MACE Rules 10Chapter 0 · Preliminary

Section 10 · Persons to whom gratuity is payable

(1)

(a)

The gratuity payable under Rule 5 shall be paid to the persons on whom the right to receive the gratuity is confirmed by means of a nomination under Rule 14.

(b)

If there is no such nomination or if the nomination made does not subsist the gratuity shall be paid in the manner indicated herein below :

(i)If there are one or more surviving members of the family as in sub-Clauses (i), (ii), (iii) and (iv) of Clause (g) of Rule 2, to all such members in equal shares;

(ii)If there are no such surviving member of the family as in sub-clause (i) above, but there are one or more members as in sub-Clause (v) (vi), (vii), (viii), (ix) and (x) of Clause (g) of Rule 2, to all such members in equal shares.

(2)

If an employee dies after retirement without receiving the gratuity admissible under Rule 5 the gratuity shall be disbursed to the family in the manner indicated in sub-rule (2) of Rule 9 above.

(3)

The right of a female member of the family or that of a brother of an employee who dies while in service or after retirement to receive the share of the gratuity shall not be affected if the female member marries or re-marries or the brother attains the age of eighteen years, after the death of the employee and before receiving his/her share of the gratuity.

(4)

Where gratuity is granted under Rule 5 to a minor member of the family of the deceased employee, it shall be payable to the guardian on behalf of the minor as indicated below.

(a)

Payment of the minor(s) share of death-cum-retirement gratuity is to be made to the natural guardian of the minor(s) and in the absence of the natural guardian to a person who furnished a guardianship certificate :

(b)

Payment of the death-cum-retirement gratuity to the extent of Rs. 5,000 (or the first Rs. 5,000 where the amount payable exceeds Rs. 5,000) in favour of a minor may be made to his/her guardian in the absence of a natural guardian without the production of a formal guardianship certificate but subject to the production of an Indemnity Bond in Form 3 (A) and Form 3 (B) with suitable sureties to the satisfaction of the competent authority. The balance in excess of Rs. 5,000, if any, would become payable on the production of a certificate of guardianship.

(c)

It is essential, however, that there should be adequate prima facie ground for making payment as in (b) above, to the person claiming it, Such ground can exist only if he has shown by a sworn declaration to be de facto. If the minor and his property are in the custody of some persons, such persons may be treated as a de facto guardian. The authority making the payment should therefore, require the person who comes forward to claim payment on behalf of the minor to satisfy them by an affidavit that he/she is in-charge of the property of the minor and is looking after it, or that, if the minor has no property other than the gratuity, the minor is in his/her custody and care. The affidavit so to be produced is in addition to the Indemnity Bond with suitable sureties.

(d)

The Indemnity Bond which is to be required to be produced by de facto guardian of a minor(s) for payment of death-cum-retirement gratuity to the extent of Rs. 5,000 should be properly executed. The stamp duty required for the purposes shall be borne by the claimant concerned.

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