High Court of KeralaSingle Judge2019-07-18Writ petitions disposed of; liberty to petition...

W.P.(C).No.14001 of 2019 & connected cases

Case / Petition Number:WP(C).No.14001 of 2019 & connected cases

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: Devan Ramachandran
Judgment Date: 2019-07-18
Court Decision / Holding: Reserving liberty to the petitioners to establish an implied contract via competent authorities, the court closed the writ petitions without further orders, allowing them to pursue the alternative statutory remedies under the KCS Act or the Payment of Gratuity Act to obtain reliefs under those statutes.
Final Disposition: Writ petitions disposed of; liberty to petitioners to approach authorities under Section 69 of the KCS Act or the Controlling Authority under the Payment of Gratuity Act to establish an implied contract; no further orders beyond preserving such remedies.

Parties to the Case

Appellants / Petitioners

RAMESAN.P.V
SATHYAVATHI.K.V.
ANILKUMAR.A
SURESAN KAKKOTH
P.V.SALINI
ANSAMMA SEBASTIAN
K.JAYARAJAN
VINAYAKUMAR M.N.
DINESHAN A.
RAMESHAN.M.
MADHU A.
A.PAVITHRAN
PANKAJAKSHI K.
AJAYAKUMAR.N.V
MEERA.N
ANILKUMAR.K
ARAVINDAN.E
MANULA.N.K.
RAMESH BABU.P.V.

Respondents

The Pappinisseri Co-operative Rural Bank Ltd.
Life Insurance Corporation, Division Office, Kozhikode
Joint Registrar (General), Co-operative Societies, Kannur
Kannur Co-op House Construction Society Ltd.
Pinarayi Service Co-Operative Bank Ltd.
Mowanchery Co-Operative Rural Bank Ltd.
Pattuvam Service Co-Operative Bank Ltd.
Kannur Primary Co-operative Agricultural and Rural Development Bank Ltd.
Ezhome Service Co-Operative Bank Ltd.
Kadirur Service Co-Operative Bank Ltd.
Thalassery Co-Operative Rural Bank Ltd.
State of Kerala represented by the Secretary, Co-operative Department

Legal Representation & Advocates

Counsels for Petitioners

• SRI.THAMPAN THOMAS
• SRI.B.V.JOY SANKER
• SRI.JIJI THOMAS
• SMT.PRABHA R.MENON
• SMT.Smitha MATHEW
• SRI.EASWARAN
• SRI.C.S. SHEEJA
• SMT.C.S. SHEEJA
• SRI.N.RAJAGOPALAN NAIR

Counsels for Respondents

• SRI.C.KRISHNAN
• SRI.S.EASWARAN
• SMT.C.LEENA
• SRI.P.V.VARGHESE
• SMT.R.REJI
• SMT.SREEJA SOHAN K.
• SMT.C.S. SHEEJA
• SR. GP
• SRI.TS.HARIKUMAR
• SRI.S. EASWARAN
• SRI.C.S. RAMANATHAN
• SRI.N NAVANEETH N. NATH
• SRI.S. EASWARAN
• SRI.S. EASWARAN

Case Synopsis & Summary

This cluster of writ petitions, heard together by Justice Devan Ramachandran, concerns whether the statutory gratuity cap under the Payment of Gratuity Act can be overridden by a contractual obligation in favour of employees, particularly through implied contracts arising from group gratuity schemes or master policies issued by LIC. The Court refers to a Full Bench decision in Chandrasekharan Nair G. v. Kerala State Cooperative Agricultural and Rural Development Bank Limited (2017) and its own later ruling in Jayarajan V.T. & Others v. Kozhikode District Co-operative Bank (2019), to hold that where there is a contract between employer and employee to pay higher gratuity than the statutory limit, the employee may be entitled to such higher payments despite Rule 59(iii) of the Kerala Co-operative Societies Rules and Section 4(2) of the Payment of Gratuity Act. However, the Court notes that the factual basis for implied contracts is not clearly established in the present petitions, and thus cannot definitively grant relief. The Judge reserves liberty for petitioners to establish an express or implied contract via competent authorities under Section 69 of the KCS Act or the Controlling Authority under the Payment of Gratuity Act, so as to secure reliefs under the applicable statutes. The petitions are disposed of without further orders, leaving open avenues for pursuing the asserted contractual rights.

