AHMED ALI Vs. STATE FARM CORPORATION OF INDIA LTD
LAWS(RAJ)-2011-11-41
HIGH COURT OF RAJASTHAN
Decided on November 03,2011

AHMED ALI Appellant
VERSUS
STATE FARM CORPORATION OF INDIA LTD Respondents

JUDGEMENT

- (1.) By these writ petitions, the petitioners, former employees of respondent State Farm Corporation of India Limited, a Govt. of India undertaking, have approached this Court for seeking directions to the respondent Corporation to give them the benefit of ex-gratia amount in terms of the Voluntary Retirement Scheme announced by the respondent vide Annex.2 dated 10/3/2000.
(2.) The petitioners have mainly contended by these writ petitions filed in the year 2009 that similarly situated employees approached this Court for the same purpose and their writ petitions came to be allowed by this Court on 4/8/2008, copy of one such judgment of coordinate bench of this Court in SBCWP No. 3005/2002- Hakam Ali vs. State Farm Corporation of India Ltd. & anr. has been placed on record. The relevant extract of the said order is reproduced hereunder for ready reference:- "The Voluntary Retirement Scheme provides for ex-gratia payment equal to emoluments determined for each completed year of service. The term ex-gratia in the scheme concern nowhere refers the Payment of Gratuity Act, 1972. In general terms, ex-gratia is something that has been done voluntarily out of kindness or grace. In the instance matter, the State Farms Corporation, while introducing a Voluntary Retirement Scheme, offered ex-gratia to the employees seeking voluntary retirement prior to the actual date of actual term of service. The stand of the respondents that ex-gratia is required to be determined as per the provisions of the Payment of Gratuity Act is not at all supported by the Voluntary Retirement Scheme. The Payment of Gratuity Act, 1972 also nowhere refers the term "ex-gratia". The respondent no.3, therefore, were required to determine ex-gratia payment under the Voluntary Retirement Scheme by taking into consideration monthly emoluments (Pay + DA) last drawn by the petitioner. The bifurcation of the term of service into the regular service and the service rendered as daily wager is perfectly unknown or stranger with the Voluntary Retirement Scheme extended under the Circular dated 10.03.2000 and as amended subsequently. The determination of ex-gratia by bifurcation of the service, therefore, is illegal. Accordingly, the petition for writ is allowed and the petitioner is declared entitled to get ex-gratia under the applicable Voluntary Retirement Scheme by taking into consideration the emoluments last drawn by him. The respondents, therefore, are directed to determine the ex-gratia payment relating to the petitioner by taking into consideration the last wages drawn by him and further to make payment of the same within a period of two months from today. Th respondents shall also make payment of interest on the arrears of the exgratia payment @ 6.5 % per annum. Sd/- (GOVIND MATHUR), J."
(3.) The matter was taken up before the Division Bench and even Apex Court but the respondent Corporation lost the legal battle and copy of the order of Apex Court dated 6/3/2009 dismissing the SLP of respondent Corporation, namely; SLP (Civil) No. 4829/2009 dated 6/3/2009 is placed on record as Annex.R/2. Thus, those employees who litigated the matter got the benefit of due ex-gratia amount as per the said Voluntary Retirement Scheme as the litigation terminated in their favour.;


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