To be Executed on Non judicial stamp paper of Rs.100/-
THIS
DEED is made this _________ day of
______________ 2010 __ between __________________________
a Firm/a Company incorporated with limited liability
under the Companies Act, 2013 and having
its Registered Office at __________________________________.
(hereinafter called ‘the Company’ / ‘the firm’ i.e. The Employer) of the one part
AND
(1)
Shri
______________________
(2)
Shri
______________________
(3)
Shri
______________________
(4)
Shri
______________________
AND
(hereinafter called ‘the Trustees’ which expression shall, where the context so admits or requires, include the
Successors or Survivors of the Trustees) of the other part.
WHEREAS:
(a)
The Employer
is desirous of making provision for Gratuity Payment for its employees upon
their retirement from service at or after a specified age or on their becoming
incapacitated prior to such retirement or on termination of service after a
minimum period of service or to the Nominees in the event of their death, such
provision being made in terms of this Deed and the Rules annexed hereto
(hereinafter referred to as the Rules) which shall be deemed to form part of
these presents.
(b)
It is
proposed to set up a Group Gratuity Scheme for providing Gratuity Benefits and
certain sums shall be contributed by the Employer to the Scheme from time to
time in accordance with the Rules.
(c)
It is
intended that such provision shall, interalia, be made by the Trustees entering
into a Scheme of Insurance with the Life Insurance Corporation of India
(hereinafter called the Corporation) and that the premium payable therefore
shall be provided by contributions to be made by the Employer.
(d)
The Scheme
shall mean ____________________________
Employees Group Gratuity Assurance Scheme (hereinafter referred to ‘The Scheme’
or ‘The Fund’) the operation of which shall be governed by these presents and
the Rules.
(e)
The Trustees
have at the request of the Employer agreed to act as Trustees of the Scheme in
accordance with the terms of these presents and of the Rules and to effect
Assurance on the lives of the Members and to hold the same and other fund UPON
TRUST.
NOW IT IS HEREBY AGREED AND
DECLARED as follows:
SECTION
I: ADMINISTRATION OF FUND AND THE SCHEME
Rules.
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1.
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The Fund shall be governed by
the Rules and any reference to the Rules in these presents shall mean the
Rules for the time being in force which shall be binding on the Employer, the
Members and their beneficiaries.
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Definitions
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2.
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All Words and expressions to
which special meanings have been given in the Rules shall have the same
meanings wherever they appear in these presents.
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Date of Commencement
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3.
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The Scheme shall be deemed to
have been established and the Rules shall be deemed to have taken effect from
the 01.03. 2014.
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Trust Irrevocable
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4.
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These presents shall constitute
a Trust set up and the Trust shall be irrevocable in connection with a Trade
or Undertaking carried on in India and not less than 90% of the employees
shall be employed in India. No moneys belonging to the Fund in the hands of
the Trustees shall be recoverable by the Employer nor shall the Employer have
any lien or charge of any description on the Fund.
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Trust Funds
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5.
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The sums in cash and other
assets retained by the Trustees in the Surplus or any other Account as
provided for in the Rules and the Master Policy issued by the Corporation
shall constitute the funds of the Funds and the Trustees shall hold and
employ the said funds according to these presents and the Rules. The Trust
Fund shall be vested in the Trustees. The Trustees shall have the entire
custody, management and control of the Fund and shall decide all difference
or disputes which may arise under these presents or under the Rules either as
to the interpretation thereof or as to the rights and obligations of the
Employer or of the Members or of their beneficiaries and the decision of the
Trustees in all cases shall be final and binding on all parties concerned.
PROVIDED THAT if the decision has any bearing on the provisions of the Income
Tax Act,1961 or the Income Tax Rules, 1962 it shall be forthwith reported to
the Commissioner of Income Tax and if so required by him the Trustees shall
review the decision.
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Master Policy
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6
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With the prior approval of the
Employer, the Trustees shall have the authority to enter into a master Policy
with the Corporation as may be necessary to provide death-cum-retirement
Gratuity to the Employees of the Employer as described in the Rules of the
Scheme.
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Employer to make contributions
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7.
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The Employer agrees to make the
contributions to the Trustees as provided in the Rules who shall utilize the
same for affecting the aforesaid Master Policy
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Employer to furnish all
information and to pay all the expenses of
administration of the Fund and scheme
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8.
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The Employer further agrees to
furnish to the Trustees all particulars regarding the Members and such other
information as may be in it’s possession as the Trustees may require for the
purpose of effecting the Master Policy. All expenses incurred by the Trustees
in connection with the administration of the Fund and Scheme including the
remuneration of a Secretary or of a person to be employed by the Trustees and
the audit shall be borne by the Employer. The Employer shall not claim such
expenses as deductible expenses in computing its profits and gains of
business, for the purpose of Income Tax.
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Power to amend the fund
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9.
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The Trustees may at any time by
a resolution in writing signed by not less than two of them and with the
consent of Employer in writing as also of the Corporation, where the
variations have a bearing on the terms and conditions of the Master Policy
affected with the Corporation but not otherwise, alter, vary or amend any of
the provision of this Deed and the Rules.
