IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD THE HON'BLE SRI JUSTICE K.C. BHANU WRIT PETITION No.33084 of 2010 Date:29.06.2011 Between: A. Ramulu and 2 others. .....Petitioners AND The Vice-Chairman and Managing Director, Andhra Pradesh State Handloom Weavers Cooperative Society Limited, Hyderabad and another ....Respondents The Court made the following: THE HON’BLE SRI JUSTICE K.C. BHANU WRIT PETITION No.33084 of 2010 ORDER: This writ petition is filed under Article 226 of the Constitution of India to declare the action of the 1st respondent in effecting payment of gratuity to the petitioners at Rs.3,50,000/- each as per Sub-Section-3, Section-4 of the Act-39, of the Payment of Gratuity Act, 1972 without implementing the Payment of Gratuity (Amendment) Act, 2010, as illegal, unconstitutional, against the principles of natural justice, equity and to direct the respondents to pay the gratuity to the petitioners as per the Payment of Gratuity (Amendment) Act, 2010 and pay the difference amount to the petitioners. 2. Heard the learned counsel for the petitioners and the learned Counsel appearing for the respondents. 3. The brief facts that are necessary for disposal of the present writ petition may be stated as follows: 4. All the petitioners are retired employees of A.P. State Handloom Weavers Cooperative Society Limited (for short, APCO) and they retired from service on attaining the age of superannuation on 30.06.2010. On the same day the 1st respondent released the retirement benefits to all the petitioners vide Memo dated 30.06.2010, but the respondent No.1 released only Rs.3.50 lakhs each to the petitioners, towards gratuity amount on the ground that the amount of gratuity payable to an employee shall not exceed Rs.3,50,000/- as per Sub-Section-3, Section-4 of Act-39 of the Payment of Gratuity Act, 1972 (for short, the Act) whereas the petitioners are eligible and entitled to get gratuity amount around Rs.5,46,000/-, Rs.5,15,000/- and Rs.4,20,000/- respectively. As per the amended Act, the petitioners are eligible and entitled to get maximum gratuity amount of Rs.10.00 lakhs each but the respondents paid only Rs.3,50,000/- each by applying the old Act, without implementing the amended Act, 2010. The petitioners approached the 1st respondent and requested to implement the amended Act, and pay the difference amount of Gratuity, but the 1st respondent failed to apply the Payment of Gratuity (Amendment) Act, 2010. The payment of Gratuity (Amendment) Act, 2010 was applied in other Government Departments and paid the amount of more than Rs.3.50 lakhs to the retired employees by applying the payment of Gratuity (Amendment) Act, 2010 and the same was not implemented to the petitioners who retired from service on attaining the age of superannuation on 30.06.2010. Hence, this writ petition. The respondents filed a detailed counter-affidavit while denying the averments made in the writ petition, contended that the respondent society (APCO) has to follow the orders and instructions issued by the Government of Andhra Pradesh from time to time. The structure and organisation of the respondent society is constituted by the Government in such way that any revision in pay scales notified will not automatically apply to the respondent society unless a specific Government order is issued making such provision applicable to the respondent society. Previously when pay revision scales were announced by Government vide G.O.(P) No.213 Finance (P.C.1) Department dated 27.8.2005, they were implemented in APCO only after specific orders issued by the Government exclusively for APCO. The present pay and allowances are paid to the employees of the respondent society on the basis of the orders issued by the Government of Andhra Pradesh making revision of pay scales, 2005 applicable to the respondent society. The contention of the learned counsel for the petitioners is that since the payment of gratuity is a beneficial piece of legislation, the petitioners are entitled for the enhanced gratuity amount of Rs.7.00 lakhs instead of Rs.3.50 lakhs and therefore he sought for allowing the writ petition. On the other hand, the learned counsel appearing for the respondents contended that since no Government Order has been issued for implementation of revised pay scales to the employees of the society, the petitioners are not entitled for the same. A specific plea has been taken by the respondents that a specific Government order is necessary for applying the revised pay scales notified. Whenever any revision of pay scales was undertaken, the same will not automatically apply to the respondent-society. At present, the pay and allowances payable to the employees of the respondent-society basing on the orders issued by the Government of A.P making revision of pay scales, 2005 are applicable to the respondents-society. As per the G.O.Ms.No.101 dated 06.04.2010, the Government has enhanced the maximum limit of gratuity from Rs.3.50 lakhs to Rs.7.00 lakhs, but the Government has not issued any orders for implementation of the revision of pay scales to the employees of the society. Therefore, unless, the Government issues an order for implementation of the pay scales of 2010, the benefit of enhancing the gratuity to the retired employees in pursuance of that revision of pay scales is not applicable. Therefore, the petition is devoid of any merits. Accordingly, the writ petition is disposed of giving liberty to the petitioners to file necessary application before the respondents in case revised pay scales of 2010 are made applicable to the society. There shall be no order as to costs. ________________ K.C. BHANU, J. June, 29, 2010 Gk. THE HON’BLE SRI JUSTICE K.C. BHANU WRIT PETITION No.33084 of 2011 29th June, 2011 Gk.