Partly allowed

Kerala State Bamboo Corporation, v. P.M.Kunjumuhammed

Kerala HC4 Mar 2021WA/431/2021

Case brief

AI extract

What is this about?

The High Court disposed of a writ appeal filed by an employer (Kerala State Bamboo Corporation) against a single judge's judgment ordering payment of gratuity to retired workmen. The Court issued modified directions for immediate partial payment, instalments for the balance, and specified interest rates, while keeping revenue recovery proceedings in abeyance.

What did the court decide?

Employer directed to pay Rs. 5 Lakh each to three respondents immediately; balance to fourth respondent in two weeks; remaining dues in three monthly instalments. Revenue recovery stayed until 30.06.2

Kerala State Bamboo Corporation, Vs… — Labour and Industrial Disputes | Kerala HC (2021)

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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 ALEXANDER THOMAS

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THE HONOURABLE MR.JUSTICE K. BABU

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THURSDAY, THE 04TH DAY OF MARCH 2021 / 13TH PHALGUNA, 1942

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WA.No.431 OF 2021

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AGAINST THE ORDER/JUDGMENT IN WP(C) 504/2021(K) OF HIGH COURT OF KERALA

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APPELLANT/1ST RESPONDENT:

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KERALA STATE BAMBOO CORPORATION, ANGAMALY SOUTH,ERNAKULAM DISTRICT-683572, REPRESENTED BY THE MANAGING DIRECTOR.

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BY ADVS. SMT.LATHA ANAND SRI.M.N.RADHAKRISHNA MENON SRI.S.VISHNU (ARIKKATTIL) SRI.RADHAKRISHNA PILLAI B

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RESPONDENTS/PETITIONERS & RESPONDENTS 2 TO 5:

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1 P.M.KUNJUMUHAMMED, PARAYAMPARAMPIL HOUSE, THANTHANISSERY,U.C.COLLEGE.P.O, ALUVA,ERNAKULAM-683502 (DRIVER,KERALA STATE BAMBOO CORPORATION LTD,RETIRED ON 31.05.2018)

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2 SICILY SIMON KALATHIPARAMBIL HOUSE,THURAVOOR.P.O, ANGAMALY,ERNAKULAM-683572.(DEPOT FIELD ASSISTANT,KERALA STATE BAMBOO CORPORATION LTD, RETIRED ON 31.01.2018)

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3 K.V.GEORGEKUTTY, KURISSUMOOTTIL,KALADY.P.O, MATTOOR, ERNAKULAM-683574,(BUNDING SUPERVISOR, KERALA STATE BAMBOO CORPORATION LTD, RETIRED ON 31.03.2018).

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4 K.GEETHA DEVI, KAKKATTU HOUSE,CHENDAMANGALAM.P.O, NORTH PARAVOOR,ERNAKULAM-683512(HELPER, KERALA STATE BAMBOO CORPORATION LTD, RETIRED ON 31.03.2018).

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W.A No.431/2021

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5 GRATUITY CONTROLLING AUTHORITY, (DEPUTY LABOUR COMMISSIONER),CIVIL STATION, KAKKANAD,ERNAKULAM-691013.

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6 DEPUTY COLLECTOR (REVENUE RECOVERY), CIVIL STATION,KAKKANAD,ERNAKULAM-691013.

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7 VILLAGE OFFICER, ANGAMALY VILLAGE,MINI CIVIL STATION, ANGAMALY, ERNAKULAM-683572.

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8 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT INDUSTRIES(K)DEPARTMENT, SECRETARIAT,THIRUVANANTHAPURAM-695001.

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BY ADVS. SRI.N.SASIDHARAN UNNITHAN, SRI.B.VINOD, SR.GOVT.PLEADER

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THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 04.03.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.A No.431/2021

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ALEXANDER THOMAS & K.BABU, JJ.

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W.A No. 431 of 2021 (A rising out of the judgment dated 25-01-2021 in W.P(C) No.504 of 2021 )

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Dated this the 4^th day of March, 2021

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JUDGMENT

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ALEXANDER THOMAS, J.

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The afore captioned writ appeal has been filed by the 1^st respondent Kerala State Bamboo Corporation (Employer) in W.P (C) No.504/2021 so as to impugn the judgment dated 25-01-2021 rendered by the learned single judge in W.P.(C) No.504/2021 filed by the contesting respondents 1 to 4 herein (Retired workmen)

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Heard Smt.Latha Anand, learned Standing Counsel for the Kerala State Bamboo Corporation appearing for the appellant in W.A/R1 in the W.P.(C), Sri.N.Sasidharan Unnithan, learned Advocate appearing for contesting respondents 1 to 4 herein/writ petitioners in the W.P.(C) and Sri.B.Vinod, learned Senior Government Pleader appearing for contesting respondents 5 to 8 herein/ respondents 2 to 5 in W.P.(C).