PROVIDED THAT no such
alteration or variation shall be inconsistent with the main objects of the
Trust hereby created nor shall such alteration or variation in any way
prejudice the rights or interests of any Member or his Beneficiary.
PROVIDED FURTHER THAT no such
alteration or variation in the Rules, Constitution, or variation in the
Rules, Constitution, Objects or Conditions shall be made without the prior
consent of the Commissioner of Income Tax.
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Employer’s right to amend the Rules of the Scheme
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10.
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(a)
1) The Employer may at any time give notice in writing to the
Trustees of its intention to amend the Rules of the Scheme and it shall be
lawful for the Trustees with the previous approval of the Commissioner of
Income Tax, to give effect to such amendments.
PROVIDED THAT no notice is
required to be given to the Trustees if the Commissioner of Income Tax
requires as a condition for approval of the Scheme any amendment to be made
taking effect from the date of commencement of the Scheme.
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ii) The amendment shall ordinarily have
effect the anniversary of the date of commencement of the Scheme which next
follows the date on which the notice has been served on the Trustees. The
notice to the Trustees shall be in such form and manner as may be deemed
sufficient by the Employer.
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Trustees to carry out directions of the Employer
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(b)
The
Trustees shall comply with and carry out all such directions put in writing
by the Employer from time to time in relation to any matter with respect to
which the Employer has power under this Deed or under the Rules to determine
or decide and a certificate from the Employer as to the admission of member or as to the death of any Member or
his retirement or dismissal from the service of the Employer or as to any
other relevant matters shall constitute a good and sufficient authority to
the Trustees and shall be conclusive as to all facts stated therein. Every
such direction or certification shall be notified to the Trustees in writing
signed by any other person authorized in this behalf by the Employer and any
such notification purporting to contain the direction or certification as
aforesaid shall be a complete protection to the Trustees in respect of any
matter therein referred to.
(c)
Upon
any amendments, alterations or variations being made in the terms and
conditions or the basis of computation of Gratuity for the employees of the
Employer either by the Employer of its own free will or as a result of any
agreement with the employees or otherwise, the said amendments, alterations
or variations shall take effect for the purpose of the Scheme immediately and
the Trustees shall take appropriate steps to incorporate the said amendments,
alterations or variations in the Trust Deed or Rules of the Scheme, as the
case may be after securing the prior approval of the Corporation and the
Commissioner of Income Tax. The amount of gratuity and the terms and
conditions of its payment shall be as set forth in the Rules.
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Payment of Gratuity.
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11.
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(a)
On
behalf of the Employer the Trustees shall provide for the payment of gratuity
on termination of service, on death or retirement of the Member or otherwise
as provided in the Rules of the Scheme.
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Payment of benefits
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(b)
It
is expressly provided that all benefits granted by the Fund shall be payable
only in India.
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Trustees Liability
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12.
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The Trustees shall however not
at any time be made liable for the failure of any Bank, Company, Firm or
Corporation or for the dishonesty of any clerk or servant or attorney or
other person with whom any part of the Trust property may be deposited or be
placed in charge or be liable for any acts or defaults other than their own
immediate and willful, acts, deeds and defaults. The Trustees shall be
entitled to be indemnified by the Employer against all proceedings, costs and
expenses occasioned by any claims in connection with the Trust not arising
from their willful negligence or dishonesty. The Trustees shall be
responsible for the recovery/collection from the employer as provided in the
Rules. The Trustees shall not be bound at the request of a member to take any
proceedings against the Employer for money which such member feels should
have been paid by the Employer to the Trustees on such member’s account.
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Accounts
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13.
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(a)
The
Accounts of the Scheme shall be maintained in India and shall contain such
particulars and in such form as the Trustees shall think proper and as
required by law of all financial transactions of the Scheme.
(b)
As
soon as may be after the first day of April in each year, the Trustees shall
take a general account of the Assets of the Trust and shall prepare a
Receipts and Payments Account showing the receipts, payments, dealings and
transactions during the preceding year termination on the 31st day
of March in such form as in considered suitable by the Trustees.
(c)
The
Trustees shall appoint auditors who shall have access to all books, papers,
vouchers, accounts and documents connected with the Trust and who shall in
writing report to the Trustees on the receipts and payments Account. A copy
of the Audited Accounts shall be furnished to the Employer and Income Tax
Authorities concerned.
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Payments on Member’s infirmity
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14.
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If any member or his
beneficiary under the Rules shall in the opinion of the Trustees, be unable
by reason of mental incapacity or other cause to manage his affairs, the
Trustees shall arrange that any payment payable to such Member or beneficiary
be paid to any other person in whose charge or custody such member or
beneficiary shall be as long as the infirmity lasts and such payment shall be
good, sufficient and complete discharge to the Trustees.
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SECTION
II: PROVISIONS REGARDING TRUSTEES
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Number of
Trustees
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15.
