Kerala High Court

Kottayam District Co-Operative ... vs M.T.Thomas on 3 February, 2023

            IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
        THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
  FRIDAY, THE 3RD DAY OF FEBRUARY 2023 / 14TH MAGHA, 1944
                      WP(C) NO. 7782 OF 2013


PETITIONERS:

    1       KOTTAYAM DISTRICT CO-OPERATIVE BANK LTD.
            DISTRICT CO-OPERATIVE BANK BUILDINGS,
            KOTTAYAM 686001,
            REPRESENTED BY ITS GENERTAL MANAGER
    2       THE KOTTAYAM DISTRICT CO-OPERATIVE BANK EMPLOYEES
            WELFATE FUND
            REPRESENTED BY ITS SECRETARY,
            KOTTAYAM DISTRICT CO-OPERATIVE BANK LTD,
            HEAD OFFICE, DISTRICT CO-OPERATIVE BANK
            BUILDINGS, KOTTAYAM 686001
            BY ADVS.
            N.ANAND
            SRI.ATHUL SHAJI, SC, KOTTAYAM DISTRICT
            CO.OPERATIVE BANK LTD.
            ARUN CHANDRAN

RESPONDENT:

            M.T.THOMAS
            S/O THOMAS,MULAKAPPADAM HOUSE,
            INDUSTRIAL NAGAR P.O
            CHASNGANACHERRY 6
            BY ADVS.
            SRI.K.V.GEORGE
            SRI.B.ASHOK SHENOY
            SMT.C.G.PREETHA
            SRI.P.N.RAJAGOPALAN NAIR



     THIS     WRIT   PETITION    (CIVIL)     HAVING    COME    UP    FOR
ADMISSION     ON   03.02.2023,    THE     COURT   ON   THE    SAME   DAY
DELIVERED THE FOLLOWING:
 WP(C)No.7782 of 2013

                                     2


                     MOHAMMED NIAS. C.P.,J
                              -----------
                       WP(C)No.7782 of 2013
                     - - - - - - - - - - - - - - - - - - ----
               Dated this the 3rd day of February, 2023


                              JUDGMENT

The Kottayam District Co-operative Bank Ltd. and the Secretary

of the Kottayam District Co-operative Bank Employees Welfare Fund

have filed this writ petition challenging Ext.P10 order of the Kerala Co-

operative Tribunal, Thiruvananthapuram, allowing the appeal by

setting aside the order of the Arbitration Court, Thiruvananthapuram

in ARC 64 of 2006.

2. The relevant facts leading to the writ petition are as follows:-

The respondent herein had joined the service of the appellant Bank on

1.12.1967 and had retired from service as General manager on

30.11.2004 on superannuation and this Court by judgment dated

20.5.2005 in WP(C)No.27477 of 2004 had directed the Bank to pay him

the retiral benefits within two months on finding that he is entitled to

get the salary and other emoluments of General Manager. The

appellant was paid an amount of Rs.2,16,921/- on 9.11.2005 as the

amount entitled to him from the welfare fund. The respondent

contended that the payment was made only on 9..11.2005 though his WP(C)No.7782 of 2013

retirement was on 30.11.2004, and that he was eligible to get an

amount of Rs.2,42,948.17/- and accordingly, a sum of Rs.26,027/- more

is due under that Scheme. It was the further contention of the

petitioner that a sum of Rs.2657/- was recovered from the salary

arrears after his retirement as contribution towards the welfare fund

and adding 50% of the Banks' share, a further sum of Rs.3986/- was

due in addition to the above mentioned sum of Rs.26,027/- as the

balance amount after the payment on 9.11.2005. In short, the

respondents contended that as per the welfare fund scheme applicable

to him, the employee on superannuation is entitled to get his

contribution to the welfare fund scheme along with 50% of the

contribution of employer's contribution and compound interest thereon

at the rate of 11% per annum. It was the admitted case that an amount

of Rs.1,44,614.32/- was the accumulation in his welfare fund account as

his contribution and interest thereon as of 30.11.2004. It is also not

disputed that apart from the above, the employer was also entitled to

get a sum of Rs.72307.16/- as the employer's contribution, which was

50% of the employee's contribution and the interest thereon. Alleging

that there was delay in making the payment and claiming interest as

provided for under the scheme till the date of payment from the fund.

When the respondent had made the claim, the Co-operative Arbitration

Court, which considered the issue, found that the claim made for the WP(C)No.7782 of 2013

alleged delay between 1.12.2004 to 9.11.2005 was unsustainable,

possibly on the ground that the writ petition that directed the amounts

to be paid to the respondent was disposed only on 20.05.2005. Finding

that the bank did not make any delay after getting the copy of the

judgment and holding that there was no laches on the part of the Bank

in disbursing the retirement benefits, it found that the employee was

not entitled to claim interest. It was the said order of the Arbitration

Court that was challenged by the respondent herein before the

Tribunal.

