Kerala High Court
V.S.Kumaran vs State Of Kerala on 13 January, 2025
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 1 2025:KER:2130
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
MONDAY, THE 13th DAY OF JANUARY 2025 / 23RD POUSHA, 1946
WP(C) NO. 38112 OF 2018
PETITIONERS:
1
M.K VENKITESAWARAN, SANGEETHA,
KUNDUVARA ROAD, CHEMBUKAVU, THRISSUR - 680 020
2
V.V.JOSE, VETTIYATTIL HOUSE,
KADUPPASSERY, KADUPPASSERY SOUTH,
THRISSUR-680 683.
BY ADVS. G.AJITH KUMAR
SRI.S.SUNIL KUMAR (PALAKKAD)
RESPONDENTS:
STATE OF KERALA,REPRESENTED BY THE SECRETARY,
1
MINISTRY OF FINANCE (NSD), SECRETARIAT,
TRIVANDRUM - 695 001
THE DIRECTOR, NATIONAL SAVINGS PROGRAMME
2
DEPARTMENT, MINISTRY OF FINANCE, SECRETARIAT,
TRIVANDRUM-695 001.
DEPUTY DIRECTOR,
3
NATIONAL SAVINGS PROGRAMME DEPARTMENT,
AYYANTHOLE, THRISUSR, PIN-680 001.
4 THE DISTRICT COLLECTOR,
THRISSUR, AYYANTHOLE, THRISSUR-680 001.
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 2 2025:KER:2130
DEPARTMENTS OF POSTS,
5 REPRESENTED BY THE SECRETARY,
MINISTRY OF COMMUNICATIONS,
CENTRAL SECRETARIAT, NEW DELHI - 111 001
BY ADVS.SRI.SHARATH NARAYAN NAMBIAR
SHRI.P.VIJAYAKUMAR, ASG OF INDIA
SRI JAGADEESH LAKSHMAN
SMT.M.R.SREELETHA, SPL.GOVERNMENT PLEADER
BY GOVERNMENT PLEADER SRI. DHEERAJ A.S.
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 13.01.2025, ALONG WITH WP(C).8061/2020, THE COURT ON THE
SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 3 2025:KER:2130
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
MONDAY, THE 13th DAY OF JANUARY 2025 / 23RD POUSHA, 1946
WP(C) NO. 8061 OF 2020
PETITIONER:
V.S.KUMARAN, AGED 70 YEARS,
S/o SANKARAN NAIR, RAJEEVAM,
AYYANTHOL P.O., TRISSUR 680 003.
BY ADVS. G.AJITH KUMAR
SRI.S.SUNIL KUMAR (PALAKKAD)
RESPONDENTS:
STATE OF KERALA,
1
REPRESENTED BY THE SECRETARY,
MINISTRY OF FINANCE (NSD), SECRETARIAT,
TRIVANDRUM 695 001.
THE DIRECTOR,
2
NATIONAL SAVINGS PROGRAMME DEPARTMENT,
MINISTRY OF FINANCE, SECRETARIAT,
TRIVANDRUM 695 001.
DEPUTY DIRECTOR,
3
NATIONAL SAVINGS PROGRAMME DEPARTMENT,
AYYANTHOLE P.O., TRISSUR 680 003.
4 DISTRICT COLLECTOR,
TRISSUR, TRISSUR AYYANTHOLE P.O.,
TRISSUR 680 003.
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 4 2025:KER:2130
5 DEPARTMENTS OF POSTS,
REPRESENTED BY THE SECRETARY,
MINISTRY OF COMMUNICATIONS,
CENTRAL SECRETARIAT, NEW DELHI 110 001.
BY ADVS. SRI.JAGADEESH LAKSHMAN, CGC
SMT.M.R.SREELETHA, SPL.GOVERNMENT PLEADER
SHRI.P.VIJAYAKUMAR, ASG OF INDIA
BY GOVERNMENT PLEADER SRI. DHEERAJ A.S.
