Partly allowed

State of Kerala v. G.Joseph

Kerala HC23 May 2016WA/1888/2007

Case brief

AI extract

What is this about?

The court held that while retired employees are entitled to wages for services rendered after the scheme's cut-off date (being on the company's rolls), this period must be excluded when calculating Voluntary Retirement Scheme benefits. The Government was directed not to provide funds for the company's voluntary liability. Confirmed judgment below, dismissing appeals against salary payment but allo

What did the court decide?

Government order directing disbursement of funds was vacated; judgment confirming salary entitlement and adjusted benefits was confirmed.

State of Kerala Vs G.Joseph — Company and Corporate | Kerala HC (2016)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE ANTONY DOMINIC &

¶4

THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU

¶5

MONDAY, THE 23RD DAY OF MAY 2016/2ND JYAISHTA, 1938

¶6

WA.No. 1888 of 2007 (D) IN WP(C).6202/2005

¶7

AGAINST THE JUDGMENT IN WP(C) 6202/2005 of HIGH COURT OF KERALA DATED 25-01-2007

¶8

APPELLANTS/IST RESPONDENT IN W.P.C:

¶9

STATE OF KERALA, REPRESENTED BY ITS SECRETARY, INDUSTRIES DEPARTMENT, THIRUVANANTHAPURAM.

¶10

BY ADV. GOVERNMENT PLEADER SRI.SOJAN JAMES

¶11

RESPONDENTS/PETITIONERS & 2ND RESPONDENT IN W.P.C:

¶12

G.JOSEPH, RETIRED CHARGE HAND, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶13

KALAVOOR, ALAPPUZHA.

¶14

M.MURALIDHARAN NAIR, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶15

KALAVOOR, ALAPPUZHA.

¶16

SHAJI CHEERAN, RETIRED A/C. MECHANIC, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶17

PADMINI V., RETIRED OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,,

¶18

KALAVOOR, ALAPPUZHA.

¶19

P. UNNIKRISHNAPILLAI, RETIRED GRADE-1, OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶20

KALAVOOR, ALAPPUZHA.

¶21

K.C.LEELAMMA, RETIRED PACKING ASSISTANT KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶22

KALAVOOR, ALAPPUZHA.

¶23

THILAKAMMA V.R., RETIRED PACKING ASSISTANT GRADE. KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶24

KALAVOOR, ALAPPUZHA.

¶25

OMANAKUTTAN PILLAI, RETIRED OPERATOR GRADE-1, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶26

KALAVOOR, ALAPPUZHA.

¶27

VALSALA M.K., RETIRED PACKING ASSISTANT KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

KALAVOOR, ALAPPUZHA.

WA.No. 1888 of 2007

GOMATHY S, RETIRED FIRST GRADE OPERATOR, KERALA STATE DRUGS AND PHARMACEUITICALS LIMITED,

¶32

KALAVOOR, ALAPPUZHA.

¶33

P.N.SARASAMMA, RETIRED ASSISTANT OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶34

KALAVOOR, ALAPPUZHA.

¶35

D.RAVEENDRAN, RETIRED FORMAN, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶36

KALAVOOR, ALAPPUZHA.

¶37

MAJEED KUNJU, RETIRED SECURITY GUARD, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶38

KALAVOOR, ALAPPUZHA.

¶39

P.V.PHILOMINA, RETIRED GRADE-1 OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶40

KALAVOOR, ALAPPUZHA.

¶41

A.ITTIRARICHA KURUP, RETIRED CHARGE HAND KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶42

KALAVOOR, ALAPPUZHA.

¶43

M.E.ANTONY, RETIRES SPECIAL GRADE ASSISTANT, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR,ALAPPUZHA.

¶44

T.T.SUDHARMA, RETIRED OPEATOR, GRADE I, KERALA STATE DRUGS AND PAHARMACEUTICALS LIMITED,

¶45

KALAVOOR, ALAPPUZHA.

