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PETITIONER: STATE OF ANDHRA PRADESH & ORS. ETC. ETC.

       Vs.

RESPONDENT: BOLLAPRAGADA SURYANARAYANA & ORS. ETC. ETC.

DATE OF JUDGMENT:       15/07/1997

BENCH: SUJATA V. MANOHAR, G. B. PATTANAIK

ACT:

HEADNOTE:

JUDGMENT:                             with                Civil Appeal No. 4398 of 1988                          O R D E R      In C. A. Nos. 2762-2788 of 1988      The respondents  were holding  the  post  of  Part-time village officers  in the  State of  Andhra Pradesh. Under an Ordinance dated  6.1.1984, the  posts of  Part-time  Village Officers in  the State of Andhra Pradesh were abolished. The Ordinance was  replaced by  the Part-time  village  officers Abolition Act  being Act  No. 8  of 1985. Section 3 and 5 of the said Act provide as follows:      "3. The  posts of part-time Village      Officers in  the  State  of  Andhra      Pradesh are  hereby abolished  with      effect on  and  from  the  date  of      commencement of this Act, and every      person who  holds the post of part-      time Village officer in any part of      the State  of Andhra Pradesh shall,      with effect  on and from such date,      cease to hold such post."      "5. (1)  Every person who ceases to      hold  post   of  part-time  Village      officer by  reason  of  section  3,      shall be  paid an  amount  for  the      total service  put  in  by  him  as      part-time village  officer and such      amount  shall   be  determined   in      accordance with  the provisions  of      sub-section (2).      (2) The  amount referred to in sub-      section (1)  shall be calculated at      the rate of one-half of the monthly      emoluments for  every year of total      service  put   in  by   the  person      referred to in sub-section (1).      Explanation:- For  the purposes  of      this section,      (a) Where the total service, ---      (i) includes  a period  which is  a

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    portion of a year; or      (ii) is  a period less than a year;      the amount  payable for  the period      referred to  in sub-Clause  (i)  or      sub-clause (ii), as the case may be      shall be  an amount  bearing to the      amount payable  for one  proportion      as  the  said  period  bears  to  a      period  of   one  year   of   total      service."      Prior  to   the  abolition  of  the  posts  of  Village Officers, under  G. O.  Ms. No.  1772 dated  18.4.1980,  the Government  of  Andhra  Pradesh  had  framed  a  scheme  for gratuity which  was applicable  to the  Village officers and the Village  servants. The  Scheme inter  alia, provides  as follows:      (i) Gratuity  shall be  paid at the      rate of  one moths pay (Honorarium)      for every completed year of service      to the village Officers and Village      Servants subject to a maximum of 20      months pay.      (ii) The gratuity is payable in the      event of  death, there being no age      of  superannuation  in  respect  of      these categories  or at the time of      demitting  office  after  attaining      the age  of 58 years in the case of      Village officers  and 60  years  in      the case  of Village Servants after      giving a  notice to  the appointing      authority."      By another  G.  O.  Ms.  No.  3420  dt.  1.8.1980,  the Government of Andhra Pradesh had formulated a Family Benefit Scheme for  Village officers  which, inter alia, provides as follows.      "1. (i) Every Village officer shall      be required  to pay  a contribution      of  Rs.   5/-  per  month  till  he      attains the age of 58 years.      ii) Every  Village  Servants  shall      pay a  contribution of  Rs. 3/- per      month till he attains the age of 58      years.      2(i)  In   the  case  of  death  of      village officer  while  in  service      and before he attains the age of 58      years a  sum of  Rs.  7500  (Rupees      seven thousand  five hundred  only)      shall be paid to the nominee of the      deceased as  specified in  the said      scheme;      ii) In  the  case  of  death  of  a      village Servant  while  in  servant      while   in   service   and   before      attaining the age of 58 years a sum      of Rs.  5000/- shall be paid to the      nominee   of    the   deceased   as      specified  in the said scheme;      iii) In  the case  of  any  Village      Officer    or    Village    Servant      demitting office  on attaining  the      age of  58 years by giving a notice      to  the   competent  authority  the      actual   amount   of   contribution

