The corporation too had framed such a scheme in the form of Regulations described as the Punjab State Warehousing Corporation Gratuity Regulations 1968 (hereinafter referred to as the 1968 Regulations). The 1968 Regulations provide that "when the employee in the service of the Corporation dies in service or retired or is discharged for reasons other than by way of disciplinary measure or resignation after rendering continuous service of not less than 10 years, he or his legal heirs, as the case may be, shall be granted a gratuity at the rate of one month's pay for each completed year of continuous service subject to a maximum of Rs. 12,000/- provided that in the event of death of such an employee, the maximum amount of gratuity admissible shall be 12 months pay or s. 12,000/- whichever is less. The 1968 Regulations were to come into force w.e.f. 1.4.1968. The same were approved by the Board of Directors in its meeting held on 26.9.1968. Since these regulations had financial implications, the same were placed before the share-holders for approval. It may be not to mention that the shares of the Corporation are held by the Central Warehousing Corporation and the State Government to the extent of 50% each. The 1968 Regulations were approved by the Central Warehousing Corporation on 28.1.1972 and by the State Government on 29.1.1973. Meanwhile, the 1972 Act had come into force. Under Section 4 of the 1972 Act, an employee was entitled to receive terms of gratuity better than or equal to those available under the 1972 Act, meaning thereby that terms of gratuity in no case were to be less beneficial than those available under the 1972 Act, meaning thereby that terms of gratuity in no case were to be less beneficial than those available under the 1972 Act. Keeping into account the provisions of Section 4 of the 1972 Act, the Corporation with a view to bring the less favourable benefits of the '1968 Regulations' at par with those admissible under the 1972 Act, formulated a 'Revised Scheme' which offered terms of gratuity more beneficial than those available under the 1972 Act. the Executive Committee of the Corporation in its meeting held on 14.10.1976, approved the revised scheme, whereafter it was forwarded to the Deputy Secretary to the Government, Punjab, Development (Agriculture) Department, for approval and notification, together with a request for grant of exemption from the applicability of the 1972 Act. The Government vide letter dated 29.12.1981 asked the Managing Director of the Corporation to follow the provisions of the 1972 Act or to seek options from the employees, either to adopt the provisions of the 1972 Act or "continue to be governed by the existing scheme framed by the Corporation till i is beneficial to the employees concerned." On receipt of this letter, the Managing Director vide letter dated 8.1.1982 decided to obtain options from the employees of the Corporation in terms of letter dated 29.12.1981. The employees were asked to give options within 10 days from the receipt of the communication. Vide another communication dated 10.9.1982, the Managing Director once again decided to obtain fresh options from the employees of the corporation for the same purpose. Vide the same communication, it was also made clear that the options once exercised will be final and the change will be allowed at the later stage. In pursuance of this communication, all the petitioners No. 1 to 3 on superannuation were paid Rs. 12,000/- each. At the time when these petitioners had given their options for being governed under the 1968 Regulations, the same were more beneficial because the 1972 Act had not been made applicable to the employees who were working in managerial or administrative capacity. It was only when section 2(e) of the 1972 Act was amended under which persons employed in managerial or administrative capacity were also included in the definition of 'employee' that the 1968 Regulations became more beneficial to the petitioners. Petitioners, for that matter, made representations in which they wanted the corporation to make payment of gratuity in accordance with the 1976 scheme which had been sent to the Government for approval. The Corporation on consideration of the representations, decided to make payment of gratuity under the 1972 Act. Consequently, balance payment of Rs. 1500/- to Rs. 3000/- was made to the Petitioners. Petitioners are aggrieved of the action of the respondents in not making payment of gratuity in accordance with the 1976 Scheme which had been sent to the Government for approval, or in the alternative, their claim is that they are entitled to the gratuity as per the Scheme applicable to the employees of the Punjab Government after the adoption of the recommendations of the Third Pay Commission by the Corporation. According to the petitioners, these recommendations were made applicable with effect from 1.1.1986.
(3.) The claim of the petitioners is being resisted by the Corporation who in its written statement has stated that the 1976 Scheme was not approved by the Government and, thus, was never made applicable to the employees of the Corporation. According to the Corporation, the 1976 Scheme Required prior approval and notification according to the provisions of Section 42 of the Warehousing Corporations Act, 1962, which is mandatory: In regard to payment of gratuity as recommended by the Third Pay commission and made applicable to the State Government employees, the Corporation has stated that it has referred the Pension and Gratuity Scheme on the pattern of the State Government to be followed in the corporation with effect from 1.1.1986, and the same is pending approval with the Government in the Department of Agriculture (Agriculture II Branch) and till the said Scheme gets approval, it cannot be implemented.;