¶46

K.M.ANTONY, KOCHEEKARAN VEEDU, RETIRED FOREMAN, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶47

P.R. VIJAYAMMA, RETIRED GRADE-1 OPERATOR KERALA STATE DRUGS AND PHARMACEUITICALS LIMITED,

¶48

KALAVOOR, ALAPPUZHA.

¶49

S.RAMACHANDRAN, RETIRED SENIOR ASSISTANT KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶50

KALAVOOR, ALAPPUZHA.

¶51

V.SREEKANTAN, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶52

KALAVOOR, ALAPPUZHA.

¶53

V.SIVANANDAN, RETIRED HEAD GUARD, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

KALAVOOR, ALAPPUZHA.

WA.No. 1888 of 2007

K.SATHEESHCHANDRAN, RETIRED HEAD CLERK, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶58

KALAVOOR , ALAPPUZHA.

¶59

B.SANALKUMAR, RETIRED CHARGE HAND, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶60

KALAVOOR, ALAPPUZHA.

¶61

B.RAJENDRAPRASAD, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶62

KALAVOOR, ALAPPUZHA.

¶63

K.A. PETER, RETIRED PACKING ASSISTANT, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA.

¶65

THOMAS FRANCIS, RETIRED HEAD CLERK, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶66

KALAVOOR, ALAPPUZHA.

¶67

G.RAGHAVAKURUP, RETIRED ASSISTANT OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶68

K.JANAKI, RETIRED PACKING ASSISTANT, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶69

KALAVOOR, ALAPPUZHA.

¶70

H.SUBRAMONI IYER, RETIRED LAB TECHNICIAN KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶71

KALAVOOR , ALAPPUZHA.

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P.PADMANABHAN, RETIRED SENIOR ASSISTANT KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA.

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KUNJANNAMMA M.J., RETIRED OPERATOR, GRADE I, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶75

KALAVOOR, ALAPPUZHA.

¶76

M. LAILA, RETIRED ASSISTANT GRADE-1, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶77

KALAVOOR, ALAPPUZHA.

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P.N.PURUSHAN, RETIRED CHARGE HAND, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶79

KALAVOOR , ALAPPUZHA.

¶80

E. GOPALAN, RETIRED OPERATOR, GRADE-1, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

KALAVOOR, ALAPPUZHA.

WA.No. 1888 of 2007

S.PUSHPAVALLY, RETIRED GRADE-1 OPERATOR KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶85

KALAVOOR, ALAPPUZHA.

¶86

T.H. MARIYAMMA, RETIRED SPECIAL GRADE OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶87

KALAVOOR, ALAPPUZHA.

¶88

E.P. NABEESA BEEVI, RETIRED PACKING ASSISTANT, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶89

P.KRISHNAVENI, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA. 40. MARIA SOPHIA, RETIRED OPERATOR, GRADE-1 KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA. 41. MATHEW JOSEPH, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶92

KALAVOOR, ALAPPUZHA. 42. A.NAZEEMA BEEVI, RETIRED ASSISTANT OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶93

KALAVOOR, ALAPPUZHA. 43. K.SWATHIKUTTY, RETIRED ASSISTANT OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA. 44. M.P.KANCHANAMMA, RETIRED GRADE I OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA.

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G.GIRIJA, RETIRED PACKING ASSISTANT, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA.

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K.A. ANAMMA, RETIRED GRADE I OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶99

KALAVOOR, ALAPPUZHA.

¶100

T.DAMODARAN, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶101

KALAVOOR, ALAPPUZHA.

¶102

P.PONNUMMA, RETIRED GRADE I OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

KALAVOOR, ALAPPUZHA.

WA.No. 1888 of 2007

P.PADMAKUMARI, RETIRED TEAM LEADER, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶107

KALAVOOR, ALAPPUZHA.

¶108

P.GOPINATHA KURUP, RETIRED PACKING ASSISTANT GRADE, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶109

N.THIRUJANA SAMBATH, RETIRED SPECIAL GRADE, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶110

KALAVOOR, ALAPPUZHA.

¶111

T.SREENIVASAN, RETIRED HEAD CLERK, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶112

KALAVOOR, ALAPPUZHA.

