The Hindu : NLC pays Rs. 1.07-cr. enhanced gratuity

Online edition of India's National Newspaper
Sunday, Feb 15, 2004

Tamil Nadu

Tamil Nadu - Cuddalore

NLC pays Rs. 1.07-cr. enhanced gratuity

By Our Special Correspondent

CUDDALORE, FEB. 14. The Neyveli Lignite Corporation has settled 206 claims for an "enhanced gratuity" of Rs. 1.07 crores through the Lok Adalat. The management has disbursed the amount as ex gratia as the employees retired even before the Act was amended for giving enhanced gratuity.

An NLC release said 2,755 employees, who retired from April 1, 1995 to September 23, 1997, were paid Rs. 1 lakh each as gratuity, being the maximum ceiling limit as per the Act then prevailed. Subsequently, the Centre amended the Act, enhancing the ceiling to Rs. 2.50 lakhs from September 24, 1997.

Consequent to the amendment, the retired employees demanded that they be paid the enhanced gratuity.

But the management rejected the demand stating that it was outside the purview of the Act.

The retired employees moved the Madras High Court. Anticipating increase in the number of such claims, the management, as a gesture of goodwill and to avoid multiplying litigation, decided to release the enhanced gratuity by way of ex gratia without interest.

The management had sought the help of the judiciary for giving a legal quietus to the claims. Pursuant to this and as per the guidance of the Chief Justice of the Madras High Court, B. Subhashan Reddy, the management decided to settle the claims through the Lok Adalat under the aegis of the TN Legal Services Authority.

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NLC pays Rs. 1.07-cr. enhanced gratuity