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The number of trustees shall not be less than two an a Company
as defined in sub-clause (I) of sub-section (1) of Section 3 of the Companies
Act 1956 shall not be appointed as Trustees without the prior approval of the
Commissioner of Income Tax.
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Appointment of Trustees to be made by the Employer
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16.
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The power of appointing the Trustees shall
be vested in the Employer who shall in making such appointments observe the
limitations laid down in these presents and the Employer shall also have
power to fill up at any time any vacancy in the number of Trustees and to
remove a Trustee by giving 7 days notice in writing to the Trustee at his
last known address and to the continuing Trustees. The Employer shall be under
no obligation to fill the vacancy occasioned in respect of any Trustee so
removed or any other vacancy in the number of Trustees until it shall think
fit and so long as the number of Trustees shall not be less than two and
pending the filling in of any vacancy, the continuing Trustees shall have
power to Act. A member of the scheme can be appointed as a Trustee of the
Fund. The Employer shall appoint as Trustees only persons who are in its
employment in India.
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Retirement of
Trustees
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17.
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(a)
A
Trustee may retire at any time on giving seven days notice in writing to the
Employer and to the Chairman of the Trustees of his desire to do so.
(b)
The
Trustees shall be resident in India. The office of any Trustee shall be
vacated if the Trustee being a Director or Partner ceases to be a Director or
a Partner. The Trustee being up employee ceases to be in the service of the
Employer or if he shall permanently leave India or for reasons of illness or
infirmity or mental incapacity shall in the opinion of the other Trustees
become incompetent or incapable to act.
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Obligation on outgoing Trustee to assign policy
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(c)
In
the event of any Trustee ceasing to be a Trustee he shall, if necessary,
assign or join in assigning the Master Policy to the continuing Trustees.
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Meeting of
Trustees and Quorum
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18.
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The Trustees may meet together for dispatch
of business and adjourn and otherwise regulate their meetings and proceedings
as they may think fit. The meeting shall be deemed to have quorum of two
Trustees present at the meeting.
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Voting at meeting
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19.
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The Employer shall nominate one of the
Trustees to be the Chairman of the Trustees, who shall preside at the meeting
of the Trustees. The Employer shall also appoint a Trustee to be an alternate
Chairman who shall act in the absence of the Chairman and exercise all the
powers of the Chairman. Each Trustee present at the meeting shall be entitled
to one vote on any matter arising thereat and in case of equality of votes
the Chairman shall have a second or casting vote.
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Decision
by Majority
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20.
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All matters considered at the Meeting shall
be decided by a majority of votes. The Trustees shall be at liberty o pass a
resolution which shall be liberty to pass a resolution which shall be
evidenced in writing and passed by majority after being circulated.
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Trustees power to appoint a Secretary
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21.
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The Trustees shall have power to appoint any one of the
Trustees to act as Secretary of the Fund and the said Secretary may be
invested with such powers of management of the Trust as the Trustees may from
time to time in their absolute discretion determine. With the consent of the
Employer the Trustees shall have power to employ any person or persons to do
any legal, accountancy or other work which
they may consider necessary or expedient in connection with the
management of the Trust or of the assets thereof.. It is however provided
that no person of the Employer holding directorship shall be paid any
remuneration for such service.
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Signing of
receipts, cheques
and correspondence
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22.
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All correspondence in relation to the
operation of these Trusts may be conducted by the Chairman or in his absence
by the alternate Chairman & in the absence of both by a Trustee
authorised in that behalf by the Trustees. Receipts for moneys received may
be signed by the Chairman and in his absence by the alternate Chairman and in
the absence of both by the Trustee authorised by the Trustees in that behalf.
Cheques on the bank account may be drawn and signed by any two of the
Trustees on behalf of all the Trustees. The Trustees shall decide which of
the Trustees shall operate the Bank Account on their behalf.
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Trustees to
sign on behalf of Members
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23.
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The Chairman and in his absence the
alternate of both, any Trustee authorised in this behalf by a resolution of
the Trustee shall sign on behalf of the Members or beneficiaries of the
Scheme., as the case may be, all proposals, discharges and receipts as may be
required under any policy or policies of assurance effected under the Rules hereof
as may be administration of the Trust. The Trustees may in their absolute
discretion give authority, which authority shall be in writing only signed by
all the Trustees, to give a discharge, receipt or acknowledgement for moneys
due under the policy to the member or in this event of his death to his
beneficiary.
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Absence of a
Trustee and Power of remaining Trustees
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24.
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If any Trustee or Trustees shall be
temporarily absent from India the Trustees who, shall remain in India shall
during such absence have full powers to act under the Trusts hereof as if
they were the only Trustees of these presents.
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Investment of
Fund Moneys
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25.
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All moneys contributed to the Fund or
received or accruing by way of interest or otherwise to the Fund may be
deposited in a Post Office Savings Bank Account in India or in a Current
Account or in a Savings Account with any scheduled Bank or utilised for the
purpose of making contributions under a Group Gratuity Scheme into with the
Corporation and to the extent such moneys as are not so deposited or utilised
shall be invested in the manner prescribed from time to time in the Rules
67(2) and 101 of Income Tax Rules, 1962.
