Visakhapatnam Dock Labour Board V. Visakhapatnam Port Trust

WP/26280/2011

AI Insights

The case involves the Visakhapatnam Dock Labour Board (VDLB) union challenging the restriction of gratuity payments to a maximum of 33 years of service following the merger of VDLB with the Visakhapatnam Port Trust (VPT) on September 26, 2008. Prior to the merger, VDLB employees were entitled to gratuity for every completed year of service without a cap. Post-merger, VPT implemented its own regulations, limiting gratuity to 33 years. The union argued that the previous VDLB regulations should continue to apply to all employees, including those who retired between the merger date and December 3, 2011. The respondents contended that post-merger, all employees were subject to VPT's regulations, which included the 33-year cap on gratuity eligibility.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 814971 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 21-01-2025
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: VEDULA SRINIVAS
• Keywords: Gratuity; Merger; Pensionary benefits; Visakhapatnam Dock Labour Board; Visakhapatnam Port Trust

Judgement Text

"APHC010226832012 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] TUESDAY, THE TWENTY FIRST DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 9777/2012 Between: M/s.visakhapatnam Dock Labour Board And Dock ...PETITIONER AND Visakhapatnam Port Trust Rep By Its Chairman and Others ...RESPONDENT(S) Counsel for the Petitioner: 1. VEDULA SRINIVAS Counsel for the Respondent(S): 1. ' 2. The Court made the following Order: The petitioner union is challenging the denial of extending the gratuity as per the Visakhapatnam Dock Labour Board (VDLB) Gratuity Rules. The members of the petitioner union were earlier employees of the Visakhapatnam Dock Labour Board (VDLB). The Visakhapatnam Dock Labour Board was merged into the Visakhapatnam Port Trust (VPT) with effect from 26.09.2008. HN, J W.P.No.9777_2012 2 Thereafter, all the workers who were on the rules of VDLB were treated as employees of VPT. 2. The learned counsel for the petitioner submits that VDLB had been extending gratuity at the rate of fifteen days’ wage with piece- rate for every completed year of service rendered by the workers. However, the Visakhapatnam Port Trust has limited the service to 33 years. The VDLB gratuity regulations did not restrict the cessation of service and all employees who had completed their respective service were paid gratuity as per the prevailing gratuity regulations. However, on account of the merger of VDLB with VPT, the gratuity regulations were restricted to payment of gratuity by limiting service to 33 years. Any service beyond 33 years rendered by the petitioners would not be counted for the payment of gratuity. Aggrieved by the same, the petitioner union addressed a letter dated 30.12.2011 to the Chairman of the respondents, seeking an explanation of the gratuity regulations as followed by VDLB. 3. The learned counsel for the petitioner also submits that the petitioners till their service at VDLB, were paid gratuity as per the regulations and after merger of their service into VPT, the service restriction of 33 years has been implemented. It is also submitted that the respondent authority, in their board of trustees meeting held HN, J W.P.No.9777_2012 3 on 24.02.2012, considered the issue of the adoption of VPT pension and gratuity regulations for the cargo handling division. As such, claims that the members of the petitioner union are entitled to the same. 4. The learned Standing counsel appearing for the respondents submits that the members of the petitioner union were entitled to gratuity under the VDLB regulations till their service at VDLB. From 26.09.2008, their services merged with VPT and all service regulations of VPT were extended to the members of the petitioner union. It is also submitted that the claim of the petitioner for extension of the erstwhile gratuity regulations for all those employees who retired between 26.09.2008 and 03.12.2011 cannot be considered for the simple reason that the members of the petitioner union were under the command and control of VDLB after 26.09.2008. 5. The attention of this Court is also drawn to paragraphs 4 and 5 of the counter-affidavit and it is submitted that by virtue of the order of the Chairman of the respondent dated 30.09.2008, VDLB employees and workers were treated as VPT employees and gratuity and pensionary benefits were extended to all those employees as followed by VPT to its employees. HN, J W.P.No.9777_2012 4 6. The issue of the extension of gratuity as was extended by the earlier employer cannot be continued to be extended by the new employer, as the pension and gratuity regulations followed by the new employer would have to be extended to the employees once their services are merged. The VDLB gratuity rules and regulations would be merged with VPT’s gratuity and pensionary regulations soon after the services are merged. The VDLB pension gratuity fund trust was also dissolved and appropriate resolutions were passed by both the VDLB and fund trust in that regard. The trustees were also cancelled and the same was informed to the income tax authorities as well. 7. In these circumstances, the claim of the petitioner seeking extension of the gratuity and pension rules of the erstwhile employer, VDLB, cannot be considered by this Court and a direction in that regard cannot be issued. 8. With these observations, the writ petition is dismissed. There shall be no order as to costs. As a sequel, pending miscellaneous petitions, if any, shall stand closed. ___________________ JUSTICE HARINATH.N Date: 21.01.2025 NKA HN, J W.P.No.9777_2012 5 27 HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION No.9777 of 2012 Date: 21.01.2025 NKA "