APHC010659852025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3460] MONDAY,THE EIGHTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 34041/2025 Between: 1. KAMBALA ESWARA RAO, S/O. (LATE) VEERASWAMY, AGED ABOUT 61 YEARS, OCC RETIRED EMPLOYEE WORKED AGAINST CR AND MO, O/O. DISTRICT MANAGER, APDASCAC, SRIKAKULAM, R/O. 1-116- 12/1/5, SAIKRUPA HOMES, SECTOR-12, MVP COLONY, VISAKHAPATNAM URBAN -530017. 2. PEDDADA VENKATA RAMANA MURTHY,, S/O. P.RAMA CHANDRA RAO OCC RETIRED EMPLOYEE WORKED AS PROJECT OFFICER, AGED ABOUT 62 YEARS, R/O. 4-47-2/2, LAWSONS BAY COLONY, VISAKHAPATNAM (URBAN), L B COLONY, VISAKHAPATNAM-530017. ...PETITIONER(S) AND 1. THE STATE OF AP, REP BY ITS SPECIAL CHIEF SECRETARY, FINANCE DEPARTMENT, SECRETARIAT, VELAGAPUDI, GUNTUR DISTRICT. 2. THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECRETARY, WOMEN, CHILDREN, DIFFERENTLY ABLED AND SENIOR CITIZENS DEPARTMENT, SECRETARIAT, VELAGAPUDI, GUNTUR 2 DISTRICT. 3. THE DIRECTOR OF TREASURIES AND ACCOUNTS, 1ST FLOOR, NIDHI BHAVAN, BEHIND APIIC BUILDING, IT PARK, MANGALAGIRI, GUNTUR DISTRICT - 522 503. 4. THE A P DIFFERENTLY ABLED AND SENIOR CITIZENS ASSISTANCE CORPORATION APDASCAC, (GOVERNMENT OF ANDHRA PRADESH UNDERTAKING). REP.BY ITS MANAGING DIRECTOR, OFFICE D.NO.74-14-2 1ST FLOOR, RAJA NARENDRA BUILDINGS, KRISHNA NAGAR, YANAMALAKUDURU ROAD, VIJAYAWADA-520007. ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue an appropriate order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in restricting the petitioners gratuity to Rs.16 lakh vide Procd.No.839/2011/Estt/2024-11, dated 22.01.2025 and Procd.No.839/2011/Estt/2024-C3, dated 22.01.2025 of the 4th respondent respectively though they are eligible by applying the enhanced ceiling of Rs.20 lakh as provided under the Payment of Gratuity Act, 1972 as amended in 2018 w.e.f. 29.03.2018 as well as Bye-law No.53 of the 4th Respondent corporation as illegal, arbitrary and unconstitutional and violative of fundamental rights guaranteed under Articles 14, 21 and 300-A of the Constitution of India and consequently direct the respondents to release the balance gratuity an amount of Rs.4,00,000/- to each the petitioner along with 12 percent interest from the date of superannuation to till the date of realiation and pass IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the 3 petition, the High Court may be pleased pleased to direct the respondents to release the balance gratuity an amount of Rs.4 lakh to each the petitioner under the Payment of Gratuity Act, 1972 as amended in 2018 w.e.f. 29.03.2018 forthwith along with 12% interest to the Petitioners pending disposal of the above writ petition and pass Counsel for the Petitioner(S): 1. B JAYA PRABHAKARA RAO Counsel for the Respondent(S): 1. GP FOR SERVICES I 2. GP FOR SERVICES II The Court made the following: 4 HON’BLE SRI JUSTICE NYAPATHY VIJAY W.P.No.34041 of 2025 ORDER: This writ petition is filed declaring the action of the Respondents in restricting the Petitioners’ gratuity to Rs.16 lakhs by the proceedings dated 22.01.2025 issued by Respondent No.4, though they are entitled for enhanced gratuity amount of Rs.20 lakhs as provided under the Payment of Gratuity Act, 1972 as amended in 2018 with effect from 29.03.2018 as well as Bye-law No.53 of Respondent No.4-Corporation as illegal and arbitrary. 2. The Petitioners had retired as employees of Respondent No.4 -Corporation on 30.09.2024 and 30.06.2024 respectively. As per the pleadings in the writ affidavit, the Petitioners claim that they are entitled for gratuity amount up to the enhanced ceiling limit of Rs.20 lakhs as amended by the Payment of Gratuity Act as amendment in 2018 which was published in Gazette of India on 29.03.2018 by notification number S.O.1419(E). However, the Petitioners’ gratuity amount was restricted to Rs.16 lakhs only. Hence, the present writ petition. 5 3. Sri M.Sudheer Kumar, learned Standing Counsel for the Respondent Corporation would submit that the Payment of Gratuity Act provides for the determination of entitlement of gratuity by the Controlling Officer as well as the Appellate Authority and it is appropriate for the Petitioners to urge these aspects before the statutory authority. 4. Learned counsel for the Petitioners on Instruction submits that the Petitioners are willing to approach the authorities under the Act and requested for time frame for adjudication of the issue. Under the provisions of Payment of Gratuity Act, 1972 the Controlling Authority is appointed to determine disputes regarding quantum of gratuity among other reliefs. An appeal against the order of Controlling Authority is also provided under Section 7 (vii)of the Act. 5. In that view, the writ petition is disposed of with the following directions: (i) The Petitioners shall approach the Controlling Authority under the provisions of the Payment of Gratitude Act, 1972 within a period of four weeks from today; and 6 (ii) On receipt of the application, the Controlling Authority shall issue a notice to Respondent No.4 and thereafter pass the final orders within a period of three months. (iii) No order as to costs. As a sequel, the miscellaneous petitions if any shall stand dismissed. __________________ NYAPATHY VIJAY, J Date: 08.12.2025 KLP