Allowed

Surasan V.P v. Steel Industrials Kerala Limited

Kerala HC18 Dec 2020WP(C)/14962/2020

Case brief

AI extract

What is this about?

The Court issued directions for Steel Industrials Kerala Limited (SILK) to pay statutory retirement benefits to retirees in installments of 10% per month due to financial difficulties, authorized salary suspension of top management for non-compliance, and ordered a final decision on a specific petitioner's disputed dues within one month.

What did the court decide?

SILK was directed to pay 10% of DCRG monthly from 2020 and terminal benefits 10% annually from July 2021; top management salaries to be suspended upon default; and the competent authority to decide on

Surasan V.P Vs Steel Industrials Kerala Limited — Company and Corporate | Kerala HC (2020)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN

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FRIDAY, THE 18TH DAY OF DECEMBER 2020 / 27TH AGRAHAYANA, 1942

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WP(C).No.14930 OF 2020(M)

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PETITIONERS:

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1 B. JAYAKRISHNAN, AGED 59 YEARS HARICHANDRAM, K.P.9/521, PANTHEZHAM, MUHAMMA P.O., ALAPPUZHA - 688 525.

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2 E.C.GEORGE AGED 58 YEARS S/O.CHACKO, EDAVAZHICAL HOUSE, CMC 28, NEAR PARADISE THEATRE, CHERTHALA - 688 524.

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BY ADVS. SRI.R.PARTHASARATHY SMT.SEEMA PARTHASARATHY

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RESPONDENTS:

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1 STEEL INDUSTRIALS KERALA LIMITED, A GOVERNMENT OF KERALA UNDERTAKING AND A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT ATHANI P.O., THRISSUR - 680 771, REPRESENTED BY ITS MANAGING DIRECTOR.

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2 THE MANAGING DIRECTOR STEEL INDUSTRIALS KERALA LIMITED, ATHANI P.O., THRISSUR - 680 771.

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3 THE GOVERNMENT OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, THIRUVANANTHAPURAM - 695 001.

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R1 TO R2 BY SMT. LATHA ANAND, STANDING COUNSEL R3 BY SRI. BIJOY CHANDRAN, SR. GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2020, ALONG WITH WP(C).14962/2020(U), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).Nos.14930 & 14962 OF 2020(M)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN

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FRIDAY, THE 18TH DAY OF DECEMBER 2020 / 27TH AGRAHAYANA, 1942

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WP(C).No.14962 OF 2020(U)

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PETITIONER:

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SURASAN V.P AGED 63 YEARS S/O.CHATHUKUTTY.P.V,SAMRIDHI, NEAR E.J.TOWER,KANNUR ROAD,KUTHUPARAMBA, PIN-670643.

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BY ADVS. SRI.R.PARTHASARATHY SMT.SEEMA PARTHASARATHY

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RESPONDENTS:

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1 STEEL INDUSTRIALS KERALA LIMITED A GOVERNMENT OF KERALA UNDERTAKING AND A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE COMPANIES AT,1956,HAVING ITS REGISTERED OFFICE AT ATHANI.P.O,THRISSUR-680771,REPRESENTED BY ITS MANAGING DIRECTOR.

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2 THE MANAGING DIRECTOR, STEEL INDUSTRIALS KERALA LIMITED, ATHANI.P.O, THRISSUR-680771.

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3 THE GOVERNMENT OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, THIRUVANANTHAPURAM-695001.

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R1 TO R2 BY ADV. SMT.LATHA ANAND, STANDING COUNSEL R3 BY SRI. BIJOY CHANDRAN, SR. GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2020, ALONG WITH WP(C).14930/2020(M), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).Nos.14930 & 14962 OF 2020(M)

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JUDGMENT

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[ WP(C).14930/2020, WP(C).14962/2020 ] Dated this the 18^th day of December 2020

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The petitioners in these cases are stated to be retirees from the Steel Industrials Kerala Limited (SILK), which is a wholly owned Government of Kerala enterprise. According to them, even though they have all retired as early as in the year 2014 and 2015, none of them have been paid their statutory retirement benefits until now, though some portions have been disbursed to them, in bits and pieces. They, therefore, pray that the SILK be directed to pay them the full amounts, within a time frame to be fixed by this Court.

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In response to the submissions of Sri. Parthasarathy, the learned counsel for the petitioners in both these cases, Smt. Latha Anand – the learned Standing Counsel for the SILK, submitted that the sole reason for the delay in disbursement of the benefits of the petitioners is because, her client is in extreme financial crisis and that steps have been now taken to ensure that enough resources are created so as to honour all the commitments faced by them. Smt. Latha Anand

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WP(C).Nos.14930 & 14962 OF 2020(M)

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submitted that a proposal has also been made, which has transmuted itself into a scheme, as per which, DCRG will be disbursed to all persons who have retired upto the year 2020 at the rate of 10% every month, thus ensuring that all of them get their DCRG within the next ten months. She, added to this by saying that this payment has already begun and that the entire DCRG will be, therefore, honoured within the next few months.

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As far as the other retirement benefits of the petitioners are concerned, Smt. Latha Anand submitted that they will also be paid in the same manner, at the rate of 10% per month, from July, 2021. She prayed that this Court allow the SILK to do so and submitted that if it is not so, then the Company will have to be shut down.

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On hearing Smt. Latha Anand as afore, Sri.Parthasarathy – the learned counsel for the petitioners, acceded to the suggestion made by her, but praying that this Court may ensure that the SILK honors its commitment without any break. He, then, added that, as regards the petitioner in W.P. (C) No.14962 of 2020 is concerned, there is a dispute as to the amounts which he is entitled to and showed me that the Company has only accepted nearly Rupees six lakhs out of the

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WP(C).Nos.14930 & 14962 OF 2020(M)

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appropriately Rupees 14 lakhs he has claimed. Sri.

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Parthasarathy, therefore, prayed that the SILK be directed to look into this aspect also.

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In the afore circumstances, I order this writ petitions and direct the SILK to continue to pay 10% of the DCRG to all the employees who have retired until September 2020, without any break, so as to complete the same in due course. b) As regards the other terminal benefits are concerned, the SILK will pay the petitioners herein along with all the employees who have retired upto September 2020, at the rate of 10% per annum starting from July 2021, making sure that this is also completed without any break.

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c) In the event any of the afore directions are violated – even in the case of one of the petitioners or retirees – the salary to all the officers in the top management shall stand suspended, until such time as the amounts are fully paid to all of them, in terms of the directions herein.

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d) As far as the petitioner in W.P.(C)No. 14962 of 2020 is concerned, the Competent Authority of the SILK will hear him and take a final decision as to his benefits, which shall be done within

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a period of one month from today and will then disburse to him

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WP(C).Nos.14930 & 14962 OF 2020(M)

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the said amounts, in the afore manner. Needless to say, the petitioner in the said writ petition will be at full liberty, to challenge or to invoke such other remedy as against the proceedings to be issued by the SILK, if we feels that any further action is required.

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These writ petitions are thus ordered.

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Sd/DEVAN RAMACHANDRAN

JUDGE

Continued.....

WP(C).Nos.14930 & 14962 OF 2020(M)

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The words 'per annum' occurring after the word '10%' in Paragraph No.5(b) of the Judgment dated 18.12.2020 in W.P. (C)No.14930/2020 & 14962/2020 are corrected as 'per month' as per the order dated 18.03.2021 in I.A.No.01/2021 in W.P. (C)No.14930/2020.

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Sd/-

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DEPUTY REGISTRAR

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WP(C).Nos.14930 & 14962 OF 2020(M)

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APPENDIX OF WP(C) 14930/2020

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PETITIONERS' EXHIBITS:

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EXHIBIT P1	TRUE COPY OF THE PETITIONER DATED	RELIEVING ORDER OF 1ST 31/5/2018.
EXHIBIT P2	TRUE COPY OF THE BY THE 2ND PETITI RESPONDENT TO A Q DATED 27/1/2010.	INFORMATION RECEIVED ONER FROM THE 1ST UERY UNDER RTI ACT
EXHIBIT P3	TRUE COPY OF THE SUBMITTED BY THE 23/01/2020.	REPRESENTATION 1ST PETITIONER ON
EXHIBIT P4	TRUE COPY OF THE SUBMITTED BY THE 1ST RESPONDENT DA	REPRESENTATION 1ST PETITIONER TO THE TED 6/2/2020.
EXHIBIT P5	TRUE COPY OF THE SUBMITTED BY THE THE 1ST RESPONDEN	REPRESENTATION 2ND PETITIONER BEFORE T ON 6/1/2020.
EXHIBIT P6	TRUE COPY OF THE STATEMENT FOR THE 2018.	PROFIT AND LOSS YEAR ENDING MARCH
EXHIBIT P7	TRUE COPY OF THE 5837/2014 BEFORE DATED 1/4/2014.	JUDGMENT W.P.(C) THE HON'BLE COURT
EXHIBIT P8	TRUE COPY OF THE 28/7/2017.	INTERIM ORDER DATED
EXHIBIT P9	TRUE COPY OF THE NO.2920/2017 AND 23/10/2019.	JUDGMENT IN W.P.(C) CONNECTED CASES DATED
EXHIBIT P10	TRUE COPY OF THE 1ST RESPONDENT.	LIST SUPPLIED BY THE
EXHIBIT P11	TRUE COPY OF THE FROM THE WEBSITE COMPANY.	ADVERTISEMENT OBTAINED OF THE RESPONDENT

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WP(C).Nos.14930 & 14962 OF 2020(M)

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RESPONDENTS' EXHIBITS:

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EXHIBIT R2(a) TRUE COPY OF THE SCHEDULE SHOWING DETAILS OF EMPLOYEES TO WHOM THE GRATUITY ARE PAYABLE

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EXHIBIT R3(a) A TRUE COPY OF THE “SCHEDULE” WITH REGARD TO PAYMENT OF GRATUITY DUES OF RETIED EMPLOYEES OF SILK AS ON 22.09.2020 FURNISHED BY THE MD, SILK TO THE GOVERNMENT

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WP(C).Nos.14930 & 14962 OF 2020(M)

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APPENDIX OF WP(C) 14962/2020

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PETITIONER'S EXHIBITS:

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EXHIBIT P1	TRUE COPY OF THE RELIEVING ORDER DATED 30.4.2015 ISSUED BY THE 1ST RESPONDENT.
EXHIBIT P2	TRUE COPY OF THE ORDER ACCEPTING PLACING OF THE PETITIONER AS SENIOR MANAGER ON CONTRACT CARRIAGE BASIS DATED 12.1.2016.
EXHIBIT P3	TRUE COPY OF THE GOVERNMENT ORDER DATED 5.7.2013,REVISING PAYMENT OF EXECUTIVE STAFF OF 1ST RESPONDENT COMANY.
EXHIBIT P4	TRUE COPY OF THE CIRCULAR ISSUED PURSUANT TO EXT.P3 GOVERNMENT ORDER DATED 30.7.2013
EXHIBIT P5	TRUE COPY OF THE LAST REPRESENTATION SUBMITTED BEFORE THE 1ST RESPONDENT DATED 2.3.2020.
EXHIBIT P6	TRUE COPY OF THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDING MARCH 2018.
EXHIBIT P7	TRUE COPY OF THE JUDGMENT W.P. (C)NO.5837/2014 BEFORE THE HON'BLE HIGH COURT DATED 1-4-2014.
EXHIBIT P8	TRUE COPY OF RELEVANT PAGES OF THE SCHEME SUBMITTED BY THE COMPANY BEFORE THE HON'BLE COURT IN WP.(C).NO.23235/2016.
EXHIBIT P9	TRUE COPY OF THE GRATUITY REVISION GIVEN TO SRI.V.L.MOHANKUMAR DATED 08/05/2014.
EXHIBIT P10	TRUE COPY OF THE NOTE OF ASSISTANT MANAGER HRD DATED 06/09/2013 FOR REVISION OF GRATUITY TO SRI.V.L.MOHANKUMAR.
EXHIBIT P11	TRUE COPY OF THE EMAIL DATED 17/02/2017 RECEIVED THE RESPONDENT.
EXHIBIT P12	LIST OF PETIITONER'S ENGAGEMENT ON VARIOUS DATES BETWEEN 23/11 TO 26/12 OF 2015 FOR THE COMPANY.
EXHIBIT P13	TRUE COPY OF THE CHEQUE FORWARDING LETTER OF DUES TO SRI.A.AUBID DATED 20/09/2019.

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WP(C).Nos.14930 & 14962 OF 2020(M)

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RESPONDENTS' EXHIBITS:

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EXHIBIT R2(a) SCHEDULE FOR RELEASING TERMINAL BENEFITS TO RETIRED EMPLOYEES

Surasan V.P v. Steel Industrials Kerala Limited

Case brief

What is this about?

What did the court decide?

Surasan V.P v. Steel Industrials Kerala Limited

Case brief

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