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Trustees to
register securities in the name of a Trust
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26.
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It shall be obligatory on the Trustees to
register the Trust as the holders of any securities constituting investments
belonging to the Trust.
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SECTION III – WINDING UP OF THE TRUST FUND
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27.
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27.
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i)
The
Trust Fund shall be wound up only with the prior approval of the Commissioner
of Income Tax concerned.
Upon the winding up or
dissolution of the Employer’s
Establishment as a whole (unless such winding up or dissolution is for
the purpose of amalgamation, reconstitution or reconstruction), application
for approval of winding up of the Fund shall be made within reasonable time
but not exceeding six months of the winding up of the Company /
Establishment.
ii) For the purpose of the winding
up shall of the Fund, the Trustees shall first realise the value of the Assets of the Fund
including the value of the Master Policy held by them and the amounts so
realised shall be allocated in the manner described below to the Members who
are, in the service of the Employer on the date of winding up of Fund after
meeting the liabilities in respect of the outstanding Claims, if any,
pertaining to the Members who ceased to be in the service of the Employer
prior to the date of such winding up.
iii) The Trustees shall then
ascertain the amount of Gratuity accruing and due to all the Members of the
Fund according to the provisions of the Rules by reference to the Salary of
the Members as on the date of winding up and the length of service completed
by them.
If the total amount realised
exceeds the total liability in respect of gratuity ascertained as above, the
Trustees shall earmark for each Member, the amount of gratuity accrued and
due to him under the Rules out of the moneys realised and utilise the excess
to provide additional benefits to the Members in proportion to their accrued
benefits. If the amount so realised is less than the said accrued gratuity,
as aforesaid, the total amount shall be allocated to each Member in
proportion to his accrued gratuity.
Provided always that the
Trustees shall obtain prior approval of & subject to such conditions as
may be imposed by the Commissioner of Income Tax in regard to the
arrangements to be made by them for winding up of the Fund.
iv) Notwithstanding anything
whatsoever stated in the foregoing paragraphs, the Trustees shall have
absolute and uncontrolled discretion to consult an Actuary and adopt any
other methods or principles for the winding up of the fund or make such
arrangements or enter into such agreements as they may deem fit and as shall
in the opinion of the Trustees serve as far as may be the wishes of the
Members and beneficiaries, PROVIDED THAT any such arrangements or agreement
shall be made only after obtaining the prior approval and subject to such
conditions as may be imposed by the Commissioner of Income Tax.
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Winding up or
Dissolution of the Employer’s Establishment for reconstruction
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28.
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In the event of the Employer’s
Establishment being wound up or dissolved as the case may be voluntarily of
for the purpose of reconstruction, reconstitution or amalgamation with any
other Company, Firm or Association the Trustees may make such arrangements or
enter into such agreements as they in their uncontrolled discretion shall
deem fit for the continuance of the Trust in connection with such dissolution
or reconstruction, reconstitution or amalgamation with the other Company,
Firm or association.
PROVIDED ALWAYS THAT NO
arrangements or agreements under this Clause shall be entered into without obtaining
the prior approval of & subject to such conditions as may be imposed by
the Commissioner of Income Tax. The Trustees shall make satisfactory
arrangements for the payment of gratuity to the existing beneficiaries.
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Jurisdiction
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29.
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This deed and any variation thereto shall
be governed by the Laws of India and the Trust. Fund hereof shall always be
located in India.
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IN WITNESS WHEREOF the parties
have hereinto set their hands and Seal/Stamp on the ______ day of _________ 199
__________ first above mentioned.
Common Seal/Stamp of
___________________________________________________ has been hereunto affixed
in the presence of _______________under the authority (of the Resolution of the
Board of Directors dated ________.
WITNESS:
Signed,sealed and delivered by
__________________ the above named Shri.
________________________
one of the Trustees in the
presence of Shri._______________________________________
Signed,sealed and delivered by
__________________
the above named Shri.
________________________
one of the Trustees in the
presence of Shri._______________________________________
Signed,sealed and delivered by
__________________ the above named Shri. ________________________
one of the Trustees in the
presence of Shri._______________________________________
Signed,sealed and delivered by
__________________
the above named Shri.
________________________
one of the Trustees in the
presence of Shri._______________________________________
--------------------------------------------------USE
NEW PAGE----------------------------------------
ANNEXURE
TO THE TRUST DEED DATED _____
THE
RULES (Clause 1)
SECTION
– 1
DEFINITIONS,
ELIGIBILITY & REQUIREMENTS
FOR
MEMBERSHIP
1.
