IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN THURSDAY, THE 7TH JULY 2011 / 16TH ASHADHA 1933 WP(C).No. 8695 of 2011(J) ------------------------------------ PETITIONER(S): ----------------------- 1. V.K. KUNJAN, S/O.NARAYANAN, VELAMMAKUDIYIL HOUSE, PERUMBALLOOR POST, MARADY VILLAGE, MUVATTUPUZHA TALUK (GC.146/04). 2. E. ULAHANNAN, S/O.ETHAPPIRI, NIRAVATHU HOUSE, VALARA POST, MANNAMKANDAM VILLAGE, ADIMALY, DEVIKULAM TALUK (GC.370/04). 3. KARTHIYAYANI KUTTAPPAN, W/O.LATE K.K. KUTTAPPAN, KANNAMVELIL HOUSE, THATTEKKANNI POST, KANJIKUZHY VILLAGE, THODUPUZHA TALUK, IDUKKI DISTRICT (GC NO.413/04). 4. DOMINIC THOMAS, S/O.THOMAS, KOLADYPUTHENPURAYIL HOUSE, NERYAMANGALAM POST, NERYAMANGALAM VILLAGE, KOTHAMANGALAM TALUK (GC.546/4). 5. K.O. VARGHESE, S/O.OUSEPH, KAITHAKKOTTIL HOUSE, VALARA POST, MANNAMKANDAM VILLAGE, ADIMALY, DEVIKULAM TALUK, IDUKKI DISTRICT (GC.547/04). 6. P.V. DEVASSIA, S/O.LATE THOMAS VARGHESE, BELMOUNT HOUSE, THRIKKAKKARA POST, VAZHAKKALA VILLAGE, KANAYANNOOR TALUK, ERNAKULAM DISTRICT (GC.NO.219/05). 7. A.G. MANUEL, S/O.GABRIEL, ARAKKAL HOUSE, VADUTHALA POST, CHERANELLOOR VILLAGE, KANAYANNOOR TALUK (GC.268/05). WP(C).No. 8695 of 2011(J) 8. K. SANTHA PRASAD, S/O.A.G. SIVAPRASAD, NEST HOUSE, ERATTAKULANGARA ROAD, PACHALAM POST, ERNAKULAM VILLAGE, KANAYANNOOR TALUK (GC.286/05). 9. ANNAKKUTTY PAUL, W/O.P.M. PAUL, PUTHENPURACKAL HOUSE, NEENDAPARA POST, NERYAMANGALAM VILLAGE, KAVALANGADU, KOTHAMANGALAM TALUK (GC.344/05). 10. P.O. JOSEPH, S/O.OUSEPH, PUNNACKAPPADAVIL HOUSE, CHEMPANKUZHY, NERYAMANGALAM. NOW RESIDING AT PUNNACKAPPADAVIL HOUSE, THALACODE POST, NERYAMANGALAM VILLAGE, KOTHAMANGALAM TALUK (GC.348/05). BY ADV. SRI.P.V.SANTHOSH JOSE RESPONDENT(S): -------------------------- 1. THE KERALA STATE ELECTRICITY BOARD, VYDHUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM, REP. BY ITS SECRETARY, PIN-695 001. 2. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT (DISTRICT LABOUR OFFICER, ERNAKULAM), DLO OFFICE, CIVIL STATION, KAKKANAD, ERNAKULAM-682 030. 3. THE REGIONAL JOINT LABOUR COMMISSIONER, OFFICE OF THE DISTRICT LABOUR OFFICER, CIVIL STATION, KAKKANAD, ERNAKULAM-682 030. R1 BY ADV. MR.K.S. ANIL, SC, KSEB. R2 & R3 BY GOVT. PLEADER MR.P.M. MANOJ. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 07/07/2011, ALONG WITH WP(C) NO. 8770 OF 2011 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs WP(C).No. 8695 of 2011(J) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE ORDER IN RESPECT OF THE 1ST PETITIONER. EXT.P2: COPY OF THE ORDER IN RESPECT OF THE 2ND & 3RD PETITIONERS. EXT.P3: COPY OF THE ORDER IN RESPECT OF THE 4TH & 5TH PETITIONERS. EXT.P4: COPY OF THE ORDER IN RESPECT OF THE 6TH PETITIONER. EXT.P5: COPY OF THE ORDER IN RESPECT OF THE 7TH & 8TH PETITIONERS. EXT.P6: COPY OF THE ORDER IN RESPECT OF THE 9TH & 10TH PETITIONERS. EXT.P7: COPY OF THE ORDER DATED 07/03/2011 PASSED BY THIS HONOURABLE COURT IN WP(C) NO. 6083/2011. RESPONDENT'S EXHIBITS: NIL. //TRUE COPY// P.A. TO JUDGE rs P.N. RAVINDRAN, J. -------------------------------- W.P.(C) Nos.8695, 8770, 8903, 9545, 9709, 10036, 10136, 10461, 10740, 10975, 11201, 11399, 11536, 11783, 11851 and 12149 of 2011 ------------------------------ Dated this the 7th day of July, 2011 J U D G M E N T The petitioners in these writ petitions are former employees of the Kerala State Electricity Board (hereinafter referred to as 'the Board' for short). After retirement, they were paid terminal bnefits including gratuity computed in terms of the provisions contained in the Kerala Service Rules. Thereafter, they filed separate applications before the Controlling Authority under the Payment of Gratuity Act, 1972 seeking payment of gratuity in terms of the said Act. The contention of the petitioners was that in view of the decision of this Court in O.P.No.674 of 2002 which was affirmed by the Division Bench in W.A.No.1062 of 2003, they are entitled to gratuity under the Payment of Gratuity Act, 1972 notwithstanding the provision for payment of Gratuity in the Kerala Service Rules. The Board resisted the applications contending that the petitioners are entitled to gratuity only in accordance with the provisions contained in Part III of the Kerala Service Rules and not under the Payment of Gratuity Act, 1972. The Controlling Authority over ruled the objections raised by the Board and directed payment of Gratuity in accordance with the provisions of the Payment of Gratuity Act, 1972. In these writ petitions, the W.P.