Provisions of Law Cited

Rule 59(iii) of the Kerala Co-operative Societies Rules (KCS Rules)Section 4(2) of the Payment of Gratuity ActSection 4(5) of the Payment of Gratuity ActSection 69 of the Kerala Co-operative Societies Act (KCS Act)

Legal Doctrines & Maxims

Implied contract between employer and employee to pay higher gratuity
Contractual rights may override statutory caps when supported by evidence of express or implied agreements

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that if there exists a contractual or implied contractual obligation to pay gratuity higher than the statutory cap, such obligation should prevail. They rely on group/gratuity policies and LIC’s Group Gratuity Scheme, arguing for an implied contract that would extend gratuity payments beyond statutory limits. However, the factual record is incomplete, preventing a definite conclusion on implied contracts. They seek reliefs under applicable statutes, and reserve the right to approach authorities under Section 69 of the KCS Act or the Controlling Authority under the Payment of Gratuity Act to establish the implied contract.

Contentions of Respondents

The respondents submit that gratuity is governed by statutory limits under the Payment of Gratuity Act and KCS Rules. They argue that unless there is a clear express or implied contract proven with cogent materials, the statutory cap cannot be overridden. They rely on the settled law and request the court to refrain from extending beyond statutory entitlements unless a valid contract is established through proper legal channels and evidence.

Cited Precedents (2)

Case Name	Citation	Treatment	Explanation
Chandrasekharan Nair G. v. Kerala State Cooperative Agricultural and Rural Development Bank Limited	2017(5) KHC 15	Positive	Full Bench decision establishing the principle that contractual obligations to pay higher gratuity can override the statutory cap and that such issues require consideration of contract terms.
Jayarajan V.T. & Others v. Kozhikode District Co-operative Bank and Others	2019(3) KHC 239	Positive	Court states it has followed this decision (supra) in its reasoning, reinforcing the contract-based override concept where applicable.

