Citation : 2023 Latest Caselaw 628 Ker
Judgement Date : 12 January, 2023
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
THURSDAY, THE 12TH DAY OF JANUARY 2023 / 22ND POUSHA, 1944
WP(C) NO. 766 OF 2022
PETITIONER:
C.M.ROY, S/O.P.K.MATHAI, RESIDING AT SEVASADHANAM,
THUVAYOOR SOUTH P.O., PATHANAMTHITTA DISTRICT.
BY ADVS.K.C.SANTHOSHKUMAR
K.K.CHANDRALEKHA
RESPONDENTS:
1 STATE OF KERALA,
REPRESENTED BY THE SECRETARY TO GOVERNMENT,
CO OPERATIVE DEPARTMENT, GOVERNMENT OF KERALA,
THIRUVANANTHAPURAM-695 001.
2 THE KERALA STATE CO-OPERATIVE EMPLOYEES PENSION BOARD,
PB NO.85, KALA NIVAS, CHINMAYA LANE, KUNNUMPURAM,
NEAR AYURVEDA COLLEGE, THIRUVANANTHAPURAM-695 001,
REPRESENTED BY ITS SECRETARY.
3 THE ADDITIONAL REGISTRAR (SECRETARY),
THE KERALA STATE CO OPERATIVE EMPLOYEES PENSION BOARD,
PB NO.85, KALA NIVAS, CHINMAYA LANE, KUNNUMPURAM,
NEAR AYURVEDA COLLEGE, THIRUVANANTHAPURAM-695 001.
4 KADAMPANAD NORTH SERVICE CO OPERATIVE BANK NO.55,
KADAMPANAD P.O., ADOOR, PATHANAMTHITTA DISTRICT-691552,
REPRESENTED BY ITS SECRETARY.
BY ADVS.M.SASINDRAN
M.M.DEEPA
SRI.JOSHY THANNICKKAMATTAM -GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
12.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 766 OF 2022
-2-
JUDGMENT
While the petitioner was working as a Junior
Clerk in the services of the 4th respondent -
'Kadampanad North Service Co-operative Bank'
(Society, for short), he was proceeded against
disciplinarily, which led to his order of
termination. He challenged the same before the
Labour Court, which modified the punishment of
termination, to withholding of two increments
and imposition of a warning; thus ordering his
reinstatement. The petitioner assailed this
order before this Court through
O.P.No.6215/2002, which culminated in Ext.P2
judgment of this Court, wherein, the
modification of punishment by the Labour Court
was upheld and the petitioner directed to be
reinstated in service with 50% backwages.
2. This, however, has now led to a
controversy because, when the petitioner retired WP(C) NO. 766 OF 2022
from service, the Kerala State Co-operative
Employees Pension Board (hereinafter referred to
as the 'Pension Board', for short), operating
under the provisions of the Kerala Co-operative
Societies Employees Self Financing Pension
Scheme, 1994 ('Pension Scheme', for short), took
the stand that, since the petitioner did not
draw full pay for about thirteen years and three
months when he was under termination, he is not
entitled to pensionary benefits, because he did
not have the minimum qualifying service.
3. The petitioner took up the afore order
of the 'Pension Board' in appeal before the
Government, which has now issued Ext.P15,
confirming the conclusions of the said Board.
4. The petitioner has thus filed this writ
petition calling into question the validity of
the order of the 'Pension Board' and Ext.P15
order of the Government in appeal, contending WP(C) NO. 766 OF 2022
that, going by the 'Pension Scheme', it does not
say that an employee should have drawn full pay;
and that the actual pay obtained by him/her
ought to have been reckoned.
5. Sri.M.Sasindran - learned Standing
Counsel for the Pension Board, in response,
submitted that his client has gone by the
definition of 'Pay', as available in Clause 2(g)
of the 'Pension Scheme', which means Basic Pay,
Special Pay, Personal Pay, Dearness Allowance
and any other amount ordered to be treated as
'Pay' such as Consolidated Pay.
6. Sri.M.Sasindran pointed out that, since
the petitioner did not draw any pay during the
period of thirteen years and three months - when
he was facing the order of termination, it was
justified on his client's side to have not
reckoned that, while computing the pensionable
service. He thus prayed that this writ petition WP(C) NO. 766 OF 2022
be dismissed. Sri.M.Sasindran concluded his
submissions saying that, in fact, an amount of
Rs.65,932/-, as is reflected in Ext.P10, has
been repaid to the Society being the amount
which they have computed to be in excess.
7. Sri.Joshy Thannickamattam - learned
Government Pleader, also adopted the afore
submissions of Sri.M.Sasindran, pointing out
that, in Ext.P15, it has been clearly stated by
the Government that, since the petitioner was
reinstated in service only with 50% backwages,
he could not be seen to have received 'Pay'
during the period in question.
8. Smt.M.M.Deepa - learned Standing Counsel
for the Society, submitted that her client has
no specific comment to make on the controversy
projected by the petitioner and will abide by
any directions to be issued by this Court. WP(C) NO. 766 OF 2022
9. I have examined the pleadings on file
and the documents on record, on the touchstone
of the rival submissions made at the Bar.
10. There is no doubt, as rightly argued by
Sri.M.Sasindran, that the word 'Pay' has been
defined in Clause 2(g) of the 'Pension Scheme',
to include Basic Pay, Special Pay, Personal Pay,
Dearness Allowance and any other amount ordered
to be treated as 'Pay' such as Consolidated Pay.
Prima facie, what is intended is that the actual
pay obtained by an employee will have to be
reckoned and not any other amount.
