M. Prem Kumar and others v. Kerala State Electronics Development Corporation and Regional Provident Fund Commissioner

W.P(C).6215/2021 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE SUNIL THOMAS** **TUESDAY, THE 26[TH] DAY OF APRIL 2022 / 6TH VAISAKHA, 1944** **WP(C) NO. 6215 OF 2021** ## **PETITIONER/S:** 1 M.PREM KUMAR, AGED 63 YEARS, MANIMOOLA, (VIA),CHANGALA,KASARAGOD, RETIRED AS GENERAL MANAGER, KELTRON, I.T.B.G, VELLAYAMABALAM, THIRUVANANTHAPURAM695010, P.P.O.NO.KR/TVM/00087894. 2 VIKRAMAN NAIR.S, THIRU ONAM,PMRA-141, CHITTATTUMUKKU.P.O, KANIYAPURAM, THIRUVANANTHAPURAM, RETIRED AS JUNIOR OFFICER(COMMERCIAL), KELTRON EQUIPMENT COMPLEX, KARAKULAM, THIRUVANANTHAPURAM695301, P.P.O.NO.KRTVM00086229. 3 K.UNNI, A 21, DHARMAPURI HOUSING COLONY, P.O.THOTTADA, KANNUR, RETIRED AS JUNIOR OFFICER(STORES), KELTRON I.T.B.G, VELLAYAMBALAM, THIRUVANANTHAPURAM, P.P.O.NO.KR/KKD/00064605. BY ADVS. P.N.MOHANAN SRI.C.P.SABARI SMT.AMRUTHA SURESH ## **RESPONDENT/S:** 1 KERALA STATE ELECTRONICS DEVELOPMENT CORPORATION REPRESENTED BY MANAGING DIRECTOR, VELLAYAMBALAM, KELTRON HOUSE, THIRUVANANTHAPURAM-695033. 2 KERALA STATE ELECTRONICS DEVELOPMENT CORPORATION, REPRESENTED BY CHAIRMAN, VELLAYAMBALAM, KELTRON HOUSE, THIRUVANANTHAPURAM-695033. 3 REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT-FUND ORGANISATION(EPFO), BHAVISHYA NIDHI BHAVAN, PATTOM PALACE, THIRUVANANTHAPURAM695004. W.P(C).6215/2021 2 BY ADVS. SMT.M.A.ZOHRA NITA.N.S. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.12.2021, THE COURT ON 26.04.2022 DELIVERED THE FOLLOWING: W.P(C).6215/2021 3 ## **JUDGMENT** The writ petitioners are officers of the first respondent Kerala State Electronics Development Corporation and retired from the service during various periods during 2014 to 2016, after completing several years of service. While the petitioners were in service, contributory pension fund was made applicable to all employees and accordingly, petitioners also got enrolled in the EPF scheme. Contributions were made to the scheme, on the basis of the salary, along with the contribution of the first respondent. When the EPF pension scheme 1994 was introduced, contributions were made to the pension scheme also. After retirement, petitioners got monthly pension on the basis of the salary drawn. Pay revision of the employees of the first respondent was effected by Ext.P2 order dated 28.10.2017. Accordingly, it was implemented to the existing and retired employees, by resolution of the Corporation, to be paid in 12 equal monthly installments. The grievance of the petitioners is that, at the time of retirement, they were paid provident fund, ESI, leave surrender, medical reimbursement, half pay leave surrender etc and gratuity. They are entitled to the amounts on the basis of the enhanced salary. According to the petitioners, though the first respondent was granted the maximum gratuity, petitioners 2 and 3 were paid at a lesser amount and hence, they are entitled for the W.P(C).6215/2021 4 enhanced gratuity amount on the basis of the pay revision. Hence, the writ petition was filed, with a prayer to direct the 2[nd] and 3[rd] respondents to pay the balance gratuity, earned leave surrender, half pay leave surrender and PF contribution to the employer, consequent to the revision of pay with compound interest and further direction to transfer the corresponding pension contribution to the third respondent and to revise the pension of the petitioners. Reliefs were sought accordingly. 