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Rajasthan Agricultural University Vs. Ram Krishna Vyas - Court Judgment

SooperKanoon Citation
SubjectService
CourtSupreme Court of India
Decided On
Case NumberC.A. No. 2612 of 1996
Judge
Reported inAIR1999SC1937; [1999(82)FLR359]; JT1999(3)SC368; (1999)IILLJ978SC; 1999(3)SCALE113; (1999)4SCC720; [1999]2SCR989; 1999(2)LC871(SC)
ActsRajasthan Agricultural University, Bikaner Act, 1987; University of Udaipur(Sukhadia University) Payment of Gratuity to Employees Rules, 1979 - Rule 11; Rajasthan Service(Amendment) Rules, 1987
AppellantRajasthan Agricultural University
RespondentRam Krishna Vyas
Appellant Advocate Altaf Ahmed, Additional Solicitor General,; A.P. Dhamija,; Sus
Respondent Advocate Pallav Shishodia and ; A.P. Medh, Advs.
Excerpt:
service - retiral benefits - rule 11 of university of udaipur (sukhadia university) payment of gratuity to employee rules, 1979 - respondent retired from service on superannuation - respondents retiral benefits reduced - respondents sought direction to appellant - university to finalise retiral benefits in accordance with rules prescribed - while calculating emoluments for purpose of payment of gratuity applicable to respondent - high court rightly held that while calculating total emoluments not only basic pay but also dearness allowance and ad-hoc dearness allowance to be taken into consideration. - .....adopted the revised pay scales, 1987 effective from 1.9.86 for its employees and also adopted the revised gratuity rules in which the amendment has been raised from rs. 50,0007- to 75,000/- vide order dated 16.6.88, and the payment of gratuity is also being made accordingly to the amended rules. but one retired employees sh. r.k. vyas, lab assistant has challenged these rules in high court. the hon'ble high court in its judgment dated 9.3.95 held that rau has not adopted gor gratuity rules in its entity in replacement of m.l.s. university, udaipur gratuity rules-70. in view of this, calculation for the purpose of gratuity shall be governed by notes contained in rule 11 of m.l.s. university gratuity rules. thus gratuity shall be calculated on the basis of pay+d.a.+adhoc d.a.19. in the.....
Judgment:
ORDER

In pursuance of Board of Management Resolution No. 15 dated 21.2.87 the Vice Chancellor is pleased to revise the existing Pay Scales of University employees in accordance with Rajasthan Civil Services(Revised Pay Scale) Rules, 1987 published in Rajasthan Raj-Patra, Spl. Bulletin, Part-IV Sub-div. I dated 2.2.87. These revised pay scales would be applicable to the employees from 1.9.86. The revised pay scales would not applicable to the employees getting U.G.C. pay scales...

We extract Annexure-A to the writ petition:

Finance 9Gr.2) Department Notification: No. Fl(68) FD(Gr.2)/86 Jaipur dt.2.2.87 Sub: Rajasthan Service Rules:.These rules may be called the Rajasthan Service (Amendment) Rules, .1987. They shall be deemed to have come into force with effect from 1.9.86. In the said rules-

7(24). Pay - means the amount drawn monthly by a Government servant as - (i) the pay other than special pay or pay granted in view of his personal qualifications, which has been sanctioned for a post held by him substantively or in an officiating capacity, or to which he is entitled by reason of his position in a cadre, and (ii) special pay and personal pay, and (iii) any other emoluments which may be specially classed as pay by the Governor.

We extract Annexure-G to the writ petition:

Rajasthan Agriculture University: Bikaner. No. FII(3)/RAJAU/C/88/ 31/39-78 dt. 16.06.88

Office Order

Sub: Payment of Gratuity to employees rules, 1970.

In pursuance of the Finance Committee resolution No, 4 dated 20.5.88 and duly approved by the Board of Management on 20.5.88, the Vice Chancellor is pleased to order that the Government of Rajasthan Finance (Gr.2) Department Notification No.F. 1 (29) FD (Gr.2) 87-1 dated 20.10.87 regarding raising the maximum limit of death-cum-retirement it Gratuity from Rs. 50,000 to Rs.75,000 may be made applicable to University employees from 1.9.1986 as per Govt. order referred above.

8. There is no dispute at the bar regarding position of the rules and the resolution etc. extracted above.

9. The short question to be decided in the present appeal is whether while calculating the total emoluments of the respondent for the purpose of gratuity in addition to pay as defined in Rule 7(24) of the Rajasthan Service Rules, dearness allowance and ad hoc dearness allowance which the respondent was drawing at the time of the retirement, have to be added or not?