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 13.01.2025, ALONG WITH WP(C).38112/2018, THE COURT ON
THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 5 2025:KER:2130
JUDGMENT
[WP(C) Nos.38112/2018, 8061/2020]
Petitioners in these cases have been working as SAS agents
(Standardized Agency System) engaged in mobilizing the domestic
savings, NSC (National Savings Certificate), KVIC, Post office savings
deposits etc for the Government for the last 17 years under the
National Savings Scheme of the Government of India supported by
the Government of Kerala, for which they get remuneration in
terms of percentage of the amount collected. Petitioners submit
that they execute agreements with the District Collector, that
enable the petitioners to carry out the activities as SAS agents.
Petitioners submit that they have been doing the job for years
uninterruptedly.
2. The agents are appointed on a commission basis for
canvassing the deposits. The Government of India has been paying a
commission at the rate of 0.50% of the principal amount of the
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 6 2025:KER:2130
deposits canvassed as the commission. The State Governments, the
major beneficiary of the deposits, grant 1.10% of the principal
amount collected as a remuneration. The remuneration/
commission as noted above is disbursed through the District
Treasuries concerned on a monthly basis after obtaining the
monthly collection statements. Petitioners submit that canvassing
such small deposits and collecting the same involves a lot of hard
work, dedication and systematic efforts which include door-to-door
canvassing and day-to-day follow-up of people from various walks
of life. It is taking note of the above, that the
commission/remuneration was fixed.
3. Petitioner submits that through Ext.P3 Government
Order, dated 19.06.2017, issued by the Secretary, Department of
Finance, State of Kerala, a maximum cap of Rs.36,00,000/- is fixed as
the upper limit of deposits for calculation of the remuneration to
the agents with retrospective effect from December 2016. Petitioner
submits that the same has come as a bolt from the blue and they
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 7 2025:KER:2130
lost the commission for the amounts which they had already
collected as Ext.P3 is issued with retrospective effect from
December 2016, though the order impugned came only on
19.06.2017. The petitioners have also produced a tabular column
showing the amount lost by them in view of the conditions imposed
through the order impugned.
4. The petitioners are essentially aggrieved by the
retrospectivity given to the impugned order in as much as Ext.P3
has been implemented from December 2016 onwards, though the
order is dated 19.06.2017. Petitioners submit that they were made to
work till 19.06.2017 on the same conditions. Petitioners limit their
claim to the remuneration/commission at the agreed rates from
December 2016 to March 2017 and thereafter they continued to
work on the basis of the commission revised under the impugned
orders.
5. A counter affidavit has been filed on behalf of the State
Government stating that the unlimited disbursement of
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 8 2025:KER:2130
remuneration will bring a huge commitment to the government
and therefore the government decided to fix the upper limit for
mobilization of small savings through SAS agencies to
Rs.36,00,000/-, thus limiting the maximum remuneration for the
SAS agents as Rs.39,600/-. It is also pointed out that the Central
Government is granting a commission for canvassing deposits at the
rate of 0.5%.
6. After hearing the learned counsel for the petitioners and
the learned Special Government Pleader, Finance, it has to be noted
that the petitioners are aggrieved by the retrospectivity mentioned
in the impugned orders. The agents had worked till the passing of
the impugned order by the Government on the basis of the rates
fixed in the agreement, and thus the unilateral change without
notice has to be held to be illegal. The commission for the amounts
collected by the petitioners between December 2016 and March
2017 has to be paid at the pre-existing rates and not at the rates
stated in the impugned orders. By no stretch can the retrospectivity
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 9 2025:KER:2130
in the impugned orders be countenanced. The reasons stated in the
counter affidavit filed by the State are not sustainable.
7. Accordingly, the impugned orders to the extent it gave
restrospectivity from December 2016 are quashed. There will be a
direction to respondents 1 to 4 to release the amounts due to the
petitioner, dehors the restriction placed in the impugned orders.
The amounts shall be computed and paid to the petitioners within
three months from the date of receipt of a copy of this judgment.