¶113

K.PONNAPPAN, RETIRED PACKING ASSISTANT KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶114

KALAVOOR, ALAPPUZHA.

¶115

A. ABDUL RASHEED SAIF, RETIRED OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶116

KALAVOOR, ALAPPUZHA.

¶117

K.D.NATESHAN, RETIRED GRADE 1 OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶118

KALAVOOR, ALAPPUZHA.

¶119

K.RAJAMMA, RETIRED PACKING ASSISTANT, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶120

KALAVOOR, ALAPPUZHA.

¶121

K.N.SASANKAN, RETIRED GRADE III, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶122

KALAVOOR , ALAPPUZHA.

¶123

A.S. USMAN KHAN, RETIRED CHARGE HAND, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶124

KALAVOOR, ALAPPUZHA.

¶125

S.P.KUNJAMMA, RETIRED GRADE I OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶126

KALAVOOR, ALAPPUZHA.

¶127

M.PADMINI AMMA, RETIRED CHARGE HAND, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶128

KALAVOOR, ALAPPUZHA.

¶129

G.KRISHNAN NAIR, RETIRED SENIOR OPERATOR KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

KALAVOOR, ALAPPUZHA.

WA.No. 1888 of 2007

MARTIN P.J., RETIRED ASSISTANT GRADE-I KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶134

KALAVOOR, ALAPPUZHA.

¶135

V.GOPALAN, RETIRED PLANT WORKER, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

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KALAVOOR, ALAPPUZHA.

¶137

M.SASIDHARAN NAIR, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶138

M.SARASWATHY AMMA, RETIRED 1ST GRADE, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶139

B.THANKAMONY, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED, KALAVOOR, ALAPPUZHA.

¶140

P.P.REVAMMA, RETIRED GRADE I OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶141

KALAVOOR, ALAPPUZHA.

¶142

G.SANTHAKUMARAN PILLAI, RETIRED SENIOR OPERATOR, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶143

KALAVOOR, ALAPPUZHA.

¶144

T.K. ALEXANDER, RETIRED A/C.MECHANIC, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,

¶145

KALAVOOR, ALAPPUZHA.

¶146

THE KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED KALAVOOR, ALAPPUZHA, REPRESENTED BY ITS MANAGING DIRECTOR.

¶147

R,R70 BY ADV. SRI.V.JAYAPRADEEP R,R1 TO R69 BY ADV. SRI.P.RAMAKRISHNAN

¶148

THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 23-05-2016 ALONG WITH W.A.NOS.2158, 2288, 2302, 2375, 2397, 2405, 2406, 2407, 2455, 2472, 2523, 2577 & 2578 OF 2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶149

ANTONY DOMINIC & DAMA SESHADRI NAIDU, JJ.

¶150

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

¶151

Writ Appeal Nos.1888, 2158, 2288, 2302, 2375, 2397, 2405, 2406, 2407, 2455, 2472, 2523, 2577 & 2578 of 2007

¶152

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 23^rd day of May, 2016

¶153

JUDGMENT

¶154

Antony Dominic, J.

¶155

While some of the writ appeals are filed by the Kerala State Drugs and Pharmaceutical Limited, the remaining appeals are filed by the Principal Secretary to the Government, Industries Department, who are the respondents in these batch of writ petitions.

¶156

The writ petitions were filed by the former employees of the Kerala State Drugs and Pharmaceuticals Limited. It is stated that the company had issued a Circular introducing a Scheme for Voluntary Retirement fixing 31.12.2003 as the cut off date. Though ultimately the applications made by writ petitioners pursuant to the scheme were accepted by the company, it is a fact that they

¶157

Writ Appeal Nos.1888, 2158, 2288, 2302, 2375, 2397, 2405, 2406, 2407, 2455, 2472, 2523, 2577 & 2578 of 2007

¶158

: 2 :

¶159

continued to render service till 30.9.2004. It was in such circumstances that, according to the writ petitioners, they should not only be held entitled to salary and other benefits for the period upto 30.9.2004, the cut off date 31.12.2003 should be modified as 30.9.2004.

