[Cites 5, Cited by 0]
Kerala High Court
Venkitachalam V.H vs State Of Kerala on 20 February, 2026
Author: N.Nagaresh
Bench: N.Nagaresh
2026:KER:14714
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 20TH DAY OF FEBRUARY 2026 / 1ST PHALGUNA, 1947
WP(C) NO. 26194 OF 2023
PETITIONERS:
1 VENKITACHALAM V.H
AGED 64 YEARS
S/O. LATE. V.V. HARIHARA IYER,
RESIDING AT SHANKARABHARANAM,
D.S.W. ROAD, OLLUR, EDAKKUNNI VILLAGE,
THRISSUR, PIN - 680306.
2 SUKUMARAN T
AGED 64 YEARS
S/O. LATE. N.K. POKKAN,
RESIDING AT HOUSE NO. 28/362,
THEERTHAMKARA, PADANNAKAD POST,
KANHANGAD VILLAGE, KASARGOD DISTRICT,
PIN - 671314.
3 MANOJ KUMAR S
AGED 63 YEARS
S/O. LATE. R. SOMAN,
RESIDING AT 'MITHILA' - G-22,
PILLAVEEDU NAGAR, CHALAKUZHI ROAD,
PATTOM VILLAGE, TRIVANDRUM, PIN - 695004.
4 VISWAMBHARAN M.R
AGED 62 YEARS
S/O. LATE. M.K. RAMAN,
RESIDING AT MALIYEKAL HOUSE,
PAMPAKUDA P.O, MEMMURI VILLAGE,
ERNAKULAM, PIN - 686667.
2026:KER:14714
W.P.(C) No.26194 of 2023
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BY ADVS.
SRI.R.SANJITH
SMT.C.S.SINDHU KRISHNAH
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY THE CHIEF SECRETARY TO
GOVERNMENT, SECRETARIAT, THIRUVANANTHAPURAM,
PIN - 695001.
2 THE ADDITIONAL CHIEF SECRETARY
FINANCE DEPARTMENT, SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001.
3 INSTITUTE OF MANAGEMENT IN GOVERNMENT
REPRESENTED BY ITS DIRECTOR, VIKAS BHAVAN PO,
THIRUVANANTHAPURAM, PIN - 695033.
BY ADVS.
SRI.P.K.BABU, SPL.GOVERNMENT PLEADER
SMT.LATHA ANAND, STANDING COUNSEL
SRI.S.VISHNU
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 07.01.2026, THE COURT ON 20.02.2026
DELIVERED THE FOLLOWING:
2026:KER:14714
W.P.(C) No.26194 of 2023
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N. NAGARESH, J.
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W.P.(C) No.26194 of 2023
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Dated this the 20th day of February, 2026
JUDGMENT
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The entitlement of the petitioners, who were
employees under the Institute of Management in Government,
to receive Gratuity under the Payment of Gratuity Act, 1972 is
the issue arising for consideration in this writ petition.
2. The petitioners state that they were
employees of the 3rd respondent-Institute of Management in
Government. They retired from service during 2019 and 2020
while working as Section Officers / Campus Manager. The
Government issued Ext.P1 G.O. dated 12.02.2021 revising
pension and other related benefits consequent to the Pay
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Revision 2019. Later, the 3rd respondent issued Ext.P2
proceedings enhancing Gratuity ceiling from ₹14 lakhs to ₹17
lakhs for the non-academic staff. The revision was to be
effective from 01.04.2021. The petitioners state that
prescription of ceiling in Gratuity benefits is in violation of the
provisions of the Payment of Gratuity Act, 1972.
3. The petitioners urge that this Court in
Exts.P3 to P5 judgments has held that employees are entitled
to receive Gratuity amount under the Payment of Gratuity Act,
1972, if the Gratuity amount is more beneficial to the
employees under the Act, 1972. The petitioners state that the
Government of India issued Ext.P6 Gazette Notification dated
29.03.2018 notifying that 29.03.2018 is the date on which the
Payment of Gratuity (Amendment) Act, 2018 shall come into
force. The Central Government has enhanced the Gratuity
ceiling to ₹20 lakhs with effect from 29.03.2018.
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4. The petitioners were granted ₹14 lakhs as
Gratuity taking the arbitrary ceiling limit of ₹14 lakhs. The
petitioners state that in view of Section 7(3) of the Payment of
Gratuity Act, 1972, the petitioners are entitled to payment of
interest for delayed payment of Gratuity. According to the
petitioners, they are entitled to Gratuity amount of ₹20 lakhs.
5. The petitioners contend that Section 14 of
the Payment of Gratuity Act will override other enactments.
