Premanandan M.S. v. Kerala State Road Transport Corporation & District Transport Officer, KSRTC, Aluva Depot, Ernakulam

**IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT:** **THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** **TUESDAY, THE 10TH DAY OF JULY 2018 / 19TH ASHADHA, 1940** **WP(C).No. 20945 of 2018** **-----------------------** **PETITIONER:** **----------** **PREMANANDAN M.S., (DRIVER, KSRTC, ALUVA DEPOT, RETIRED ON 31.3.2018), RESIDING AT MUDOOR HOUSE, EDAYAPPURAM, ALUVA.P.O., ERNAKULAM DISTRICT- 683 101** **BY ADV.SRI.K.P.RAJEEVAN** **RESPONDENT(S): -------------1. KERALA STATE ROAD TRANSPORT CORPORATION, REPRESENTED BY ITS MANAGING DIRECTOR, TRANSPORT BHAVAN, FORT, THIRUVANANTHAPURAM, PIN - 695 023. 2. DISTRICT TRANSPORT OFFICER, KERALA STATE ROAD TRANSPORT CORPORATION, ALUVA DEPOT, ERNAKULAM, PIN - 683 101.** **BY SRI.M.GOPIKRISHNAN NAMBIAR, SC ADVS. SRI.P.GOPINATH SRI.K.JOHN MATHAI SRI.JOSON MANAVALAN SRI.KURYAN THOMAS SRI.PAULOSE C. ABRAHAM SMT.PARVATHY KOTTOL BY SHRI T.P SAJAN, SC** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10-07-2018 ALONG WITH WPC.21369/2018 & CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **mbr/** ## **WP(C).No. 20945 of 2018 (P) ---------------------------** ## **APPENDIX** ## **PETITIONERS' EXHIBITS:** ## **----------------------** **EXHIBIT P1 A TRUE COPY OF THE FREE PASS ISSUED TO THE PETITIONER, DATED NIL. EXHIBIT P2 A TRUE COPY OF THE JUDGMENT DATED 10.4.2018 IN WPC NO 12630/2018.** ## **RESPONDENTS' EXHIBITS:** ## **---------------------** **EXHIBIT R1 TRUE COPY OF THE LIST OF RETIRED EMPLOYEES AND THE NUMBER OF PENDING EMPLOYEES TO AVAIL TERMINAL BENEFITS FOR THE PERIOD FROM 30.4.2017 TO 30.06.2018. EXHIBIT R2 TRUE COPY OF THE JUDGMENT DATED 12.6.2018 IN WPC.NO.18298 OF 2018 OF THIS HON'BLE COURT. /TRUE COPY/ P.S.TO JUDGE** **mbr/ 16.07.2018.** ## **ANIL K. NARENDRAN, J.** ## **----------------------------------------------** **W.P.(C) Nos.20945, 21369, 21374, 21854, 21867, 21876, 21972, 22466, 22502, 22527, 22559, 22784, 22858, 22869, 22883, 22921 & 22927 of 2018 ---------------------------------------------Dated this the 10[th] day of July, 2018** ## **JUDGMENT** The petitioners in these writ petitions are retired employees of the Kerala State Road Transport Corporation (for brevity, 'the KSRTC'), who retired from service during the year 2018 on attaining the age of superannuation. They have moved these writ petitions under Article 226 of the Constitution of India, seeking a writ of mandamus commanding the respondents to disburse the amount of monthly pension, Death-cum-Retirement Gratuity (DCRG), Commuted Value of Pension (CVP), Provident Fund, Staff Welfare Fund, Leave Surrender and other eligibile benefits together with interest immediately. 2. On 26.06.2018, when W.P.(C) No.20945 of 2018 came up for admission, the learned Senior Counsel for KSRTC sought time to get instructions. This Court by an order dated W.P.(C) No.20945 of 2018 & Connected Cases :-2-: 26.06.2018 directed the learned Senior Counsel to get instructions as to whether payment of terminal benefits to retired employees of KSRTC is made, giving priority with reference to their date of retirement. 3. Pursuant to the order dated 26.06.2018, an affidavit dated 09.07.2018 has been filed on behalf of the respondents. Paragraphs 4 and 5 of the said affidavit read thus: “4. It is submitted that the terminal benefits to the employees who retired from various units of the Respondent Corporation are disbursed on an individual basis by the concerned authority. It is pertinent to note that there are 103 units of the Respondent Corporation in Kerala, out of which 99 units maintain service books, which contains all records of the employees during their tenure with the Respondent Corporation. The disbursement of the terminal benefits depends upon the nature and conduct of the retired employees at the time of their service in the Respondent Corporation. It is noteworthy that the Respondent Corporation has a total of 99 units functioning in Kerala, with respect to the disbursement of terminal benefits to the retired employees are concerned from 30.04.2017 to 31.03.2018, a total of 1109 employees retired out of W.P.(C) No.20945 of 2018 & Connected Cases :-3-: which 1055 retired employees have already been given their terminal benefits, as far as the remaining 154 (sic:54) retired employees are concerned terminal benefits have not been disbursed to them to reasons like pending disciplinary proceedings etc. With respect to retired employees from 30.04.2018 to 30.06.2018 are concerned, a total of 1066 employees retired out of which 709 retired employees have already been granted terminal benefits and remaining 357 retired employees, terminal benefits have not been disbursed due to reasons as stated above. A copy of the list of retired employees and the number of pending employees to avail terminal benefits for the period from 30.04.2017 to 30.06.2018 are produced herewith and marked as **Exhibit R1(a)** . 5. It is submitted that the said service books and other documents of the retired employee are sent to the Pension and Audit Section of Chief office of the Respondent Corporation situated in Trivandrum for sanction of terminal benefits. Thereafter, the said service books and documents are verified at the Pay Revision Cell of the Chief Office of the Respondent Corporation to calculate the terminal benefits which the retired employee is entitled to. If there are any anomalies/irregularities in the service books, the same is sent back to the unit in which he has been in service at the relevant time. After rectification of the noted anomalies, the service book is sent to the Pension and Audit Section, Chief Office and thereafter to the Pay W.P.