IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN TUESDAY, THE 7TH JUNE 2011 / 17TH JYAISHTA 1933 WP(C).No. 639 of 2011(D) ----------------------------------- PETITIONER(S): ------------------- M.RAJAN, S/O.K.K.MATHEW AGED 60 YEARS, KANNIMELPARAMBIL HOUSE P.O.MULLURKARA, THRISSUR 680 583. BY ADV. SRI.P.K.MADHUSOODANAN SRI.P.M.BINOY KRISHNA RESPONDENT(S): ----------------------- 1. THE KERALA STATE ELECTRICITY BOARD REPRESENTED BY ITS SECRETARY,VYDYUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM.695 004. 2. THE SECRETARY KERALA STATE ELECTRICITY ,VYDYUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM.695 004. 3. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT& THE DISTRICT LABOUR OFFICER, THRISSUR. 680 001. 4. THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT & THE REGIONAL JOINT LABOUR COMMISSIONER, ERNAKULAM. 682 030. R1 & R2 BY ADV. SRI.K.S.ANIL, SC K.S.E.B. R3 & R4 BY GP SRI.P.M.MANOJ THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 07/06/2011, ALONG WITH WPC. NO.912 OF 2011 AND CONNECTED CASES THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: tss W.P.(C) NO.639/2011 APPENDIX PETITIONER'S EXHIBITS P1:- COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT, BEARING NO.G.C. 61/07 DATED 15.6.2010. P2:- COPY OF THE SHOW CAUSE NOTICE DATED 22.10.2010 ISSUED BY THE 3RD RESPONDENT. P3:- COPY OF THE JUDGMENT DATED 6.6.2007 IN WP(C) NO.12423/07 PASSED BY THIS HONOURABLE COURT. RESPONDENT'S EXHIBITS. NIL:- //TRUE COPY// P.A. TO JUDGE tss P.N. RAVINDRAN, J. ------------------------------- W.P.(C) Nos.639, 912, 958, 959, 971, 6361, 6737, 6794, 8023, 8024, 8177, 8335, 8422, 8696, 8905, 8935, 9096, 9496, 9764, 9765, 9928, 9929, 9955, 10028, 10063, 10270, 10584, 10881, 11441, 11647, 12089, 13824, 13938, 14006, 14011, 14050, 14052, 14059, 14097, 14100, 14208, 14278, 14391, 14406, 14509, 14820 of 2011. ------------------------------- Dated this the 7th day of June, 2011 J U D G M E N T 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 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, W.P.(C) No.639 of 2011 and connected cases. 2 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 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 W.P.(C) No.639 of 2011 and connected cases. 3 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 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 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 W.P.(C) No.639 of 2011 and connected cases. 4 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 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, W.P.(C) No.639 of 2011 and connected cases. 5 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. 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. nj.