The action of the respondents in denying due Gratuity to the
petitioners is arbitrary and illegal. The petitioners are entitled
to payment of Gratuity as per the limits prescribed by the Act,
1972 along with 10% interest.
6. The 3rd respondent opposed the writ petition.
The 3rd respondent submitted that the Institute has its own
service rules. Ext.R3(a) service rules are framed by adopting
the rules applicable to the State Government employees,
wherever such service rules are silent. For payment of
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DCRG, there is no specific provision in the ING Rules. ING
has a Group Gratuity Scheme.
7. The Pay Revisions introduced by the
Government in the year 2021 as per Ext.R3(c) was adopted
by the 3rd respondent. As per Clause 6 of the Government
Order, the ceiling limit of DCRG of State Government
employees has been enhanced to ₹17 lakhs with effect from
01.04.2021. The 3rd respondent agreed to implement the
revised the DCRG limits of ₹17 lakhs as per a decision taken
in its 151st meeting.
8. The respondents submitted that the present
ceiling limit of DCRG is part of the Pay Revision package.
The petitioners cannot, on the one hand, accept the Pay
Revision package and dispute the ceiling limit on the other
hand. The petitioners are eligible to DCRG only up to a limit
of ₹14 lakhs. The writ petition is therefore liable to be
dismissed.
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9. The 2nd respondent filed a counter affidavit.
The 2nd respondent also submitted that enhancement of
Gratuity ceiling to ₹20 lakhs by the Central Government will
not be applicable to State Government employees as they are
governed by KSR. As the 3rd respondent-Institution has come
under the purview of KSR, the employees of the 3rd
respondent cannot claim Gratuity amount over and above ₹14
lakhs.
10. I have heard the learned counsel for the
petitioners, the learned Special Government Pleader
representing respondents 1 and 2 and the learned Standing
Counsel appearing for the 3rd respondent.
11. The petitioners claim Gratuity amount based
on the ceiling limit of ₹20 lakhs prescribed by the Central
Government. It is not in dispute that the petitioners are
neither Central Government employees nor State
Government employees. The 3rd respondent-Institute is only
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an instrumentality of the 3rd respondent. Therefore, when the
3rd respondent adopts KSR or any other law relating to
payment of Gratuity, such rules/orders will not have the
character of statutory rules.
12. In Ext.P3 judgment in W.A. No.1569/2017, a
Division Bench of this Court has held that Section 14 of the
Payment of Gratuity Act, 1972 will override other
statutes/orders and even if Gratuity benefit is availed under
another Scheme, the employee would be entitled to receive
Gratuity as admissible under the Act, 1972. Ext.P3 judgment
related to Teachers of Aided Private Colleges. This Court
held that only for the reason that the salary is paid by the
Government, it cannot be held that those persons are holding
posts under the State Government.
13. In Ext.P4 judgment in W.A. No.1062/2003, a
Division Bench of this Court, relying on the judgment of the
Apex Court in Municipal Corporation of Delhi v. Dharam
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Prakash Sharma and another [(1998) 7 SCC 221] held that
one can opt for payment of Gratuity which is favourable and
beneficial to him. The said judgment was followed by a
learned Single Judge of this Court in Ext.P5 judgment in W.P.
(C) No.40570/2022.
14. The employees of the 3rd respondent-
Institute cannot be treated as government servants even
though the Institute has adopted the KSR. Adoption of
government rules will not render adopted rules statutory, in so
far as the 3rd respondent is concerned. The fact that
employees have accepted KSR or a government salary
package, by itself will not exclude applicability of the Act,
1972. Therefore, if payment of Gratuity under the Act, 1972 is
more beneficial to the petitioners, then the petitioners are
entitled to receive Gratuity under the Payment of Gratuity Act,
1972. The respondents are therefore directed to pay to the
petitioners Gratuity amount in terms of the Payment of
2026:KER:14714
Gratuity Act, 1972, if the same is more beneficial to them.
The balance amount that may become due to the petitioners
pursuant to this judgment shall be paid within a period of
three months.
The writ petition is disposed of as above.
Sd/-
N. NAGARESH, JUDGE
aks/18.02.2026
2026:KER:14714
APPENDIX OF WP(C) NO. 26194 OF 2023
PETITIONERS' EXHIBITS
Exhibit P1 TRUE COPY OF THE ORDER BEARING NO.GO.
