Allowed

Sri. a.K.Purushothaman, v. the Kannur District Co-Operative Bank

Kerala HC19 Nov 2021WP(C)/11877/2020

Case brief

AI extract

What is this about?

The High Court held that employees are entitled to gratuity under the Payment of Gratuity Act regardless of master policy limitations. The bank must pay the outstanding balances from its own funds or after obtaining remittance from LIC, acting on the Full Bench precedent.

What did the court decide?

Respondent bank directed to remit the balance amounts of Rs. 2,40,806 and Rs. 19,91,944 to the respective petitioners within 45 days via LIC.

Sri. a.K.Purushothaman, Vs the Kannur… — Pension and Retirement Benefits | 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 AMIT RAWAL

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FRIDAY, THE 19^TH DAY OF NOVEMBER 2021 / 28TH KARTHIKA, 1943

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WP(C) NO. 11877 OF 2020

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PETITIONER:

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SRI. A.K.PURUSHOTHAMAN, AGED 60 YEARS S/O. LATE RAGHAVAN NAMBIAR, VANAMALA MUNDAYAD P.O. KANNUR DISTRICT 670 594.

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BY ADVS. VIJU THOMAS SMT.M.MEENA JOHN

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RESPONDENTS:

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1 THE KANNUR DISTRICT CO-OPERATIVE BANK (PRESENTLY THE KERALA STATE CO-OPERATIVE BANK), REP. BY THE REGIONAL MANAGER, KANNUR DISTRICT 670 001.

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2 THE MANAGING DIRECTOR, THE KERALA STATE CO OPERATIVE BANK, CO-BANK TOWERS, PALAYAM, THIRUVANANTHAPURAM .

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3 THE DIVISIONAL MANAGER, L.I.C. OF INDIA, KOZHIKODE DIVISION, DIVISIONAL OFFICE, ( P AND GS) DEPARTMENT, 7TH FLOOR, JEEVAN PRAKASH, KOZHIKODE 673 001.

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BY ADVS.

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SRI.M.SASINDRAN, SC, KANNUR DISTRICT CO.OPERATIVE BANK SRI.M.SASINDRAN DR.ABRAHAM P.MEACHINKARA, SC, EPF ORG.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.11.2021, ALONG WITH WP(C).11845/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C)Nos.11877/2020 & 11845/2020

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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 AMIT RAWAL

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FRIDAY, THE 19^TH DAY OF NOVEMBER 2021 / 28TH KARTHIKA, 1943

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WP(C) NO. 11845 OF 2020

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PETITIONER:

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P.SIDHARTHAKUMAR AGED 61 YEARS S/O. LATE GOPALAN NAIR, SIGIL NIVAS, CHETTIPEETIKA, PALLIKUNNU P.O., KANNUR, PIN670 004. BY ADVS. VIJU THOMAS SMT.M.MEENA JOHN

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RESPONDENTS:

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1 THE KANNUR DISTRICT CO OPERARTIVE BANK (PRESENTLY THE KERALA STATE CO-OPERATIVE BANK) REPRESENTED BY THE GENERAL MANAGER (I/C), DISTRICT OFFICE, P.B.NO.35, KANNUR DISTRICT, PIN-670 001. 2 THE DEPUTY GENERAL MANAGER THE KERALA STATE CO-OPERATIVE BANK LTD., HEAD OFFICE, P.B.NO.6515, COBANK TOWERS, PALAYAM, THIRUVANANTHAPURAM, PIN-695 028. 3 THE DIVISIONAL MANAGER L.I.C OF INDIA, KOZHIKODE DIVISION, DIVISIONAL OFFICE, (P AND GS) DEPARTMENT, 7TH FLOOR, JEEVAN PRAKASH, KOZHIKODE-673 001. BY ADVS. SRI.M.SASINDRAN, SC, KANNUR DISTRICT CO.OP. BANK SRI.M.SASINDRAN DR.ABRAHAM P.MEACHINKARA

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.11.2021, ALONG WITH WP(C).11877/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C)Nos.11877/2020 & 11845/2020

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JUDGMENT

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[WP(C) Nos.11877/2020, 11845/2020]

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This order shall dispose of two writ petitions bearing Nos.11877/2020 and 11845/2020.