2. Denying the claim, a counter affidavit was filed by the respondents 1 and 2, contending that, the wage revision was sanctioned by the Government by GO(M.S).105/17/1D dated 18.07.2017, based on a long term tripartite settlement arrived at between the concerned parties. According to the respondents, petitioners were superannuated from their services during the period 2014-2016 and they were given the terminal benefits on the basis of their last drawn salary. It was contended that, wage revision was implemented only in November 2017 and the petitioners who were superannuated before the implementation of the wage revision were given terminal benefits. It was stated that, the arrears subsequent to the implementation of wage revision to the retired employees who were retired during the period April 2017 to October 2017 were released based on the approval of the Board of Directors of the company, which was produced as Annexure-R1(a). W.P(C).6215/2021 5 Through the various decisions of the Board of Directors, it was decided to disburse the wage revision amounts to their employees at the rate of Rs.5000/- per month or the balance amount, whichever was lower, due to the financial constraints. The contention that 15% of the wage revision arrears payable was deducted to be transferred to the EPF/pension fund was not correct. It was decided that an amount equivalent to basic pay+DA as on 31.03.2012 and the revised basic pay + DA as on 31.03.2017 alone would be considered at 85%, for calculating the wage revision arrears. The amount paid as interim relief during the above period was decided to be adjusted against the said amount and 85% of the balance amount computed as a consolidated amount was decided to be paid as wage revision considering the financial position. It was further submitted that, regarding their pension, petitioners can apply for the pension from the PF authorities on the basis of their last drawn salary given to them and remitted periodically. It was also contended that, the claim made by the petitioners for revision of terminal benefits, including gratuity, earned leave encashment and half pay encashment based on the revised wages was devoid of any merit. The petitioners who are superannuated before the implementation of the wage revision were given terminal benefits, including the earned leave and half pay leave on the basis of the last drawn salary as per the norms of the company. W.P(C).6215/2021 6 3. In reply to the counter affidavit, reply affidavit was filed by the petitioners, wherein, all their claims were reiterated. The contention of the management that it was running at a loss was denied. It was also stated that, petitioners were entitled to the arrears as per the statement produced as Exts.P12 and P13 and P14. It was claimed that, petitioners were entitled for the PF amount and the act of the statutory authority was contrary to the law. 4. Heard both sides and examined the records. 5. Ext.R1(a) shows that the pay revision was accepted and it was decided to pay the arrears to the employees in 12 equal monthly installments commencing from October 2018. Though there is serious dispute that it was paid accordingly, the grievance of the petitioners is that, they are entitled for the various terminal benefits in terms of the revision. Though the petitioners vehemently relied on the several documents, the decisions of the Board of Directors of the company does not indicate that any such decision was taken. The learned counsel for the petitioners vehemently relied on the decisions reported in **V.Prakash Chandran v. Kerala Gramin Bank, Malappuram and Another [2018(3) KLJ 475], Society of Retired Forest Officers v. State of UP [2008(3) KLT 788]** and **Mahatma Gandhi Vision v. Bharatiya Kamakar Sena [2017(1) KLT SN 68, at page 63].