1. Nature of the Fund and its Scope:
The Fund shall be called "Satluj Jal Vidyut Nigam Limited Employees' Gratuity Fund". It will cover all employees of the Company working at any place in India.

2. Definitions:
In these Rules and Regulations unless there is anything repugnant to the subject or context:

1. Apprentice' means a person who is declared to be an apprentice under the Apprentices Act, 1961 (52 of 1961);

2. 'Board' means the Board of Trustee's consisting of all the Trustees of the Fund;

3. 'Beneficiary' means an employee entitled to Gratuity in accordance with provisions of these Rules;

4. 'Commissioner' means the Commissioner of Income- tax;

5. 'Company' means the Satluj Jal Vidyut Nigam Limited;

6. 'Completed years of Service' means continuous service for one year;

7. 'Continuous Service' means continuous service as defined in Rule 3;

8. 'Employee' means any person (other than an apprentice, casual and non-regular employee) employed on whole-time on wages in the Company irrespective of the rate of his pay or status including Chief Executive and full-time functional Directors but does not include an employee of a State or Central Government or other Government and industrial concerns working with the Company on deputation/foreign service terms, employed on contract basis, re-employed pensioners;

9. 'Employer' means the Board of Directors for the time being of the Company or the officers delegated with powers by the Board of Directors in this regard;

10. 'Family', in relation to an employee, shall be deemed to consist of-

1. In the case of a male employee, himself, his wife, his children whether married or unmarried, his dependant parents and the dependant parents of his wife and the widow and the children of his pre-deceased son, if any;   
   
   Provided that if a male employee proves that his wife has ceased, under the personal law " governing him or the customary law of the community to which the spouse belong, to be entitled to maintenance, she or her dependant parents shall no longer be deemed to be a part of the employee's family for the purpose of these Rules, unless the employee subsequently intimates by express notice in writing to the Secretary that she shall continue to be so regarded;

2. In the case of a female employee, herself, her husband, her children whether married or unmarried, her dependant parents and the dependant parents of her husband and the widow and children of her pre-deceased son, if any:   
   
   Provided that if the female employee by notice in writing to the Secretary expresses her desire to exclude her husband from the family, the husband and his dependant parents shall no longer be deemed to be a part of the employee's family for the purposes of these Rules, unless the employee subsequently cancels in writing any such notice;   
   
   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 the child of an employee had 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.:

11. 'Fund' means the Satluj Jal Vidyut Nigam Limited Employees' Gratuity Fund;

12. 'Rules' means the Rules and Regulations of the Satluj Jal Vidyut Nigam Limited Employees' Gratuity Fund as contained in this Schedule;

13. 'Secretary' means the Secretary of the Board of Trustees;

14. 'Trustee' means a member of the Board of Trustees for the time being;

15. 'Trust' means the irrevocable Trust under which the Fund is established;

16. '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 payable to him in cash and includes dearness allowance, but does not include any bonus, commission, house rent allowance, overtime wages and any other allowances;

17. Words in the singular number shall include the plural and words in the masculine gender shall include the feminine;

18. All other words and expressions not defined herein-above shall have the meaning respectively assigned to them in the Payment of Gratuity Act, 1972 and Rules framed there under, the Income-tax Act, 1961 and the Income-tax Rules, 1962.

3. Continuous Service:
i) 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 (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the Standing Orders, rules or regulations governing the employees), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee;

ii) Where an employee is not in continuous service within the meaning of clause (i) for any period of one year or six months, he shall be deemed to be in continuous service under the company-

1. For the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which the calculation is to be made, has actually worked for not less than one hundred and ninety days, in the case of an employee whose office/unit works for less than six days in a week; and two hundred and forty days in any other case;

2. For the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked for not less than ninety five days, in the case of an employee whose office/unit works for less than six days in a week; and one hundred and twenty days in any other case.
   
   Explanation: For the purpose of clause (ii), the number of days on which an employee had actually worked under the Company shall include the days on which-

1. He has been laid-of under an agreement or as permitted by Standing Orders under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946) or under the Industrial Disputes Act, 1947 (14 of 1947) or under any other law applicable to the Company;

2. He has been on leave with full wages earned in the previous year;

3. He has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and

4. In the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed the prescribed limit as prescribed under maternity benefit Act 1961.

