High Court of KeralaDivision BenchDismissed (Review petitions)

RP.No.1213 of 2015 in W.A.No.1992 of 2014 (Kerala High Court, Ernakulam)

Case / Petition Number:RP.No.1213 of 2015; in W.A.No.1992 of 2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A.M. Shaffique
  • P.V. Asha
Judgment Date
2015-10-01
Court Decision / Holding
The review petitions are dismissed.
Final Disposition
Dismissed (Review petitions)

Parties to the Case

Appellants / Petitioners

  • Kerala State Council for Science Technology and Environment
  • The Member Secretary, Kerala State Council for Science Technology & Environment

Respondents

  • Dr. T. Surendran
  • Dr. K. Jayaraman
  • Dr. E.P. Indira
  • Dr. P. Vijayakumaran Nair
  • Dr. N. Sasidharan
  • Dr. Thomas P. Thomas
  • Dr. K.V. Bhat
  • Dr. K. Swarupanandan
  • Dr. K.K. Seethalakshmi
  • Dr. V.V. Sudheendra Kumar
  • Dr. T.K. Dhamodaran
  • Dr. P. Rugmini
  • Dr. S. Sankar
  • Dr. M. Balagopalan
  • Dr. U.N. Nandakumar
  • Dr. E.J. Maria Florence
  • Dr. R.C. Pandalai
  • Dr. K. Mohanadas
  • Dr. C.N. Krishnankutty
  • Dr. A.R. Rajan
  • Kerala Forest Research Institute, Peechi
  • State of Kerala

Legal Representation & Advocates

Counsels for Petitioners

  • • N. Nandakumar Menon
  • • George Zachariah

Counsels for Respondents

  • • Thampan Thomas
  • • S.M. Prem
  • • Paul Varghese

Case Synopsis & Summary

This is a review petition filed under RP No. 1213 of 2015 in W.A. No. 1992 of 2014 challenging a judgment dated 01-10-2015 of the Kerala High Court’s Division Bench. The petitioners, Kerala State Council for Science Technology and Environment and its Executive Vice President, contend that material documents and policy terms of the Life Insurance Corporation of India (LIC) indicate a gratuity ceiling embedded in the Gratuity Act, 1972, which were not brought to bear while deciding the writ appeals. They rely on Clause 14 of the Council’s rules, arguing these “better terms” of gratuity are protected by Section 4(5) of the Act and contend that internal policy/regulations, along with court judgments such as Nedumpuzha Service Co-operative Bank Ltd. v. Rugmini and Travancore Cements Employees Co-operative Bank Ltd. v. Ramachandran Nair, require application of regulations beyond the statutory ceiling in specific factual contexts. The respondents maintain the settled position that, in the absence of a contract to the contrary, gratuity cannot exceed the statutory ceiling under the Gratuity Act, and that the cited cases are distinguishable on the facts and regulatory framework. The court ultimately held that no new material or law warranted altering the 2015 judgment and dismissed the review petitions, upholding the prior decision.

Provisions of Law Cited

Gratuity Act, 1972Section 4(3) of the Gratuity Act, 1972Section 4(5) of the Gratuity Act, 1972Rule 14Clause 14 of the rules and regulations framed by the Council

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that material documents accessible at the relevant time were not placed before the court and that LIC policy terms cap gratuity in a manner consistent with the Gratuity Act, 1972. They argue that Clause 14 of the Council’s internal rules provides better terms of gratuity and that Section 4(5) protects such enhancements, supported by references to Nedumpuzha Service Co-operative Bank Ltd. v. Rugmini and The Travancore Cements Employees Co-operative Bank Ltd. v. Ramachandran Nair. They assert that regulations and policy considerations, not merely statutory ceilings, must inform the court’s decision in light of the contractual relationships and internal rules. They seek a reviewing of the 01-10-2015 judgment in view of new documents and the policy framework, urging the court to recognise “better terms” under the contract of service.

Contentions of Respondents

The respondents submit that the writ appeals were decided on well-settled law: in the absence of a contract to the contrary, gratuity is bounded by the statutory ceiling under the Gratuity Act, 1972. They argue that the petitions do not present any new legal principle and that the cited cases (Nedumpuzha and Travancore Cements) are distinguishable on the facts and regulatory framework, particularly regarding internal regulations and policy terms. They emphasize that no contract to the contrary existed and that the statutory framework governs gratuity payments, not merely internal policy, and that the review petitions fail to establish any change in the controlling law since 01-10-2015.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Nedumpuzha Service Co-operative Bank Ltd. v. Rugmini2011 (3) KLT 134DistinguishedThe court noted these judgments were on a different footing due to non-consideration of regulations, and thus cannot govern the present case.
The Travancore Cements Employees Co-operative Bank Ltd. v. Ramachandran Nair2014 (1) KLT 889DistinguishedAlthough cited, the court treated these decisions as distinguishable on the facts and regulatory context involving internal regulations affecting gratuity, not simply the statutory ceiling.

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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 & THE HONOURABLE SMT. JUSTICE P.V.ASHA** **FRIDAY, THE 30TH DAY OF SEPTEMBER 2016/8TH ASWINA, 1938** ## **RP.No. 1213 of 2015 ()** **------------------------------AGAINST THE JUDGMENT IN W.A. NO.1992/2014 DATED 01-10-2015.** **.......** ## **PETITIONERS/APPELLANTS/1ST, 2ND RESPONDENTS:** **--------------------------------------------------------------------------------** **1. KERALA STATE COUNCIL FOR SCIENCE TECHNOLOGY AND ENVIRONMENT, REPRESENTED BY EXECUTIVE VICE PRESIDENT, SASTHA BHAVAN, PATTOM P.O., THIRUVANANTHAPURAM-695 004.** **2. THE MEMBER SECRETARY, KERALA STATE COUNCIL FOR SCIENCE TECHNOLOGY & ENVIRONMENT, SASTHA BHAVAN, PATTOM P.O., THIRUVANANTHAPURAM-695 004.** **BY SRI.N.NANDAKUMARA MENON, SENIOR SC, ADV. SRI.GEORGE ZACHARIAH, SC.** ## **RESPONDENTS/RESPONDENTS/PETITIONERS & RESPONDENT NOS.3 & 4:** - **--------------------------------------------------------------------------------------------------------------** **1. DR.T. SURENDRAN, SCIENTIST & HEAD, TREE PHYSIOLOGY DEPARTMENT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **2. DR.K. JAYARAMAN, SCIENTIST-G, PROGRAMME CO-ORDINATOR, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **3. DR.E.P. INDIRA, SCIENTIST-F, PROGRAMME CO-ORDINATOR, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **4. DR.P. VIJAYAKUMARAN NAIR, SCIENTIST-F, HEAD, GIS & REMOTE SENSING, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** ## **RP.No. 1213 of 2015** ## **5. DR.N. SASIDHARAN,** - **SCIENTIST-G, PROGRAMME CO-ORDINATOR, FE & BC DIVISION, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **6. DR.THOMAS P.THOMAS, SCIENTIST-F, HEAD, SOIL SCIENCE DEPARTMENT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **7. DR.K.V. BHAT, SCIENTIST-F, RESEARCH MONITORING & EVALUATION UNIT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **8. DR.K. SWARUPANANDAN, SCIENTIST-F, RESEARCH CO-ORDINATOR, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **9. DR.K.K. SEETHALAKSHMI, SCIENTIST-F, PROGRAMME CO-ORDINATOR, SUSTAINABLE FOREST MANAGEMENT DIVISION, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **10. DR.V.V. SUDHEENDRA KUMAR, SCIENTIST-F, FOREST HEALTH DIVISION, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **11. DR.T.K. DHAMODARAN, SCIENTIST-F, HEAD, WOOD SCIENCE & TECHNOLOGY, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **12. DR.P. RUGMINI, SCIENTIST-G, HEAD, FOREST STATISTICS DEPARTMENT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **13. DR. S. SANKAR, SCIENTIST-G, PROGRAMME COORDINATOR, F & HD DIVISION, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** ## **14. DR.M. BALAGOPALAN, SCIENTIST-F, SOIL SCIENCE DEPARTMENT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** ## **RP.No. 1213 of 2015** ## **15. DR.U.N. NANDAKUMAR, SCIENTIST-F, HEAD, SILVICULTURE DEPARTMENT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **16. DR.E.J. MARIA FLORENCE, SCIENTIST-F, HEAD, FOREST PATHOLOGY DEPARTMENT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **17. DR.R.C. PANDALAI, SCIENTIST-F, PROGRAMME CO-ORDINATOR, EXTENSION & TRAINING, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **18. DR.K. MOHANADAS, SCIENTIST-F, HEAD, EXTENSION DEPARTMENT, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **19. DR.C.N. KRISHNANKUTTY, SCIENTIST-F, FOREST STATISTICS, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **20. DR.A.R. RAJAN, SCIENTIST-E, COORDINATOR, KERALA FOREST RESEARCH INSTITUTE, PEECHI-680 653, THRISSUR.** **21. KERALA FOREST RESEARCH INSTITUTE, PEECHI - 680 653, THRISSUR, REPRESENTED BY ITS REGISTRAR.** **22. STATE OF KERALA, REPRESENTED BY THE SECRETARY, FINANCE DEPARTMENT, THIRUVANANTHAPURAM -695 001.** **R1 TO R20 BY ADV. SRI.THAMPAN THOMAS. R21 BY ADV. SRI.S.M.PREM.** **R22 BY SR. GOVT. PLEADER SRI.PAUL VARGHESE.** **THIS REVIEW PETITION HAVING COME UP FOR ADMISSION ON 30-09-2016, ALONG WITH RP NO.593 OF 2016 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:** rs. ## **RP.No. 1213 of 2015** ## **APPENDIX** ## **PETITIONER'S ANNEXURES:-** **ANNEXURE A COPY OF THE LETTER DATED 09/10/2009 ISSUED BY THE DIVISIONAL MANAGER (P & GS) TO THE REGISTRAR, KERALA FOREST RESEARCH INSTITUTE, PEECHI.** ## **RESPONDENT'S ANNEXURES:-** **NIL.** **//TRUE COPY//** **P.S. TO JUDGE** rs. ## **A.M.SHAFFIQUE & P.V.ASHA, JJ.** ## **------------------------------------** - R.P.No.1213 of 2015 in W.A.No.1992 of 2014, R.P.No.1214 of 2015 in W.A.No.5 of 2015, R.P.No.593 of 2016 in W.A.No.21 of 2015, R.P.No.595 of 2016 in W.A.No.4 of 2015, - R.P.No.612 of 2016 in W.A.No.10 of 2015, R.P.No.621 of 2016 in W.A.No.7 of 2015 & R.P.No.776 of 2016 in W.A.No.32 of 2015 **-----------------------------------** Dated this the 30[th] day of September, 2016 ## **O R D E R** ## **Shaffique, J.