IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 16TH OCTOBER 2009 / 24TH ASWINA 1931 WP(C).No. 25723 of 2009(I) -------------------------- PETITIONER(S): --------------- THE TIRUR CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD.,NO.M.11. P.B.NO.55,TIRUR, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.V.G.ARUN SRI.T.R.HARIKUMAR RESPONDENT(S): --------------- 1. K.M.ABDUL KHADER, MAMBRAVAMBETH HOUSE, POST.VENKATANGAU, CHAVAKKAD, TRICHUR. 2. THE CO-OPERATIVE ARBITRATION COURT, THIRUVANANTHAPURAM,REPRESENTED BY ITS ASSISTANT REGISTRAR/SECRETARY. BY SR. GOVERNMENT PLEADER MR. K.S.MOHAMMED HASHIM ADVS. SRI.R.SUDHISH FOR R1 SMT.M.MANJU FOR R1 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 25723 of 2009(I) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 - COPY OF THE DECISION OF THE DISCIPLINARY SUB COMMITTEE DATED 15.7.2008. EXT.P2 - COPY OF THE PLAINT IN THE ARBITRATION CASE, ARC NO. 106/2008. EXT.P3 - COPYOF THE WRITTEN STATEMENT DATED 18.11.2008. EXT.P4 -COPY OF THE INTERLOCUTORY APPLICATION FILED BY THE 1ST RESPONDENT. EXT.P5 - COPY OF THE OBJECTION FILED BY THE PETITIONER BANK DATED 28.01.2009. EXT.P6 - COPY OF THE INTERIM ORDER IN A.R.C. 106/2008 DATED 28.4.2009. // TRUE COPY // PA TO JUDGE rhs S. SIRI JAGAN, J ............................................... W.P(C) No. 25723 of 2009 ................................................. Dated this the 16th day of October, 2009 J U D G M E N T The petitioner is a Co-operative Bank. The 1st respondent was the former Secretary of the Bank. He was dismissed from service on charges involving loss to the Bank, proved in an enquiry conducted for that purpose. The 1st respondent filed ARC No. 106/2008 before the Co-operative Arbitration Court challenging the disciplinary proceedings. In that ARC, the 1st respondent filed I.A. No. 162/2008 seeking a direction to the petitioner Bank to pay the 1st respondent gratuity due to him. That was allowed by Ext.P6. Ext.P6 order is under challenge before me. 2. I have heard the counsel for the petitioner as also counsel appearing for the 1st respondent. 3. Admittedly, the 1st respondent has been dismissed from service. According to the petitioner, dismissal was for misconducts involving loss to the society. They contend that since he has been dismissed from service for causing loss to the society, the society is entitled to forfeit the gratuity due to the 1st respondent. That being so, without first deciding the question as to whether the 1st W.P(C) No. 25723 of 2009 -2- respondent is guilty of the alleged misconducts or not, the Arbitration Court could not have decided the question of payment of gratuity to the 1st respondent, since the Payment of Gratuity Act permits an employer to forfeit gratuity due to an employee dismissed from service on misconducts causing loss to the employer. Even otherwise, for claiming gratuity, the remedy of the 1st respondent was to file an application under the Payment of Gratuity Act before the authority prescribed under that Act. In the above circumstances, I am satisfied that Ext.P6 order has been wrongly passed. Accordingly, Ext.P6 order is quashed. 4. The learned counsel for the 1st respondent makes a fervent plea to direct the 2nd respondent to complete the proceedings in the ARC expeditiously. 5. Having heard both sides, I direct the 2nd respondent to complete the proceedings in ARC No. 106 of 2008, as expeditiously as possible, at any rate, within six months from the date of receipt of a copy of this judgment. The writ petition is disposed of as above. S. SIRI JAGAN, JUDGE rhs