IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN WEDNESDAY, THE 22ND JUNE 2011 / 1ST ASHADHA 1933 WP(C).No. 18613 of 2010(B) --------------------------------------- PETITIONERS: --------------------- 1. N.A.ABBAS, 67 YEARS, S/O.ABDULLA, NJAREKATTIL HOUSE, POST PERINJANAM, THRISSUR DISTRICT. 2. M.K.RAJAN, 67 YEARS, S/O.LATE KUTTIAYYAPPAN, MANDATHARA HOUSE, POST KODUNGALLUR, THRISSUR DISTRICT. 3. SUDHAKARAN, MUNNOTTIPARAMBIL HOUSE, POST KOTHAPARAMBU, KODUNGALLUR, THRISSUR DISTRICT. 4. N.VASUDEVAN, S/O.NANU, CHERUVALLIL HOUSE, S.N.PURAM, POST PANANGAD, THRISSUR DISTRICT. BY ADVS. SMT.T.D.RAJALAKSHMI, SRI.R.SREEHARI. RESPONDENTS: ------------------------ 1. KERALA STATE ELECTRICITY BOARD, VYDHYUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY. 2. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT (DISTRICT LABOUR OFFICER), AYYANTHOLE, THRISSUR. 3. THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT (REGIONAL JOINT LABOUR COMMISSIONER), CIVIL STATION, KAKKANAD, ERNAKULAM. R1 BY SRI. K.S. ANIL, S.C, K.S.E.B. R2 & R3 BY GOVT. PLEADER SRI. P.M. MANOJ, THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/06/2011, ALONG WITH W.P.(C).NO. 3380/2011 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.18613/2010-B: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE ORDER PASSED BY THE R.2. IN G.C. 253/06 DT. 24/11/2007. EXT.P.2: COPY OF THE ORDER PASSED BY THE R.2. IN G.C. 50/05 DT. 30/11/2007. EXT.P.3: COPY OF THE ORDER PASSED BY THE R.2. IN G.C. 234/06 DT. 24/04/2008. EXT.P.4: COPY OF THE ORDER PASSED BY THE R.2. IN G.C. 166/04 DT. 15/11/2006. EXT.P.5: COPY OF THE JUDGMENT IN W.P.(C).NO.10089/2010 DTD. 31/03/2010. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE. Prv. P.N.RAVINDRAN, J. ----------------------------------------- W.P(C).Nos.18613, 21155, 21971, 23175, 26175, 27132, 27936, 28155, 28571, 28629, 29205, 29207, 29401, 29568, 31338, 32204, 32346, 33004, 34361, 34376, 35350, 36046, 36213, 36846, 37220, 37446, 37946, 38027, 38028, 38353, of 2010, 1013, 1102, 1352, 2021, 2553, 2580, 3049, 3367, 3377, 3378, 3380, 4138, 4218, 4823, 4849, 5752, 6340, 6345, 7247, 7947, 8230, 8566, 8613, 9024 and 13134 of 2011 ----------------------------------------- Dated this the 22nd June, 2011 JUDGMENT 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 W.P(C) NO.18613/2010 and connected cases -:2:- 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, 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 W.P(C) NO.18613/2010 and connected cases -:3:- 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 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 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 W.P(C) NO.18613/2010 and connected cases -:4:- 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 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 W.P(C) NO.18613/2010 and connected cases -:5:- 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 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. W.P(C) NO.18613/2010 and connected cases -:6:- 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. ahg. P.N.RAVINDRAN, J. --------------------------- W.P(C).Nos.18613, 21155, 21971, 23175, 26175, 27132, 27936, 28155, 28571, 28629, 29205, 29207, 29401, 29568, 31338, 32204, 32346, 33004, 34361, 34376, 35350, 36046, 36213, 36846, 37220, 37446, 37946, 38027, 38028, 38353, of 2010, 1013, 1102, 1352, 2021, 2553, 2580, 3049, 3367, 3377, 3378, 3380, 4138, 4218, 4823, 4849, 5752, 6340, 6345, 7247, 7947, 8230, 8566, 8613, 9024 and 13134 of 2011 ---------------------------- JUDGMENT 22nd June, 2011