4. Fund constituted under an Irrevocable Trust and purpose of the Fund :
4.1 The Fund shall be constituted under a Trust, working for its sole purpose the provision of Gratuity to the employees of the company as provided in these Rules, which is irrevocable. No moneys belonging to the Fund in the hands of the Trustees shall be recoverable by the Company nor shall the Company have any lien or charge of any description on the same, save as herein provided.

1. The custody, control and management of the Fund shall be vested in a Board of Trustees constituted under the Rules of the Fund.

2. The Board of Trustees shall consist of three representatives nominated by the employer. The Trustees of the Fund shall be resident of India and any Trustee who leaves India permanently shall vacate his office.

3. The three representatives so nominated by the employer shall include one representative of the Finance Wing at the Corporate Office who will be the Chairman of the Board of Trustees and a representative of the Personnel Wing at the Corporate Office who will be the Secretary of the Board.

6. Term of Office:

1. The term of office of the Trustees shall be three years commencing from the date of the nomination, provided that any such Trustee shall, not withstanding the expiry of the said period of three years, continue to hold office until the nomination of his successor is made.

2. An outgoing Trustee is eligible for re-nomination.

7. Resignation:
A Trustee may resign from his office by letter in writing, addressed to the Chairman and his office shall fall vacant from the date on which his resignation is accepted by the Board.

8. Cessation of Trusteeship:
A Trustee ceases to be on the Board-

1. on his death; or

2. on his ceasing to be the employee of the Company, if he is an employee of the Company; or

3. on his ceasing to be Director if he is a Director the Company; or

4. on his leaving India permanently; or

5. if he is declared to be of unsound mind by a Competent Court; or

6. if he is an undischarged insolvent;

7. if he has been convicted of an offence involving moral turpitude;

8. if he fails to attend three consecutive meetings of the Board without obtaining leave of absence from the Chairman provided that the Chairman may restore him to Trusteeship if he is satisfied that there were reasonable grounds for such absence.

9. Filling of Vacancies:
The employer shall nominate a successor in the place of such a Trustee who has ceased to be a Trustee in any manner as provided in Rule 8.

1. The Rules shall be interpreted by the Board of Trustees whose decision shall be final and binding upon the employees of the Company and their nominees.

2. The Board of Trustees shall administer the Fund and income thereof except as otherwise provided in the Rules and Regulations for the time being in force.

3. The Board of Trustees shall invest the moneys of the Fund, which are not required for the purpose of the Trust in accordance with the provisions of the Income-Tax Act, 1961, and the Rules made there under including their amendments.

11. Declaration of Trustees' Power:
The Secretary shall sign all correspondence on behalf of the Fund and exercise all powers and authorities as may be conferred on him by the Board of Trustees.

12. Power of Board of Trustees for Sale and Hypothecation etc. of the Investments:
The Board of Trustees may from time to time, as and when necessary, raise such sum or sums as may, be required for the purposes of the Fund by sale, hypothecation or pledge of the investments held by them or of a sufficient part thereof.

13. Receipt for Moneys received by the Board of Trustees:
Receipt for moneys received by the Board of Trustees and endorsement on cheques, drafts and other documents, received by the Board of Trustees shall be made by the Secretary for and on behalf of the Board of Trustees.

1. The Board of Trustees shall meet as often as may be necessary and at such places and time as may be appointed for the dispatch of business of the Fund.

2. The Secretary may whenever he thinks fit, and shall, within fifteen days of the receipt of a requisition in writing from not less than two members of the Board of Trustees, call a meeting thereof.

15. Notice of Meeting and List of Business:
For every meeting, notice of not less than seven days containing the date, time and place together with a list of business to be conducted at the meeting, shall be sent to each Trustee.

Provided that when the Secretary, with the approval of the Chairman calls a meeting for considering any matter which in his opinion is urgent, a notice giving such reasonable time as he may consider necessary, shall be deemed sufficient.

