CHENNAI: The Madras High Court has refused to order payment of gratuity to a Coast Guard officer citing Central Civil Services (Pension) Rules since he was prematurely released from service on his request before completing 20 years of service.
A division bench of justices SS Sundar (since retired) and R Hemalatha passed the orders recently while allowing an appeal filed by the DG of Coast Guard against a single judge’s order directing the authorities to pay gratuity to Captain RC Raju, who had completed only 16 years in service.
The single judge had relied on the Payment of Gratuity Act, 1972 to order gratuity payment to Raju as the amount had been deducted from salary. But, the division bench differed and concluded that the Central Civil Services (Pension) Rules is applicable in case of this officer and not the Payment of Gratuity Act, 1972.
The bench said the CCS Rules forfeits pension or gratuity once an officer is released before completing 20 years of qualifying service. After serving in various capacities, Captain Raju was prematurely released in 1999 after his request for a transfer to Chennai was turned down.
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