High Court of KeralaSingle JudgePetition allowed

P. Harikumar vs Travancore Devaswom Board

Case / Petition Number:WP(C) No.27070 of 2021

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V.G. Arun
Judgment Date
2022-03-11
Court Decision / Holding
Writ petition allowed. The first respondent is directed to pay the balance amount of gratuity due to the petitioner within three months of receipt of a copy of this judgment, failing which the amount of gratuity shall carry interest at 8% from the first day of the next month after retirement.
Final Disposition
Petition allowed

Parties to the Case

Appellants / Petitioners

  • P. Harikumar

Respondents

  • Travancore Devaswom Board Head Quarters, Nathancode, Kawdiar Post, Thiruvananthapuram 695003 represented by its Secretary
  • Secretary, Travancore Devaswom Board, Devaswom Head Quarters, Nathancode, Kawdiar Post, Thiruvananthapuram 695003
  • Devaswom Commissioner, Travancore Devaswom Board, Devaswom Head Quarters, Nanthecode, Thiruvananthapuram 695003
  • Deputy Devaswom Commissioner, Pension and Service Grievance Redressal Cell, Travancore Devaswom Board, Devaswom Head Quarters, Nanthecode, Thiruvananthapuram 695003
  • Devaswom Accounts Officer, Devaswom Account Office, Travancore Devaswom Board, Devaswom Head Quarters, Nanthecode, Thiruvananthapuram 695003
  • Deputy Devaswom Commissioner, Administration, Travancore Devaswom Board, Devaswom Head Quarters, Nanthecode, Thiruvananthapuram 695003

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv D. Ajithkumar

Counsels for Respondents

  • • Adv S. C. Pavithran, Standing Counsel (SC) for Travancore Devaswom Board

Case Synopsis & Summary

This is a Kerala High Court writ petition (WP(C) No. 27070 of 2021) by P. Harikumar challenging a deduction from gratuity and seeking reckoning of earlier service as regular pensionable service. The petitioner joined the Travancore Devaswom Board as a part-time Kazhakom in 1993 and, while serving, was deputed as a Departmental Nominee at various temples. He contends that the period served as Departmental Nominee should count toward regular service for pension calculations. Ext.P2 had initially regularised this service, but the Board later reversed it. On retirement in 2018, Ext.P3 saw gratuity paid after deducting Rs. 2,71,965 as an excess pay/allowances amount related to the Departmental Nominee period. The petitioner approached the Devaswom Ombudsman, obtaining Ext.P7, and the Board issued Ext.P8, which negated recovery in light of a Supreme Court decision in Rafiqu Masih, aligning with State of Punjab v. Rafiqu Masih in 2015. The petitioner argues, supported by Rafiqu Masih and KSFE v. Unnikrishnan Nair, that gratuity cannot be attached toward any liability or excess payment. The Board relied on Ext.R1(a) (a consent letter) and on the principle from Jagdev Singh that undertakings can bind payees; however, the court distinguishes the facts here, emphasizing that the gratuity Act’s supremacy (Section 14) and the 1995 Regulations prevail. Ultimately, the court allows the petition, directing payment of the balance gratuity within three months with 8% interest if delayed.

Provisions of Law Cited

Payment of Gratuity Act, 1972 - Section 141995 Regulations regulating payment of gratuity

Legal Doctrines & Maxims

  • Supremacy of the Payment of Gratuity Act: its provisions prevail over any other enactment, instrument, or contract inconsistent therewith (Section 14).
  • An instrument or contract having effect by virtue of any enactment (e.g., 1995 Regulations) cannot defeat the entitlement to gratuity under the Gratuity Act.
  • Gratuity cannot be attached toward recovery of excess payments when the entitlement under the Gratuity Act is not overridden by statutory provisions.

Submissions & Arguments

Contentions of Appellants / Petitioners

Petitioner contends that gratuity is a statutory entitlement under the Payment of Gratuity Act, and its protections cannot be defeated by the Board’s recovery plan or by unilateral post-retirement deductions. He relies on Rafiqu Masih (State of Punjab v. Rafiqu Masih) and KSFE v. Unnikrishnan Nair to argue that gratuity cannot be attached toward any liability or excess payment. He points to extant orders (Ext.P7 and Ext.P8) and to the lack of notice of recovery prior to retirement, seeking payment of the balance gratuity and interest if delayed. He also highlights that the Board had initially regularised service (Ext.P2) and that the gratuity deduction was inconsistent with Supreme Court guidance and with the Gratuity Act’s supremacy under Section 14.