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The case of the petitioners in both the cases is that the Kannur District Co-operative bank had obtained a Group Gratuity Cash Accumulation Scheme commenced with effect from 01.08.1972 for the gratuity benefits of their employees as per terms and conditions of employment. The members covered under the scheme are only beneficiaries whereas the contract was between Master Policy holder and LIC. On retirement of the petitioner in W.P(C).11845/20, respondent released an amount of Rs.22,84,593/- and the remaining is Rs.2,40,806/- whereas in W.P(C).11877/20, the amount released to the petitioner therein is Rs.20,00,000/- and Rs.19,91,944/- is liable to be paid. Learned counsel for the petitioners submits that the controversy in this case is covered by the Full Bench judgment of this Court reported in Chandrasekharan Nair G. & Others v. Kerala

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State Co-operative Agricultural and Rural Development

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Bank Ltd. & Others [2017 (4) KLT 276]. Even the writ appeal

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WP(C)Nos.11877/2020 & 11845/2020

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No.524/2018 and connected cases were also dismissed relying upon the Full Bench judgment. The judgment cited by the respondents in BCH Electric Limited v. Pradeep Mehra [2020 KHC 6365] would not be applicable as it had different terms and conditions of the contract/master policy. Bank has entered into new agreement with the LIC only on 10.12.2020 by remitting the amount of Rs.20,00,000/- but in respect of the old matters, the amount paid by the LIC to the respective petitioners has been drawn by the bank.

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On the other hand Sri.M.Sasindran raised the objection of maintainability of the writ petitions on account of nonavailment of efficacious remedy under Section 69 of the Kerala Co-operative Societies Act or under Section 7 of the Payment of Gratuity Act as limited liability has been paid and the remaining amount is disputed which cannot be adjudicated under Article 226 of the Constitution of India. Once the employees are covered under the Act they are entitled to the amount under the Act and not under the master policy in view of the ratio culled out in the

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BCH Electric Limited (supra).

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I have heard the learned counsel for the parties and

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WP(C)Nos.11877/2020 & 11845/2020

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appraised the paper books.

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Concededly, in W.P.(C)No.11845/2020 petitioner has been paid a sum of Rs.22,84,593/- and the balance of Rs.2,40,806/- is to be paid. This fact has been reiterated by the learned counsel representing the LIC and in other matter after having paid Rs.20,00,000/- sum of Rs.19,91,944/- is liable to be paid as acknowledged by the LIC. I am of the view that the Cooperative Bank cannot rely upon the terms and conditions of the new agreement/master policy entered into between the LIC but the employee would be governed by the old policy where there is no restriction of the amount of payment of gratuity as fixed under the Payment of Gratuity Act. In other words, if it all the insurance amount after receipt of the payment of the amount of gratuity is more, the State Co-operative Bank cannot limited it to Rs.20,00,000/- they are liable to pay it either from their own funds or from what they received from the LIC. In both the cases the amount has been remitted by the LIC to bank but bank has refunded back to the LIC. Such an action of the bank is totally uncalled for arbitrary and illegal for the reason of the dictum laid down in the Full Bench judgment cited above.

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Accordingly, writ petitions are allowed. Respondent bank is directed to remit the amount of Rs.2,40,806/- and Rs.19,91,944/- to the respective petitioners after making request to the LIC to whom they refunded back. Let the request is made to the LIC within a period of two weeks from today. Thereafter the learned counsel representing the LIC submits that they would remit the amount as expeditiously as possible within a period of another one month and thereafter, the bank would disburse the same to the petitioners within another period of 15 days ie., total period of 45 days. In case, the aforementioned amount after completion of the formality is not remitted by the bank to the petitioners, it will entail interest as provided under the Payment Gratuity Act.

Sd/-

AMIT RAWAL JUDGE

nak

APPENDIX OF WP(C) 11877/2020

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PETITIONER EXHIBITS

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EXHIBIT P1	A TRUE	COPY OF THE SAID INTIMATION
	LETTER 22/10/	NO. PNGS/U585322/3839/879 DATED 2018 BY THE 3RD RESPONDENT.
EXHIBIT P2	A TRUE 2/1/20 REGIST	COPY OF THE REQUEST DATED 20 SENT TO THE 2ND RESPONDENT BY ERED POST.
EXHIBIT P3	A TRUE	COPY OF THE ACKNOWLEDGEMENT CARD
	DATED RESPON	9/1/2020 RECEIVED FROM THE 2ND DENT.
EXHIBIT P4	A TRUE	COPY OF THE JUDGMENT DATED
	11/12/ HOBLE	2019 IN WPC NO. 30566/2019 OF HIGH COURT OF KERALA.

