High Court of KeralaSingle Judge2022-08-25Dismissed

S. Chandra Kumar and others v. State of Kerala and Handicrafts Development Corporation of Kerala Limited

Case / Petition Number:WP(C) NO. 27444 OF 2022

Neutral Citation:/null

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: Amit Rawal
Judgment Date: 2022-08-25
Court Decision / Holding: Writ petition stands dismissed.
Final Disposition: Dismissed

Parties to the Case

Appellants / Petitioners

S. Chandrakumar
Abdul Majeed K
B. Chandrasekharan Nair
S. Joy D'Costa
A. S. Kalyanikutty
T. P. Subhash
C. Vimala

Respondents

The State of Kerala represented by Secretary, Industries and Commerce Department, Government Secretariat, Thiruvananthapuram
Handicrafts Development Corporation of Kerala Limited represented by its Managing Director

Legal Representation & Advocates

Counsels for Petitioners

• Jawahar Jose
• Cissy Mathews
• Jaison Antony
• Edwin Joseph

Counsels for Respondents

• Sri V.K. Sunil
• Smt. Latha Anand

Case Synopsis & Summary

This writ petition, WP(C) No. 27444 of 2022, is filed by seven retired employees of the Handicrafts Development Corporation of Kerala seeking post-retiral reliefs. The petition seeks (i) mandamus to disburse interest at 10% on gratuity as per notices/certificates Exhibits P1–P9, within a shorter period as may be fixed by the court; (ii) mandamus to pay the differential gratuity for petitioners 6, 7 and 8 as determined by the Controlling Authority; (iii) mandamus to pay leave surrender with 10% interest from retirement for petitioners 3, 6 and 8; (iv) a declaration that payment of interest at 10% on gratuity cannot be delayed given its statutory nature under Section 7(3A) of the Payment of Gratuity Act; (v) a declaration that delays due to financial constraints cannot justify denying interest on gratuity or leave surrender; (vi) mandamus directing the first respondent to supervise the second respondent’s compliance with its statutory obligations; (vii) a declaration that the first respondent has to ensure compliance with statutory obligations; and (viii) a directive that the second respondent should not disburse retiral benefits to newer retirees until the petitioners’ benefits are fully paid. The respondents are the State of Kerala and Handicrafts Development Corporation of Kerala Limited. The Court recalls a Division Bench judgment (28-10-2020) directing payments and fund release, later modified by an order dated 22-12-2020, extending the contours of the directives. The petition is ultimately dismissed, with the court noting that the prior directions have inuring effect but may be addressed by appropriate legal remedies. The order records that the petitioners may move appropriate applications as required. The judgment emphasizes that the writ petition is disposed of, while recognizing ongoing statutory obligations and past directions.

Provisions of Law Cited

Section 7(3A) of the Payment of Gratuity Act, 1972

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the second respondent must disburse interest at 10% on gratuity as per Exhibits P1–P9; seek the differential gratuity for petitioners 6, 7 and 8; seek payment of leave surrender with 10% interest from retirement; argue that delay in payment violates the statutory obligation under Section 7(3A) of the Payment of Gratuity Act; urge timely enforcement and supervisory oversight by the first respondent; contend that ongoing financial constraints cannot justify withholding retiral benefits.

Contentions of Respondents

The respondents contest that retiral payments are governed by statutory obligations and the earlier directions of this Court (and their modifications) govern the matter; it is highlighted that financial constraints and procedural compliance must be balanced, and that past directives have been subject to modification by subsequent orders; the Respondents rely on compliance and financial realities in resisting a blanket mandamus for immediate payment of all amounts.

Cited Precedents (3)

Case Name	Citation	Treatment	Explanation
W.P. (C) No. 29028/2019	W.P. (C) No. 29028/2019	Mentioned Only	Exhibit P10 references the judgment in W.P. (C) No. 29028/2019; the present judgment cites it in appendix but does not rely on its ratio to decide the case.
W.A. 666/2020	W.A. 666/2020	Partly Overruled / Limited	The Division Bench judgment dated 28-10-2020 (W.A. 666/2020) directed payments; these directions were subsequently modified by order dated 22-12-2020 (RP 960/2020), limiting the scope of those directions.
RP 960/2020	RP 960/2020	Partly Overruled / Limited	Order dated 22-12-2020 in RP 960/2020 modified the earlier directions; thus, the earlier directives exist but to a limited extent in light of the modification.