Contentions of Respondents

Respondents submit that Ext.R1(a) waivers/undertakings bind the employee to any recovery arising from excess payments, and reliance is placed on Jagdev Singh (High Court of Punjab and Haryana v. Jagdev Singh) to argue that undertakings may be binding. They contend the Ombudsman/Board decisions contemplated recovery, and that the effect of consent cannot override gratuity protections when government undertakings exist. They argue Sections and regulations governing gratuity, as well as prior regularisation orders, justify withholding gratuity to recover excess sums, subject to applicable law.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
State of Punjab v. Rafiqu Masih (White Washer)2015 (1) KLT 429 (SC)PositiveDecision cited to support that excess salary/allowances need not be recovered from gratuity, reinforcing non-recovery of overpayments from gratuity in similar contexts.
KSFE v. Unnikrishnan Nair2022 (1) KLT 807PositiveDivision Bench held gratuity is not liable to be attached toward any liability or excess payment, aligning with petitioner’s position.
High Court of Punjab and Haryana and others v. Jagdev Singh2016(14) SCC 267DistinguishedCourt distinguished on the facts, noting that an undertaking binding in that context cannot be indiscriminately applied where facts differ; not controlling in the present case.
Y.K. Singla v. Punjab National Bank2013(3) SCC 472PositiveCited for the principle that gratuity enjoys a superior statutory status under the Gratuity Act, over any inconsistent instrument or contract.

