IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN FRIDAY, THE 8TH JULY 2011 / 17TH ASHADHA 1933 WP(C).No. 18455 of 2011(F) -------------------------- PETITIONERS: --------------- 1. G.MUNIYANDI, AVADI ILLAM, KARIMKULAM, ADIMALI.P.O., IDUKKI DISTRICT. 2. R.RAJAMMA, SOUPARNIKA HOUSE, 2OO ACRE, AMBALAPADY, MANNAMKANDAM.P.O., ADIMALY, IDUKKI DISTRICT. 3. A.SELVARAJ, ANITHA VILASOM, KALLARKUTTY.P.O., KATHIPPARA, IDUKKI DISTRICT. BY ADV. DR.K.P.SATHEESAN SRI.M.R.JAYAPRASAD SRI.P.MOHANDAS (ERNAKULAM) SRI.MATHEW SUNNY SRI.ANOOP.V.NAIR RESPONDENTS: --------------- 1. KERALA STATE ELECTRICITY BOARD, REPRESENTED BY ITS SECRETARY, VYDYUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM-4. 2. CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT 1972 AND DISTRICT LABOUR OFFICER, IDUKKI, THODUPUZHA-685 584. BY GOVT. PLEADER SRI.P.M.MANOJ SRI.K.S.ANIL, SC FOR KSEB THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No. 18455/2011 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF THE ORDER NO.G.C. 131/05 ISSUED BY THE 2ND RESPONDENT DATED 7.4.2011 EXT.P2 : COPY OF THE ORDER NO.G.C. 51/04 PASSED BY THE 2ND RESPONDENT DATED 7.4.2011 EXT.P3 : COPY OF THE ORDER ISSUED BY THE 2ND RESPONDENT IN G.C. NO.40/04 DATED 8.1.2011 EXT.P4 : COPY OF THE REPRESENTATION FILED BY THE FIRST PETITIONER BEFORE THE FIRST RESPONDENT DATED 23.2.2011 RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE vps P.N.RAVINDRAN, J. --------------------------- W.P.(C) No. 18455 OF 2011 -------------------------- Dated this the 8th day of July, 2011 J U D G M E N T Petitioners 1 and 3 are former employees of the Kerala State Electricity Board, hereinafter referred to as “the Board” for short. The second petitioner is the wife of a former employee of the Board. The first petitioner retired from service on 18.5.2004, the second petitioner's husband retired from service on 31.7.2003 and the third petitioner retired from service on 30.11.2003. After retirement, they were paid terminal benefits including gratuity in terms of the provisions contained in the Kerala Service Rules. Thereafter they filed applications under section 7 of the Payment of Gratuity Act, 1972 (hereinafter referred to as 'the Act' for short) claiming gratuity in terms of the provisions of the Act. The Board resisted the applications contending that the petitioners are entitled to gratuity only in terms of the provisions contained in the Kerala Service Rules. The Controlling Authority over ruled the said contention and by Exts.P1 to P3 orders passed after notice to the Board, held that the employees of the Board are entitled to gratuity in terms of the Act. The Board was accordingly directed to pay the difference in the amount of gratuity within 30 days from the date of the order failing which the Board was held liable to pay interest at 10% per annum from the date of the order. This writ petition is filed contending that though the orders passed WPC No.18455/2011 2 by the Controlling Authority have attained finality, till date, the Board has not disbursed the amounts payable to the petitioners. 2. 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 Act to its employees and to withdraw the Special Leave Petition filed by the Board in the Honourable the Supreme Court of India from 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. The learned standing counsel also submitted that the Board will have to incur an additional expenditure of approximately Rs.250 Crores to pay gratuity under the Act and therefore, the Board may be granted three months time to deposit the principal amount of gratuity and six months time after the payment of the principal amount of gratuity to pay the interest portion calculated from the date of Exts.P1 to P3 orders. The learned counsel appearing for the petitioners did not seriously 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. I accordingly dispose of the writ petition with the following directions:- i) The Board shall deposit the principal amount of gratuity covered by Exts.P1 to P3 orders before the second WPC No.18455/2011 3 respondent within three months from the date on which the petitioners produce a certified copy of this judgment before the Secretary of the Board. Upon such deposit, it will be open to the petitioners to withdraw the amount unconditionally. ii) The Board shall deposit the interest portion of the amount payable to the petitioners computed in terms of Exts.P1 to P3 orders with effect from the dates of the respective orders till the date of deposit of the principal amount of gratuity. iii) Upon such deposit being made, it will be open to the petitioners to withdraw the said amount also unconditionally. iv) It is clarified that the petitioners will not be entitled to interest after the date of deposit of the principal amount. P.N.RAVINDRAN, (JUDGE) vps