Citation : 2021 Latest Caselaw 5203 Ker
Judgement Date : 12 February, 2021
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN
FRIDAY, THE 12TH DAY OF FEBRUARY 2021 / 23RD MAGHA,1942
WP(C).No.28772 OF 2020(V)
PETITIONERS:
1 P.RAGINI AMMA
AGED 64 YEARS
W/O.SUDARSANAN, CHERIYA PADATHU VEEDU, MELARIYODE,
VELIYAMCODE, THIRUVANANTHAPURAM-695 512
2 M.THANKOM
AGED 65 YEARS
D/O. MARIAMMA, VATTAVILA VEEDU, KOZHIVIAL,
KALIYIKKAVILA, THIRUVANANTHAPURAM-695 502
3 S.JALAJA
AGED 56 YEARS
D/O. SANTHAKUMARI, KONATHU RUGMINI MANDIRAM,
PAPPANAMCODE P.O.,NOW RESIDING AT RAVEENDRA VILASOM,
KARAKKAMANDAPAM, NEMOM P.O., TRIVANDRUM-695 020
4 S.GIRIJAKUMARI,
D/O. SUMATHI AMMA, PADMAVILASOM, SHEEMAMULA,
VATTAPPARA P.O., THIRUVANANTHAPURAM-695 028
BY ADVS.
SRI.RAJU SEBASTIAN VADAKKEKKARA
SHRI.BERTRAND BASIL
SMT.VARSHA G NAIR
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY PRINCIPAL SECRETARY,
INDUSTRIES (K) DEPARTMENT, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM-695 001
2 KERALA KHADI AND VILLAGE INDUSTRIES BOARD,
VANCHIYOOR, THIRUVANANTHAPURAM-695 035,
REPRESENTED BY ITS SECRETARY
R2 BY ADV. SRI.N.RAJAGOPALAN NAIR
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
12.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.28772 OF 2020
2
JUDGMENT
Dated this the 12th day of February 2021
This writ petition is filed seeking the following relief :-
"i) To issue a writ of mandamus or other appropriate writ or order directing the second respondent to work out the amount of gratuity that is due and payable to the petitioners taking into account of the entire period of service from the actual date of joining to date of retirement reckoning their prior temporary service period also and on the basis of last drawn salary of the petitioners and interest at the rate of 10% from the date of gratuity amount due in accordance with the provisions of payment of gratuity act and disburse the same"
2. Heard the learned counsel for the petitioners, the learned
Government Pleader and the learned standing counsel appearing for
the respondent-Board.
3. It is submitted that the petitioners were working in the
production units under the 2nd respondent-Board. They had retired
from service in 2012, 2011 and 2019 respectively. However, only the
period of regular service was considered for pensionary benefits. It is
stated that the petitioners are entitled for payment of gratuity, taking
note of their entire service and the refusal to pay the amounts due
would make the respondents liable to pay interest to the petitioners. WP(C).No.28772 OF 2020
4. A counter affidavit has been placed on record. It is stated that
the petitioners were regularized in July, 1999 while they were working
as daily wage employees. It is stated that the petitioners are eligible
for gratuity for the period of daily wage employment and DCRG as per
the KSR for the period after regularization. It is further stated that the
Board is facing acute financial stringency due to the pandemic and
there is no sales in the retail outlets even during the festival season
and that the Board is unable to pay interest as sought for by the
petitioners. The learned standing counsel places reliance on a decision
of a Division Bench of this Court in W.A.No.524/2018 dated 12.07.2018
where it has been held that the respondents are liable to pay simple
interest only at the rate of 6% per annum on delayed payments of
gratuity.
5. It is trite law that the petitioners are eligible for payment of the
terminal benefits due to them. The only reason stated by the
respondents for not effecting the payments in time is that the Board is
in financial difficulties. However, since gratuity is paid in the nature of
deferred payment which is due to the petitioners for long years of
service, financial stringency cannot be cited as a reason for not paying WP(C).No.28772 OF 2020
amounts due to the petitioners.
6. In the above view of the matter, there will be a direction to the
respondents to release the amounts found due to the petitioners as
gratuity and DCRG without delay. The balance amounts due shall be
released to the petitioners within a period of three months from the
date of receipt of a copy of this judgment. The amounts shall carry
simple interest at the rate of 6% per annum from the date of expiry of
2 months from the date of retirement.
This writ petition is ordered accordingly.
Sd/-
ANU SIVARAMAN JUDGE NP WP(C).No.28772 OF 2020
APPENDIX PETITIONER'S/S EXHIBITS:
EXHIBIT P1 COPY OF THE JUDGMENT DATED 06.02.2020 IN WPC 13835 OF 2011 OF HON'BLE HIGH COURT OF KERALA
EXHIBIT P2 COPY OF MEMO NO.A5/1830/83 SEP DATED 28.02.2015 OF KHADI AND VILLAGE INDUSTRIES OFFICE
EXHIBIT P3 COPY OF PAGE OF HISTORY OF PENSIONER IN THE PENSION BOOK OF FIRST PETITIONER
EXHIBIT P4 COPY OF PROCEEDINGS OF THE SECOND RESPONDENT NO.KB.8710/11/E2(517) DATED 18.06.2012
EXHIBIT P5 COPY OF ORDER N.K1/4721/80/PRO DATED 02.01.1982 OF SECOND RESPONDENT
EXHIBIT P6 COPY OF PAGE OF HISTORY OF PENSIONER IN THE PENSION BOOK OF THIRD PETITIONER
EXHIBIT P7 COPY OF ORDER OF SECOND RESPONDENT NO.1969/80/EST. DATED 15.03.1984
EXHIBIT P8 COPY OF PAGE OF HISTORY OF PENSIONER IN THE PENSION BOOK OF FOURTH PETITIONER
EXHIBIT P9 COPY OF ORDER NO,KB.3262/93/K5/E1 (B) I DATED 06.08.1999
EXHIBIT P10 COPY OF REPRESENTATION SUBMITTED BY THE FIRST PETITIONER
EXHIBIT P11 COPY OF ORDER IN G.C 1/2010 PASSED BY CONTROLLING AUTHORITY UNDER PAYMENT OF GRATUITY ACT DATED 10.02.2014
RESPONDENT'S/S EXHIBITS: NIL
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