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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 V.G.ARUN** **FRIDAY, THE 11[TH] DAY OF MARCH 2022 / 20TH PHALGUNA, 1943** ## **WP(C) NO. 27070 OF 2021** ## **PETITIONER/S:** P.HARIKUMAR AGED 59 YEARS S/O. PRABHAKARAN NAIR, NALUPARA KRISHNA NIVAS, PKAKKAZHAM, AMBALAPUZHA, ALAPPUZHA 688 005 BY ADV D.AJITHKUMAR ## **RESPONDENT/S:** - 1 TRAVANCORE DEVASWOM BOARD DEVASWOM BOARD HEAD QUARTERS, NATHANCODE, KAWDIAR POST, THIRUVANANTHAPURAM 695 003 REPRESENTED BY ITS SECRETARY - 2 SECRETARY TRAVANCORE DEVASWOM BOARD, DEVASWOM BOARD HEAD QUARTERS, NATHANCODE, KAWDIAR POST, THIRUVANANTHAPURAM 695 003 - 3 DEVASWOM COMMISSIONER TRAVANCORE DEVASWOM BOARD, DEVASWOM HEAD QUARTERS, NANTHENCODE, THIRUVANANTHAPURAM, PIN 695 003 - 4 DEPUTY DEVASWOM COMMISSIONER, PENSION AND SERVICE GRIEVANCE REDRESSAL CELL, TRAVANCORE DEVASWOM BOARD, DEVASWOM HEAD QUARTERS, NANTHENCODE, THIRUVANANTHAPURAM, PIN 695 003 - 5 DEVASWOM ACCOUNTS OFFICER DEVASWOM ACCOUNT OFFICE, TRAVANCORE DEVASWOM BOARD, DEVASWOM HEAD QUARTERS, NANTHENCODE, THIRUVANANTHAPURAM, PIN 695 003 - 6 DEPUTY DEVASWOM COMMISSIONER, ADMINISTRATION, TRAVANCORE DEVASWOM BOARD, DEVASWOM HEAD QUARTERS, NANTHENCODE, THIRUVANANTHAPURAM, PIN 695 003 BY ADV SRI.C.K.PAVITHRAN, SC, TDB ## **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION** **ON 11.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** W.P.(C) No.27070 of 2021 -2- ## **JUDGMENT** Dated this the 11[th] day of March, 2022 The petitioner entered the service of the Travancore Devaswom Board as part-time Kazhakom on 15.03.1993. While continuing in service, he was deputed as Departmental Nominee to work as Kazhakom in various temples. The petitioner raised a claim that the period he had worked as Departmental Nominee should also be reckoned as regular service for the purpose of computing his service benefits. Though Ext.P2 order, the claim was allowed, later the order was reversed by the Board. In the meanwhile, the petitioner retired from service on 30.06.2018. By Ext.P3 order, the petitioner was paid his gratuity after deducting an amount of Rs.2,71,965/-, alleged to be the excess pay and allowances received by the petitioner, pertaining to the period he had W.P.(C) No.27070 of 2021 -3- worked as Departmental Nominee. Aggrieved by the deduction, the petitioner approached the Devaswom Ombudsman and obtained Ext.P7 order. Relevant portion of the order reads as under; _“Liaison Officer-In-Charge is present._ _2. In the above matter, the Board has passed an Order extending the benefit of treating the Karazhma service also for the purpose of pension, as in the case of Shri Sivadasa Wariar. But the Board by its Order dated 16.01.2019 also, canceled the Order passed by the Devaswom Commissioner in ROC No.3715/19/Mis C dated 24.3. 2012 with retrospective effect, that too in the case of the petitioner after his retirement while considering his review for pensionary benefits. There is no mistake or fraud committed by the employee in the matter of getting the service benefits. It was paid based on an Order passed by the Commissioner and all along he enjoyed the monetary benefits given to him, adjusted his affairs based on the income he received. In such circumstances, how the Board could recover the amount several years after the benefit was conferred on him, that too retrospectively after his retirement arises_ W.P.(C) No.27070 of 2021 -4- _for consideration, leave alone the legality of the Order passed by the Commissioner. As the above action of the Board appears, prima facie, not sustainable, I request the Board to place on record their stand in the matter before final Orders are passed._ _The case is posted to 10.12.2020 at 10.30 AM.”_ 2. In terms of the Ombudsman's observations and the decision of the Honourable Apex Court in ## _**State of Punjab v. Rafiqu Masih (White Washer)**_ _**[2015 (1) KLT 429 (SC)],**_ the Devaswom Board issued Ext.P8 order, holding that the excess salary and allowances received by the petitioner need not be recovered. Based on Ext.P8 decision, the complaint filed by the petitioner was closed by the Ombudsman. 3. The petitioner is aggrieved by the fact that, despite Ext.P7 order of the Ombudsman and Ext.P8 order of the Travancore Devaswom Board itself, the balance amount of gratuity due to him is being withheld. Learned Counsel for the W.P.(C) No.27070 of 2021 -5- petitioner relied on the decision of the Supreme Court in _**Rafiqu Masih**_ and the Division Bench decision of this Court in _**KSFE v. Unnikrishnan**_ _**Nair [2022 (1) KLT 807]**_ to contend that the gratuity of an employee is not liable to be attached towards any liability or excess payment. 4. Learned Standing Counsel for the respondent Board relied on Ext.R1(a) consent letter dated 22.06.2019 issued by the petitioner to contend that, having consciously consented for recovery of excess amount if any paid, the petitioner cannot turn around and challenge the recovery effected from his DCRG. According to the learned Counsel, if the petitioner is aggrieved the Board's decision, his remedy is to approach the civil court. 5. Indisputably, the Board had decided not to recover the excess salary received by the petitioner. Therefore, the short question is W.P.