Allowed

K.M.Cherian v. Thodupuzha Taluk Co-Operative Employees Co-Operative Society Ltd. NO.I-112

Kerala HC1 Jul 2024WP(C)/21269/2020

Case brief

AI extract

What is this about?

A retired co-operative society secretary, having received only part of his gratuity, sought interest on the delayed balance payment. The court held that Section 7(3-A) of the Payment of Gratuity Act mandates simple interest on delayed gratuity and directed respondents to pay 9.25% per annum on the balance amount until actual payment.

What did the court decide?

Respondents 1 and 2 directed to pay interest at 9.25% per annum on Rs.4,57,280/- from the date due until actual payment.

K.M.Cherian Vs Thodupuzha Taluk Co-Operative Employees… — Cooperative Societies | Kerala HC (2024)

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WPC 21269/2020

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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 BASANT BALAJI

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MONDAY, THE 1ST DAY OF JULY 2024 / 10TH ASHADHA, 1946

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WP(C) NO. 21269 OF 2020

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PETITIONER/S:

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K.M.CHERIAN, AGED 62 YEARS, S/O. MANI, KAITHAKKAL HOUSE,
PIZHAKU P.O., KOTTAYAM DISTRICT

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BY ADV P.V.BABY

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RESPONDENT/S:

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1 THODUPUZHA TALUK CO-OPERATIVE EMPLOYEES CO-OPERATIVE SOCIETY LTD. NO.I-112 P.O.THODUPUZHA, IDUKKI DISTRICT, REPRESENTED BY ITS SECRETARY-685 584

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2 BOARD OF MANAGEMENT OF THE THODUPUZHA TALUK CO-OPERATIVE EMPLOYEES CO-OPERATIVE SOCIETY LTD NO.1-112, P.O.THODUPUZHA, IDUKKI DISTRICT-685 584, REPRESENTED BY ITS PRESIDENT

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3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), IDUKKI DISTRICT-685 602

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OTHER PRESENT:

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SR GP SMT MARY BEENA JOSEPH

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 01.07.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:

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WPC 21269/2020

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JUDGMENT (Dated this the 1st day of July 2024)

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The petitioner entered the service of the 1st respondent

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Society as Secretary on 1.4.1981 and superannuated on 30.11.2015. After retirement, he was paid Rs.10 lakhs as As Rule 59 of the Kerala Cogratuity. per

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operative Societies Rules, 1969 (Rules, 1969), he is entitled

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to get 15 months salary towards payment of gratuity. As per the said calculation, he is entitled to get Rs.14,57,280/-. Therefore, he has filed Ext.P1 representation before the Assistant Registrar of Co-operative Societies (G), Thodupuzha, to get the balance amount of gratuity. By Ext.P2 order, the Assistant Registrar had declared that he is entitled to get gratuity as provided under Section 62 of the

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Kerala Co-Operative Societies Act, 1969 (the Act, 1969)

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WPC 21269/2020

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read with Rule 59 of the Rules, 1969. Since the balance

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amount of gratuity was not paid to the petitioner as per Ext.P2 order, he approached this court with W.P.(C) No.34807 of 2017 and by judgment dated 7.3.2019, the 2nd respondent was directed to issue proper proceedings regarding the amount due to the petitioner.

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In compliance with the directions in the judgment, the committee of the Society, by Resolution No.68 dated 2.5.2019, decided that the petitioner is not entitled to get any

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further amount than Rs.10 lakhs and the same was intimated

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through Ext.P5. Aggrieved by Ext.P5, he filed another representation and prayed for payment of the balance gratuity and interest. The 3^rd respondent issued another order dated 17.9.2019 directing the society to pay the balance gratuity, if any due to the petitioner. On 24.10.2019,

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WPC 21269/2020

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the 1^st respondent Society sanctioned Rs.4,57,280/- towards the

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balance gratuity and directed the petitioner to accept the same. Since the interest for the delayed payment gratuity was not paid to the petitioner by the society, the petitioner filed Ext.P10 representation on 25.11.2019, claiming interest. On 17.1.2020,

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the 3^rd respondent directed the 1^st respondent for payment of simple interest for Rs.4,57,280/- to the petitioner. According to the petitioner, as per Ext.P13 Circular No.42/15 dated 1.10.2015, he is entitled to get interest at the rate of 9.25% p.a. Therefore, he has approached this Court for a declaration that he is entitled to get interest at the rate of 9.25% for the delayed payment of gratuity.