¶160

In the judgment under appeal, while the learned Single Judge declined the prayer with respect to shifting of the cut off date, namely, 31.12.2003, the learned Single Judge ordered that the writ petitioners should be entitled for wages and other benefits for the services rendered upto 30.9.2004, the date on which they were relieved from service. On this basis, it was ordered that the necessary funds shall be provided by the Government within two months and that the arrears of salary along with the amounts due under the Voluntary Retirement Scheme should be worked out and disbursed to the employees.

¶161

Writ Appeal Nos.1888, 2158, 2288, 2302, 2375, 2397, 2405, 2406, 2407, 2455, 2472, 2523, 2577 & 2578 of 2007

¶162

: 3 :

¶163

In the appeals filed, the Government contends that the employer being the Kerala State Drugs and Pharmaceutical Limited, the Government cannot be saddled with the liability to provide funds necessary for discharging the liability of the employer to the voluntarily retired employees. On the other hand, the company contends that monetary benefits during the period 1.1.2004 to 30.9.2004 should not be disbursed for the reason that the workers were on the rolls of the company, because the company was defunct during the said period. These contentions were strongly refuted by the learned Senior Counsel appearing for the party respondents.

¶164

On considering the rival submissions made, what we find is that though a cut off date of 31.12.2003 was incorporated in the Scheme for Voluntary Retirement, the applications were accepted and the employees were relieved from service only with effect from

¶165

Writ Appeal Nos.1888, 2158, 2288, 2302, 2375, 2397, 2405, 2406, 2407, 2455, 2472, 2523, 2577 & 2578 of 2007

¶166

: 4 :

¶167

30.9.2004. This necessarily means that the employees continued on the rolls of the company. If the employees have continued on the rolls of the company, such employees are entitled to be paid their wages and other benefits in terms of the contract of employment. Therefore, even if the company was defunct, as now projected by the learned counsel for the employer, is no reason for denying the monetary benefits due to the employees for the services they have rendered.

¶168

However, it needs to be clarified whether the employees are entitled to wages and also to have period till 30.9.2004 reckoned for quantifying the Voluntary Retirement Scheme benefits. According to us, they cannot have both. Therefore, that period will necessarily have to be excluded while quantifying the benefits of the Voluntary Retirement Scheme that are due in terms of the Scheme.

¶169

Writ Appeal Nos.1888, 2158, 2288, 2302, 2375, 2397, 2405, 2406, 2407, 2455, 2472, 2523, 2577 & 2578 of 2007

¶170

: 5 :

¶171

Turning now to the appeals filed by the Government, as we have already stated, the question is whether the learned Judge was justified in requiring the Government to provide funds for meeting the monetary liability under the Voluntary Retirement Scheme. Admittedly, the company is a Government company. The Government Company and the Government are distinct and different. Therefore, the liabilities of the company cannot be the liabilities of the Government unless the Government voluntarily takes it over. If that be so, the Government cannot be compelled to disburse the liabilities incurred by the company under the Voluntary Retirement Scheme introduced by it for discharging to its employees. The fact that the Government have provided funds on an earlier occasion to meet part of the liability, is a voluntary act of the Government and that cannot be used against the Government to compel it to disburse the balance amount also. Therefore, unless

¶172

Writ Appeal Nos.1888, 2158, 2288, 2302, 2375, 2397, 2405, 2406, 2407, 2455, 2472, 2523, 2577 & 2578 of 2007

¶173

: 6 :

¶174

the Government willingly disburse the amount that is due, neither the employees nor the employer can force the Government to disburse any more amount from out of its coffers. Therefore, that part of the judgment of the learned Single Judge directing Government to disburse the necessary funds has to be vacated and we do so.

¶175

Subject to the aforesaid clarifications, the judgment under appeal stands confirmed and the appeals are accordingly disposed of.

¶176

Sd/- ANTONY DOMINIC JUDGE

¶177

Sd/- DAMA SESHADRI NAIDU JUDGE

¶178

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State of Kerala v. G.Joseph

Case brief

What is this about?

What did the court decide?

State of Kerala v. G.Joseph

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

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