The Payment of Gratuity Act inThe Bank of Baroda.

(Labour Legislation, Industrial Welfare & Social Security Legislation- Prof. Sarita Kulkarni)

By Andrea MendesRoll No: 34

THE PAYMENT OF GRATUITY ACT, 1972 The Gratuity payable to employees as a gratitutious payment by employer in return for the sincere and meritorious service. After the enactment of law, it became a legitimate claim of workmen. Even the non-payment of which result in industrial dispute .

Grauity is a retirement benefit to employees for their kind and continuous service . It is to help the employees on their retirement which may be due to superannuation, physical disability . the contributory Provident Fund is found to be insufficient for the old age and gratuity considered as an additional retirement benefit to employees.

Retirement compensation is a solatium for premature termination of employment. the different courts hled that gratuity scheme and retrenchment compensation are entirely different . There is not central act to regulate the payment of gratuity to industrial workmen except the Working Journalists ( conditions of service ) and miscellaneous Provisions Act 1955.

The Government of Kerala enacted legislation in 1970 for the payment of gratuity to workers employed in factories , plantation , shops and Establishments. The West Bengal Government promulgated an ordinance on the 3rd June 1971, prescribing similar gratuity . Gratuity is also being paid by some employer to their workers under Awards and Agreements.

Since the enactment of Kerala and West Bengal Acts , some other Government have also voiced their intention of enacting similar measures in their respecting states. The proposal for central legislation on gratuity was discussed in labour Ministers conference and Indian Labour Conference held at New Delhi and agrees to enact a legislation . The Bill was drafted and was finally enacted in 1972. In Hindustan Antibiotics Ltd. ( 1976 1 LLJ 114 ) , the Supreme Court observed that provident fund itself may not be sufficient to meet the requirements of his old age or to provide for his dependents during his life tike or after his death .

An Act to provide for a Scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments employing 10 or more persons and for matters connected therewith or incidental thereto. Applicability The Act shall apply to-- (a) every factory, mine, oilfield, plantation, port and railway company; (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or morepersons are employed, or were employed, on any day of the preceding twelve months; (c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months.

The Act shall continue to be applicable to a shop or establishment in which the number of persons employed therein at any time after it has become so applicable falls below ten.

It also applicable to (1 ) of a factory belonging to, or under the control of, the Central Government,(2 ) of a major port, mine, oilfield or railway company, the Central Government,

(3 ) in any other case, the State Government;

The Act shall not be applicable to an educational institution. The word ‘ establishment canotes an organised body of men and women employed where the relationship of employer and employee comes into existence . The co-operative societies also establishments and shall be covered under the Act. Circus industry employing 10 or more workers and cinema theatre employing 5 or more workers are or were employed in any day of the preceding 12 months.By 2007 amendment the educational institution also covered under this act.

"Employee" means any person (other than an apprentice) employed on wages in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi- skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.

"Employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop-- (i) belonging to, or under the control of, the Central Government or a State Government, a person or authority appointed by the appropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, the head of the Ministry or the Department concerned, (ii) belonging to, or under the control of, any local authority, the person appointed by suchauthority for the supervision and control of employees or where no person has been soappointed, the chief executive officer of the local authority, (iii) in any other case, the person, who, or the authority which, has the ultimate control overthe affairs of the establishment, factory, mine, oilfield, plantation, port, railway company orshop, and where the said affairs are entrusted to any other person, whether called a manager, managing director or by any other name, such person;

family", in relation to an employee, shall be deemed to consist of-        (i) in the case of a male employee, himself, his wife, his children, whether married or unmarried, his dependent parents 7[and the dependent parents of his wife and the widow] and children of his predeceased son, if any,        (ii) in the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents and the dependent parents of her husband and the widow and children of her predeceased son, if any:    8[***]    Explanation: Where the personal law of an employee permits the adoption by him of a child, any child lawfully adopted by him shall be deemed to be included in his family, and where a child of an employee has been adopted by another person and such adoption is, under the personal law of the person making such adoption, lawful, such child shall be deemed to be excluded from the family of the employee;

"Wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to

him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance. Continuous service.- For the purposes of this Act,--

1, an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave ( no punishment has been passed ) lay-off, strike or a lock-out or cessation of work not due to any fault of the employee.

(2) where an employee is in continuous service for any period of one year or sixmonths, he shall be deemed to be in continuous service under the employer-- (a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-- (i) 190 days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) 240 days, in any other case; (b) for the said period of six months, if the employee during the period of six calendarmonths preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than-- (i) 95 days in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) 120 days, in any other case; (3) where an employee, employed in a seasonal establishment, for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than 75 per cent. of the number of days on which the establishment was in operation during such period.] Controlling authority.- The appropriate Government may appoint any officer to be a controlling authority, who shall be responsible for the administration of this Act

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,--

(a) on his superannuation, or(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease: The completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement: In case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority

Calculation of Gratuity

The employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of Wages last drawn by the employee concerned for every completed year of service or part thereof in excess of six months In the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, In the case of "an employee who is employed in a seasonal establishment and who is not so employed throughout the year", the employer shall pay the gratuity at the rate of seven days' wages for each season. In the case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

Formula for calculation of Gratuity

Monthly Salary

Gratuity = ---------- X 15 DaysX Totalno. of Years of Completed Service 26 Monthly Salary means Basic Salary

Gratuity as per the Gratuity Act is 15 days or ½ months' Basic for each year of employment, and for calculation purpose; a month is considered to be of 26 days only excluding 4 Sundays.

For example if someone's Basic is 3000 p.m. then his Gratuity contribution for that year will be 3000 / 26 x 15 = Rs.1730.77 i.e. Rs.1731/- Per Year.

The amount of gratuity payable to an employee shall not exceed 3.5 lakh rupees The ceiling of 20 months wages for payment of gratuity is being replaced by a money ceiling by making an amendment in the Act in the year 1987. Whatever paid about 3.5 Lacs is taxable. 

For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced. Nothing in this section shall affect the right of an employee receive better terms of gratuity under any award or agreement or contract with the employer.

 In case an employee leaves before completing 5 years in the company then the employee does not receives any Gratuity money. In most of the IT companies Gratuity is the part of the CTC. Like they will pay 4.81% of basic as a compensation for gratuity.

Forfeiture of Gratuity

The gratuity payable to an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused; and The gratuity payable to an employee may be wholly or partially forfeited -- (i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act violence on his part, or ii, an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.moral turpitude means any thing done contrary to justice , honesty , principle or good morals ,an act of baseness , vileness or depravity in the private social duties which a man owes to his fellowmen or to society in general , contrary to accepted and customary rule of right and duty between man and man.

an employer has to take an independent decision after the termination of service of an employee as to whether the gratuity payable should at all be forfeited in cases which fall under sub-section i or ii and if so , to what extend . The decision has to be taken after giving notice and after due consideration of reply furnished . Compulsory insurance.- The Indian Labour Conference held in Nov, 1985 had recommended that a provision for compulsory Insurance of employer’s liability and setting up of gratuity fund for the payment of gratuity be incorporated in the 1987 amendment Act.

Every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India

The Government may, exempt every employer who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement, and every employer employing five hundred or more persons who establishes an approved gratuity fund Every employer shall get his establishment registered with the controlling authority and no employer shall be registered . under the provisions of this Act unless he has established an approved gratuity fund

Where an employee fails to make any payment by way of premium to the insurance or gratuity fund shall be liable for punishment with fine which may extend to 10,000 rupees .

Nomination.- Each employee, who has completed one year of service, shall make nomination for the purpose of the Act. An employee may, in his nomination, distribute the amount of gratuity payable to him under this Act amongst more than one nominee. If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made by such employee in favour of a person who is not a member of his family shall be void.

If at the time of making a nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall make, within such time as may be prescribed, a fresh nomination in favour of one or more members of his family. A nomination may be modified by an employee at any time, after giving to his employer a written notice . If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination .Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody. Determination of the amount of gratuity.- A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer for payment of such gratuity. As soon as gratuity becomes payable, the employer shall determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined. The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable. If the amount of gratuity payable is not paid by the employer within the period , the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits .

No such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.