DEFINITIONS :
In these Rules, where the context so admits the masculine shall include
the feminine, the singular shall include the plural and the following words and
expressions shall unless repugnant to the context, have the following
meanings:-
i)
The Firm/Company shall mean _____________________________________________
ii)
The Employer shall mean the Company/the firm as defined in (I)
above subject to the prior approval of the Commissioner of Income Tax shall
include any Firm, Agency or body corporate which may by purchase, amalgamation
or otherwise take over the whole or substantially the whole of the business of
the Firm/Company and which may enter into a Deed in such a form as the Trustees
shall require undertaking to continue the obligation of the Company/Firm under
these presents and releasing the Firm/Company from all further liabilities
thereof.
iii)
“Corporation” shall mean the Life Insurance Corporation of India
established under Section 3 of the Life Insurance Corporation Act,1956.
iv)
“Scheme” of Fund shall mean the ________________________________
Employees Group Gratuity Assurance Scheme described in these Rules.
v)
“Rules” shall mean the Rules of the Scheme as set out below and as
amended from time to time.
vi)
“Trustees” shall mean the Trustees for the time being of the
Scheme.
vii) “Employees” shall mean the
employees participating in the Gratuity Fund other than personal and domestic
servants and shall be deemed to include the Directors who are whole time
bonafide employee of the Company and do not beneficially own shares in the
Company carrying more than 5% voting rights in the Company.
viii)
“Member” shall mean an employee who has been admitted to the
membership of the Scheme.
ix)
“Beneficiary” shall mean the member and in case of his death his
widow, children or dependants of the member.
x)
“Effective Date” in relation to the Scheme shall mean the Date:_____________
being the date as from which the Scheme takes effect.
xi)
“Annual Renewal Date” in relation to the Scheme shall mean the ___________
and the ____________ in each
subsequent year.
xii) “Normal Retirement Date” shall
mean in respect of each member the date on which he completes the age of ________
years.
xiii)
“Service” shall mean continuous service rendered by the Member to
the Employer including periods of authorised leave. For the purpose of the
Scheme, a period of 6 months and over shall be reckoned as one year.
xiv)
“Anticipated Service” shall mean in relation to a Member who dies
while in service before the Normal Retirement Date the service which he would
have completed had he lived up to his Normal Retirement Date.
xv) “Salary” includes Dearness
Allowance if the terms of employment so provide but excludes all other
Allowances & perquisites. In the case of monthly rated employees a day’s
salary will be calculated as 1/26th of the monthly salary.
xvi)
“Entry Date” hall mean (a) in relation to the Original Members the
Effective Date and (b) in relation to new members submitted to the scheme after
the Effective Date, the Annual Renewal Date which is coincident with or which
next follows the date on which they become eligible.
xvii)
“Contribution” means any sum credited by an employer out of his
own money to the individual account of the employees and shall not include any
sum credited as interest.
xviii)
“Trust” means the trust under which the Fund is established.
2.
THE TRUSTEES TO ACT FOR THE EMPLOYER AND MEMBERS :
The Trustees will act for and on behalf of the Employer and members in
any matter relating to the Scheme and every act done by agreement made with the
notice given to the Corporation by the Trustees shall be binding on the
Employer and the member.
3.
ELIGIBILITY :
(a) “Permanent Employees who are aged
not less than 18 year and not more than _____
years” shall be eligible to participate in the Scheme.
Employees in the above category/categories
who are in the service of the Employer on the Effective Date shall join the
Scheme as form that date. Presents employees who are not in the above
category/categories on the Effective Date and employees appointed by the
Employer after the Effective Date shall join the Scheme on the Annual Renewal
Date which is coincident with or which next follows the date on which they
become eligible.
(b) No member shall withdraw form the
Scheme while he is still an employee within the category state above.
(c)
Transfer of Equitable Interest in/out of the Scheme.
i)
If an employee leaves the service voluntarily after completion of
five years of service but before he attains the specified age of retirement and
joins another concern transfer of his equitable interest from the approved
gratuity fund to the gratuity fund of the latter concern is permitted subject
to the condition that the said fund is approved under the Act. Such equitable
interest shall be payable to the concerned employees in addition to the
benefits to be accrued under the Scheme.
ii)
If on becoming a member of the Scheme, a member shall desire to
pay or procure transfer to the Trustees of any sum to which as a member of any
other approved gratuity fund he may be entitled, the Trustees shall be
authorised to receive such payment or transfer. The amount so paid or
transferred shall be placed to the credit of such member and shall be payable
to the concerned employees in addition to the benefits to be accrued under this
Scheme.
4.
EVIDENCE OF AGE :
Evidence of age of every employee
satisfactory to the Corporation shall be furnished before he is admitted to the
Scheme and if the age of the Member is conclusively proved later to have been
incorrectly stated in the evidence submitted, the Corporation shall make
appropriate adjustment in the benefits having regard to its normal practice.
5.
EVIDENCE OF INSURABILITY :
For the purpose of effecting Term Assurance
in respect of the Member, evidence of insurability satisfactory to the
Corporation shall be required prior to the employee’s entry into the Scheme and
on each occasion when an increase in sum assured is to be granted.
SECTION II
CONTRIBUTION AND SCHEME OF INSURANCE
6.