(C) No.27070 of 2021 -6- whether, based on Ext.R1(a) undertaking, the Board can seek to withhold his DCRG. In this context, learned Standing Counsel for the Board has relied on paragraph 11 of the decision in _**High Court of Punjab and Haryana and others v. Jagdev Singh [2016(14) SCC 267],**_ extracted herein; _“11. The principle enunciated in proposition (ii) above cannot apply to a situation such as in the present case. In the present case, the officer to whom the payment was made in the first instance was clearly placed on notice that any payment found to have been made in excess would be required to be refunded. The officer furnished an undertaking while opting for the revised pay scale. He is bound by the undertaking.”_ A careful scrutiny of the facts of the above case would show that, therein the officer to whom payment was made in the first instance was clearly put on notice that any payment found to have been made in excess would be required to be refunded and the officer had furnished an undertaking while opting for the revised pay scale. The facts of the case at hand is W.P.(C) No.27070 of 2021 -7- entirety different, inasmuch as the petitioner was never put on notice that the amounts paid to him for the work he had done as Departmental Nominee would be liable to be refunded. On the other hand, by Ext.P2, the Board had initially regularised the service for the aforementioned period. Even though that order was later revised, the Board had undertaken before the Ombudsman that no recovery would be effected. In such circumstances, the fact that the petitioner had submitted a consent letter is of no consequence. The effect of a consent letter as against the provisions of the Gratuity Act was considered by the Division Bench in _**Unnikrishnan Nair**_ , _(supra),_ the relevant portion of which reads as under; _“10. Section 14 makes the provisions of the Act effective, notwithstanding anything inconsistent with the provisions, in any enactment or any instrument or contract having effect by virtue of any enactment other than the Gratuity Act. The applicability of Payment of Gratuity Act with respect to an_ ## W.P.(C) No.27070 of 2021 -8- _establishment having its own service regulations containing a provision for withholding of gratuity had come up for consideration before the Honourable Supreme Court in Y.K.Singla v. Punjab National Bank [(2013) 3 SCC 472], the relevant portion of which is extracted hereunder:-_ _“20. .......A perusal of S.14 leaves no room for any doubt, that a superior status has been vested in the provisions of the Gratuity Act, vis - a - vis, any other enactment (including any other instrument or contract) inconsistent therewith. Therefore, insofar as the entitlement of an employee to gratuity is concerned, it is apparent that in cases where gratuity of an employee is not regulated under the provisions of the Gratuity Act, the legislature having vested superiority to the provisions of the Gratuity Act over all other provisions/enactments (including any instrument or contract having the force of law), the provisions of the Gratuity Act cannot be ignored. The term “instrument” and the phrase “instrument or contract having the force of law” shall most definitely be deemed to include the 1995 Regulations, which regulate the payment of gratuity to the appellant.”_ _Hence, the fact that KSRTC has been exempted from the provisions of the Gratuity Act or the fact that the petitioner had given consent for effecting recovery from DCRG would not, either entitle the employer to withhold his DCRG or enable the appellant to effect recovery.”_ The law on point being as above, I am unable to subscribe to the contention that Ext.R1(a) consent letter takes away the petitioner's right W.P.(C) No.27070 of 2021 -9- to get the eligible gratuity due to him. In the result, this writ petition is allowed. The first respondent is directed to pay the balance amount of gratuity due to the petitioner within three months of receipt of a copy of this judgment, failing which the amount of gratuity will carry interest at the rate of 8% from the first day of the next month of the petitioner's retirement. Sd/- **V.G.ARUN JUDGE** Scl/ W.P.(C) No.27070 of 2021 -10- ## **APPENDIX OF WP(C) 27070/2021** PETITIONER EXHIBITS - Exhibit P1 TRUE COPY OF THE MEMO DATED 15-03-1993 ISSUED BY THE RESPONDENT BOARD - Exhibit P2 TRUE COPY OF THE ORDER AS PEER VIDE ROC NO. 3715/19/MIS DATED 24-03-2012 ISSUED BY 3RD RESPONDENT - Exhibit P3 TRUE COPY OF THE ORDER DATED NIL AUGUST 2017 ISSUED BY 5TH RESPONDENT. - Exhibit P4 TRUE COPY OF THE ORDER OF THE 5TH RESPONDENT DATED 27-08-2019 VIDE DA NO 3902/19/D1 GRANTING COMMUTED VALUE OF PENSION - Exhibit P5 TRUE COPY OF THE OFFICE ORDER VIDE DA NO. 3902/19/D1 DATED 27-08-2019 ISSUED 5TH RESPONDENT DIRECTING IN MANAGER, DHANALEKSHMI BANK LTD, NANTHENCODE TO DISBURSE RS. 2,10,504/-/ - Exhibit P6 TRUE COPY OF THE ORDER DATED 27-082019 VIDE D.A NO. 3902/19/D1 ISSUED BY 5TH RESPONDENT SANCTIONING PAYMENT OF PENSION OF RS. 12,280/- PER MENSUM - Exhibit P7 TRUE COPY OF THE ORDER PASSED BY THE HON'BLE OMBUDSMAN FOR TRAVANCORE AND COCHIN DEVASWOM BOARDS ON 16-10-2020 IN COMPLAINT NO 1 OF 2020 - Exhibit P8 TRUE COPY OF THE ORDER OF THE TRAVANCORE DEVASWOM BOARD DATED 08-072021 Exhibit P9 TRUE COPY OF THE ORDER DATED 18-082021 IN COMPLAINT NO. 1 OF 2020 OF THE HON'BLE OMBUDSMAN FOR TRAVANCOIRE AND COCHIN DEVASWOM BOARDS.