• Ex gratia payment

I was employed with Citi bank in chennai for the period 1967 to 1975. I took early retirement offered by the bank in 1975 and got the settlement.  Mny people tokk advantage of this scheme and retired in 1975 and 1976. After this bank started paying exgratia payment for all the retired people from 2006 onwards monthly. These amounts paid to the staff all over India.  Since I was not in India I have not claimed.  Recently after returning to India I claimed for this pay and forwhich they are refusing to pay saying that this the gratious payment .  Due to this they have stopped this payment for all. Can I go for legal action or what should I do. Now I am staying in Thane.

Asked 2 years ago in Civil Law from Thane, Mumbai, Maharashtra
If this was a gratuitous payment then has the bank recovered the payment from those ex employees who were paid from the date of commencement of payment till such date that it was stopped? If the answer is in negative then a contract existed from the date date of commencement till the date on which the scheme was discontinued. As a corollary thereto, you can claim the arrears of this scheme. It is not worth taking any action unless the answer to the above question is in negative. 
Ashish Davessar
Advocate, Jaipur
23092 Answers
639 Consultations

5.0 on 5.0

first of all try to find out that on what basis they pay the amount to others and after that issue a legal demand notice regarding your claim through your counsel, if they are not ready to settle the matter amicably within notice period then file a civil suit for recovery against them before civil court.

Feel Free to Call 
Nadeem Qureshi
Advocate, New Delhi
4875 Answers
224 Consultations

4.9 on 5.0

1) When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. In law, an ex gratia payment is a payment made without the giver recognising any liability or legal obligation.

2) there is no compulsion on employer to pay ex-gratia. it depends upon the employers profitability and the will. so employee can not take any objection if they dont get paid ex-gratia 

3) it makes no sense in going to court. Litigation is long drawn process and you would end up spending lot of money on legal fees
Ajay Sethi
Advocate, Mumbai
46626 Answers
2757 Consultations

5.0 on 5.0

This was an ex-gratia payment which could have been availed during the time of its disbursal by the bank.   You failed to initiate any action that time where as you want to claim it now when it is even barred by limitation.
However based on their written reply, you may approach court seeking payment at par with other employees who have been paid this. You may have 50-50 chances.
T Kalaiselvan
Advocate, Vellore
36746 Answers
403 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer