High Court of KeralaSingle JudgeWrit petition allowed; interim/remedial order f...

P. D. Vasanthakumary 'Padma' v. State of Kerala and Others

Case / Petition Number:WP(C).No. 264 of 2011 (G)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A.M. Shaffique
  • Single Judge
Judgment Date
2013-04-05
Court Decision / Holding
Writ petition allowed in part: The 3rd respondent is directed to pay the petitioner interest at 9% per annum on the gratuity and lump-sum amount from 23.4.1984 (six months after retirement) to 14.5.1997 (actual payment) within three months of receipt of a copy of this judgment. This is the sole relief granted; pension and other ancillary reliefs are not awarded, and no further direction on pension is issued beyond the interest award.
Final Disposition
Writ petition allowed; interim/remedial order for interest on delayed gratuity and lump-sum payment granted; pension claim rejected in this petition.

Parties to the Case

Appellants / Petitioners

  • P. D. Vasanthakumary 'Padma', Burma Road, Thiruvananthapuram

Respondents

  • State of Kerala, rep. by the Additional Chief Secretary to Government Water Resources (WSC) Department, Thiruvananthapuram-695 001
  • Secretary, Finance Department, Government Secretariat Thiruvananthapuram-695 001
  • Managing Director, Kerala Water Authority, Jala Bhavan, Vellayambalam Thiruvananthapuram-695 010

Legal Representation & Advocates

Counsels for Petitioners

  • • Smt. Sree Devi Kylasanath
  • • Smt. V.J.Safeena

Counsels for Respondents

  • • Lilly K.T. Govt. Pleader for R1 & R2
  • • Sri Joseph John, SC, KWA
  • • Sri C. Unnikrishnan, SC, KWA

Case Synopsis & Summary

This writ petition (WP(C) No. 264 of 2011) challenges Ext.P15, an order by the Government denying the petitioner monthly pension after she had been absorbed into the Kerala Water Authority from the Public Health Engineering Department. The petitioner began service in 1969, was absorbed in 1983 into a public undertaking, and was entitled to pension under the governing rules. Ext.P2, G.O.(P) No. 893/78/Fin (30.12.1978), provides an option for absorption cases: (a) receive the monthly pension and death-cum-retirement gratuity or (b) receive gratuity and a lump-sum in lieu of pension, with automatic shift to (b) if no written option is exercised within six months of absorption. The petitioner was paid a lump-sum in 1997, and representations for pension were rejected; she challenged the vires of Clause (iii)(b) of Ext.P2 as violative of KSR and sought pension and related reliefs. The court referred to an earlier judgment (W.P.(C) No. 9462/2009, dated 20.05.2010) and noted a direction to decide whether pension could be paid on refund of the lump-sum amount, but ultimately held that Ext.P2’s option was valid and that the petitioner’s pension claim could not be granted. The court ordered interest on the delayed gratuity and lump-sum payment as compensation for the delay, while keeping other reliefs unresolved.

Provisions of Law Cited

Kerala Service Rules (KSR)G.O.(P) No. 893/78/Fin (30.12.1978)Clause (iii)(b) of Ext.P2Right to Information Act (RTI Act)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner submits Ext.P2, particularly Clause (iii)(b), is ultra vires the Kerala Service Rules and that she is entitled to monthly pension and related reliefs. She relies on prior judgments (State of Kerala v. M. Padmanabhan Nair; Union of India v. Aboobacker) but contends those decisions are inapplicable to the facts here. She also argues delays in payment of the lump-sum gratuity and seeks appropriate relief including pension where permissible under law.

Contentions of Respondents

The respondents contend that the option to elect between pension and lump-sum gratuity under Ext.P2 (Clause iii(b)) was properly framed for absorption cases. Since the petitioner did not exercise the option within six months, she is automatically governed by the lump-sum option. They argue Ext.P2 is valid, not violative of the Kerala Service Rules, and that pension cannot be granted in view of the automatic shift to option (b). They rely on the government orders and the established pension policy and dispute the petitioner's entitlement to monthly pension.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
State of Kerala v. M. Padmanabhan NairAIR 1985 SC 356DistinguishedCourt did not find those judgments applicable to the facts of this case.
Union of India v. Aboobacker2011(4) KLT 176DistinguishedNot applicable to the facts proffered by the petitioner.
W.P.(C). No. 9462/2009W.P.(C). No. 9462/2009Mentioned OnlyEarlier judgment referenced to show a direction regarding pension on refund of the lump-sum amount; not followed as a binding precedent in the present decision.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT:** ## **THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE** **FRIDAY, THE 5TH DAY OF APRIL 2013/15TH CHAITHRA 1935** ## **WP(C).No. 264 of 2011 (G)** **-----------------------------------** ## **PETITIONER(S):** **-----------------------** ## **P.D.VASANTHAKUMARY "PADMA", BURMA ROAD, THIRUVANANTHAPURAM.** **BY ADVS.SMT.SREEDEVI KYLASANATH SMT.V.J.SAFEENA** ## **RESPONDENT(S):** **----------------------------** **1. STATE OF KERALA, REP. BY THE ADDITIONAL CHIEF SECRETARY TO GOVERNMENT WATER RESOURCES (WSC) DEPARTMENT THIRUVANANTHAPURAM-695 001.** ## **2. THE SECRETARY,** - **FINANCE DEPARTMENT, GOVERNMENT SECRETARIAT THIRUVANANTHAPURAM-695 001.** ## **3. THE MANAGING DIRECTOR,** - **KERALA WATER AUTHORITY, JALA BHAVAN, VELLAYAMBALAM THIRUVANANTHAPURAM-695 010.** **R1 & R2 BY GOVERNMENT PLEADER SMT. LILLY K.T. R3 BY ADVS. SRI.JOSEPH JOHN, SC, KERALA WATER AUTHORITY SRI.C.UNNIKRISHNAN, SC, KWA** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05-04-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **DCS** ## **WP(C).No. 264 of 2011 (G)** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:-** **EXHIBIT P1: COPY OF THE FORMAL APPLICATION FOR PENSION DATED 29.04.1993 RECORDED IN PAGE NO. 5 OF THE PENSION BOOK** - **EXHIBIT P2: COPY OF THE GOVERNMENT ORDER G.O.(P) NO. 893/78/FIN DATED 30.12.1978** **EXHIBIT P3: COPY OF THE ORDER NO. G.O. (RT) 637/97/IRD DATED 14.05.1997** - **EXHIBIT P4: COPY OF THE REPRESENTATION DATED 13.01.2003 SUBMITTED BY PETITIONER TO ACCOUNTANT GENERAL** - **EXHIBIT P5: COPY OF THE PETITION DATED 2.12.2003 SUBMITTED BY PETITIONER BEFORE THE HON'BLE MINISTER FOR WATER RESOURCES DEPARTMENT** - **EXHIBIT P6: COPY OF THE OFFICE NOTES OF 3RD RESPONDENT RECEIVED UNDER RIGHT TO INFORMATION ACT.** - **EXHIBIT P7: COPY OF THE COMMUNICATION NO. KWA/JB/E:9/1455/04 DATED 11.8.2005 OF 3RD RESPONDENT** - **EXHIBIT P8: COPY OF THE COMMUNICATION NO. KWA/JB/E:9/1455/04 DATED 9.10.2005 OF 3RD RESPONDENT** - **EXHIBIT P8(a):COPY OF THE COMMUNICATION DATED 20.06.2006 OF CHIEF ENGINEER (SR) TO THE MANAGING DIRECTOR, KERALA WATER AUTHORITY** - **EXHIBIT P9: COPY OF THE COMMUNICATION DATED 01.08.2006 OF 3RD RESPONDENT TO 1ST RESPONDENT** - **EXHIBIT P10: COPY OF THE RELEVANT PART OF THE OFFICE NOTE OF FINANCE DEPARTMENT AND WATER RESOURCES DEPARTMENT WHICH THE PETITIONER RECEIVED UNDER RIGHT TO INFORMATION ACT** - **EXHIBIT P11: COPY OF ORDER NO. NO. 13019/C2/07/WRD DATED 16.02.2008 OF 1ST RESPONDENT** - **EXHIBIT P12: COPY OF COUNTER AFFIDAVIT FILED ON BEHALF OF THE 1ST RESPONDENT** **EXHIBIT P13: COPY OF THE REPLY AFFIDAVIT FILED BY PETITIONER** **DCS** ## **WP(C).No. 264 of 2011 (G)** **EXHIBIT P13(a): COPY OF JUDGMENT DATED 20.05.2010 IN W.P.(C). NO. 9462/2009** **EXHIBIT P14: COPY OF THE HEARING NOTES SUBMITTED BY PETITIONER BEFORE 1ST RESPONDENT.