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The dispute now presented before us in this intra court appeal lies on a very extremely narrow compass. It appears that the

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W.A No.431/2021

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gratuity amounts claimed by respondents 1 to 4 herein (retired employees) were determined by the 5^th respondent-Gratuity Controlling Authority in terms of provisions contained in the Payment of Gratuity Act, 1972. According to the appellant-employer, Kerala State Bamboo Corporation, they were facing immense financial difficulties and hence they were not able to pay the entire amounts in one go and hence they have taken a stand that they would pay Rs.5 Laks each to respondents 1 to 3 and that the balance amount due to respondent Nos.1 to 3 herein will also be paid without much delay.

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It appears that presumably on the basis of the stand taken by the Gratuity Controlling Authority, respondents 1 to 4 herein (writ petitioners) were advised that they may not receive the said amounts offered in instalments by the employer and that they will have to seek enforcement of the revenue recovery proceedings to get the said amounts. It appears that the appellant-employer had offered Rs.5 Lakhs each to respondents 1 to 3 herein, by offering them cheque dated 29-12-2020, which is refused by them.

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After hearing both sides, we made a suggestion to both sides that the employer may pay the amount of Rs.5 Lakhs each to

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W.A No.431/2021

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respondents 1 to 3 herein immediately by cheque and that since the amount involved payable to R4 herein is only not a significant amount, the same may be paid within two weeks. Further that the balance of the retiral dues of the gratuity amounts due to respondents 1 to 3 herein may be paid by the employer in three equal monthly instalments. Further that as regards the part amounts of Rs.5 Lakhs each offered by cheque dated 29-12-2019 the said amount will carry interest only @ 6% per annum from the due date (date of retirement of the respective employee) up to 31-12-2020. Since the employer had shown the bonafides to offer the said amounts of Rs.5 Lakhs each by cheque dated 29-12-2020 and that the other delayed amounts will get interest @ 6% per annum from the respective due date (date of retirement of the respective employee concerned) up to the date of actual payment and that if there is any further delay in paying the said amount beyond the time limit suggested by us, then the said delayed payment of such part gratuity amount will carry interest @ 8% per annum from the due date (date of retirement of the employee concerned) up to the date of actual payment. The impugned revenue recovery proceedings could be ordered to be kept in abeyance for a period of four months from today in order to enable

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W.A No.431/2021

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the employer to pay off the dues of gratuities as above.

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Both sides have now agreed to the said suggestion made by

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this Court in the course of the hearing.

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Accordingly it is ordered as follows:

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(i) The appellant will immediately pay part amount of Rs.5 Lakhs each to respondent 1 to 3 herein by cheque without any further delay, at any rate, within one week. The said amount of Rs.5 Lakhs will carry interest @ 6 % per annum from the respective due date (date of retirement of the employee concerned) up to 31-12-2020, since the employer had shown the bonafide in offering that part amount of Rs.5 Lakhs each by cheque dated 29-12-2020.

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(ii) The appellant-employer will immediately clear the entire balance of gratuity amount due to respondent No.4, within two weeks. The said amount will carry interest @ 6% per annum from the respective due date (date of retirement of that employee) up to the date of actual payment.

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(iii) The appellant-employer will pay the balance gratuity amounts due to respondents 1 to 3 herein in three equal monthly instalments starting from 10^th of April, 2021 and the last and final instalment of which shall be paid on or before 10-06-2021. The said balance amount of gratuity will also carry interest @ 6% per annum from respective due date (date of retirement of the employee concerned) up to the date of actual payment of the respective part amount.

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(iv) If there is any delay on the part of the employer to clear any of the abovesaid dues, then the said delayed payment of gratuity

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W.A No.431/2021

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amount will carry interest @ 8% per annum from the respective due date (date of retirement of the employee concerned) up to the date of actual payment.

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Further steps in pursuance of the impugned revenue recovery proceedings in this case shall be kept in abeyance till 30-06-2021. If, all or any of the due amounts are not cleared well before by then, then the competent authorities will set in motion revenue recovery proceedings so as to ensure the payment of the due gratuity amounts concerned to each of these employees concerned, after deducting the amounts already paid.

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The directions and orders of the learned Single Judge in the impugned judgment dated 25-01-2021 in W.P(C) No.504/2021 will stand modified as above.

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With these observations and directions the above Writ Appeal will stand finally disposed of.

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Sd/-

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ALEXANDER THOMAS, JUDGE

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Sd/K.BABU, JUDGE

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KAS

Kerala State Bamboo Corporation, v. P.M.Kunjumuhammed

Case brief

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Kerala State Bamboo Corporation, v. P.M.Kunjumuhammed

Case brief

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