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RESPONDE	NT EXHIB	ITS
EXHIBIT	R3 A	TRUE COPY OF THE CLAIM COMMUNICATION REGARDING CLAIM FROM FOR GROUP GRATUITY WITH RESPECT OF PETITIONER FOR THE AMOUNT RS.38,29,372/- SUBMITTED BY THE 1ST RESPONDENT BANK DATED 10.10.2018
EXHIBIT	R3 B	TRUE COPY OF TRANSFER OF RS.38,29,372/- WITH RESPECT TO THE PETITIONER'S GRATUITY CLAIM TO THE 1ST RESPONDENT BANK THROUGHT RTGS DATED 22.10.2018
EXHIBIT	R3 C	TRUE COPY OF ADDITIONAL CLAIM COMMUNICATION REGARDING CLAIM FROM FOR GROUP GRATUITY WITH RESPECT OF PETITIONER FOR THE AMOUNT RS.1,62,572/- SUBMITTED BY THE 1ST RESPONDENT BANK DATED 1.7.2019
EXHIBIT	R3 D	TRUE COPY OF TRANSFER OF RS.1,62,575/- WITH RESPECT TO THE PETITIONER'S GRATUITY CLAIM TO THE 1ST RESPONDENT BANK THROUGHT RTGS DATED 15-7-2019
EXHIBIT	R(a):	A TRUE COPY OF THE MASTER POLICY NO.G1 3839.
EXHIBIT	R1(b):	A TRUE COPY OF THE DEED OF VARIATION DATED 14/02/1994.
Exhibit	R3(E)	TRUE COPY OF THE BANK RESOLUTION NO. 890
Exhibit	R3(F)	TRUE COPY OF THE LETTER FROM DGM, KERALA

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BANK TO THE GENERAL MANAGER, KERALA BANK, KANNUR DATED 19/12/2020 COMMUNICATING THE DECISION FIXING THE GRATUITY CEILING AS RS. 20,00,000/-
Exhibit R3(G) TRUE COPY OF THE LETTER DATED 09/12/2020 FROM GENERAL MANAGGER, KERALA BANK ADDRESSED TO LIC OF INDIA COMMUNICATING THIS DECISIONAND REQUESTING THE LICE TO INCORPORATE THEIR DECISION OF FIXING THE GRATUITY CEILING OF RS.20,00,000/- AS PER CENTRAL GRATUITY ACT INSTEAD OF THE EXISTING UNLIMITED PATTERN, FOR ALL MEMBERS
Exhibit R(H) TRUE COPY OF THE DETAILED LIST OF ALL CLAIM SETTLED TO THE 1ST RESPONDENT BANK AS PER THEIR DEMAND IN RESPECT OF THE EMPLOYEES WHO RETIRED FOR THE PERIOD FROM 01/08/2018 TO 31/07/2019
Exhibit R(I) TRUE COPY OF THE LETTER DATED 18/08/2020 OF THE 1ST RESPONDENT BANK ADDRESSED TO THE 3RD RESPONDENT LIC REMITTING EXCESS AMOUNT OF RS.53,08,176/- TO THE LIC GGCA SCHEME POLICY NO. GGCA 3839, AS THE EXCESS GRATUITY RECEIVED
PETITIONER EXHIBITS
Exhibit P5 A TRUE COPY OF THE PROCEEDING NO.KNR/RO/HR/PAY REVISION/2021-22 DATED 23/3/2021 OF THE GENERAL MANAGER, KERALA BANK, KANNUR
Exhibit P6 A TRUE COPY OF THE REQUEST DATED 18/9/2021 SUBMITTED BEFORE THE 1ST RESPONDENT BANK.