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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 DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941** ## **WP(C).No.14001 of 2019** ## **PETITIONERS/:** **1 RAMESAN.P.V, POONHEN VELIKKAKATH, MANGAD WEST, KANNUR UNIVERSITY CAMPUS P.O., KANNUR-670 567. 2 SATHYAVATHI.K.V., PRANAVAM, KOLMOTTA, NANICHERI P.O., PARSSINIKKADAVU, KANNUR-670 563. BY ADVS. SRI.THAMPAN THOMAS SRI.B.V.JOY SANKER** ## **RESPONDENTS/S:** **1 THE PAPPINISSERI CO-OPERATIVE RURAL BANK LTD.NO.F.1321 KALLIASSERI P.O., KANNUR-670 562, REPRESENTED BY ITS SECRETARY. 2 THE DIVISIONAL MANAGER(PENSION AND GROUP SCHEMES DEPARTMENT), LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE, KOZHIKODE-673 305. 3 THE JOINT REGISTRAR(GENERAL), CO-OPERATIVE SOCIETIES, KANNUR-670 002.** **BY ADVS. SRI.C.KRISHNAN(KANNUR), STANDING COUNSEL SRI.S.EASWARAN, STANDING COUNSEL SMT.C.LEENA** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14767/2019 & CONN.CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING** WPC 14001/19 & connected cases 2 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941** ## **WP(C).No.14351 of 2019** ## **PETITIONERS/S** **ANILKUMAR.A, AGED 59 YEARS S/O. RAGHAVAN K, ANIL SADAN, CHOVVA P.O, KANNUR 670 006. BY ADV. SRI.THAMPAN THOMAS** ## **RESPONDENTS/S:** |**1**|**KANNUR CO-OP HOUSE CONSTRUCTION SOCIETY LTD.**| |---|---| ||**C. 358, THALIKAVU, KANNUR 670 001,**| ||**REPRESENTED BY ITS SECRETARY.**| |**2**|**THE DIVISIONAL MANAGER (PENSION AND GROUP SCHEMES**| ||**DEPARTMENT),**| ||**LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE,**| ||**KOZHIKODE 673 001.**| |**3**|**THE JOINT REGISTRAR (GENERAL),**| ||**CO-OPERATIVE SOCIETIES, KANNUR 670 002.**| ||**BY ADVS.**| ||**SMT.C.LEENA, STANDING COUNSEL**| ||**SRI.R.HARISHANKAR**| ||**SMT. C.S. SHEEJA, SR. GOVERNMENT PLEADER**| ||**SRI. S. EASWARAN, STANDING COUNSEL.**| **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019 ALONG WITH W.P(C).14001/2019 & CONN. CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941 WP(C).No.14767 of 2019** ## **PETITIONERS:** |**1**||**SURESAN KAKKOTH, SREEVALSAM,**| |---|---|---| |||**PARAPRAM P.O.PINARAYI, KANNUR 670 741.**| |**2**||**P.V.SALINI, REJASS,**| |||**PADANNAKKARA, PINARAYI P.O.,**| |||**THALASSERY, KANNUR 670 741.**| |||**BY ADV. SRI.THAMPAN THOMAS**| |**RESPONDENTS**<br>**:**||| |**1**||**PINARAYI SERVICE CO-OPERATIVE BANK LTD.NO.6970**| |||**PINARAYI P.O. THALASSERY, KANNUR 670 741,**| |||**REPRESENTED BY ITS SECRETARY.**| |**2**||**THE DIVISIONAL MANAGER**| |||**(PENSION AND GROUP SCHEMES DEPARTMENT),**| |||**LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE,**| |||**KOZHIKODE-673 305.**| |**3**||**THE JOINT REGISTRAR (GENERAL)**| |||**CO-OPERATIVE SOCIETIES, KANNUR-670 002.**| |||**BY ADVS.**| |||**SRI.P.V.VARGHESE (KANJIRAMATTOM)**| |||**SMT.R.REJI (ATTINGAL)**| |||**SMT.SREEJA SOHAN K.**| |||**SMT.C.S.SHEEJA-SR.GP**| **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN. CASES , THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 4 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941/** ## **WP(C).No.14796 of 2019** ## **PETITIONER/S:** **ANSAMMA SEBASTIAN,AGED 59 YEARS D/O.SEBASTIAN, PALACKALODIYIL, THONDIYIL.P.O, KANNUR-670673** **BY ADV. SRI.THAMPAN THOMAS** ## **RESPONDENT/S:** - **1 THONDIYIL SERVICE CO-OPERATIVE BANK LTD.NO.C.45, THONDIYIL.P.O, KANNUR-670673, REPRESENTED BY ITS SECRETARY.** - **2 THE DIVISIONAL MANAGER (PENSION AND GROUP SCHEMES DEPARTMENT), LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE, KOZHIKODE-673001** **3 THE JOINT REGISTRAR(GENERAL) CO-OPERATIVE SOCIETIES, KANNUR-670002.** **BY ADVS. SRI.JIJI THOMAS SMT.PRABHA R.MENON SMT.SMITHA MATHEW. SRI. EASWARAN, STANDING COUNSEL, SMT. C.S. SHEEJA, SR. GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN.CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 5 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941** **WP(C).No.14993 of 2019** ## **PETITIONER/S:** |**1**|**K.JAYARAJAN, AGED 59 YEARS**| |---|---| ||**S/O.KELU, KAKKARAYIL HOUSE,**| ||**CHALA, CHALA EAST.P.O., KANNUR-670621.**| |**2**|**VINAYAKUMAR M.N., AGED 59 YEARS**| ||**S/O.KARUNAKARAN, SRISRI,**| ||**CHEMBRA, PARAL.P.O., THALASSERY-670671.