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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 AMIT RAWAL THURSDAY, THE 25[TH] DAY OF AUGUST 2022 / 3RD BHADRA, 1944 WP(C) NO. 27444 OF 2022** ## **PETITIONER/S:** 1 S.CHANDRA KUMAR, AGED 68 YEARS S/O. SAHADEVAN, RESIDING AT THIRUVONAM, THEKKEVILA (P.O), KOLLAM DISTRICT. PIN - 691016. 2 ABDUL MAJEED. K, AGED 68 YEARS, S/O. KUNHOTHI, RESIDING AT KANNARAMBATH HOUSE,CHOPANKANDI ROAD, NALLALAM (P.O), KOZHIKODE DISTRICT. PIN - 673027. 3 B. CHANDRASEKHARAN NAIR, AGED 67 YEARS, S/O. BHASKARAN NAIR, RESIDING AT CHANDRAKALA,SANTHI NAGAR B-137, THIRUMALA (P.O), THIRUVANANTHAPURAM DISTRICT. PIN - 695006. 4 S. JOY D'COSTA, AGED 67 YEARS, S/O. SESALEXANDER D'COSTA, RESIDING AT "KISHORE", R.C.STREET, BALARAMAPURAM (P.O),THIRUVANANTHAPURAM DISTRICT. PIN - 695501. 5 A. S. KALYANIKUTTY, AGED 66 YEARS, W/O. BALAN, RESIDING AT MEPPULLY THAZHATH HOUSE, KAINOOR (P.O), THRISSUR DISTRICT. PIN - 680014. 6 T. P. SUBHASH, AGED 65 YEARS, S/O. ANANDAN, RESIDING AT HOUSE NO.43, BALAJI NIVAS, K. K NAGAR, EDAYARPALAYAM (P.O), COIMBATORE. PIN - 641025. 7 C. VIMALA, AGED 65 YEARS, W/O. RETNAKARAN, RESIDING AT KUNNATHU HOUSE,ARUNAPURAM (P.O), PALA, KOTTAYAM DISTRICT. PIN – 686574. **WP(C) NO. 27444 OF 2022** **2** 8 G. ANANDAVALLI, AGED 66 YEARS, W/O. LATE ASOKAN, RESIDING AT GOPALA MANDIRAM,KAMUKINCODE, KODENGAVILA (P.O), THIRUVANANTHAPURAM DISTRICT. PIN - 695123. 9 MADHAVIKUTTY. T, AGED 67 YEARS, W/O. VELAYUDHAN NAIR, RESIDING AT `PRASANTHAM',VAZHAVILA, NEMOM, OOKODE (P.O), THIRUVANANTHAPURAM DISTRICT. PIN - 695020. BY ADVS. JAWAHAR JOSE CISSY MATHEWS JAISON ANTONY EDWIN JOSEPH ## **RESPONDENT/S:** 1 THE STATE OF KERALA, REPRESENTED BY SECRETARY, INDUSTRIES AND COMMERCE DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. PIN - 695001. 2 HANDICRAFTS DEVELOPMENT CORPORATION OF KERALA LIMITED, REPRESENTED BY ITS MANAGING DIRECTOR, POST BOX NO.170, PUTHENCHANTHAI, THIRUVANANTHAPURAM. PIN – 695001. Sr.G.P SRI.V.K SUNIL, SMT. LATHA ANAND, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) NO. 27444 OF 2022** **3** ## **JUDGMENT** The petitioners have approached this Court seeking the following reliefs: _i. Issue a writ in the nature of mandamus, directing the 2[nd] respondent tot disburse the amount of interest @10, as directed in Exhibits-P1,P2P3,P4,P5,P6,P7,P8 and P9 notices/certificates, in respect of the petitioners, within a shorter period, to be determined by this Hon'ble Court._ _ii. Issue a writ in the nature of mandamus, directing the 2[nd] respondent to disburse the differential amount of gratuity, with respect to the petitioners6,7 and 8, as the said petitioner were not disbursed the full gratuity amount as determined by the Controlling Authority in Exhibits-P6,P7 and P8 notices/certificates._ _iii. Issue a writ in the nature of Mandamus, directing the 2[nd] respondent to pay the eligible amount of “leave surrender” with 10% interest, in respect of petitioners 3, 6 and 8 from their respective date of retirement._ _iv. Declare that the 2[nd] respondent cannot delay the payment of interest @ 10%, as directed inn Exhibits-P1, P2, P3, P4, P5, P6, P7, P8and P9, notices/certificates, as the said payment is a retiral benefit which is statutory, as per Section 7(3A) of the Payment of Gratuity Act._ _v. Declare that the 2[nd] respondent cannot delay the payment of “interest” on gratuity, on account of financial constraints._ _vi Declare that the 2[nd] respondent cannot deny the eligible amount of leave surrender, in respect of petitioners 3,6 and 8, on account of financial constraints._ _vi. Issue a writ in the nature of mandamus, directing the 1[st] respondent to supervise the 2[nd] respondent, with respect to the payment of retiral befits to its employees, particularly when the Controlling Authority has issued Exhibits-P1, P2, P3, P4, P5, P6, P7, P8 and P9 notices/certificates after due statutory enquiry._ **WP(C) NO. 27444 OF 2022** **4** _Vii. Declare that the 1[st] respondent who is having administrative superintendence over the affairs of the 2[nd] respondent, is legally obliged to satisfy themselves that the 2[nd] respondent is complying with their statutory obligations to their retired employees._ _Viii. Issue a writ in the nature of mandamus, directing the 2[nd] respondent not to disburse the retiral benefits to other retired employees, who were retired subsequent to the retirement of the petitioners, till the retiral benefits of the petitioners are fully paid._ 2. Concededly, the Division Bench of this Court in the judgment dated 28.10.2020 had kept intact the interest of the other ## retired employees by issuing the following directions. I. _The amount due to the retired employees shall be paid within a period of three months from the date of receipt of a copy of this judgment._ II. _The additional 3[rd] respondent shall take immediate steps to ensure that sufficient fund is released to the 1[st] respondent to enable them to pay the aforesaid amount due to the