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APPENDIX OF WP(C) 11845/2020

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PETITION EXHIBIT	ER EXHIB P1	ITS A TRUE COPY OF THE REQUEST DATED 19/06/2018 SUBMITTED BY THE PETITIONER
EXHIBIT	P2	A TRUE COPY OF THE INTIMATIN DATED 29/2/20 RECEIVED BY THE PETITIONER
EXHIBIT	P3	A TRUE COPY OF THE INTIMATION LETTER NO.A & F/2019-20 DATED 10/03/2020 RECEIVED BY THE PETITIONER FROM THE 1ST RESPONDENT BANK
EXHIBIT	P4	A TRUE COPY OF THE ORDR NO.KSCB/(P&E)/85 DATED 05/05/2020 ISSUED TO THE 1ST RESPONDENT BANK BY THE 2ND RESPONDENT
EXHIBIT	P5	A TRUE COPY OF THE JUDGMENT DATED 11/12/2019 IN WP/9C) NO.30566/2016 OF HON’BLE HIGH COURT OF KERALA
RESPONDE	NT EXHIB	ITS
EXHIBIT	R3 A	TRUE COPY OF THE CLAIM COMMUNICATION REGARDING CLAIM FROM FOR GROUP GRATUITY WITH RESPECT OF PETITIONER FOR THE AMOUNT RS.22,84,593/- SUBMITTED BY THE 1ST RESPONDENT BANK DATED 20.04.2017
EXHIBIT	R3 B	TRUE COPY OF TRANSFER OF RS.22,84,593/- WITH RESPECT TO THE PETITIONER'S GRATUITY CLAIM TO THE 1ST RESPONDENT BANK THROUGHT RTGS DATED 25.4.2017
EXHIBIT	R3 C	TRUE COPY OF ADDITIONAL CLAIM COMMUNICATION REGARDING CLAIM FROM FOR GROUP GRATUITY WITH RESPECT OF PETITIONER FOR THE AMOUNT RS.2,40,806/- SUBMITTED BY THE 1ST RESPONDENT BANK DATED 24.10.2017
EXHIBIT	R3 D	TRUE COPY OF TRANSFER OF RS.2,40,806/- WITH RESPECT TO THE PETITIONER'S GRATUITY CLAIM TO THE 1ST RESPONDENT BANK THROUGHT RTGS DATED 4-11-2017
EXHIBIT	R(a):	A TRUE COPY OF THE MASTER POLICY NO.G1 3839.
EXHIBIT	R1(b):	A TRUE COPY OF THE DEED OF VARIATION DATED 14/02/1994.
Exhibit	R3(E)	TRUE COPY OF THE BANK RESOLUTION NO. 890

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Exhibit	R3(F) TRUE COPY OF THE LETTER FROM DGM, KERALA BANK TO THE GENERAL MANAGER, KERALA BANK, KANNUR DATED 9/12/2020 COMMUNICATING THE DECISION FIXING THE GRATUITY CEILING AS RS. 20,00,000/-
Exhibit	R3(G) TRUE COPY OF THE LETTER DATED 10/12/2020 FROM GENERAL MANAGGER, KERALA BANK ADDRESSED TO LIC OF INDIA COMMUNICATING THIS DECISION AND REQUESTING THE LICE TO INCORPORATE THEIR DECISION OF FIXING THE GRATUITY CEILING OF RS.20,00,000/- AS PER CENTRAL GRATUITY ACT INSTEAD OF THE EXISTING UNLIMITED PATTERN, FOR ALL MEMBERS
Exhibit	R3(H) TRUE COPY OF THE DETAILED LIST OF ALL CLAIM SETTLED TO THE 1ST RESPONDENT BANK AS PER THEIR DEMAND IN RESPECT OF THE EMPLOYEES WHO RETIRED FOR THE PERIOD FROM 01/08/2016 TO 31/07/2017
Exhibit	R3(I) TRUE COPY OF THE LETTER DATED 27/05/2020 OF THE 1ST RESPONDENT BANK ADDRESSED TO THE 3RD RESPONDENT LIC REMITTING EXCESS AMOUNT OF RS.2,40,806/- OF SHRI SIDHARTHA KUMAR TO THE GRATUITY POLICY NO. GGCA 3839
PETITION	ER EXHIBITS
Exhibit	P6 A TRUE COPY OF THE PROCEEDING NO.KNR/RO/HR/PAY REVISION/2021-22 DATED 23/3/2021 OF THE GENERAL MANAGER, KERALA BANK, KANNUR
Exhibit	P7 A TRUE COPY OF THE REQUEST DATED 20/9/2021 SUBMITTED BEFORE THE 1ST RESPONDENT BANK.

Sri. a.K.Purushothaman, v. the Kannur District Co-Operative Bank

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Sri. a.K.Purushothaman, v. the Kannur District Co-Operative Bank

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