IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN FRIDAY, THE 24TH JUNE 2011 / 3RD ASHADHA 1933 WP(C).No. 998 of 2011(Y) ------------------------------------ PETITIONER(S): ----------------------- T.P.HARIDASAN, AGED 62 YEARS, S/O. ANDIKUTTY, JASMINE, P.O EDAKKADU, KOZHIKODE DISTRICT. BY ADV. SRI.JACOB ABRAHAM SMT.KOCHUMOL KODUVATH RESPONDENT(S): -------------------------- 1. THE SECRETARY, THE KERALA STATE ELECTRICITY BOARD,THIRUVANANTHAPURAM.PIN-695 001 2. CONTOLLING AUTHORITY UNDER THE PAYMENT OF GRATUTY ACT,1972(DISTRICT LABOUR OFFICER,KOZHIKODE) CIVIL STATION,KOZHIKODE.673 020 3. APPELATE AUTHORITY UNDER THE GRATUITY ACT, 1972 AND REGIONAL LABOUR COMMISSIONER, KOZHIKODE,CIVIL STATION, KOZHIKODE.PIN-673 020 R1 BY ADV.SRI.K.S.ANIL, SC, KSEB R2 & R3 BY GOVERNMENT PLEADER SRI.P.M.MANOJ THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24/06/2011, ALONG WITH WPC NO.2381/2011 AND CONNECTED CASES,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.998/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE ORDER DATED 2/9/2005 OF THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 (DISTRICT LABOUR OFFICER, KOZHIKODE) MADE IN GC.594/2004. P2 COPY OF THE NOTICE DATED 2/9/2005 ISSUED TO THE FIRST RESPONDENT BY THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 (DISTRICT LABOUR OFFICER, KOZHIKODE). P3 COPY OF THE ORDER DATED 24/2/2010 OF THE APPELLATE AUTHORITY UNDER THE GRATUITY ACT, 1972 AND REGIONAL LABOUR COMMISSIONER, KOZHIKODE MADE IN GAC NO.286/2006. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.S.TO.JUDGE sts P.N. RAVINDRAN, J. ------------------------------- W.P.(C) Nos.998, 1400, 2381, 2387, 2524, 3456, 3989, 4052, 4183, 4187, 5184, 5554, 5660, 5960, 6033, 6206, 6235, 6598, 7260, 16979, 17108 of 2011 and W.P.(C) Nos.27854, 29775, 31856, 32789, 32854, 32996, 33184, 33652, 34585, 35807, 36052, 37050, 38619 of 2010 ------------------------------- Dated this the 24th day of June, 2011 J U D G M E N T These writ petitions have been filed by former employees of the Kerala State Electricity Board (hereinafter referred to as “the Board” for short) seeking a direction to the Board to pay or deposit the gratuity and interest thereon directed to be paid by the Controlling Authority. 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 (KSR for short) and not under the Payment of Gratuity Act, 1972. 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. It is contended that the orders passed by the Controlling Authority have been upheld in appeal by the Appellate Authority and as the orders have become final, W.P.(C) No.998 of 2011 and connected cases. 2 the Board is under an obligation to pay gratuity as directed by the Controlling Authority. 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. 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 W.P.(C) No.998 of 2011 and connected cases. 3 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 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 W.P.(C) No.998 of 2011 and connected cases. 4 dispose of these writ petitions with the following directions:- i) The Board shall wherever the principal amount of gratuity has not been deposited, 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 will be free to withdraw the amounts 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 W.P.(C) No.998 of 2011 and connected cases. 5 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 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.