The impugned orders are quashed to the extent noted above.
The writ petitions are allowed as above.
Sd/-
MOHAMMED NIAS C.P.
JUDGE
DMR/-
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 10 2025:KER:2130
APPENDIX OF WP(C) 8061/2020
PETITIONER'S EXHIBITS
EXHIBIT P1 TRUE COPY OF THE AGREEMENT ENTERED
BETWEEN PETITIONER AND 4TH RESPONDENT
DISTRICT COLLECTOR DATED 14.03.2019.
EXHIBIT P2 TRUE COPY OF THE CERTIFICATE OF MERIT
DATED 24.10.2017 RECEIVED BY THE
PETITIONER FROM 5TH RESPONDENT.
TRUE COPY OF THE GOVERNMENT ORDER NO.
EXHIBIT P3
79/2017/FINANCE DATED 19.06.2017 ISSUED
BY THE RESPONDENT NO.1.
EXHIBIT P4 TRUE COPY OF THE REPRESENTATION DATED
14.08.2017.
EXHIBIT P5 TRUE COPY OF THE LIST OF COLLECTIONS OF
THE NSC AGENTS FOR THE MONTH OF JANUARY
2017 RECEIVED FROM THE 3RD RESPONDENT
UNDER RTI ACT.
RESPONDENTS'
EXHIBITS
TRUE COPY OF NOTIFICATION No.F1/12/2011
- NS-II DATED 25.11.2011 OF MINISTRY OF
EXHIBIT R1(a) FINANCE (DEPARTMENT OF ECONOMIC
AFFAIRS), GOVERNMENT OF INDIA.
TRUE COPY OF GO(Rt) No.5933/2012/Fin
EXHIBIT R1(b)
DATED 16.06.2012.
TRUE COPY OF CIRCULAR No.3106/B2/2012/
EXHIBIT R2(c)
Fin DATED 20.09.2012.
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 11 2025:KER:2130
APPENDIX OF WP(C) 38112/2018
PETITIONER'S EXHIBITS
EXHIBIT P1 TRUE COPY OF THE CERTIFICATE OF
AUTHORITY ISSUED BY THE 4TH RESPONDENT
DATED 20.6.2013.
EXHIBIT P2 TRUE COPY OF THE CERTIFICATE OF
AUTHORITY ISSUED BY THE 4TH RESPONDENT
DATED 19.5.2011.
EXHIBIT P3 TRUE COPY OF THE ORDER NO.374/2016/NS2
DATED 28.6.2016 OF THE 4TH RESPONDENT.
TRUE COPY OF THE ORDER NO.374/2016/6/
EXHIBIT P4
NS2 DATED 24.4.2017 OF THE 4th
RESPONDENT.
TRUE COPY OF THE GO NO-79/2017 DATED
EXHIBIT P5
19.6.2017.
EXHIBIT P6 TRUE COPY OF THE REPLY TO THE RTI
APPLICATION.
EXHIBIT P7 TRUE COPY OF THE REPRESENTATION DATED
13.9.2018.
EXHIBIT P8 TRUE COPY OF REPLY DATED 3.10.2018.
TRUE COPY OF THE G.O(P) No.38/2017/Fin
EXHIBIT P9 DATED 17.03.2017 ISSUED BY DEPARTMENT
OF FINANCE GOVERNMENT OF KERALA.
RESPONDENTS'
EXHIBITS
TRUE COPY OF NOTIFICATION No.F1/12/2011
NS-11 DATED 25.11.2011.
Exhibit R2(a)
WP(C) NO. 38112 OF 2018 &
WP(C) NO. 8061 OF 2020 12 2025:KER:2130
TRUE COPY OF GO(Rt) No.5933/2012/Fin
EXHIBIT R2(b)
DATED 16.06.2012.
TRUE COPY OF CIRCULAR No.3106/B2/2012/
EXHIBIT R2(c)
Fin DATED 20.09.2012.
// TRUE COPY //
P.A. TO JUDGE