16. Chairman to preside at Meetings:
The Chairman shall preside at every meeting of the Board of Trustees at which he is present. If the Chairman is absent at any time, the Trustees present shall elect one of them to preside over the meeting and the Trustee, so elected shall exercise all the powers of the Chairman at the meeting.

1. Two members including the Chairman of the Board of Trustees shall constitute the quorum at any meeting of the Board of Trustees.

2. If in any meeting the number of Trustees is less than the required quorum, the meeting will stand adjourned to the same day in the next week at the same time and place and if at such adjourned meeting a quorum is not present, those Trustees who are present shall form the quorum and transact the business for which the meeting was called.

1. Each Trustee including the Chairman shall have one vote.

2. Every question considered at a meeting of the Board of Trustees shall be decided by a majority of the votes of the Trustees present and voting. In the event of an equality of votes, the Chairman shall have a casting vote.

3. Any resolution, except as may be placed before the meeting of the Board of Trustees may be adopted by circulation among all the Trustees and any resolution so circulated and adopted by a majority of the Trustees who have signified their approval, shall be as effective and binding as if such resolution had been adopted at meeting of the Board of Trustees. However, such circulatory resolution shall be put up in the next meeting of the Board of Trustees for confirmation.

1. The Secretary shall maintain the record of the minutes of meetings of the Board of Trustees.

2. The records of minutes of each meeting shall be signed by the Chairman after confirmation with such modifications, if any, as may be considered necessary at the next meeting.

3. The Secretary shall take necessary steps for carrying out the decisions of the Board of Trustees.

20. The Board of Trustees shall function notwithstanding any vacancy therein and notwithstanding any defect in the nomination of any of its Trustees or constitution of the Board of Trustees and no act or proceeding of the Board of Trustees shall be called in question merely by reason of the existence of any vacancy therein or any defect in the nomination of any Trustee or constitution of the Board of Trustees.

21. Cost of Administering the Fund:
It shall be lawful for the Board of Trustees to reimburse themselves or pay and discharge out of the property of the Trust, all costs, charges and expenses incurred by them in carrying out these presents or in the execution of the Trust powers under these presents.

22. Delegation of Powers, Duties etc. by the Board of Trustees:
The Board of Trustees may delegate any of their duties, powers, rights and discretions to one or more of themselves as they may from time to time think fit, and they may vary, alter, withdraw, modify or cancel such delegation as they from time to time think fit.

23. Bank Account of the Fund:
All contributions of the Company shall be deposited by the Board of Trustees every year into a Bank Account specially created for that purpose and at convenient intervals and as soon as possible the Board of Trustees shall invest these funds as provided hereinbefore. All interest accruing on the funds either through the Bank Account or securities or investment will after meeting any relative expenses be caused to be credited by the Board of Trustees at convenient intervals not less than once every year to the account of the Fund. The said Bank Account shall be operated upon jointly by two Trustees to be nominated by the Board of Trustees.

24. Liability of Trustees:
No Trustee shall be responsible or chargeable save and except for moneys actually received by him nor shall he be responsible or chargeable for the acts, defaults or neglects of the Bank with whom the moneys of the Fund are deposited nor for any loss, unless the same happens through his own willful act or omission. All expenses incurred in respect of, and loss, if any, arising from any investment shall be charged to the Fund.

25. Admission of Directors to the Fund:
The Chairman, Managing Director and other Functional Directors of the Company shall be admitted to the benefits of the Fund only if they are whole-time employees of the Company and do not beneficially own shares in the Company carrying more than five per cent of the total voting right.

26. Assignment of and Creating Charges:
No employee shall assign or create a charge upon his beneficial interest in the Fund.

27. Account and Audit:

1. The Secretary shall cause the accounts of the Fund to be maintained in such a manner as the Board of Trustees may, from time to time, decide.

2. At the end of each financial year an Income and Expenditure Account together with a Balance Sheet of the Funds' accounts and liabilities shall be laid before the Board of Trustees at a meeting to be held within nine month of the close of the financial year.

