IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 22ND MAY 2009 / 1ST JYAISHTA 1931 WA.No. 1813 of 2004(B) ---------------------- APPELLANT(S): RESPONDENTS 1 TO 3 IN THE O.P: -------------------------------------------- 1. THE STATE OF KERALA, REP. BY THE SECRETARY TO REVENUE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE TAHSILDAR, CHIRAYINKIL, THIRUVANANTHAPURAM. 3. THE DISTRICT LABOUR OFFICER, THIRUVANANTHAPURAM. BY G.P. SRI.MOHAMMED RAFFIQ RESPONDENT(S): PETITIONERS & RESPONDENTS 4 TO 7 IN THE O.P: ----------------------------------------------------------- 1. G.SURENDRAN, ELECTRICIAN, BROTHERS PHARMACEUTICALS, NAVAIKULAM P.O., THIRUVANANTHAPURAM. 2. K.R.JALAJAKSHY PILLAI, GENERAL WORKER, -DO- -DO-. 3. R.PUSHPAHAN, MANUFACTURING WORKER, -DO- -DO-. 4. N.GOPALAKRISHNA KURUP, PRESIDENT, CHIRAYINKIL TALUK, PHARMACEUTICALS & CHEMICALS EMPLOYEES ASSOCIATION (CITU) REG. NO.435/79, VETTIYARA, NAVAIKULAM, THIRUVANANTHAPURAM. 5. K.RAJENDRA PRASAD, RESIDING AT GOKULAM, PARAMESWARA NAGAR, KOLLAM. 6. K.UNNIKRISHNAN, RESIDING AT GOKULAM, PARAMESWARA NAGAR, KOLLAM. 7. K.RAMACHANDRAN NAIR, RESIDING AT GOKULAM, PARAMESWARA NAGAR, KOLLAM. 8. K.VENU, RESIDING AT GOKULAM, PARAMESWARA NAGAR, KOLLAM. ADV. SRI.V.CHITAMBARESH THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ALONG WITH W.A. NO.1840/2004 ON 22/05/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... Writ Appeal Nos.1813 & 1840 of 2004 .................................................................... Dated this the 22nd day of May, 2009. JUDGMENT Ramachandran Nair, J. The question raised in the connected Writ Appeals filed by the State is whether the employees are entitled to priority in payment over the claim of the Sales Tax Department which is covered by the scheme of priority provided under Sections 26A and 26B of the KGST Act. Government Pleader appearing for the appellants contended that by virtue of latest decision of the Supreme Court in Cenral Bank's case (17 KTR 189) State has priority over even secured creditors like Banks which have got mortgage. So much so, the contention of the State is that employees who have got awards against the debtor concerned, cannot have priority over Revenue dues. We notice from the records that claim pertains to arrears of wages and lay off compensation and other benefits due to workers who are several in number. In fact, the claim of each worker is not substantially big. The learned Single Judge upheld the priority claim of the workers and directed release of 2 their claim amounts from out of sale proceeds which again is a substantial amount of around Rs.56 lakhs. Since stay was not there atleast in one case, most of the workers would have been paid. We feel the others also should not be denied the benefit, if they are not paid. Since atleast one Writ Appeal has become infructuous on account of payments made, we feel the same benefits should go to other workers if they have not got the payments. The Writ Appeals are, therefore, closed without deciding the issue on merits. However, the State is given freedom to challenge the principle laid down by the learned Single Judge, if occasion arises in any other case. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms