Kerala High Court
Kerala State Road Transport ... vs Babu Xavier on 21 December, 2023
Author: Anu Sivaraman
Bench: Anu Sivaraman
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN
&
THE HONOURABLE MR. JUSTICE C.PRATHEEP KUMAR
Thursday, the 21st day of December 2023 / 30th Agrahayana, 1945
WA NO. 976 OF 2023
AGAINST ORDER DATED 16/02/2023 IN RP NO.1230/2022 IN WPC NO.20185/2022 OF THIS
COURT
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APPELLANTS/REVIEW PETITIONERS:
1. KERALA STATE ROAD TRANSPORT CORPORATION, REPRESENTED BY ITS MANAGING
DIRECTOR, TRANSPORT BHAVAN, FORT, THIRUVANANTHAPURAM, PIN - 695023.
AND ANOTHER.
BY ADV. SRI. DEEPU THANKAN
RESPONDENT/RESPONDENT:
1. BABU XAVIER, (DRIVER, KSRTC, CHANGANACHERRY DEPOT, RETIRED ON
30.04.2022), RESIDING AT KUNNEL PARAMBIL, KOOTHRAPPALLY P.O,
KARUKACHAL, KOTTAYAM DISTRICT, PIN - 686540.
AND 4 OTHERS.
BY ADV. SRI. K.P. RAJEEVAN
Prayer for interim relief in the Writ Appeal stating that in the
circumstances stated in the appeal memorandum, the High Court be pleased
to stay the impugned order passed by the Learned Single Judge in RP
No.1230/2022 in WPC No.20185/2022 dated 16/02/2023 pending disposal of the
writ appeal.
This Writ Appeal again coming on for orders along with connected
cases on 21/12/2023 upon perusing the appeal memorandum and this Court's
order dated 03/11/2023, the Court on the same day passed the following:
ANU SIVARAMAN, J. & C. PRATHEEP KUMAR, J.
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W.A. Nos.611, 700, 701, 741, 825, 878, 881, 884, 885, 888,
895, 901, 912, 925, 929, 943, 944, 946, 949, 957, 958, 959,
962, 975, 976, 998, 1024, 1039, 1041, 1059, 1062, 1066, 1067,
1072, 1073, 1074, 1079, 1081, 1082, 1094, 1099, 1100,
1106, 1110 and 1114 of 2023
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Dated this the 21st day of December, 2023
ORDER
Anu Sivaraman, J.
Heard the learned counsel for the appellant/KSRTC as well as the learned counsel appearing for the respondents, who are retired employees of the Corporation.
2. It is submitted by the learned counsel appearing for the appellant that the appellant Corporation is undergoing severe financial crisis and that the direction in the judgment of the learned Single Judge to restore the corpus fund which was set up following an interim order which was made absolute by a judgment of a Division Bench of this Court in W.A. No.289/2001 and connected matters and to make remittances to the fund from April, 2023 is liable to be set aside since keeping aside of 10% from the daily collection towards the corpus fund would result in a situation where the Corporation would be unable to meet its essential commitments and would result in an absolute break down of its financial situation. Details of the income and expenditure of the Corporation are placed on record by filing an W.A. No.611 of 2023 and connected cases -: 2 :- affidavit in I.A.No.1/2023 in W.A.No.1100/2023 and it is contended that if 10% of the daily income is kept apart towards the corpus fund, the Corporation would not be able to function as the Corporation is meeting its financial liabilities on a day-to-day basis only with the financial assistance of the Government. It is submitted that the direction to maintain the corpus fund, therefore, requires a reconsideration.
3. The learned counsel appearing for the respondents contends that the direction to form a corpus fund and to set apart 10% of the daily collection of the Corporation towards such fund for making payments towards pension was directed by a Division Bench of this Court after considering all the relevant aspects of the matter. The matter was taken up before the Supreme Court by the KSRTC. The SLP was allowed and the Civil Appeals were admitted and interim orders were passed directing the payment of retirement benefits to the respondents therein. The corpus fund was set up and all the persons who were the respondents before the Apex Court were paid all their pensionary benefits from the corpus fund. Therefore, the Civil Appeals were closed as having become infructuous on 9.4.2008. It is, therefore, contended that the directions of the Division Bench to set up the corpus fund for payment of pensionary benefits stood merged with the order of the W.A. No.611 of 2023 and connected cases -: 3 :- Apex Court and that this Court would, therefore, not be justified in interfering with the direction to restart the payments to the corpus fund without the Corporation obtaining orders to that effect from the Apex Court. Further, the learned counsel appearing for the respondents seriously disputes the figures in the statements produced by the appellants and contends that the restarting of the corpus fund and the depositing of the amounts therein will be in the best interest of all concerned since the liability to pay the retirement benefits to the retired employees cannot be disputed.
4. Having considered the contentions advanced on either side, we are of the opinion that the stay with regard to the payment into the corpus fund was issued at the time when the appellant Corporation had not recovered from the lock down imposed during the Covid pandemic. It was only on account of the fact that the Bench was considering the matter that the time granted for making deposits to the corpus fund was extended till 4.7.2023. The fact that a corpus fund to meet the commitment of retirement benefits of employees retiring from the Corporation is an absolute necessity which is clear from the pleadings and the contentions placed on record in these appeals.
5. The learned counsel appearing for the appellants submits that the setting apart of 10% of daily collection towards W.A. No.611 of 2023 and connected cases -: 4 :- the corpus fund at this point in time, when the financial condition of the Corporation is admittedly deplorable would create a situation where not even the fuel charges and the salaries can be properly met by the Corporation. It is submitted that an amount of Rs.1 Crore has to be earmarked every day to service the loans taken by the Corporation and if the said amount is not kept apart, it would lead to further financial issues which the Corporation cannot afford at the present point in time. Further, it is only with great difficulty and with the assistance and the funds provided by the Government that the Corporation is able to reach even a break- even on a monthly basis, it is contended.
Having considered the contentions raised on either side, we are of the clear view that the restarting of contribution to the corpus fund is absolutely essential since it is in the interest of all concerned including the Corporation that such a corpus fund be available to meet the liability of the Corporation towards payment of retirement benefits to its employees. However, in the light of the financial stringency as claimed by the appellant, we direct that the contributions to the corpus fund be restarted from the 1 st of January, 2024 by earmarking 5% of the daily collection towards the corpus fund. The daily contribution to the corpus fund will be re- established as 10% as soon as practically possible. The amounts W.A. No.611 of 2023 and connected cases -: 5 :- deposited to the corpus fund will be utilised for meeting the retirement benefits of the retired employees. The appellant shall restart the contribution to the corpus fund and shall make prompt contribution to the fund and continue such contribution as was being done from 2001 till 2019, strictly in accordance with the directions in W.A.No.289/2001. The appellant shall report compliance with these directions and shall also inform the time required to restore the contribution to 10% of the daily collection.
Post on 2.2.2024.
Sd/-
ANU SIVARAMAN JUDGE Sd/-
C. PRATHEEP KUMAR
JUDGE
Jvt/19.12.2023
21-12-2023 /True Copy/ Assistant Registrar