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Section 7(3-A) of the Payment of Gratuity Act, 1972,

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(Gratuity Act) reads as follows:

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“(3-A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date

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WPC 21269/2020

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on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify:

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Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.”

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When the statute itself grants interest for the delayed

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payment, the respondents are bound to pay the same in accordance with Section 7(3-A) of the Gratuity Act, which prescribes the simple interest at such rate not exceeding the rate notified by the Central Government from time to time

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for repayment of long – term deposits, as the Government notification specified, is applicable. Notification No.S.O.874(E) dated 1^st October 1987 has declared that the

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rate of interest for delayed payment under Section 7(3-A) is

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WPC 21269/2020

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at the rate of 10% per annum. The petitioner claimed interest

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at the rate of 9.25% per annum for the delayed payment.

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Accordingly, this Writ Petition is allowed, and the respondent Nos.1 and 2 are directed to pay interest at the rate of 9.25% per annum on the balance amount of Rs.4,57,280/to the petitioner from the date on which it became due until the actual date of payment.

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Sd/BASANT BALAJI, JUDGE

dl/

WPC 21269/2020

APPENDIX OF WP(C) 21269/2020

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PETITIONER EXHIBITS

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EXHIBIT P1 A TRUE PHOTOCOPY OF THE REPRESENTATION DATED 10.8.2016 SUBMITTED BY THE PETITIONER BEFORE THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (G) THODUPUZHA

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EXHIBIT P2 A TRUE PHOTOCOPY OF THE DECLARATION MADE BY THE PETITIONER BEFORE THE ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES (G) THODUPUZHA DATED 12.1.2017

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EXHIBIT P3 A TRUE PHOTOCOPY OF JUDGMENT IN WPC NO.34807/2017

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DATED 7.3.2019

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EXHIBIT P4 A TRUE PHOTOCOPY OF THE COVERING LETTER DATED

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10.4.2019 ADDRESSED TO THE PRESIDENT OF THE SOCIETY BY THE PETITIONER

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EXHIBIT P5 A TRUE PHOTOCOPY OF THE INTIMATION RECEIVED FROM THE PRESIDENT OF THE SOCIETY BY THE PETITIONER

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EXHIBIT P6 A TRUE PHOTOCOPY OF THE REPRESENTATION BY THE

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PETITIONER TO THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G) IDUKKI DATED 1.7.2019

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EXHIBIT P7 A TRUE PHOTOCOPY OF THE COMMUNICATION ISSUED BY THE 3RD RESPONDENT TO THE 1ST RESPONDENT DATED 17.9.2019

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EXHIBIT P8 A TRUE PHOTOCOPY OF THE REPRESENTATION DATED

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25.9.2019 SUBMITTED TO THE PRESIDENT OF THE SOCIETY TO THE PETITIONER

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EXHIBIT P9 A TRUE PHOTOCOPY OF THE COMMUNICATION DATED

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24.10.2019 ISSUED BY THE SECRETARY OF THE SOCIETY TO THE PETITIONER

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EXHIBIT P10 A TRUE PHOTOCOPY OF THE REPRESENTATION SENT UNDER REGISTERED POST WITH A/D BY THE PETITIONER TO THE 3RD RESPONDENT DATED 21.11.2019

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WPC 21269/2020

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EXHIBIT P11 A TRUE PHOTOCOPY OF THE ORDER DATED 17.1.2020 ISSUED BY THE 3RD RESPONDENT TO THE 1ST RESPONDENT

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EXHIBIT P12 A TRUE PHOTOCOPY OF THE REPRESENTATION DATED 4.2.2020 SUBMITTED BY THE PETITIONER TO THE PRESIDENT OF THE SOCIETY

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EXHIBIT P13 A TRUE PHOTOCOPY OF THE CIRCULAR NO.42/15 DATED 1/10/2015 ISSUED BY THE REGISTRAR OF CO-OPERATIVE SOCIETIES

K.M.Cherian v. Thodupuzha Taluk Co-Operative Employees Co-Operative Society Ltd. NO.I-112

Case brief

What is this about?

What did the court decide?

K.M.Cherian v. Thodupuzha Taluk Co-Operative Employees Co-Operative Society Ltd. NO.I-112

Case brief

What is this about?

What did the court decide?

What the court decided

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