- (1.) Petitioners-1 and 3 to 7 and the husband of petitioner-2 (who has since died) retired from the various Municipal Councils/Corporations before 1.4.1995. The respondents have issued instructions vide letter dated 13.12.1996 (Annexure P4) in pursuance of which, it has been decided that dearness allowance as admissible to the employees as on 1.7.1993 (linked to All India Consumer Price Index level 1201.66) as indicated in the said letter, shall be treated as dearness pay for reckoning emoluments for the purposes of retirement gratuity and death gratuity under the Punjab Civil Service Rules Volume - II in the case of Punjab Government employees who retired or whose death occurs on or after 1.4.1995. The services of the petitioners, it is stated, are governed by the Punjab Municipal Pension and General Provident Fund Rules 1994 and in terms of the said Rules, gratuity is to be paid under the Punjab Civil Services Rules Volume - II. Besides, vide letter dated 11.3.1996 (Annexure P3) the State Government has clarified that vide memo dated 31.5.1995 gratuity to all employees of the Municipal Councils, Municipal Corporations and Town Improvement Trusts in the State is to be paid out of Municipal Fund/Corporation Fund/Trust Fund, according to Punjab Civil Services Rules. In terms of the letter dated 13.12.1996 (Annexure P4) by treating the dearness allowance as linked to all India Consumer Price Index Level 1201.66 as dearness pay for reckoning emoluments for the purpose of computing retirement gratuity and death gratuity the ceiling limit on gratuity stands raised to Rs 2.50 lacs, which for those who retired or had died before 1.4.1995 was Rs one lac without adding any part of dearness allowance or dearness pay. The petitioners in this petition under Articles 226/227 of the Constitution of India seek quashing the cut off date - 1.4.1995 granting retirement gratuity/death-cum-retirement gratuity to the employees who have retired/died on or after 1.4.1995 by treating the dearness allowance admissible to employees as on 1.7.1993 (linked to All India Consumer Price Index Level 1201.66) as dearness pay for reckoning emoluments for the purpose of retirement gratuity and death gratuity and denying the same to the pre 1.4.1995 retirees or those who have died earlier to the said date. Reliance is placed on the judgment of a Division Bench of this Court in Kartar Singh and Ors. v. State of Punjab 1998(2) RSJ 640.
(2.) In the written statement that has been filed, the claim of the petitioners is denied in view of the judgment of the Supreme court in State of Punjab v. Boota Singh .
(3.) We have heard learned Counsel appearing for the parties. The grievance of the petitioners is regarding providing of a cut off date - 1.4.1995 whereby those employees who have retired or would retire or have died after the said date would get higher amount of gratuity by treating dearness allowance as dearness pay for reckoning emoluments for the purpose of retirement gratuity and death gratuity and denying it to those who have retired and/or died earlier to the said date. It is not in dispute that petitioners No. 1,3 to 7 have retired from service earlier to the cut off date. The husband of petitioner No. 2 died earlier to the said cut off date. Therefore, the question that requires consideration is whether the petitioners - 1 and 3 to 7, who have retired from service and husband of petitioner - 2, who died before 1.4.1995 would be entitled to claim enhanced gratuity in terms of the letter dated 13.12.1996 (Annexure P4) and thereby entitled to the grant of difference between the gratuity that has already been paid and the enhanced gratuity as is payable to the post 1.4.1995 retirees. Besides, whether the dearness allowance linked to all India Consumer Price Index 1201.66 as indicated in the said letter dated 13.12.1996 (Annexure P4) can be treated as dearness pay for reckoning emoluments for the purpose of retirement gratuity/death gratuity even in respect of the pre 1.4.1995 retirees and also those who have died earlier to the said date.;