10. The University being a body corporate having perpetual succession has got a separate legal entity and as such rules framed by the government shall not be applicable unless specifically adopted by the University in accordance with the provisions of the Act by which the University was constituted.

11. From the resolution of the meeting of the Board of Management of the appellant-university dated 20th May, 1980 we find that the appellant-university adopted the statutes of the Sukhadia University therefore, the University of Udaipur(Sukhadia University) Payment of Gratuity to Employees Rules, 1979 are applicable to employees of the appellant-university. As respondent retired from service after 31.3.1986, note (1) to the Rule 11 is applicable. Therefore, while calculating the emoluments for the purpose of payment of gratuity the three clauses namely: (a) (b) and (c) of the said note (1) have to be applied. Thus, the total emoluments for the purpose of gratuity of the respondent would include (1) pay as defined in Rule 7(24) of the Rajasthan Services Rules (2) amount of dearness allowance and (3) amount of ad hoc dearness allowance as amended from time to time.

12. According to Mr. Ahmed, learned Addl. Solicitor General for the appellant-university, as the Board of Management of the appellant-university by Resolution No. 31 dated 12.5.1988 had adopted increase in the payment of gratuity to the employees and the respondent is not entitled to get the benefit of dearness allowance and adhoc dearness allowance while calculating total emoluments for the purpose of granting gratuity. This resolution was formally notified by the order dated 16.6.88 which was extracted above.

13. On basis of the above order dated 16.6.88 we have no hesitation to hold that only maximum limit of the amount of gratuity was raised from Rs. 50,000 to Rs. 75,000 w.e.f 01.09.1986.

14. Though along with the order of the appellant- university dated 16.6.88 a copy of the Rajasthan Services (second amendment) Rules, 1987 was also extracted, by no stress of imagination it can be said that by the above order, the University of Udaipur(Sukhadia University) Payment of Gratuity to Employees Rules, 1979, as adopted by the appellant-university, were also amended in respect of other provisions. By that order only limit of gratuity was increased.

15. Mr. Ahmed has further contended that as the pay-scales of the appellant-university were revised in terms of Rajasthan Services (revised pay-scales) Rules, 1987 by an order dated 05.03.1987 as extracted above, Rajasthan Civil Services Rules shall apply to all employees of the appellant-university.

16. Reading of the above order dated 05.03.87 makes it clear that the Board of Management by Resolution dated 21.02.1987 only revised the pay-scales of the university employees and did not adopt the Rajasthan Civil Services(revised pay-scales) Rules, 1987 in toto.

17. As stated above after the conclusions of oral arguments, written submissions on behalf of both the parties were filed. Along with written submissions explanatory note and resolution of the Board of Management dated 4.12.87 have been annexed. By this resolution of the Board of Management it was resolved by the Board that the gratuity rules of Rajasthan State Government Services (second amendment) Rules, 1987 with effect from 1.1.86 and modified from time to time will be followed by the university till separate service rules are framed.

18. We quote below a paragraph from the explanatory note submitted to the Board:

The Rajasthan Agricultural University has also adopted the Revised Pay Scales, 1987 effective from 1.9.86 for its employees and also adopted the revised gratuity Rules in which the amendment has been raised from Rs. 50,0007- to 75,000/- vide order dated 16.6.88, and the payment of gratuity is also being made accordingly to the amended rules. But one retired employees Sh. R.K. Vyas, Lab Assistant has challenged these rules in High Court. The Hon'ble High Court in its judgment dated 9.3.95 held that RAU has not adopted GOR Gratuity Rules in its entity in replacement of M.L.S. University, Udaipur gratuity rules-70. In view of this, calculation for the purpose of gratuity shall be governed by notes contained in Rule 11 of M.L.S. University Gratuity Rules. Thus gratuity shall be calculated on the basis of Pay+D.A.+Adhoc D.A.

19. In the written argument, it has been stated that in view of the above resolution of the Board, the respondent is not entitled to get the relief claimed. This point was neither urged before us at the time of arguments and nor taken as a ground in the special leave petition. Therefore, we are not inclined to consider the effect of resolution as it was proposed to take away the vested right of respondent which was affirmed by the High Court.

20. For the reasons stated above, we hold that the High Court rightly held that under rules of the University while calculating total emoluments of the respondent for the purpose of gratuity not only the basic pay but also the dearness allowance and ad hoc dearness allowance have to be taken into consideration.

21. The present appeal has no merit and accordingly it is dismissed. Considering the facts and circumstances of the case parties are directed to bear their own costs.


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