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    representing interest shall be paid      to him  or him  nominee in the even      of death."      On the  abolition of  the posts  of  Part-time  Village Officers, the  respondents were paid compensation calculated in the  manner provided under Section 5 of the said Act. The respondent filed  a writ  petition before the Andhra Pradesh High Court  claiming gratuity  under G.O.Ms. dated 18.4.1980 and the  benefit of  the Family Benefit Scheme under G.O.Ms. No. 3420  dated 1.8.1980  in addition  to  the  compensation already received  by them  under  the  said  Act.  The  writ petition was  allowed by  the Andhra  Pradesh High Court. In appeal before  the Division  Bench of  the High  Court,  the order was  partly modified  and the benefit of these schemes was given  to all  those Part-time  Village Officers who had attained the  age of  58 years  on 6.1.1984, that is to say, the date of the commencement of the Ordinance. The State has filed the present appeal.      It is  contended by  the State  that the respondent are not entitled  to gratuity  or  the  benefit  of  the  Family Benefit  Scheme  because  the  posts  of  Part-time  Village Officers  have  been  abolished  under  the  said  Act.  The Gratuity Scheme under G.O.Ms. dated 18.4.1980 provides inter alia, for  payment of gratuity to the Village Officer at the time of demitting office after attaining the age of 58 years after giving  notice to the appointing authority. Therefore, the gratuity  Scheme expressly  provides for  the manner  of demitting office  on attaining  the age  of 58  years or  60 year, as  the case  may be.  It is  only when  the office is demitted in  the manner  set out in the Scheme that gratuity under the  said  G.O.Ms.  becomes  payable.  The  office  is required to be demitted by the concerned holder after giving a  notice   to  the   appointing  authority.   This  clearly contemplates  a   voluntary  relinquishment   of  office  on attaining the  specified age. There is no retirement age for this  office.  This  provision  would  not  apply  when,  by legislation, the  posts are  abolished. In  such a situation there is  no question of voluntary demitting of office after notice. The  provisions  of  the  said  G.O.Ms.,  therefore, cannot  be   attracted  when  the  posts  are  abolished  by legislation. This  is precisely the reason why under section 5 of  the said  Act, a  provision for  compensation has been made, which the respondents have received.      Under the  family Benefit Scheme framed by the G.O. Ms. No. 3420  dated 1.8.1980, certain amounts are required to be paid in  case  of  a  Village  Officer  or  Village  Servant demitting officer on attaining the age of 58 years by giving notice. For the same reasons, as in the case of the gratuity scheme this  provision is  not attracted  when the office is not demitted  voluntarily by  giving notice  but the post is abolished.      The Family  Benefit  Scheme,  however,  requires  every village Officer  to pay  a contribution of Rs. 5/- per month and every  Village Servant  to pay a contribution of Rs. 3/- per month  till he  attains the  age of  58 years. It was on payment of  these contributions  that the Village Officer or the Village  Servant has  been  given  certain  benefits  as specified in  the said Scheme. By reason of the abolition of the posts, this Scheme has come to an end. The contributions which  have   been  paid  by  the  Village  Officers/Village Servants  under   the  Scheme   should,  therefore,  in  all fairness, have  been refunded to them since they will not be entitled to claim any benefit under the scheme by the reason of the Scheme having come to an end by abolition of the post of Part-time Village Officers.

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    We, therefore,  direct that  the contributions actually made by  the concerned  respondents under the Family Benefit Scheme should  be refunded to the concerned respondents with interest at 6% p.a.      The judgment  of the  High  Court  is  set  aside.  The appeals are allowed with the above direction. There shall be no order as to costs.      In C.A.No.  4398 of  1988 For  the reasons  set out  in C.A.Nos. 2762-2788  of  1988,  C.A.  No.  4398  of  1988  is dismissed. There shall be no order as to costs.