11. Going by the facts involved in this
case, when this Court directed reinstatement of
the petitioner with 50% backwages, it can only
be construed that his pay for the period of
thirteen years and three months, or such other,
was reduced to 50%. This does not mean that he
was not paid any 'Pay' during that period; but WP(C) NO. 766 OF 2022
on the contrary, that his 'Pay' was reduced to
50%.
12. To paraphrase, the actual pay obtained
by the petitioner was 50% of what he would have
been entitled to; and I, therefore, cannot
fathom how the Pension Board takes the stand
that, in view of the directions of this Court in
Ext.P2 judgment, his service of thirteen years
and three months must be construed to be one
without any 'Pay'.
13. In the afore perspective, the matter
will have to be reconsidered by the 'Pension
Board' because, the quantum of pension eligible
to an employee would depend upon the actual pay
enjoyed by him during his service period.
14. The 'Pension Board' will, therefore,
have to consider if the pensionable service is
to be computed on the basis of the actual pay
received by the petitioner, with the resultant WP(C) NO. 766 OF 2022
benefits fixed to an apposite quantum, as would
commensurate to such payments received by the
employee.
15. I am persuaded to order the course as
afore, because, the 'Pension Board' has refused
to reckon the period of thirteen years and three
months, solely because they seem to be under the
impression that said period should be treated as
one in which the petitioner obtained no 'Pay' at
all, which appears to be contrary to the facts,
particularly going by the declarations in Ext.P2
judgment.
16. This is more so because, while the
punishment imposed on the petitioner by the
Society was substituted by the Labour Court,
which was then granted imprimatur by this Court
in Ext.P2. Indubitably, it was never intended
that he shall suffer a further prejudice, other
than what was recorded therein, by way of loss WP(C) NO. 766 OF 2022
of entire pension, consequent to the fact that
he was kept out of service for thirteen years
and three months on account of an illegal
termination, as had been found subsequently.
This also ought to have weighed with the
'Pension Board', before it could have issued
their order, which has been upheld by the
Government in Ext.P15 proceedings.
Resultantly, I order this writ petition and
set aside Ext.P15; with a consequential
direction to the 'Pension Board' to reconsider
the matter, after affording the petitioner, as
also the Society, an opportunity of being heard
and taking note of my observations above, in
particular the declarations in Ext.P2 judgment;
thus culminating in an appropriate order and
necessary action thereon, as expeditiously as is
possible, but not later than four months from
the date of receipt of a copy of this judgment. WP(C) NO. 766 OF 2022
Needless to say, the 'Pension Board' will be
at full liberty to invoke all their powers under
Clause 38 of the 'Pension Scheme' and to recover
any amount, which they may find necessary, from
the Society, should they do not choose to honour
it.
At this time, Sri.M.Sasindran - learned
Standing Counsel for the Pension Board,
intervened to say that, going by Clause 3 of the
'Pension Scheme', what is relevant is the 'Pay'
because 10% of it has been mandated to be the
contribution every month. He submitted that,
therefore, if the actual pay of the petitioner
is to be considered as being the figure set by
this Court in Ext.P2, then the quantum of
pension will also have to be proportionally
reduced.
WP(C) NO. 766 OF 2022
Of course, this argument is a very tenable
one and it is upto the 'Pension Board' to take
an apposite decision on the same; for which
purpose, the liberty already reserved to them in
the afore paragraphs, would be sufficient.
Sd/-
DEVAN RAMACHANDRAN JUDGE akv WP(C) NO. 766 OF 2022
APPENDIX OF WP(C) 766/2022
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE AWARD DATED 08.01.2001 IN ID NO.6/1992 ON THE FILE OF THE LABOUR COURT, KOLLAM.
EXHIBIT P2 TRUE COPY OF THE JUDGMENT DATED 18.09.2003 IN OP NO.6215/2002 OF THIS HONOURABLE COURT.
EXHIBIT P3 TRUE COPY OF JUDGMENT DATED 17.03.2004 IN WA NO.2109/2003 OF THIS HONOURABLE COURT.
EXHIBIT P4 TRUE COPY OF RELEVANT PAGES OF THE SERVICE BOOK OF THE PETITIONER.
EXHIBIT P5 TRUE COPY OF STATEMENT FOR THE REMITTANCE OF PENSION FUND CONTRIBUTION ALONG WITH THE PAY IN SLIP DATED 03.08.2009.
EXHIBIT P6 TRUE COPY OF DEMAND NOTICE DATED 09.09.2009 ISSUED BY THE 2ND RESPONDENT.
EXHIBIT P7 TRUE COPY OF REVIEW APPLICATION DATED 10.06.2013 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.
EXHIBIT P8 TRUE COPY OF REMINDER DATED 18.04.2013 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.
EXHIBIT P9 TRUE COPY OF ACKNOWLEDGEMENT DATED 23.04.2013.
EXHIBIT P10 TRUE COPY OF THE COMMUNICATION DATED 20.06.2018 (OBTAINED BY THE PETITIONER WP(C) NO. 766 OF 2022
FROM THE 4TH RESPONDENT BANK).
EXHIBIT P11 TRUE COPY OF THE REMINDER DATED 26.08.2018 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.
EXHIBIT P12 TRUE COPY OF THE JUDGMENT DATED 15.07.2021 IN WPC NO.12026/2021 PASSED BY THIS HONOURABLE COURT.
EXHIBIT P13 TRUE COPY OF THE APPEAL MEMORANDUM DATED 27.07.2021 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT.
EXHIBIT P14 TRUE COPY OF THE WRITTEN STATEMENT FILED BY THE 4TH RESPONDENT BEFORE THE 1ST RESPONDENT.
EXHIBIT P15 TRUE COPY OF THE ORDER DATED 06.10.2021 PASSED BY THE 1ST RESPONDENT.
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