** These review petitions have been filed seeking to review the judgment dated 01.10.2015 _inter alia_ contending that certain additional documents which were very much available during the relevant time could not be produced to substantiate the contentions raised by the review petitioners. 2. Reference is made to Annexure A produced in the cases to indicate that as per the terms of policy issued by the Life Insurance Corporation of India, there was a limit for payment of gratuity in terms with the Gratuity Act 1972. This aspect of the matter could not be brought to the notice of the Court, while the writ appeals were being heard. That apart, though the Division Bench while considering the writ appeals had referred to the judgments in _**Nedumpuzha Service Co-operative Bank Ltd. v. Rugmini [2011 (3) KLT 134]**_ and _**The Travancore Cements Employees Co-operative Bank Ltd. v. Ramachandran Nair [2014 (1) KLT**_ _**889]**_ and discussed the law laid down therein, the same was not R.P.No.1213 of 2015 in W.A.No.1992 of 2014 2 made applicable to the factual situation of the present case. 3. On a perusal of the judgment which is under review, it could be seen that in paragraph 55 this Court held as under : _“In the cases before us the payment of gratuity is regulated by Rule 14 as quoted above. Rule 14 does not contain any provision by which any ceiling limit to the payment of gratuity is provided, as provided under Section 4 (3) of 1972 Act. With regard to employees of Kerala Forest Research Institute there was an internal arrangement with LIC for payment of gratuity and from the materials on record it is proved that LIC has been making payment of gratuity to the employees without any ceiling limit as provided under Section 4(3). We have already noticed that payment of gratuity of Rs.15 lakhs to Dr C.Renuka and Dr George Mathew in W.P.(C) No.25884 of 2011 was paid in the year 2011 by the cheque issued by LIC. We thus conclude that Clause 14 of the rules and regulations framed by the Council provides for better terms of gratuity under the contract of service with the employer and payment of gratuity to writ petitioners was fully protected by Section 4(5) of the Act and the ceiling of Rs.10 lakhs as on date as provided under Section 4(3) was not applicable in payment of gratuity to the writ petitioners. The learned Single Judge did not commit any error in directing payment of gratuity to the petitioners disregarding the ceiling as prescribed in Section 4(5) of the Act.”_ The case was decided on a particular set of facts by which this Court had arrived at a conclusion that Clause 14 of the rules and regulations laid by the Council provides for better terms of gratuity R.P.No.1213 of 2015 in W.A.No.1992 of 2014 3 under the contract of service and therefore, it is fully protected by Section 4(5) of the Gratuity Act and therefore, the ceiling of 10₹ lakhs as on date as provided under Section 4(3) was not applicable. 4. The substantial contention raised in the review petitions is with reference to the policy that had been taken by the management wherein it is stated that it was an Act policy or the policy was intended to cover only that amount which is payable under the Gratuity Act. This aspect of the matter has been considered in the _**Nedumpuzha Service Co-operative Bank Ltd.**_ 's case (supra) as well in the other judgment referred above. But in none of these judgments the intervening factor of existence of regulations had been noticed nor any such eventuality had been taken into consideration. Those judgments clearly proceeds on the basis that there is no contract to the contrary or contract which stipulates better terms as far as the employees are concerned. Those judgments therefore stand on a different footing and cannot be the basis for a decision in the present case. That apart, in Travancore Cements Case (supra) itself, the Division Bench had occasion to observe that in the absence of a contract or agreement to receive better terms of gratuity, the employee was not legally entitled to gratuity over and above the statutory limit of 3.5 lakhs.₹ The law is therefore, well settled, which had been applied to the 4 ## R.P.No.1213 of 2015 in W.A.No.1992 of 2014 facts of the present cases also. 5. Learned Senior Counsel appearing for the review petitioners also points out that there is a doubt expressed with reference to the judgment in _**Nedumpuzha Service Co-operative Bank Ltd.**_ (supra) and the matter has been referred to a larger Bench. Be that as it may, since all the respective contentions of the parties had been dealt with while disposing of the writ appeals itself, we don't think that the contentions now urged give rise to a situation where the judgment warrants a review. Under such circumstances, there is no merit in the review petitions and the same are dismissed. Sd/- ## **A.M.SHAFFIQUE, JUDGE** Sd/- ## **P.V.ASHA, JUDGE** AV