CONTRIBUTIONS :
There
shall be paid by the Employer to the Trustees in respect of each Member the
Contributions mentioned in sub-paragraph (I) below annually in advance on the
date of entry of the Member into the Scheme and on the relevant Annual Renewal
Dates and the contributions mentioned in sub-paragraph (ii) below in one lump
sum on the date of entry or in not more than five equated annual installments
commencing from the date of entry into the Scheme and the Trustees shall pay
the same to the Corporation for providing the gratuity benefits to the Members
under a Scheme of Insurance.
i)
Ordinary Annual
Contribution : The ordinary annual contribution shall be such amount as shall
be determined and recommended by the Corporation within the limits stipulated
under Rule 103 of I.T. Rules, 1962 for securing the benefits herein below
described. The contribution shall be expressed as a percentage of the salary of
each member and may be varied from time to time on the basis of an evaluation
of the benefits to be made at intervals of not more than Three years. The
contributions will be paid throughout the future service of the members.
ii)
Initial Contribution :
The Employer shall pay any sums by way of initial contributions in respect of
Members relating to their past service with the Employer as shall be determined
and recommended by the Corporation within the limits stipulated under Rule 104
of I.T.Rules 1962 for securing the benefits relating to such past services and
on paying such sums shall advise the Trustees as to their allocation to all or
specified members.
Provided that the contributions payable by
the Employer in any year in respect of any member in terms of sub-paragraph (I)
above shall not exceed 8 1/3% of the salary, paid to the member during the year
and that the initial contribution referred to in sub-paragraph (ii) above shall
not exceed 8 1/3% of the salary paid to the member for each year of his past
service with the Employer.
7.
SCHEME OF INSURANCE :
i)
The Trustees shall enter
into a Scheme of Insurance with the Corporation for providing the benefits to
the members. Subject to the provisions of Rule 5, an Assurance will be effected
on the life of each member under One Year Renewable Term Assurance Plan for a
sum assured equal to the difference between (a) fifteen days salary as on the
date of entry into the Scheme or the Annual Renewal Date as the case may be for
each year of his Anticipated Service subject to a maximum amount as par as per
the Gratuity Act, 1972 as amended from time to time AND (b) fifteen days salary
as on the date of entry into the Scheme or the Annual Renewal Date, as the case
may be, for each year of service subject to a maximum of as par as per the
Gratuity Act, 1972 as amended from time to time Provided that the Corporation may, in the case
of any member restrict the sum assured for which the assurance is to be
effected to a smaller amount on the basis of the evidence of health submitted
in respect of the Member. The assurance will be renewed on the Annual Renewal
Dates for appropriate sums assured.
ii)
After appropriating the
required amounts towards the premium payable year to year for the life
assurance benefit received from the Trustees as provided in Rule 6, the balance
of the Contributions will be held by the Corporation in the running account for
the credit of the Trustees. The Corporation will allow interest on the balances
remaining in the above mentioned running account for each financial year ending
31st March at a rate to be determined by the Corporation at the
close of the year.
iii)
When gratuity becomes
payable to a member on his retirement or cessation of service, or to his
Beneficiary in the event of his death, the Corporation shall pay to the
Trustees the benefits payable according to the Rules out of the balance in
running account and also under the Term Assurance in case of death.
SECTION – III
BENEFITS
8.
BENEFITS ON RETIREMENT AT OR AFTER NORMAL RETIREMENT DATE, EARLY
RETIREMENT DUE TO ILLHEALTH AND DEATH WHILE IN SERVICE AFTER NORMAL RETIREMENT
DATE :
UPON retirement of a member on or after
Normal Retirement Date or upon death whilst in service after Normal Retirement
Date or upon retirement owing to ill-health or incapacitation, the benefits
payable will be equal to fifteen days’ salary for each completed year of
service, subject to a maximum amount as per Gratuity Act, 1972 as amended from
time to time.
9.
BENEFITS ON DEATH BEFORE NORMAL RETIREMENT DATE :
Upon the death of a member whilst in service before Normal Retirement
Date, the benefits payable will be equal to fifteen days’ salary as on the date
of death for each year of his Anticipated Service, subject to a maximum amount
as per Gratuity Act, 1972 as amended from time to time. Provided that in
respect of a member for whom the Term Assurance effected in terms of Rule 7 is
insufficient to provide the above stated benefits, the benefit payable will be
equal to the total of :
i)
The sum assured under the Term Assurance on the date of death;
and;
Fifteen days salary for each year of service up
to the date of death subject to maximum
of amount as per Gratuity Act, 1972 as amended from time to time.
10. BENEFITS ON LEAVING SERVICE :
Upon
a member leaving the service of the Employer after completion of five years of
service the benefits payable will be equal to fifteen days’ salary as on the
date of leaving service for each year of service, subject to a maximum amount
as per Gratuity Act, 1972 as amended from time to time. The member will not be
entitled to any benefits if he leaves the service before completing five years
of service.