(C) No.8695 of 2011 and connected cases 2 petitioners seek a direction to the Board to pay the amount of gratuity and the interest thereon in terms of the orders passed by the Controlling Authority under the Payment of Gratuity Act. 2. In majority of the cases, where the Board has deposited the principal amount of gratuity directed to be paid by the Controlling Authority, interim orders have been passed by this Court to release the principal amount of gratuity to the respective applicants on their executing personal bonds. In cases where the principal amount has not been deposited, directions have been issued to the Board to deposit the principal amount of gratuity and the applicants have been permitted to withdraw the same after executing personal bonds. Such conditional interim orders were passed having regard to the fact that the Board had filed a Special Leave Petition in the Honourable the Supreme Court of India canvassing the correctness of the decisions of this Court in O.P.No.674 of 2002 and W.A.No.1062 of 2003. In some of the cases, interest portion has also been deposited and the said amount is lying in deposit either before the Controlling Authority or before the Appellate Authority. It is stated that in some of the cases, though interim orders have been passed directing the Board to deposit the principal amount, it has not been complied with. W.P.(C) No.8695 of 2011 and connected cases 3 3. Sri.K.S.Anil, learned standing counsel appearing for the Board submitted that the Board has issued Order No.B.O.(FB) No.1313/2011(PS1/Gratuity/TVPM/2006) dated 24.5.2011 whereby the Board has decided to adopt and apply the provisions of the Payment of Gratutity Act, 1972 to the employees of the Board and to withdraw the Special Leave Petition filed by the Board in the Honourable Supreme Court of India from the decision of this Court. A copy of the said Board order was also made available to me. The learned standing counsel also submitted that the Board will have to incur an additional expenditure of approximately 250 Crores to pay gratuity under the Payment of Gratuity Act, 1972, and therefore, the Board may be granted three months time to deposit the principal amount of gratuity in cases where the principal amount of gratuity has not been deposited and six months time from the date of deposit of the principal amount to deposit the interest portion calculated from the respective due dates till the date of payment or deposit of the principal amount. The learned standing counsel for the Board also submitted that the Board may be granted three months time to deposit the principal amount of gratuity even in cases where notwithstanding the interim order passed by this Court to deposit the W.P.(C) No.8695 of 2011 and connected cases 4 principal amount of gratuity, the Board has not been able to make the deposit. The learned counsel appearing for the petitioners did not oppose the said request. In my opinion, in view of the huge financial commitment involved, the said request made on behalf of the Board for time to deposit the principal amount of gratuity and the interest portion deserves to be granted. 4. In the light of the stand now taken by the Board to withdraw the Special Leave Petition filed before the Honourable the Supreme Court of India and to adopt the Payment of Gratuity Act, 1972 in the matter of payment of gratuity to its former employees, I dispose of these writ petitions with the following directions:- i) The Board shall wherever the principal amount of gratuity has not been deposited including in cases where this Court had by interim orders directed payment of gratuity, deposit the principal amount of gratuity within three months from today before the Controlling Authority. Upon such deposit, it will be open to the respective applicants to withdraw the principal amount of gratuity unconditionally. ii) In cases where the Board has already deposited the principal amount of gratuity and the interest portion, the respective applicants W.P.(C) No.8695 of 2011 and connected cases 5 will be free to withdraw the amount deposited unconditionally. iii) In cases where the applicants have withdrawn the principal amount of gratuity pursuant to the interim orders of this Court after executing personal bonds, such withdrawals will be treated as unconditional and the bonds executed by the respective applicants shall stand cancelled. iv) The Board shall deposit the interest portion which the petitioners are entitled to, at the applicable rates from the respective due dates, till the dates of deposit of the principal amount of gratuity, within six months from the date of deposit of the principal amount. Wherever the principal amount of gratuity has already been deposited, the period of six months shall begin to run from this day. Needless to say, the petitioners will not be entitled to interest during the period from the date of deposit of the principal amount till the date of deposit of the interest portion. v) I also record the submission of the learned standing counsel for the Board that in view of the Board Order dated 24.5.2011, except in cases where the quantum of gratuity payable is in dispute, the appeals filed by the Board W.P.(C) No.8695 of 2011 and connected cases 6 before the Appellate Authority from the orders passed by the Controlling Authority will be withdrawn. vi) If the petitioners have any grievance regarding the interest paid to them, it will be open to them to agitate the same in other appropriate proceedings. P.N. RAVINDRAN, JUDGE. nj. P.N. RAVINDRAN, J. ------------------------------- W.P.(C)Nos.8695, 8770, 8903, 9545, 9709, 10036, 10136, 10461, 10740, 10975, 11201, 11399, 11536, 11783, 11851 and 12149 of 2011 J U D G M E N T Dated: 7th July, 2011 -------------------------------