retired employee._ III. _Until such payments are made, the Managing Director and the Managers shall not be paid their full salary. The persons in Managerial cadre including the Managing Director shall receive only 25% of their salary._ 3. The aforementioned directions were modified vide subsequent order on 22.12.2020 vide Ext.P10(b). It has been informed that the petitioners have not been paid their full gratuity and they are remediless and therefore approached this Court. I am afraid, the aforementioned argument is not acceptable as the directions of this Court had inuring effect and since it is pending, **WP(C) NO. 27444 OF 2022** **5** petitioners are at liberty to move an appropriate application in accordance with law. With the aforementioned observation, writ petition stands dismissed. **Sd/-** sab **AMIT RAWAL** **JUDGE** **WP(C) NO. 27444 OF 2022** **6** ## **APPENDIX OF WP(C) 27444/2022** |PETITIONER EXHIBITS|| |---|---| |Exhibit P1|RUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| ||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| ||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| ||AND INTEREST AS REGARDS THE 1ST PETITIONER.| |Exhibit P1 A|TRUE COPY OF THE REPRESENTATION DATED 6-6-2022| ||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| ||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P2|TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| ||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| ||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| ||AND INTEREST AS REGARDS THE 2ND PETITIONER.| |Exhibit P2 A|TRUE COPY OF THE REPRESENTATION DATED 4-6-2020| ||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| ||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P3|TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| ||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| ||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| ||AND INTEREST AS REGARDS THE 3RD PETITIONER.| |Exhibit P3 A|TRUE COPY OF THE REPRESENTATION DATED 13-6-2022| ||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| ||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P4|TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| ||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| ||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| ||AND INTEREST AS REGARDS THE 4TH PETITIONER.| |Exhibit P4 A|TRUE COPY OF THE REPRESENTATION DATED 3-6-2022| ||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| ||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P5|TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| ||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| ||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| ||AND INTEREST AS REGARDS THE 5TH PETITIONER| **WP(C) NO. 27444 OF 2022** **7** |Exhibit P5|A|TRUE COPY OF THE REPRESENTATION DATED 7-6-2022| |---|---|---| |||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| |||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P6||TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| |||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| |||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| |||AND INTEREST AS REGARDS THE 6TH PETITIONER.| |Exhibit P6|A|TRUE COPY OF THE REPRESENTATION DATED 5-6-2022| |||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| |||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P7||TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| |||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| |||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| |||AND INTEREST AS REGARDS THE 7TH PETITIONER.| |Exhibit P7|A|TRUE COPY OF THE REPRESENTATION DATED 14-6-2022| |||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| |||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P8||TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| |||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| |||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| |||AND INTEREST AS REGARDS THE 8TH PETITIONER.| |Exhibit P8|A|TRUE COPY OF THE REPRESENTATION DATED 7-6-2022| |||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| |||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P9||TRUE COPY OF THE NOTICE/CERTIFICATE DATED 22-1-2020| |||ISSUED BY THE CONTROLLING AUTHORITY TO THE 2ND| |||RESPONDENT WITH RESPECT TO THE PAYMENT OF GRATUITY| |||AND INTEREST AS REGARDS THE 9TH PETITIONER.| |Exhibit P9|A|TRUE COPY OF THE REPRESENTATION DATED 7-6-2022| |||SUBMITTED BY THE 1ST PETITIONER TO THE MANAGING| |||DIRECTOR OF THE 2ND RESPONDENT.| |Exhibit P9|B|TRUE COPY OF THE STATEMENT FILED BY THE 2ND| |||RESPONDENT IN W.P (C) NO.29028/2019 BEFORE THIS| |||HON'BLE COURT.| **WP(C) NO. 27444 OF 2022** **8** Exhibit P10 TRUE COPY OF THE JUDGMENT DATED 5-3-2020 IN W.P (C) NO. 29028/2019 OF THIS HON'BLE COURT. Exhibit P10 A TRUE COPY OF THE JUDGMENT DATED 28-10-2020 IN W.A NO. 666/2020 OF THIS HON'BLE COURT. Exhibit P10 B TRUE COPY OF THE ORDER DATED 22-12-2020 IN R.P NO.960/2020 OF THIS HON'BLE COURT.