3. The Tribunal allowed the appeal preferred by the employee

and found that he was entitled to an amount of Rs.26027/- as also

Rs.2000/- as costs to be paid to him within two months from the date of

the order and in case the amount was not paid within the said time, the

respondent was given the right to realise a sum of Rs .26027/- with

interest at the rate of 9% per annum from 9.10.2006 till realisation

apart from the sum of Rs.2000/- as costs from the respondent. This

order of the Tribunal is impugned by the Bank.

4. The learned counsel for the petitioner submits that the delay

occurred because the benefits were quantified and became payable

only after the final judgment was passed; therefore, the Bank had not WP(C)No.7782 of 2013

caused any delay. It is also argued that the interest could not be

claimed that there was no provision for the same.

5. The learned counsel for the respondent reiterated the

submissions made before the Tribunal and sought to sustain Ext.P10.

6. I have heard the learned counsel on both sides.

7. The Tribunal had found that the scheme of Rule 8(5) of the

District Co-operative Bank Employees Welfare Fund would show that

there was a direction for payment of compound interest at the rate of

11% per annum till the payment of the amount, which meant that the

employee was entitled to get interest on its contribution and the

employer's contribution together with compound interest as

stipulated above till the payment of the amount and that the

accumulation of the interest cannot be seen as stopped on

superannuation but only on payment being effected. It was also not

shown that the Bank had withdrawn the amount on 30.11.2004, the

date of retirement on superannuation of the employee, and therefore

no interest was earned on that amount after 30.11.2004. I find the

reason given by the Tribunal for granting interest as correct and legal

more so as there was no dispute either regarding the quantum of the

amount paid as appellant's contribution or the accumulation thereon as WP(C)No.7782 of 2013

interest or about the share of the Bank and the interest thereon as on

30.11.2004. As a necessary corollary, the time between 30.11.2004 and

the date on which the employee was actually paid the amounts, for

that period, the employee has to be compensated with interest as his

entitlement was crystallized as on 30.11.2004. I am not prepared to

accept the contention on behalf of the petitioners that they are not

responsible for the delay as the decision by this Court was only on

20.07.2005. It cannot be taken as a reason for not making the payment

on time. I do not find the conclusions or the directions issued by the

Tribunal to be faulty in any manner so as to interfere in this writ

petition.

The writ petition fails, and the same is accordingly dismissed.

Sd/-MOHAMMED NIAS C.P., JUDGE

APPENDIX OF WP(C) 7782/2013

PETITIONERs EXHIBITS EXHIBIT P1 TRUE COPY OF THE ORDER NO EM(1) 17602/2004 DATED 29-06-2004 ISSUED BY THE REGISTRAR OF CO- OPERATIVE SOCIETIES EXHIBIT P2 TRUE COPY OF THE ORDER IN WPC NO 27477/2004 DATED 22-09-2004 EXHIBIT P3 TRUE COPY OF THE JUDGMENT IN WPC NO 27477/2004 DATED 20-05-2005 EXHIBIT P4 TRUE COPY OF THE BYE- LAWS OF THE KOTTAYAM DISTRICT CO-OPERATIVE BANK EMPLOYEES WELFATE FUND EXHIBIT P5 TRUE COPY OF THE ORDER NO G.O (MS), NO 133/98/CO-OP DATED 24-08-1998 EXHIBIT P6 TRUE COPY OF THE A.R.C NO 64 OF 2006 FILED BEFORE THE CO-OPERATIVE ARBITRATION CORUT, THIRUVANANTHAPURAM EXHIBIT P7 TRUE COPY OF THE WRITTEN STATEMENT FILED IN A.R.C. NO 64 OF 2006 BEFORE THE CO-OPERATIVE ARBITRATION COURT EXHIBIT P8 TRUE COPY OF THE AWARD IN ARC NO 64/2006 DATED 30-12-2010 PASSED BY THE CO-OPERATIVE ARBITRATION COURT, THIRUVANANTHAPURAM EXIBIT P9 TRUE COPY OF THE MEMORANDUM OF APPEAL (A.P NO 16/2011) FILED BY THE RESPONDENT BEFORE THE KERALA CO- OPERAITVE TRIBUNAL, THIRUVANANTHAPRUAM EXHIBIT P10 TRUE COPY OF THE JUDGMENT IN JUDGMENT IN APPELA NO 16/2011 DATED 29-09-2012