** However, none of the decisions lay down the law in support of the claims W.P(C).6215/2021 7 set up by the petitioners. In the light of the above, there is absolutely nothing on record to show that the petitioners are entitled for the enhanced gratuity, earned leave surrender, half pay leave surrender etc,. However, it seems that, regarding the claim of provident fund, petitioners have requested that the first and second respondents may be directed to remit the balance PF contributions as aforesaid to the EPFO, without any further delay with applicable interest and damages. 6. Having considered the entire facts, I find that the various claims made by the petitioners cannot be granted in the light of the legal position enunciated above. However, regarding the EPF claims, it is left open to the petitioners to make a representation before the first and second respondents as well as the third respondents, whereupon, appropriate decision shall be taken by the appropriate authorities within a period of one month from the date of receipt of a copy of the representation. With these observations, the writ petition is disposed of. **Sd/-** **SUNIL THOMAS JUDGE** ## **Sbna/** W.P(C).6215/2021 8 ## **APPENDIX OF WP(C) 6215/2021** PETITIONER EXHIBITS |EXHIBIT P1|A TRUE COPY OF THE PENSION PAYMENT ORDER IN| |---|---| ||RESPECT OF THE SECOND PETITIONER| |EXHIBIT P2|A TRUE COPY OF THE G.O.(MS)NO.105/17/ID| ||DATED 28.10.2017 OF THE GOVERNMENT.| |EXHIBIT P3|A TRUE COPY OF THE RESOLUTION NO.248 DATED| ||22.10.2019 OF THE BOARD OF DIRECTORS OF THE| ||FIRST RESPONDENT.| |EXHIBIT P4|A TRUE COPY OF THE RESOLUTION NO.248 DATED| ||28.10.2019 OF THE BOARD OF DIRECTORS OF THE| ||FIRST RESPONDENT.| |EXHIBIT P5|A TRUE COPY OF THE WAGE REVISION OF THE| ||SECOND PETITIONER| |EXHIBIT P6|A TRUE COPY OF THE ORDER NO.MD/00-21/2013-| ||2014 DATED 22.06.2013 OF THE MANAGING| ||DIRECTOR.| |EXHIBIT P7|A TRUE COPY OF THE PETITION DATED| ||11.12.2020 SUBMITTED BY THE SECOND| ||PETITIONER BEFORE THE FIRST RESPONDENT.| |Exhibit P8|A TRUE COPY OF THE STATEMENT OF FINANCIAL| ||POSITION OF THE FIRST RESPODENT AS ON| ||31/02/2020.| |Exhibit P9|A TRUE COPY OF THE STATEMENT OF PAY| ||REVISION ARREARS OF THE 1ST PETITIONER.| |Exhibit P10|A TRUE COPY OF THE CALCULATION STATEMENT OF| ||ELIGIBLE ARREARS OF SALARY PREPARED BY THE| ||FIRST PETITIONER.| |Exhibit P11|A TRUE COPY OF THE STATEMENT OF PAY| ||REVISION ARREARS OF THE 2ND PETITIONER.| |Exhibit P12|A TRUE COPY OF THE CALCULATION SHEET OF| W.P(C).6215/2021 9 EARNED LEAVE ENCASHMENT OF RS.16,2013/PREPARED BY THE SECOND PETITIONER. Exhibit P13 A TRUE COPY OF THE CALCULATION DETAILS OF THE BENEFITS DUE TO THE SECOND PETITIONER. Exhibit P14 A TRUE COPY OF THE CALCULATION STATEMENT OF ARREARS DUE TO THE THIRD PETITIONER. Exhibit P15 A TRUE COPY OF THE REPLY DATED 24/09/2021 ISSUED BY THE STATE PUBLIC INFORMATION OFFICER ATTACHED TO THE OFFICE OF THE FIRST RESPONDENT ALONG WITH THE STATEMENTS OF PROFIT AND LOSS PERTAINING TO THE FIRST RESPONDENT FOR THE YEARS 2014, 2015 & 2016. Exhibit R1(a) A TRUE COPY OF THE MINUTES OF THE 248TH MEETING OF BOARD OF DIRECTORS OF THE COMPANY HELD ON 11.10.2018 (RESOLUTION NO.248/13F, M.NO.5810) EXHIBIT R1(b) A TRUE COPY OF THE 254TH MEETING OF THE BOARD OF DIRECTORS OF THE COMPANY HELD ON 20.12.2019 (RESOLUTION NO.254/19-B, M.NO.5810) EXHIBIT R1(c) A TRUE COPY OF THE 257TH MEETING OF THE BOARD OF DIRECTORS OF THE COMPANY HELD ON 15.12.2020 (RESOLUTION NO.257/13,M.NO.5861)