3. Every year the Board of Trustees of the Fund shall appoint a Chartered Accountant or a firm of Chartered Accountants as auditor for audit of the Fund accounts and fix the remuneration which shall be borne by the Company.

4. A copy of the said audited accounts shall be furnished to the Company and such other authorities as may be necessary.

28. Arrangement of Winding Up of the Company's Business:
Where the Company's business is to be wound up or discontinued, the Board of Trustees shall with the prior approval of and subject to such conditions as may be imposed by the Commissioner make satisfactory arrangements for the payment of gratuity to the existing beneficiaries.

29. Arrangement of Winding Up of the Fund:
Any arrangement for the winding up of the Fund or for its amalgamation with another Fund shall be subject to the prior approval of, and to such conditions as may be imposed by the Commissioner.

30. Payment of Gratuity:
I) 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-

1. on his superannuation, or

2. on his retirement or resignation, or

3. on disablement due to accident or disease or permanent incapacity due to bodily or mental infirmity

4. on his death

5. discharge on abolition of post

   Provided that 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, disablement or permanent infirmity:

   Provided further that in the 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 nominee or heir is a minor , the share of such minor shall be deposited with the controlling authority under the Payment of Gratuity Act, 1972 who shall invest the same for the benefit of such minor in such bank or financial institution, as may be prescribed, until such minor attains majority.

   Explanation:
   For the purpose of this Rule, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

2) a) For every completed year of service or part thereof in excess of six months, Gratuity is payable at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned subject to a maximum of forty times fifteen days wages or Rs. 3.50 lakh (Rupees Three lakh & Fifty thousand) whichever is less.

2. In the case of death of an employee, amount of Gratuity will be admissible on the scale enumerated under (a) above or as worked out below, whichever be more.

3. In respect of Central/State Government/Public Sector Undertaking employees who have opted for absorption in the Company, the total Gratuity admissible in respect of the service rendered under the Government/Public Sector Undertaking and that under the Company would not exceed the amount that would have been admissible had the employee continued in the Government/Public Sector Undertaking Service and retired on the same pay which he drew on retirement from the Company.

   Explanation:
   i) For the purpose of computing gratuity payable to an employee who is employed, after his disablement, on reduced wages, his disablement shall be taken to be the wages received by him during that period and his disablement shall be taken to be the wages as so reduced.

   ii) 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.

30-A Transfer of Gratuity in the case of employee who moves from one Public Enterprise to the other with the consent of the respective Managements:
i) When an employee resigns from the Company's service to take up employment in Central Government/ State Government or any Public Sector Enterprise under them with the consent of both the organizations, an amount towards gratuity earned by the employee for the service rendered by him in the Company computed on the basis of wages last drawn will be paid to the Gratuity Trust of the transferee enterprise provided the Gratuity Rules of the said Trust also provide for accepting the amount of gratuity so transferred. In such cases, restriction of five years qualifying service as provided under Rule 30 for entitlement of gratuity will not apply. Service of less than six months will, however, be ignored and in such cases the facility of transfer of gratuity will not apply.

ii) Before the gratuity of an ex-employee is transferred by SJVNL Gratuity Trust to the new employer, an undertaking shall be obtained from the new employer to the effect that in the event of the concerned employee leaving their service before he becomes eligible for payment of gratuity under their rules and joins private organization or some other establishment not covered by the provisions for carry forward of gratuity, the amount of gratuity transferred by the Company shall be refunded to the SJVNL Gratuity Fund. In case the employee is transferred back to the Company, the gratuity shall be refunded to the SJVNL Gratuity Trust by the transferor organization.

iii) with the consent of both the organizations, the payment of gratuity if made by the Gratuity Trust of the transferor organization under their Gratuity Trust Rules will be accepted by the SJVNL Gratuity Trust and, in lieu thereof, their past qualifying service in the previous organizations will count as qualifying service for the purpose of payment of gratuity under the SJVNL Gratuity Rules.

i) The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of property belonging to the Company, shall be forfeited to the extent of the damage or loss so caused.

ii) The gratuity payable to an employee shall wholly be forfeited-

1. a) if the services of such employee have been terminated for his riotous or disorderly conduct or of any other act of violence on his part, or

2. b) 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.