(C) No.20945 of 2018 & Connected Cases :-4-: Revision Cell for sanction of the terminal benefits. It is pertinent to note that, on receipt of the rectified service book, the concerned department sanctions the terminal benefit by issuing respective proceedings, only if there is no pending disciplinary action or proceedings before various Courts or criminal proceedings have been initiated/are pending against the retired employee. It is submitted that the aforesaid act of the concerned authority in examining the service books and other relevant documents of each retired employee from 99 units of the Respondent Corporation is time consuming.” 4. Heard the learned counsel for the petitioners in the respective writ petitions, the learned Senior Counsel for KSRTC representing the respondents and also the learned Senior Government Pleader appearing for the State. 5. The sole issue that arises for consideration in these writ petitions is as to the entitlement of retired employees of KSRTC to get their pensionary benefits, in a time bound manner. 6. KSRTC is a Road Transport Corporation established under Section 3 of the Road Transport Corporation Act, 1950. KSRTC, which is a statutory W.P.(C) No.20945 of 2018 & Connected Cases :-5-: corporation, is a 'State' within the meaning of Article 12 of the Constitution of India. 7. As held by the Constitution Bench of the Apex Court in **D.S. Nakara v. Union of India [(1983) 1 SCC 305]** , pension is not only compensation for loyal service rendered in the past, but pension also has a broader significance, in that it is a measure of socio-economic justice which inheres economic security in the fall of life when physical and mental prowess is ebbing corresponding to aging process and, therefore, one is required to fall back on savings. One such saving in kind is when you gave your best in the hey day of life to employer, in days of invalidity, economic security by way of periodical payment is assured. 8. In **All India Reserve Bank Retired Officers Association v. Union of India [(1992) Supl.1 SCC 664]** the Apex Court reiterated that pension is not a charity or bounty, nor is it gratuitous payment solely dependent on the whim or sweet will of the employer. It is earned for rendering long service and is often described as deferred W.P.(C) No.20945 of 2018 & Connected Cases :-6-: portion of compensation for past service. It is in fact in the nature of a social security plan to provide for the December of life of a superannuated employee. Such social security plans are consistent with the socio-economic requirements of the Constitution when the employer is a 'State' within the meaning of Article 12 of the Constitution of India. 9. Therefore, pension is a social security measure, consistent with the socio-economic requirements, providing safeguards to the employees in their later years of life, who have shed their sweat and blood for the employer during their long service. Being a right attached to the office, pension cannot be denied or delayed arbitrarily. The financial constraints of the employer is not a valid ground to deny or delay the payment of pension to the employees, since it is a deferred payment earned by them for rendering long and satisfactory service with the employer. 10. When there was delay on the part of KSRTC in disbursing the terminal benefits payable to its employees, a Division Bench of this Court vide the judgment dated W.P.(C) No.20945 of 2018 & Connected Cases :-7-: 20.11.2002 in W.A.No.289 of 2001 ordered that the Corporation shall ear-mark 10% of its daily collection for disbursement of retirement benefits to its employees, which should be kept in a separate Treasury account or otherwise bearing maximum interest and the retirement benefits due should be disbursed from the fund. 11. During the course of arguments, the learned Senior Counsel for KSRTC, placing reliance on the common judgment dated 12.06.2018 in W.P.(C) No.18298 of 2018 and connected cases, would submit that the respondent Corporation may be granted two months' time for disbursement of the pensionary benefits payable to the employees who retired in the year 2017, and three months time, in the case of the employees who retired in the year 2018. 12. The learned counsel for the petitioners in the respective writ petitions, after referring to the provisions under Part III Kerala Service Rules, would submit that KSRTC may be directed to disburse pensionary benefits to W.P.(C) No.20945 of 2018 & Connected Cases :-8-: its retired employees within one month from the date of judgment. 13. After considering the pleadings and materials on record and also the submission made the learned counsel on both sides, this Court finds that, as far as the employees who retired from service for the period from 30.04.2017 to 31.03.2018 are concerned, out of the total 1109 employees, 1055 employees have already been disbursed with their terminal benefits and in respect of the remaining 54 employees, terminal benefits have not been disbursed for reasons like pending disciplinary proceedings, etc. Similarly, as far as the employees who retired from service for the period from 30.04.2018 to 30.06.2018 are concerned, out of 1066 employees, 709 employees have already been disbursed with their terminal benefits and in the case of remaining 357 employees, terminal benefits have not been disbursed for the reasons stated above. Therefore, it can be seen that efforts have been taken by KSRTC to disburse the terminal benefits payable to its retired employees in a W.P.(C) No.20945 of 2018 & Connected Cases :-9-: time bound manner. Having considered the submission made by the learned counsel on both sides and taking note of the law laid down by the Apex Court in the decisions referred to _supra_ in the matter of disbursement of pensionary benefits, these writ petitions are disposed of by directing KSRTC to disburse the terminal benefits payable to the respective petitioners, who retired from service on attaining the age of superannuation in the year 2018, like monthly pension, arrears of pension, Death-cum-Retirement Gratuity (DCRG), Commuted Value of Pension (CVP), Staff Welfare Fund, leave surrender etc., within a period of eight weeks from the date of receipt of a certified copy of this judgment, if there is no other legal impediment. Sd/- **ANIL K. NARENDRAN JUDGE** bpr //TRUE COPY// P.A. TO JUDGE