RAJASTHAN AGRICULTURAL UNIVERSITY versus RAM KRISHNA VYAS

Citation: [1999] 2 S.C.R. 989 · Decided: 04-05-1999 · Supreme Court of India · Bench: S.S.M. QUADRI · Disposal: Dismissed

Judgment (excerpt)

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RAJAS THAN AG RI CULTURAL UNIVERSITY 
A 
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v. 
RAM KRISHNA VY AS 
MAY 4, 1999 
[S.S. MOHAMMED QUADRI AND S.N. PHUKAN, JJ.] 
B 
Service Law 
University of Udaipur (Sukhadia University) Payment of Gratuity to 
Empioyees Rules, 1979-Calculation of Gratuity-Rules of University c 
including dearness allowance and adhoc dearness allowance with basic pay 
for calculation of gratuity-University denying benefit of Dearness Allowance 
to Respondent while calculating gratuity-Revision of pay scales and 
increasing limit of gratuity in accordance with State Government Rules-· 
Whether, amounts to adoption of State Civil Service Rules-Held, No-High D 
Court holding rules of Government employees would not be applicable in 
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case of University employee-Upheld-Rajasthan Civil Services (Revised pay 
Scales) Rules, 1987. 
Practice and Procedure 
E 
Appellant filing documents alongwith written submissions not filed 
with SLP nor argued orally-Held, point cannot be considered 
The Respondent who was an employee of the Appellant University 
retired from service in 1992. Since his provisional pension was subsequently 
reduced, the respondent filed a Writ Petition before the High Court for a F 
direction to the appellant to finalies the retrial benefits such as pension, 
gratuity and other retrial dues on the basis of actual last pay drawn, dearness 
and adhoc dearness allowances. The Respondent contended that the gratuity 
was calculated only on the basic pay instead of calculating on the pay last 
drawn including the dearness allowance and adhoc dearness allowance. The G 
appellant contended that provisional pension was granted on the basis of 
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undertaking given by the respondent that excess benefits if any would be 
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refunded. The appellant submitted that rules stood amended as per rules of 
the State Government and as the Government rules define the emoluments 
as basic pay for the purpose of payment of gratuity no payment of gratuity 
on dearness allowance can be allowed. The Writ Petition was allowed by H 
989 
990 
SUPREME COURT REPORTS 
(1999] 2 S.C.R. 
A Single Judge holding that rules regarding calculation of basic pay in respect 
of Government employee would not be applicable in case of employee working 
under the University and therefore, while calculating the gratuity, basic pay 
alongwith amount of dearness allowance should be taken in!o consideration. 
The Writ Appeal by appellant was dismissed by the Division Bench. 
B 
On appeal before this Court, the appellant contended that as the Board 
of Management of the appellant by resolution No. 31dated12.5,1988 which 
was formally notified on 16.6.1988 had adopted increase in the payment of 
gratuity as per Rajasthan Government Notification to the employees and the 
respondent is not entitled to get the benefit of dearness allowance and ad-
C hoc dearness allowance while calculating total emoluments for the purpose 
of granting gratuity, and that as the pay-scales of the appellant were revised 
in terms of Rajasthan services (Revised Pay-Scales) Rules, 1987, by an 
order dated 5.3.1987, the Rajasthan Civil Services Rules shall apply to all 
employees of the appellant University. In the written submissions the appellant 
filed a resolution dated 4.12.1987 in which it was resolved that the gratuity 
D rules of Rajasthan State Government Services (second amendment) Rules, 
1987 with effect from 1.1.1986 and modified from time to time will be 
followed by the University till separate service rules are framed. 
Dismissing the appeal, the Court 
E 
HELD: 1. The High Court rightly held that under rules of the University 
while calculating total emoluments of the respondent for the purpose of 
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gratuity not only the basic pay but also the dearness allowance and ad/we 
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dearness aUowance have to be taken into consideration. (997-A-B] 
2. Though alongwith the order of the appellant dated 16.61988 a copy 
F ofthe Rajasthan Services (second amendment) Rules, 1987 was also extracted, 
by no stretch of imagination it can be said that by the above order, the 
University ofUdaipur (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 maximum limit of gratuity 
was increased. [995-F-G] 
G 
3. The Board of Management by their Resolution and order dated 
5.3.1987 only revised the pay-scales of the University employees and did not 
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