IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.6231 of 2004 BIHAR RAJYA KHADI GRAM UDYOG BOARD KARYAKARTA SANGH & ORS. Versus THE STATE OF BIHAR & ORS with CWJC No.5745 of 2004 PARSURAM SHARMA Versus THE STATE OF BIHAR & ORS ----------- For the petitioners :Mr. Atul Chandra, Advocate For the State :Mr. JC to G.P.1 For the Khadi Board:M/s. Uma Kant Singh & Amitesh Kumar, Advocates 12/ 02.7.2008 Heard learned counsel for the parties. 2. Petitioner no.1 in CWJC No. 6231 of 2004 is the Union of the employees of the Bihar State Khadi and Village Industries Board (hereinafter referred to as the Board). Other petitioners in the two writ applications are the members of the said Union. 3. These writ applications have been filed praying, inter alia, to set aside the State Government instructions contained in letter no. 544 dated 6.2.2004, Annexure-7, whereunder Government has instructed the Board to calculate and pay gratuity to its employees at the rate of 15 days’ salary for every completed year of service for maximum 33 years the total amount of gratuity should, however, not exceed Rs. 2,50,000/- and to recover the excess amount paid to any of its employees. 4. It is submitted on behalf of the petitioners that the said instruction is contrary to the amended provisions in the 2 Payment of Gratuity Act, 1972 (hereinafter referred to as the Act), whereunder the gratuity has to be paid at the rate of 15 days’ salary for every completed year of service without any embargo on the number of completed years of service, the amount payable, however, should not exceed Rs. 3,50,000/-. 5. Counsel for the State and the Board do not dispute the amended provisions in the Act, whereunder gratuity has to be paid at the rate of 15 days’ salary for every completed year of service to the maximum of Rs. 3,50,000/- without there being any restriction on the number of completed years of service. It is only submitted by them that Government has to apply its mind to the amended provisions and take appropriate decision in this regard and until such decision is taken, this Court should not ask the Board to make payment ignoring the instructions contained in letter no. 544 dated 6.2.2004, Annexure-7. 6. Having heard counsel for the parties, I am of the view that the amended provisions were inserted in the Act as far back as on 24.9.1997, as such, the State Government should take notice of those provisions at the earliest since the provisions are in the interest of the employees and the State being a Welfare State should apply the amended provisions to the benefit of the employees of the Board at the earliest, accordingly, I direct the State Government to take a decision in the matter in the light of the amended provisions of the Act 3 and to remove the embargo on the number of completed years of service as also ceiling of Rs. 2,50,000/- for payment of gratuity under the Act. 7. Decision in the light of this order be taken by the State Government within three months from the date of receipt/ production of a copy of this order before the Chief Secretary, Bihar, Patna, Secretary of the Finance Department and the Secretary of the Industries Department. 8. Both the writ applications are, accordingly, disposed of. Arjun/ (V.N. Sinha, J.)