** **EXHIBIT P15: COPY OF ORDER G.O. (RT) NO. 1189/2010/WRD DATED 5.10.2010** **RESPONDENT'S EXHIBITS:- NIL** ## **/TRUE COPY/** **P.A. TO JUDGE** **DCS** A.M.SHAFFIQUE, J. ---------------------------------------------------W.P.(C) No. 264 of 2011 - G --------------------------------------------------Dated this the 5[th] April, 2013 **J U D G M E N T** The petitioner challenges Ext.P15 an order passed by the Government rejecting the request of the petitioner for monthly pension. 2. The facts as disclosed in the writ petition would reveal that the petitioner entered the service of the Public Health Engineering on 21.6.1969. While as Department working U.D.Clerk in the PHED, the Petitioner was absorbed in the Kerala Co-operative Marketing Federation Limited with effect from 23.10.1983. The Government employees who was having minimum 10 years service was entitled to get the minimum pension. But according to the petitioner, the request for monthly pension and DCRG was W.P.(C) No. 264 of 2011 - G **==> picture [7 x 9] intentionally omitted <==** not granted. Later the petitioner requested for commutation of 50% of the pension. She was paid certain lump sum amount. Later it was known that the lump sum amount paid was in lieu of the pension. 3. It is noticed that by virtue of Ext.P2 G.O (P) No. 893/78/Fin dated 30.12.1978, an option was available to the petitioner either to get the pension or to get the lump sum amount in lieu of pension. Clause (iii)(b) of Ext.P2 reads as under: ## “(iii) **Exercise of option** (iii) A Government servant who has been permitted to be absorbed in service of post in an Autonomous Body/Public Undertaking shall , if such absorption is declared by the Government to be in the public interest, be deemed to have retired W.P.(C) No. 264 of 2011 - G 3 from service from the date of such absorption. Each such Government servant is required under the relevant orders applicable to him to exercise an option within six months of his absorption for either of the alternative indicated below:- (a) Receiving the monthly Pension and Death-cum-Retirement Gratuity already worked out, under the usual Government arrangements. (b) Receiving the gratuity and a lump sum amount in lieu of pension worked out with reference to commutation tables obtaining on the date from which the pro-rata pension, gratuity etc. will be disbursable. Where no option is exercised within the prescribed period, the officer will automatically be governed by W.P.(C) No. 264 of 2011 - G 4 alternative (b) above, option once exercised shall be final. The option shall be exercised in writing and communicated by the Government employee concerned to the Undertaking/Autonomous Body”. 4. Therefore a contention was raised by the respondents that since the option was not exercised within the specified time, petitioner was only entitled for a lump sum amount which had already been paid. 5. In an earlier round of litigation as per judgment dated 20.5.2010 in W.P.(C) No. 9462/2009, this Court having taken into consideration the factual details of the matter and having regard to the scope of the rules prevailing as on the relevant time, formed an opinion that any W.P.(C) No. 264 of 2011 - G 5 order in this case in favour of the petitioner would be taken as a precedent which should not result in any injustice to the claims made by various persons and therefore there was a direction to the Government to take appropriate decision as to whether the petitioner could be paid pension on refund of the lump sum amount which she had already received. 6. Ext.P14 is the argument note submitted by the petitioner and still the Government passed Ext.P15. In Ext.P15 it is stated that since the petitioner received the lump sum amount in lieu of pension way back in 1998. She had submitted a representation for re-option in the year 2003 i.e. 5 years after receiving the lump sum amount. In that case she had submitted an application W.P.(C) No. 264 of 2011 - G 6 relinquishing her right under Government Order, accepting the conditions in G.O.