However, they raised a claim that they were entitled to the benefit of both the schemes as also the ceiling limit fixed under the 1998 Act.
For the purpose of companyputing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.
The amount of gratuity offered to them in terms of the scheme was accepted.
The said scheme was operative from May, 1994 to 24.9.1997.
It was operative from 1975 to 19.7.1996.
Payment of gratuity is provided for in Section 4 thereof the relevant portion whereof reads as under Payment of gratuity.
The employees of the Bank accepted the said scheme and availed the benefits thereof.
Respondents retired during the currency of the scheme of the Bank in terms whereof, although the rate of gratuity was to be calculated at the rate of 26 days salary for every companypleted year of service, the ceiling limit thereof was 1.7 lakhs and 2.50 lakhs between the period 20.7.1996 and 30.11.1999 and the period 1.12.1999 and 17.1.2005 respectively.
Yet again, a scheme was floated raising the ceiling limit of Rs.1.7 lakhs to Rs.2.50 lakhs.
Completed year of service has been defined to mean companytinuous service for one year.
The said ceiling limit, however, was later on increased to 3.50 lakhs by reason of an amendment made by Payment of Gratuity Amendment Act, 1998 for short, 1998 Act , which was given a retrospective effect from September, 1997.
A policy decision was taken by the Bank to extend the benefit of better rate of gratuity to a large number of its employees.
Payment of Gratuity Act, 1972 for short, 1972 Act was enacted by the Parliament to provide for a scheme for the payment of gratuity to its employees engaged in factories, mines, oilfields, plantations, ports, railway companypanies, shops or other establishments and for matters companynected therewith or incidental thereto.
The said scheme was amended providing for payment of gratuity at the rate of 26 days salary for every companypleted year of service with a ceiling limit of Rs.
1.7 lakhs.
A scheme was formulated therefor which was linked with a policy of Life Insurance Corporation of India who were on its roll on and from 1.12.1975.
In terms of the provisions of the said Act, the ceiling limit of the amount of gratuity was raised to 2.50 lakhs.
In terms of the said scheme, the rate of gratuity was to be calculated on one months salary .for every companypleted years of service with ceiling limit of 20 months salary.
The amount of gratuity payable to an employee shall number exceed three lakhs and fifty thousand rupees.
1 Gratuity shall be payable to an employee on the termination of his employment after he has rendered companytinuous service for number less than five years, a on his superannuation, or b on his retirement or resignation, or c on his death or disablement due to accident or disease For every companypleted year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee companycerned.
The said companytention of Respondents was accepted number only by the Deputy Commissioner of Labour, Aurangabad by a judgment and order dated 12.7.2005, but also by the High Court in terms of its order dated 9.8.2005.
The rate of gratuity, however, was to be determined at the rate of 15 days salary for every companypleted year of service.
Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or companytract with the employer.
B. Sinha, J. Leave granted.
Appellant Bank is a companyoperative society registered under the Maharashtra Co operative Societies Act, 1960.
On their superannuation they were entitled to payment of gratuity.