If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity. Where there is a dispute with regard to any matter or mattes specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute. The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, the controlling authority shall direct the employer to pay such amount or, as the case may be, such amount as reduced by the amount already deposited by the employer. The controlling authority shall pay the amount deposited, including the excess amount, if any, deposited by the employer, to the person entitled thereto. For the purpose of conducting an inquiry under sub-section , the controlling authority shall have the same powers as are vested in a court, in respect of the following matters, namely:-- (a) enforcing the attendance of any person or examining him on oath;

(b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses. Any person aggrieved by an order under this Act may, within sixty days from the date of the receipt of the order, prefer an appeal to the appropriate Government Powers of Inspectors.-

Joint Chief Inspector of Factories Deputy Chief Inspector of FactoriesInspector of Factories are authorities for all factories Asst. Inspector of Factories are authorities for all factories . Inspector Labour , Deputy Inspector of Labour are authorities for all establishment other than factory and plantation The appropriate Government may appoint as many Inspectors for the purposes of this Act An Inspector may exercise all or any of the following powers, namely:--(a) require an employer to furnish such information as he may consider necessary;(b) enter and inspect, at all reasonable hours, any premises of or place in any factory, mine, oilfield, plantation, port, railway company, shop or other establishment to which this Act, applies, for the purpose of examining any register, record or notice or other document required to be kept or exhibited under this Act or the rules made there under, or otherwise kept or exhibited in relation to the employment o f any person or the payment of gratuity to the employees, and require the production thereof for inspection; (c) examine any employee employed therein; (d) make copies of, or take extracts from, any register, record, notice or other document, and search and seize , such register, record, notice or other document as he may consider relevant in respect of that offence; Recovery of gratuity.- If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto: The controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate.The amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act

Penal Provisions

Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000/-.

Whoever knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine

which may extend to ten thousand rupees or with both.An employer who contravenes, or makes default in complying with, shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both . Where the offence relates to non-payment of any gratuity payable under this Act, the employer shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years unless the court trying the offence, for reasons to be recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice. Exemption of employer from liability in certain cases.-

Where an employer is charged with an offence punishable under this Act, he shall be entitled, upon complaint duly made by him and on giving to the complainant not less than three clear days' notice in writing of his intention to do so, to have any other person whom he charges as the actual offender brought before the court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the employer proves to the satisfaction of the court-- (a) that he has used due diligence to enforce the execution of this Act, and (b) that the said other person committed the offence in question without his knowledge, consent or connivance, that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the employer and the employer shall be discharged from any liability under this Act in respect of such offence: Cognizance of offences.-Where the amount of gratuity has not been paid, or recovered , within six months from the expiry of the prescribed time , the government shall authorise the controlling authority shall , within 15 days from the date of such authorization , make such complaint to a Judicial magistrate or Metropolitan magistrate .Protection of gratuity.-

No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

BANK OF BARODA GRATUITY FUNDRULES AND REGULATIONS

1. Name & Object: The Fund shall be known as “Bank of Baroda Gratuity Fund”

(hereinafter referred to as “The Gratuity Fund”). Subject to the provisions of these Rules, the Gratuity Fund shall apply to all executives, officers and other employees of the Bank whether they are employed in India or whether having been employed in India are posted for service in any overseas branch or office of the Bank. The Gratuity Fund is established under an irrevocable Trust created by the Bank under the Deed of Trust dated 1-1-75 as modified and amended by the Deed of Variation/modifications of the Gratuity Trust dated 5-5-89 for the sole purpose of providing funds to secure payment of gratuity to the aforesaid employees of the Bank as per these Rues. The Gratuity Fund shall be located in India and all payments made under the Rules shall also be made only in India and in Indian currency only.

2. Definitions: In these Rules the headings and/or marginal heads, notes shall not

affect the construction hereof and unless repugnant to the subject or context masculine shall include feminine and following words and expression shall have meanings assigned to them as follows:“Employer”/”The Bank means, “Bank of Baroda”.“Salary” includes dearness allowance, if the terms of employment so provide but excludes all other allowances, special allowances and perquisites.“Employee” means any person including the Executive officer or other employee of the Bank on full time work on permanent or on part-time work on permanent basis on scale wages but does not include a person employed either on contract basis or daily wage basis or on consolidated wages and excluding those employed directly outside India.

