High CourtsSingle Bench(2007) 11 MAD CK 0137

Moosa Sulaiman vs E.I.D. Parry Staff Gratuity Fund by Trustees, Parry and Company Ltd. and E.I.D. Parry India Ltd.

Madras High Court · Decided on 22 November 2007 · Citation: (2008) ACJ 350

HON’BLE JUDGES
S. Tamilvanan, J
RESULT
Dismissed
CASE NUMBER
A.S. No. 220 of 1996

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Judgment

20 paragraphs · 429 words

S. Tamilvanan, J.—This appeal has been directed against the Judgment and Decree, dated 24.02.1993 made in O.S. No. 5490 of 1989 on

the file XVII Asst. Judge, City Civil Court, Chennai.

2.

It is not in dispute that the appellant / plaintiff had been an employee under the respondents and voluntarily retired from service on 17.09.1985

and that he was paid a sum of Rs. 30,000/- towards gratuity. He made a representation to the respondents to pay additional gratuity, since, he had

served for about 30 years in respondent''s company, but the same was negatived by the respondents. Hence, the appellant has filed the suit,

seeking a direction to the respondents to pay Rs. 45,000/- as additional gratuity together with interest.

3.

Mrs. Sheila Jayaprakash, learned Counsel appearing for the appellant drew the attention of this Court to the Trust Deed, marked as Ex.B.1, at

paragraph No. 11 (a), where it has been stipulated as follows:

The Gratuity will be paid at the rate of half of one month''s average salary for the last 5 years for each year of continuous service (herein after

referred to as the ""average salary"") subject to a maximum of 20 months'' average salary or Rs. 30,000/- whichever is less.

As per paragraph 13 of the Trust Deed, payment of additional gratuity is only the discretion of the Trustees. Here in this case, though the appellant

had made a representation for getting additional gratuity, the respondents have rejected the claim of the appellant. Paying additional gratuity is only

the discretion of the respondents. On the facts and circumstances of the case, as found by the court below, it is not mandatory on the part of the

respondents to pay additional gratuity to the employees of the company. In other words, the claim is not a legal right to be enforced through court

of law.

4.

As per the Trust Deed of the respondents, payment of additional gratuity is only the discretion of the Trustees. Therefore, after having rejected

the request of the appellant by the respondents, it would not a legal right of the appellant in seeking additional gratuity. Only a recognised right is

legally enforceable through court of law. As per the Trust Deed of the respondents, getting additional gratuity is not a recognised right to an

employee. Hence, there is no error or infirmity in the impugned Judgment and Decree of the trial court in dismissing the suit.

5.

In the result, confirming the impugned Judgment and Decree passed by the court below, the appeal is dismissed. No order as to costs.