Bombay High Court Allows Pensioner's Claim for Balance Gratuity Under VIIth Pay Commission Ceiling. Petitioner restricted claim to Rs.20 lakh ceiling, already paid Rs.9,76,280, balance Rs.10,23,720 directed to be paid with interest.

High Court: Bombay High Court Bench: GOA In Favour of Accused
  • 121
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Dr. Mohammad Modassir, a pensioner and former State Election Commissioner of Goa, filed a writ petition seeking payment of retirement gratuity. He was relieved from government service on 14 January 2011 to take over as State Election Commissioner and retired from that office on 31 March 2017. The dispute centered on the calculation of gratuity under the proviso to Rule 12 of the Goa Panchayat Raj (Conditions of Service of State Election Commissioner) Rules, 1997, read with the Central Civil Services (Revised Pay) Rules, 2016 (VIIth Pay Commission) as adopted by the State Government. The petitioner claimed that the total gratuity payable was approximately Rs.32 lakh, but restricted his claim to the VIIth Pay Commission ceiling of Rs.20 lakh. An amount of Rs.9,76,280 had already been paid, leaving a balance of Rs.10,23,720. The respondents argued that the pension payable was that which the petitioner was entitled to as on 14 January 2011, not based on the revised pay rules. The court, after hearing both sides, held that the petitioner was entitled to the balance gratuity amount. It directed the respondents to pay Rs.10,23,720 with interest at 6% per annum from the date of retirement (31 March 2017) till the date of payment, within four weeks. The petition was disposed of accordingly.

Headnote

A) Service Law - Retirement Gratuity - Calculation under Rule 12 proviso - Petitioner, a former State Election Commissioner, claimed gratuity based on VIIth Pay Commission ceiling of Rs.20 lakh - Court held that the petitioner is entitled to the balance amount of Rs.10,23,720 after deducting already paid Rs.9,76,280, with interest at 6% per annum from the date of retirement till payment (Paras 3-6).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the petitioner is entitled to payment of balance retirement gratuity of Rs.10,23,720 with interest, based on the proviso to Rule 12 of the Goa Panchayat Raj (Conditions of Service of State Election Commissioner) Rules, 1997 and the VIIth Pay Commission recommendations as adopted by the State Government.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court directed the respondents to pay the petitioner the balance gratuity amount of Rs.10,23,720 with interest at 6% per annum from the date of retirement (31 March 2017) till the date of payment, within four weeks. The petition was disposed of.

Law Points

  • Retirement gratuity calculation under proviso to Rule 12 of Goa Panchayat Raj (Conditions of Service of State Election Commissioner) Rules
  • 1997
  • Central Civil Services (Revised Pay) Rules
  • 2016 (VIIth Pay Commission)
  • ceiling of Rs.20 lakh
  • interest for delayed payment
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (BOM) (12) 145

WRIT PETITION NO.1108 OF 2018

2019-12-09

M.S. Sonak, Smt. M.S. Jawalkar

2019:BHC-GOA:3502-DB

Mr. Shashikant Joshi, Ms. Amira Abdul Razaq

Dr. Mohammad Modassir

State of Goa, The Director of Accounts, State Bank of India

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition seeking payment of balance retirement gratuity

Remedy Sought

Petitioner sought recovery of balance gratuity amount of Rs.10,23,720 with interest

Filing Reason

Part payment of retirement gratuity; petitioner claimed higher amount based on VIIth Pay Commission

Issues

Whether the petitioner is entitled to balance gratuity of Rs.10,23,720 with interest

Submissions/Arguments

Petitioner: Entitled to gratuity under proviso to Rule 12 of 1997 Rules read with VIIth Pay Commission, ceiling Rs.20 lakh, already paid Rs.9,76,280, balance Rs.10,23,720 with interest. Respondents: Pension payable as on 14 January 2011, not based on revised pay rules.

Ratio Decidendi

The petitioner is entitled to retirement gratuity calculated under the proviso to Rule 12 of the Goa Panchayat Raj (Conditions of Service of State Election Commissioner) Rules, 1997 read with the Central Civil Services (Revised Pay) Rules, 2016 (VIIth Pay Commission) as adopted by the State Government, subject to the ceiling of Rs.20 lakh. The balance amount of Rs.10,23,720 is payable with interest for delayed payment.

Judgment Excerpts

He submits that the only issue which remains to be resolved is that of part payment of retirement gratuity. He, therefore, submits that the present petition is now restricted to the recovery of balance amount of Rs.10,23,720/-, along with interest thereon for the delayed payment. We dispose of this Petition by directing the Respondents to pay to the Petitioner the sum of Rs.10,23,720/- together with interest at the rate of 6% per annum from the date of retirement i.e. 31st March, 2017 till the date of payment.

Procedural History

Petition filed in 2018; on 18 September 2019, court indicated disposal at admission stage and granted liberty to complete pleadings; pleadings completed; matter heard and disposed on 9 December 2019.

Acts & Sections

  • Goa Panchayat Raj (Conditions of Service of State Election Commissioner) Rules, 1997: Rule 12
  • Central Civil Services (Revised Pay) Rules, 2016:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Karnataka Allows Writ Petitions Challenging Seizure of Motor Vehicles for Tax Arrears — Held That Procedure Under Section 8 of Karnataka Motor Vehicles Taxation Act, 1957 Must Be Followed Before Detention. The court quashed the seizur...
Related Judgement
High Court Bombay High Court Allows Fresh Arbitration After Supreme Court Sets Aside Arbitral Award Without Deciding Merits — Observations in Setting Aside Award Do Not Constitute Res Judicata. The Court held that setting aside an arbitral award under Section...