FORFEITURE OF GRATUITY :
(a) Gratuity shall be wholly
forfeited in case of termination of service of the member (I) for riotous or
disorderly conduct or any other act of violence on his part or (ii) for any act
which constitutes an offence involving moral turpitude provided such offence is
committed by him in the course of his employment.
(b) In case of termination of service
for any act, willful, omission or negligence of the member causing any damage
or loss or destruction of property belonging to the Employer gratuity payable
under the Scheme shall be forfeited to the extent of the damage or loss so
caused.
(c)
The gratuity forfeited in the aforesaid manner or otherwise shall
remain in the running account only held by the Corporation to the credit of the
Trustees and shall be utilised in the payments of the gratuity to the eligible
employees.
11. The gratuity payable in respect
of any member under the Scheme shall be paid in one lump sum only.
SECTION IV
MISCELLANEOUS PROVISIONS
12. RESTRAINT ON ANTICIPATION OR ENCUMBRANCE :
(a) The benefits assured under the
Scheme are strictly personal and can not be assigned, charged or alienated in
any way.
(b) Penalty if employee assigns or
charges interest in Fund :
If an employee assigns or create a charge
upon his beneficial interest in a fund the Income Tax Officer shall give notice
to the employee that if he does not secure cancellation of the assignment or
charge within two month’s of the date of receipt of the notice the
consideration received for such assignment or charge shall be deemed to be
income received by him in the previous year in which the fact became known to
the Income Tax Officer and shall be assessed accordingly.
13. Except as provided in these
Rules, no member or his Beneficiary shall have any legal claim, right or
interest in the Scheme PROVIDED ALWAYS THAT the Trustees shall administer the
Scheme for the benefit of the members and their Beneficiaries in accordance
with the provisions of these Rules.
14. JURISDICTION:
The Master Policy issued under the Scheme
shall be an Indian contract subject to the laws of India, the Income Tax Act,1961
the payment of Gratuity Act, 1972 and to any legislation subsequently
introduced. All benefits under the Scheme shall be payable only in India.
Should anything contained in these Rules, or in any amendment made thereof be
repugnant to any provision or provisions of the Income Tax Act, 1961, or the
Income Tax Rules, 1962, or the Trust Act, it shall be in-effective to the
extent of such repugnance, Any such repugnance in so far as it relates to
Income Tax Act 1961 and Rules thereunder shall be removed by the Trustees if so
directed by the Commissioner of Income Tax.
15. MASTER POLICY :
The Corporation will issue a single Master
Policy to the Trustees to provide for the benefits to the members under the
Scheme.
16. INCOME TAX AND OTHER TAXES :
(a) In any case where the Corporation
or the Trustees are liable to account to the Income Tax Authorities for income
tax on any payment made under the Rules, the Corporation or the Trustees as the
case may be shall deduct a sum equal to such tax from any such payment made and
shall not be liable to the members for the sum so deducted.
(b) If the Gratuity Fund and Scheme
for any reason cease to be approved by the Commissioner of Income Tax, the
Trustees shall nevertheless remain liable to tax on any benefits paid to any
Member or his Beneficiary.
(c)
Gratuity deemed to be Salary
Where any gratuity is paid to an employee
during his life time, the gratuity shall be treated as salary paid to the
employee for the purpose of this Act.
(d) Contributions by Employer when
deemed to be income
Where any contribution by an Employer
(including the interest thereon, if any) are repaid to the Employer, the amount
so repaid shall be deemed for the purpose of Income Tax to be the income of the
Employer of the previous year in which they are so repaid.
17. APPOINTMENT OF BENEFICIARY/IES
NOMINEE/S
(a) Every Member shall appoint his
spouse, child/children or dependants as Beneficiary or Beneficiaries under the
Rules to receive the benefits hereunder in the event of his death. If a member
dies whilst in service the Trustees shall hold the benefits in force under the
Assurance on his life UPON TRUST for payment to the Beneficiary or Beneficiaries
as shall have been appointed by the Member in accordance with the remaining
paragraphs of this Rule.
(b) Every appointment made under this
Rule shall be in writing signed by the Member and attested by two witnesses and
shall be according to the form of nomination as given in Appendix (I) hereto
and shall remain in full force and effect until the death of the Beneficiary or
until the same shall be revoked in writing by the Member and a fresh
appointment made in the manner aforesaid.
(c)
A member may from time to time or at any time without the consent
of the Beneficiary change the Beneficiary by filling a written notice of the
change to the Trustees in the prescribed form satisfactory to the Trustees
whereupon an acknowledgement of the change and the registration of the name of
the new Beneficiary will be given to the Member by the Trustees. The new
appointment shall take effect on the date the notice was signed whether or not
the Member is living on the date of acknowledgement of the change without
prejudice to the Corporation or the Trustees on account of any payment made
before the acknowledgement of the change.
(d) If a Beneficiary shall at the
time of his appointment be a minor or otherwise under disability to give a
legal receipt or discharge to the Trustees the Member must at the time of such
appointment as aforesaid appoint a person who is major and who is capable of
giving a legal receipt or discharge to the Trustees and to whom the benefits
are to be paid for and on behalf of such Beneficiary.