31-A Withholding Payment of Gratuity :
During the pendency of the disciplinary proceedings, the disciplinary authority may withhold payment of gratuity, for ordering the recovery from gratuity of the whole or part of any pecuniary loss caused to the company if the employee is found in a disciplinary proceeding or judicial proceeding to have been guilty or to have caused pecuniary loss to the company by misconduct or negligence, during his service including service rendered on deputation or on re-employment after retirement. However, the provisions of Section 7 (3) and 7 (3A) of the Payment of Gratuity Act, 1972 should be kept in view in the event of delayed payment, in case the employee is fully exonerated.

32. Income-tax/Duty etc. payable by the Employee:
Income-tax or any other tax/duty payable, if any, on the amount of gratuity shall not be borne by the Fund but shall be deducted from the gratuity amount payable.

1. Each employee shall make nomination in Form 'B' at the time of joining SJVNL.

2. An employee may, in his nomination, distribute the amount of gratuity payable to him amongst more than one nominee.

3. 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.

4. 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 a fresh nomination in favour of one or more members of his family in Form 'C'.

5. A nomination may, subject to provisions of rules (iii) and (iv), be modified by an employee at any time, after giving to the Secretary a written notice in Form 'D' of his intention to do so.

6. If a nominee predeceases the employee, the interest of the nominee shall revert to the employee, who shall make a fresh nomination in respect of such interest.

7. Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to the Secretary, who shall keep the same in his safe custody.

8. A nomination, fresh nomination or its modification shall take effect to the extent it is valid from the date on which it is received by the Secretary.

1. An employee who is eligible for payment of gratuity or any person authorized, in writing, to act on his behalf, shall apply to the Secretary within thirty days from the date the gratuity became payable to him in Form 'E'.
   
   Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the Secretary before thirty days of the date of superannuation or retirement.

2. A nominee of an employee who is eligible for payment of gratuity under Rule 30 shall apply to the Secretary within thirty days from the date the gratuity became payable to him in Form 'F'.
   
   Provided that an application in plain paper with relevant particulars shall also be accepted. The Secretary may obtain such other particulars as may be deemed necessary by him.

3. A legal heir of an employee who is eligible for payment of gratuity under Rule 30 shall apply to the Secretary within one year from the date the gratuity became payable to him in Form 'G'.
   
   Explanation: 
   Where gratuity becomes payable before these Rules and Regulations come into force, the periods of limitation specified herein above shall be deemed to be operative from the date of such Rules and Regulations coming into force.

4. An application for payment of gratuity filed after the expiry of the period specified above shall also be entertained by the Secretary if the applicant adduces sufficient cause for the delay in preferring his claim and no claim for gratuity under the Payment of Gratuity Act, 1972 shall be invalid merely because the claimant failed to present his application within the specified period.

1. The gratuity payable shall be paid through Demand Draft or Bank Cheque to the eligible employee, nominee or legal heir, as the case may be:
   
   Provided that in case the eligible employee, nominee or legal heir, as the case may be, so desires and the amount of gratuity payable is less than one thousand rupees, payment may be made by cash or postal money order after deducting the postal money order commission thereof from the amount payable.

2. A register should be kept by the Secretary in which shall be entered the names and addresses of persons who received gratuity out of the Fund together with the amount paid to each of them.

36 Every employee when joining the Fund shall subscribe to the agreement as in Form 'A'.

37. Amendments of Rules:
No alternation in the Rules, Constitutions, Objects or Conditions of the Fund shall be made without the prior approval of the Commissioner.

38. If there is any repugnance between the Rules of the Fund and any provision of the Income-tax Act, 1961 and the Rules made there under or any other law for the time being in force, Rules to the extent of such repugnancy shall be ineffective.

39. Disputes regarding administration of the Fund:
Any difference which may arise between employers, nominees, executors or personal representatives and Board of Trustees or the Company on any matter or thing arising out of administration of Fund and or Rules and Regulations shall be referred to a person appointed by the Board of Directors as sole arbitrator in terms of the Indian Arbitration Act, 1940 for the time being in force.