IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 23RD MAY 2008 / 2ND JYAISHTA 1930 WP(C).No. 32557 of 2007(A) -------------------------- PETITIONER: ------------ THE CANNANORE CO-OPERATIVE SPINNING MILLS LTD., P.B.NO.205, P.O. CHOVVA, KANNUR-6, REP. BY ITS MANAGING DIRECTOR, T.SUKUMARAN NAIR. BY ADV. SRI.A.M.SHAFFIQUE (SR.) SRI.E.K.NANDAKUMAR SRI.A.K.JAYASANKAR NAMBIAR SRI.K.JOHN MATHAI SRI.ANIL D. NAIR RESPONDENTS: ------------- 1. V.P. RAJAN, S/O. KRISHNAN, PARAMBIL HOUSE, VALIYANNUR P.O., VARAM, KANNUR-670 594. 2. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT (DISTRICT LABOUR OFFICER), KANNUR-670 002. BY ADV. SRI.P.M.PAREETH FOR R1 GP. SMT. N.SUDHA DEVI THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/05/2008, ALONG WITH WPC NOS. 32589 & 32603 OF 2007 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 32557 of 2007(A) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF THE PETITIONER FOR THE PERIODS 1ST APRIL 2006 TO 31.3.2007. EXT.P2: APPLICATION FOR GRATUITY GC.NO. 208/2005 DTD. 08.2005 FILED BY THE 1ST RESPONDENT. EXT.P3: COUNTER STATEMENT DTD. 07.05.2006 FILED BY THE PETITIONER IN GC.NO.208/2005. EXT.P4: ORDER DTD. 16.7.2007 ISSUED BY THE 2ND RESPONDENT. EXT.P5: SHOW CAUSE NOTICE DTD. 26.9.2007 ISSUED BY THE 2ND RESPONDENT. EXT.P6: DETAILED REPLY DTD. 29.9.2007 TO THE SHOW CAUSE NOTICE, SUBMITTED BY THE PETITIONER. RESPONDENT'S EXHIBITS: NIL ---- // TRUE COPY // P.A TO JUDGE. S.SIRI JAGAN, J = = = = = = = = = = = = = = = = W.P.(C).Nos. 32557, 32589 &32603 of 2007 = = = = = = = = = = = = = = = = = = = = = = Dated this the 23rd day of May, 2008. J U D G M E N T In all these three writ petitions the petitioners are challenging orders of authorities under Payment of Gratuity Act directing payment of gratuity to three retired employees of the petitioner company. The petitioner's main contention is that the petitioner is unable to pay off amounts due to the retired employees on account of precarious financial condition of the company. It is also submitted that the petitioner is a Government company. However, now it is admitted that the principal amount of gratuity due to the petitioners in W.P.(C). Nos. 32589 & 32557 of 2007 has been paid. In W.P.(C).No. 32603 of 2007, I had directed payment of Rs. 50,000/- as an interim measure which is also paid. The contention of the petitioners is that the petitioners are making all efforts to pay off gratuity amounts due to all the retired employees of the company and they are paying gratuity in accordance with the priority of date of retirement at the rate of 10 employees per month. They W.P.(C).Nos. 32557, 32589 &32603 of 2007 2 are willing to pay the balance principal amount due to the petitioner in W.P.(C).No. 32603 of 2007 also within a week. However, the petitioners challenge the liability to pay interest. I am not inclined to accept that contention since the liability to pay interest is statutory. In the above circumstances, this writ petition is disposed of with the following directions: The balance principal amount due to the 1st respondent in W.P.(C).No. 32603 of 2007 shall be paid within a period of one week from the date of receipt of a copy of this judgment. The interest due to the 1st respondent in each of the three writ petitions shall be paid within two months from the date of receipt of a copy of this judgment. The validity of the scheme put forward by the petitioner for payment of gratuity to retired employees of the petitioner is left open to be agitated in any future litigation that may arise. S.SIRI JAGAN, JUDGE bkn/-