IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN TUESDAY, THE 19TH JULY 2011 / 28TH ASHADHA 1933 WP(C).No. 19566 of 2011(U) --------------------------------------- PETITIONERS: --------------------- 1. V.N.ANATHAN, VADAKKEMEPPULLY HOUSE, (P.O.) PERINCHERY, THRISSUR-680 306. 2. P.V. PRABHAKARAN, PERUMPARAMBIL HOUSE, (P.O.) PERINCHERY, THRISSUR-680306. 3. SMT. MINI CHANDRAN, THINDIYIL HOUSE, (P.O.) AYYANTHOLE, PUTHURKKARA, THRISSUR-680303. BY ADVS. SRI.P.K.MADHUSOODANAN, SRI.P.M.BINOY KRISHNA. RESPONDENTS: ------------------------ 1. THE KERALA STATE ELECTRICITY BOARD, REPRESENTED BY ITS SECRETARY, VYDHYUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM-695 004. 2. THE SECRETARY, KERALA STATE ELECTRICITY BOARD, VYDYUTHI BHAVAN,PATTOM, THIRUVANANHTHAPURAM-695 004. 3. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT 1972 & THE DISTRICT LABOUR OFFICER, THRISSUR-680 001. 4. THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT & THE REGIONAL JOINT LABOUR COMMISSIONER, ERNAKULAM-682 230. R1 & R2 BY SRI. K.S. ANIL, S.C, K.S.E.B, R3 & R4 BY SR. GOVT. PLEADER SRI. S. ABDUL SALAM. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.19566/2011-U: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE ORDER ISSUED BY THE R.3. BEARING NO. GC.5/2002 DTD. 30/11/2007. EXT.P.2: COPY OF THE ORDER ISSUED BY THE R.3. BEARING NO. G.C. 65/07 DTD. 30/11/2010. EXT.P.3: COPY OF THE ORDER ISSUED BY THE R.3. BEARING NO. G.C. 65/2004 DTD. 10/08/2010. EXT.P.4: COPY OF THE SHOW CAUSE NOTICE DTD. 03/03/2011 ISSUED TO THE P.1. BY THE R.3. EXT.P.5: COPY OF THE SHOW CAUSE NOTICE DTD. 19/05/2011 ISSUED TO THE P.2. BY THE R.3. EXT.P.6: COPY OF THE SHOW CAUSE NOTICE DTD 19/05/2011 ISSUED TO TO THE P.3. BY THE R.3. EXT.P.7: COPY OF THE JUDGMENT DTD. 07/06/2011 IN W.P.(C).NO.14097/2011 PASSED BY THIS HONOURABLE COURT. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.A. TO JUDGE. Prv. P.N. RAVINDRAN, J. ------------------------------- W.P.(C) No.19566 of 2011 ------------------------------- Dated this the 19th day of July, 2011 J U D G M E N T The petitioners in this writ petition 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. By Exts.P1 to P3 orders, 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. W.P.(C) No.19566/2011 2 In this writ petition, the 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. 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 Rs.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 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 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 W.P.(C) No.19566/2011 3 for time to deposit the principal amount of gratuity and the interest portion deserves to be granted. 3. I accordingly dispose of this writ petition with the following directions:- i) The Board shall deposit the principal amount of gratuity covered by Exts.P1 to P3 orders 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) 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. Needless to say, the petitioners will not be entitled to interest after the date of deposit of the principal amount of gratuity. Upon such deposit being made, it will be open to the parties to unconditionally withdraw the money deposited. P.N. RAVINDRAN, JUDGE. nj.