(P) No. 893/78/Fin dated 30.12.1978 as recorded in a letter No. 13019/E2/04/WRD dated 24.6.2004, the request of the petitioner for monthly pension was rejected. 7. In the writ petition the petitioner also challenges the vires of Clause(iii)(b) which according to her violates the provisions of KSR and the contention is that the petitioner is entitled to receive the monthly pension and other ancillary reliefs. 8. The learned counsel for the petitioner relies upon the following judgments in **State of Kerala** v. **M.Padmanabhan Nair** (AIR 1985 SC 356) and **Union of India** v. **Aboobacker** [2011(4) KLT 176]. I do not think that these judgments can be W.P.(C) No. 264 of 2011 - G 7 made applicable to the facts of the case. 9. The contention that Rule (iii) of Ext.P2 is ultra vires to the provisions of KSR is not sustainable. It is evident from the Government order that a special provision had been made in cases of Government servants transfer from one Government Department to another Department. This was a case where PHED was taken over by KWA and the petitioner had opted to get a transfer to the Kerala Co-operative Marketing Federation Ltd. in public interest. This was a special procedure permitted by the Government and therefore the Government had framed appropriate rules relating to their service conditions including pension. In that view of the matter, I do not think that the option that was given was not illegal or W.P.(C) No. 264 of 2011 - G 8 violative of the provisions of K.S.R. 10. Having found so, the only relief that could be granted by this Court is to compensate the petitioner for the delay on the part of the Department in paying the lump sum amount which was legally due to the petitioner in terms of Clause (iii) (b). By an interim order dated 3.1.2013 this Court had called upon the 1[st] respondent to file an affidavit to explain the delay in payment of gratuity and lump sum amount in terms of Clause (iii)(b) of Ext.P2 G.O. But though an affidavit has been filed, there is no valid explanation for the said delay. She left PHED on 23.10.1983. Six months time for exercise of option expired on 23.4.1984. She was paid the lump sum amount only on 14.5.1997. In these circumstances, the W.P.(C) No. 264 of 2011 - G 9 only order that can be passed in this case is to direct the 3[rd] respondent to pay the petitioner interest on the gratuity and lump sum amount from the expiry of six months from the date of retirement till the date of actual payment. In the result, the writ petition is allowed as follows: (i) The 3[rd] respondent shall pay the petitioner interest @ 9% per annum on the gratuity and lump sum which was paid to the petitioner, from 23.4.1984 till the date of actual payment (14.5.1997) within a period of three months from the date of receipt of a copy of this judgment. Sd/- **A.M.SHAFFIQUE, JUDGE.** rka /true copy/ W.P.(C) No. 264 of 2011 - G 10 (iii) A Government servant who has been permitted to be absorbed in service of post in an Autonomous Body/Public Undertaking shall , if such absorption W.P.(C) No. 264 of 2011 - G 11 is declared by the Government to be in the public interest, be deemed to have retired from service from the date of such absorption. Each such Government servant is required under the relevant orders applicable to him to exercise an option within six months of his absorption for either of the alternative indicated below:- (a) Receiving the monthly Pension and Death-cumRetirement Gratuity already worked out, under the usual Government arrangements. (b) Receiving the gratuity and a lump sum amount in lieu of pension worked out with reference to commutation tables obtaining on the date from which the pro-rata pension, gratuity etc. will be disbursable. Where no option is exerciseed within the W.P.(C) No. 264 of 2011 - G **==> picture [13 x 9] intentionally omitted <==** prescribed period, the officer will automatically be governed by alternative (b) above, option once exercised shall be final. The option shall be exercised in writing and communicated by the Government employee concerned to the Undertaking/Autonomous Body”.