Kerala High Court
Kerala State Road Transport ... vs Ramanan T.K 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. 1094 OF 2023
AGAINST ORDER DATED 03/03/2023 IN RP 1276/2022 IN WPC NO.25973/2022 OF THIS
COURT
APPELLANTS/REVIEW PETITIONERS/RESPONDENTS:
1. KERALA STATE ROAD TRANSPORT CORPORATION,REPRESENTED BY ITS MANAGING
DIRECTOR, TRANSPORT BHAVAN, FORT, THIRUVANANTHAPURAM, PIN - 695023.
AND ANOTHER.
BY ADV.SRI. DEEPU THANKAN
RESPONDENTS/RESPONDENTS/PETITIONERS:
1. RAMANAN T.K., AGED 56 YEARS , (DRIVER, KSRTC, THODUPUZHA DEPOT,
RETIRED ON 31.5.2022), RESIDING AT THOTTIYLL HOUSE, KOLANI.P.O,
THODUPUZHA, IDUKKI DISTRICT, PIN - 685608.
AND 10 OTHERS.
BY ADV.SRI. K.P.RAJEEVAN FOR R1 TO R10
GOVERMENT PLEADER-R11
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.1276/2022 in WPC No.25973/2022 dated 03/03/2023 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
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
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
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
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