(e) If more than one Beneficiary is
appointed and in such appointment the Member has failed to specify their
respective interest, the Beneficiaries so named shall share the benefits
equally. If the Beneficiary predeceases the Member, the interest of such
Beneficiary shall terminate and his share shall be payable equally to such of
the remaining Beneficiaries as survive the Member unless the Member has made
written request otherwise to the Trustees in the prescribed form.
(f)
If a Beneficiary is not appointed the benefits shall be paid to
the Members spouse, failing which to his child/children in equal shares,
failing which to his dependants in equal shares. If the Member does not leave a
spouse, child/children or dependants, then the benefits shall be realised by
the Trustees and credited to the Running Account.
18. INTERPRETATION OF RULES :
It shall be a condition of membership of the
Scheme that on any question arising on any point of interpretation of these
Rules or any point relating to admission of new Members and cessation of
Membership, the decision of the Trustees shall be final. If the decision has
any bearing on the provisions of Part C of the fourth Schedule of the Income
Tax Act, 1961, or the Rules made thereunder it shall be forthwith reported to
the Commissioner of Income Tax and if the Commissioner of Income Tax so
requires, the Trustees shall review the decision.
For and on behalf of the Trustees
___________________________
________________________________
Employees’ Group Gratuity – cum –
Life Assurance Scheme (C.A.)
The specimen of the Form of
Nomination/Appointment of Beneficiary is annexed hereto as Appendix 1.
APPENDIX 1
FORM OF APPOINTMENT OF BENEFICIARY
(NOMINATION)
The Trustees,
______________ Employees’ Group
Gratuity-cum-Life Assurance Scheme.
Dear Sirs,
I
______________________________________________________a member of
__________________ Employees’ Group Gratuity Scheme hereby agree to abide by
the Rules of the said Scheme and do also hereby appoint in terms of Rule 18 of
the Rules the Beneficiary/ies Nominee/s mentioned hereunder to receive the
benefits, payable under the Scheme, in the event of my death before the amount
become payable has not been paid.
I
hereby direct that the benefits under the Scheme, payable in respect of me,
shall be paid to the said Beneficiary/ies Nominee/s in proportion indicated
against their respective names as given below :
_____________________________________________________________________
Sr.No.
Name of full with
Relationship Age of Proportion by
Full address of with the Nominee/s which gratuity
Nominee/s/Bebefi- the Member Benefi- (total
Ciary/ies (Employee) ciary/ies benefits) will
Be shared by
Each
Nominee
Beneficiary.
1.___________________________________________________________________
2.___________________________________________________________________
3.___________________________________________________________________
I hereby certify that the persons(s)
mentioned hereinabove is/are my wife/children/lawfully adopted child/dependant
parents/ husband.
I hereby declare that I have no family and should I acquire family
hereafter the appointment of Beneficiary/Nominee should be deemed as cancelled.
My father/mother/parents/sister(‘s)/minor brother(s) is/are not
dependant on me.
My husband’s father/parents
is/are not dependent on me.
I also declare that this appointment of Beneficiary/ies/Nominee/s made
herein shall have the effect of my revoking the appointment of
Beneficiary/ies/Nominee/s made by me earlier.
I give below the particulars
about myself :
1.
Full Name :
2.
Sex.
3.
Religion
4.
Father’s Name :
5.
Husband’s Name :
(For married women only)
6.
Martial Status :
(Whether married, unmarried, widow or
widower)
7.
Date of birth :
8.
Permanent Address :
Signed at ___________ this __________ day of
________________20
Two witness to the Signature (Signature of Member/Employee)
Name
Address Signature
1.
______________________________________________________________
2.
______________________________________________________________
3.
______________________________________________________________
Certified that the above appointment of
Beneficiary Nominee has been signed by Shri/Smt.
________________________________________________________ before me after he/she
has read the entries, the entries have been read to him/her by me and that the
said appointment of Beneficiary/Nominee is recorded under the Scheme on _______________.
__________________
Signature of Trustee’s
Place:
For
Self and Co-Trustees of
Date:
---------------------------------
Group Gratuity Scheme
NOTE :
Where an Employee Member has a family at the
time of appointing a Beneficiary/Nominee, the Nomination should be made in
favour of Members of his family only. Any Nomination made by such Employee in
favour of any other persons not belonging to his family shall be invalid.
An Appointment of Beneficiary/Nominee made by the Member may be changed
at any time, after giving a written notice to the Trustees of his intention to
do so. If the Nominee predeceases the Member (Employee), the interest of the
Nominee shall revert to the Member (Employee) or his estate.
The appointment of Beneficiary/Nominee or any change thereof made from
time to time shall take effect to the extent it is valid on the date on which
it is received by the Trustees.
For the purpose of the Scheme, “Family” means Member’s (Employee’s)
spouse, legitimate children/Step children parents, sisters and minor brothers
dependant upon him.