3. Date of Establishment of the Fund: These Rues shall be deemed to have been

established as and form 1st January 1975 pursuant to the resolution of the Board passed on 11th November 1975.

4. Membership: Every officer or employee entitled to gratuity under these Rules shall become a member of the Gratuity Fund. A Director of the Bank may also be admitted to the benefits of the Gratuity Fund only if he is a whole-time director of the Bank and is otherwise qualified under these Rules to become a member of the Gratuity Fund. Any member of the Gratuity Fund ceasing for any reason whatever to be in the service of the Bank shall thereupon cease to be a member of the Gratuity Fund.

5. Management:a. The Gratuity Fund and the investments and money forming part thereof are and 2 of 29 shall stand vested in the Trustees (who shall not be less than two or more than four in number) on trust and for the purpose of these Rules as for the time being and from time to time in force, being trustees not removable save with the unanimous consent of all the Trustees of the Trust or with the consent of all the beneficiaries. The management and administration of the Gratuity Fund shall save in so far as any powers are hereby conferred unto the Bank be exclusively conducted by the Trustees whose decision from time to time upon any question relating to the Gratuity Fund or interpretation of these Rules

6. Contributions to the Gratuity Fund: The Gratuity Fund shall consist of contributions by the Bank and interest and dividends, which the investment of money forming the Gratuity Fund from time to time may produce and of any capital gains arising from the capital assets of the Gratuity Fund and no other sums.

7. Contributions by the Bank: The Bank shall contribute and pay to the Gratuity Fund by the end of each of its

financial year the amount representing that year’s contribution towards the gratuity Fund calculated at the maximum rate of 8-1/3% of the salary of each executive (for Director)/ Officer/employee during that year or the actuarial valuation of such contribution whichever is less not withstanding the qualifications imposed under Rule No. 12 as to the entitlement to gratuity. It is provided however that the contribution payable by the Bank on the basis of actuarial valuation should not exceed 8-1/3% of the salary of each executive/officer/employee for each year.

While making contributions under this Rule, the Bank may make adjustments by way of deduction in respect of contribution made in earlier years for such employees who have ceased to be in the service of the Bank but who were not entitled to any gratuity under Rule 12 or any other rule at the time of their ceasing to be in the service of the bank. The Bank may also stop making contributions in respect of those who have reached maximum limits.

8. Declaration by the employee: Every employee who shall be eligible to participate in the Gratuity Fund and eligible to receive Gratuity under these Rules shall be bound in all matters relating thereto by the Rules as in force from time to time and for the time being and shall sign on being so eligible a declaration in Form No.1 annexed at Annexure: 1 to these Rules.Provided however, that the Rules of Gratuity Fund for the time being in force shall bind every officers/employee whether he/she has assented to or signed the same or not.

9..Employees claim: No executive/ officer/employee nor any person or persons claiming through or under him shall be entitled to claim payment of any money out of Gratuity Fund except as is by these Rules expressly provided nor shall any executive/ officer/employee have any lien or charge on the fund.

10.Eligibility and Payment of Gratuity: 1) Each executive/officer/employee whose service with bank ceases for any one the reasons set out below shall be entitled to gratuity at the rate mentioned against each case:

A) In the case of executive/ officers On the death of an executive/officer while in the service of the Bank or on his becoming physically or mentally disabled to continue further in the service of the Bank

Irrespective of the length of service, gratuity shall be payable at the rate of one month salary for each completed year of service subject to the maximum of 15 months salary.

On superannuation or on termination of his service by the Bank in any other way except by way of punishment.

After completion of 5 years service gratuity shall be payable at the rate of one month’s salary for each completed year of service, subject to the maximum of 15 months salary.

On voluntary retirement after 20 years of service/or resignations of an officer after 5 year of continuous service in the Bank.

Gratuity shall be payable at the rate of one month’s salary for each completed year of service subject to the maximum 15 months salary.

The gratuity of an employee whose services have been terminated for any act wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused:• The gratuity payable to an employee shall be wholly forfeited:• If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or• If the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude provided that such offence is committed by him in the course of his employment.7 of 29

11. For those who are entitled to gratuity under the Payment of Gratuity Act.(1) As Per the provisions of that Act. (Expression Salary/ Wages shall have the meaning assigned under the Act.)(2) If in accordance of that the service rules of the Bank, a person is entitled to gratuity either 1 (A) or 1 (B) and also 1 (C) gratuity will be payable to him as per the rule which is more beneficial to him.(3) The Trustees shall at the of payment under this rule deduct income-tax on such amount of gratuity as is not exempt under the Income-tax Act as also the amount of estate duty payable, if any, on the gratuity Payable to any executive/officer/employee and have the said amount of tax credited to Government revenue.(4) In the event of dismissal of a workman/employee for misconduct, there shall be deducted from the gratuity amount payable under Rule 12 an amount but only to the extent of financial loss caused to the Bank by such misconduct.(5) In every case an executive/ officer/employee ceasing to be employed by the Bank and being entitled to a gratuity under these Rules, the Bank shall furnish within reasonable time considering the provisions of Rule 23 to the Trustees the particulars of the period of service of the employee, the details of the salary and allowances last drawn by him and the reason or condition under which he ceased to be employed and any other particulars which may be necessary for the purpose of calculating the amount of gratuity payable to him and the particulars so furnished shall be conclusive and shall not be called in question.(6) In the case of an executive/officer/employee ceasing for any reason mentioned in sub-rule (1) of this rule to be in the service of the Bank while working on overseas branch/office of the Bank, the gratuity if payable under these or other

service Rules shall be payable in India and Indian currency at a corresponding rate in salary scale applicable to such executive/officer/employees in India.

12. Nomination: The Trustees shall allow every employee to make a nomination conferring

on one or more persons authority to receive the amount of gratuity in the event of this death before that amount becomes payable or having become payable has not been paid. Such a nomination shall be in the Form No.2 annexed at Annexure No. 2 hereto.

If an employee nominates more than one person under sub-clause (1) he shall in his nomination specify the amount or amounts payable to each of the nominees or proportion of a share of the whole amount in such manner as to cover the whole of the amount of gratuity that may be payable in the event of his death.

A nomination made by an employee may, at any time be modified or modified or cancelled by his after giving a written notice to the Trustees of his intention of doing so in the Form No.3 annexed at Annexure No.3

13. Payment in the absence of nomination: In the event of any employee failing to appoint a nominee (and if necessary a person to receive on behalf of the nominee) the amount due to him on his death will be paid to the legal heir of such deceased employee on producing to the satisfaction of the Trustees a succession certificate, probate or letters of administration or legal representation by competentcourt or authority issued by a court of competent jurisdiction provided that in any case the trustees may in their absolute discretion dispense with the production probate or letters of administration or legal representation by competent court or authority on production of such other evidence as it may require and on such terms as to indemnify or otherwise as it may think fit in the manner as prescribed in Form No.5 Annexed at Annexure 5 hereto. (If the payment is made to the nominee/s. the execution of indemnity bond will not be necessary).

14. Payments when to be made: Payments of gratuity amount due under these shall whenever reasonably possible be made within thirty days in one lump sum from the date of receipt of application in the prescribed Form No.4 annexed at Annexes No.4 hereto provided that in the case of persons entitled for payment of gratuity under the provisions of the payment of Gratuity Act 1972, such period shall be one month or such period as prescribed by that Act for this purpose from the date of receipt of application.All gratuity benefits payable under these rules shall be paid only in lump sum and inIndia only and in Indian currency only.If the amount of gratuity payable is not paid by the trustees within the period specified above, the trustees shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Govt. from time to time for repayment of long term deposits, as that Govt. may by notification specify.Provided however where the amount of gratuity payable has been kept in abeyance in the case of employee against whom departmental inquiry proceedings have been initiated during the period of his service in the Bank and such departmental inquiry proceedings have continued beyond the date of his superannuation from service in the Bank no such interest shall be payable if delayed in completion of such inquiry is in the opinion of the Trustee and a recommended by the disciplinary authority of the Bank is due to the fault of the employee or on consideration of seriousness of the charges levelled against him

the trustees are of the opinion that no such interest be paid and on completion of departmental inquiry proceedings, the employees has been fully exonerated of the allegations and charges levelled against him in such proceedings than the payment of amount of gratuity shall be made to him with interest as provided for under theserules.

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