(P) NO.30/2021/FIN. DATED 12/02/2021
ISSUED BY THE 2ND RESPONDENT
Exhibit P2 TRUE COPY OF THE PROCEEDING BEARING
NO. 372/2022/IMG DATED 18/10/2022
ISSUED BY THE 3RD RESPONDENT
Exhibit P3 TRUE COPY OF THE JUDGMENT DATED
16/08/2017 IN W.A NO.1569/2017 OF
HONOURABLE HIGH COURT OF KERALA
Exhibit P4 TRUE COPY OF THE JUDGMENT DATED
08/01/2008 IN W.A NO.1062/2003 OF
HONOURABLE HIGH COURT OF KERALA
Exhibit P5 TRUE COPY OF THE JUDGMENT DATED
14/02/2023 IN WPC NO.40570/2022 OF
HONOURABLE HIGH COURT OF KERALA
Exhibit P6 TRUE COPY OF THE GAZETTE PUBLICATION
BEARING NO. 1283 DATED 29/03/2018
Exhibit P7 TRUE COPY OF NOTIFICATION NO. S.O.
1032 (E), DATED 1ST DECEMBER, 1987 AS
AVAILABLE IN THE WEBSITE
HTTPS://UPLOAD.INDIACODE.NIC.IN/
Exhibit P8 TRUE COPY OF THE RTI APPLICATION DATED
26/03/2024 FILED BY 3RD PETITIONER TO
THE PUBLIC INFORMATION OFFICER
DEPARTMENT OF LABOUR COMMISSION,
THIRUVANANTHAPURAM
Exhibit P9 TRUE COPY OF THE REPLY DATED
16.04.2024, BEARING G1.282/2024,
ISSUED BY PUBLIC INFORMATION OFFICER
(SENIOR SUPREND) DEPUTY LABOUR
COMMISSIONER, SECRETARIAT,
THIRUVANANTHAPURAM
Exhibit P10 TRUE COPY OF THE RTI APPLICATION DATED
18.03.2024 FILED BY 2ND PETITIONER TO
THE PUBLIC INFORMATION OFFICER; THE
INSTITUTE OF MANAGEMENT IN GOVERNMENT
2026:KER:14714
Exhibit P11 TRUE COPY OF THE REPLY DATED
24.04.2024 GIVEN BY THE PUBLIC
INFORMATION OFFICER OF 3RD RESPONDENT
TO 2ND PETITIONER
Exhibit P12 TRUE COPY OF THE RTI APPLICATION DATED
18.04.2024 FILED BY 2ND PETITIONER TO
THE PUBLIC INFORMATION OFFICER,
PENSION AND GROUP SCHEMES DEPARTMENT,
LIFE INSURANCE CORPORATION, PATTOM,
THIRUVANANTHAPURAM - 695004
Exhibit P13 TRUE COPY OF THE REPLY DATED
22.03.2024 TO EXHIBIT P12
Exhibit P14 TRUE COPY OF THE APPLICATION
NO.923/A2/92/IMG DATED 07.08.1992
FILED BY THE DIRECTOR, INSTITUTE OF
MANAGEMENT IN GOVERNMENT TO THE
COMMISSIONER OF CALICUT, CORPORATION
OFFICE
Exhibit P15 TRUE COPY OF THE NOTICE BEARING A1-
34519/91 DATED 01.01.1993 ISSUED BY
THE COMMISSIONER, CORPORATION OFFICE;
KOZHIKODE
RESPONDENT'S EXHIBITS
EXHIBIT R2(a) TRUE COPY OF PROCEEDINGS NO.195/91/IMG
DATED 26/10/1991 OF INSTITUTE OF
MANAGEMENT IN GOVERNMENT,
THIRUVANANTHAPURAM
EXHIBIT R2(b) TRUE COPY OF GO(P) NO.7/2016/FIN DATED
20/01/2016 ISSUED BY THE SECOND
RESPONDENT
EXHIBIT R2(c) TRUE COPY OF GO(MS) NO.10/2017/P-ARD
DATED 30/03/2017
EXHIBIT R2(d) TRUE COPY OF GO(P) NO.9/2016/FIN DATED
20/01/2016
EXHIBIT R2(e) TRUE COPY OF GO(MS) NO.16/2017/P-ARD
DATED 28/06/2017
EXHIBIT R2(f) TRUE COPY OF PROCEEDINGS
NO.311/FB1/2017/IMG DATED 08/08/2017
Exhibit R3(a) TRUE COPY OF THE SERVICE RULES OF THE
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3RD RESPONDENT DATED 22.06.2007.
Exhibit R3(b) TRUE COPY OF THE PROCEEDINGS DATED
22.06.2007.
Exhibit R3(c) TRUE COPY OF THE GOVERNMENT ORDER
DATED 25.07.2022.
