MADURAI: The Madurai Bench of the Madras High Court has refused to strike down Rule 703 of the Manual of Railway Pension Rules, 1950, which exclude dearness allowance while calculating Death-cum-Retirement Gratuity (DCRG).
Dismissing a writ petition filed by two former railway employees, Justice K. Chandru said that the petitioners would not fall under the ambit of Payment of Gratuity Act, 1972, which mandates inclusion of D.A. while calculating terminal benefits.
Instead, the railway staff were covered under the Pension Rules, framed under Article 309 of the Constitution, that were legislative in nature.
Under the Rules, the petitioners were receiving pension since their retirement 13 years ago.
Besides, they got a lump sum amount towards commuted value of pension.
Subsequently, they were also receiving Dearness Relief as per the recommendations of various pay commissions. Being members of the liberalised pension rules, they were entitled for family pension too.
However, the two former employees were not satisfied at calculating the DCRG on the basis of their basic pay.
They approached the Assistant Labour Commissioner claiming the difference amount. But the Commissioner rejected their plea on the ground that Central Government and State Government employees were not entitled to seek relief under the Gratuity Act.
The Judge said pension and DCRG were a single component as contra distinct from persons covered by contributory provident fund.
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