**| |**3**|**DINESHAN A., AGED 59 YEARS**| ||**S/O.LATE A.KELAPPAN, ALARAMBIL HOUSE, VISMAYAM,**| ||**KANHIROLE.P.O., KANNUR-670592.**| |**4**|**RAMESHAN.M.,AGED 59 YEARS**| ||**S/O.PAITHAL, MADAPPURACKAL HOUSE,**| ||**ANCHARAKANDY.P.O., KANNUR-670612.**| ||**BY ADVS.**| ||**SRI.THAMPAN THOMAS**| ||**SMT.R.RAJASREE**| ## **RESPONDENT/S:** |**1**|**MOWANCHERY CO-OPERATIVE RURAL BANK LTD.**| |---|---| ||**NO.F.1279, CHAKKARAKKAL, MOWANCHERY.P.O.,**| ||**KANNUR-670603, REPRESENTED BY ITS SECRETARY.**| |**2**|**THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES**| ||**(GENERAL), THAVAKKARA, KANNUR, KERALA-670002.**| WPC 14001/19 & connected cases 6 **3 STATE OF KERALA, REPRESENTED BY THE SECRETARY, CO-OPERATIVE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695001.** **BY ADVS. DR.K.P.PRADEEP SMT.ANJANA KANNATH SMT.NEENA ARIMBOOR SMT.T.THASMI SRI.SANAND RAMAKRISHNAN SRI.T.T.BIJU SMT. SHEEJA.C.S., SR. GOVERNMENT PLEADER,** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN.CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 7 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941 WP(C).No.15511 of 2019** ## **PETITIONER/S:** **A.PAVITHRAN, AGED 59 YEARS S/O.GOVINDAN.P.V., ANJANAM, KADIRUR, THALASSERY, KANNUR-670 642. BY ADV. SRI.THAMPAN THOMAS** ## **RESPONDENT/S:** **1 PATTUVAM SERVICE CO-OPERATIVE BANK LTD. NO. C.132 PATTUVAM P.O., TALIPARAMBU, KANNUR-670 143, REPRESENTED BY ITS SECRETARY. 2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES(GENERAL), THAVAKKARA, KANNUR, KERALA-670 002. 3 STATE OF KERALA REPRESENTED BY THE SECRETARY, CO-OPERATIVE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001. 4 THE DIVISIONAL MANAGER(PENSION AND GROUP SCHEMES DEPARTMENT), LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE, KOZHIKODE-673 001. BY ADVS. SRI.R.HARISHANKAR SMT.O.V.BINDU SMT. C.S. SHEEJA, SR. GOVERNMENT PLEADER SRI. S. EASWARAN, STANDING COUNSEL** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN.CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 8 # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941** **WP(C).No.16107 of 2019** ## **PETITIONER/S:** **PANKAJAKSHI K.,AGED 60 YEARS D/O.BALA KRISHNAN, KAKKOPRATH HOUSE, CHELERI P.O., CHELERI, KANNUR - 670 604.** **BY ADVS. SRI.THAMPAN THOMAS SRI.B.V.JOY SANKER** ## **RESPONDENT/S:** **1 KANNUR PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD.NO.1006,KOODALI P.O., KANNUR - 670 002, REPRESENTED BY ITS SECRETARY. 2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),THAVAKKARA, KANNUR, KERALA - 670 002. 3 STATE OF KERALA, REPRESENTED BY THE SECRETARY, CO-OPERATIVE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 4 THE DIVISIONAL MANAGER (PENSION AND GROUP SCHEMES DEPARTMENT), LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE, KOZHIKODE - 673 001.** **BY ADVS. SRI.M.SASINDRAN, STANDING COUNSEL SRI.C.S.RAMANATHAN SRI.ALEX VARGHESE SRI. S. EASWARAN, STANDING COUNSEL SMT. C.S. SHEEJA, SR. GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN. CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 9 # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941** # **WP(C).No.16111 of 2019** ## **PETITIONER/S:** **AJAYAKUMAR.N.V, AGED 61 YEARS S.O. BALAKRISHNAN, SANGEETH, NEAR MUCHILOT KAVU, PUTHIYATHERU, CHIRAKKAL P.O., KANNUR - 670 011** **BY ADVS. SRI.THAMPAN THOMAS SMT.R.RAJASREE SRI.B.V.JOY SANKER** ## **RESPONDENT/S:** **1 THE EZHOME SERVICE CO-OPERATIVE BANK LTD.NO.C.1508 EZHOME P.O., KANNUR - 670 334, REPRESENTED BY ITS SECRETARY 2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), THAVAKKARA, KANNUR, KERALA - 670 002 3 STATE OF KERALA, REPRESENTED BY THE SECRETARY CO-OPERATIVE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001** **4 THE DIVISIONAL MANAGER(PENSION AND GROUP SCHEMES DEPARTMENT), LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE, KOZHIKODE - 673 001** **BY ADVS. SRI.M.SASINDRAN SRI.N.RAJAGOPALAN NAIR SMT. C.S. SHEEJA, SR. GOVERNMENT PLEADER SRI. S. EASWARAN, STANDING COUNSEL** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN.CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 10 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941 WP(C).No.16799 of 2019** ## **PETITIONER/S:** **MEERA.N, AGED 62 YEARS D/O. V.K.NANU, ATHULYA, PALAYAD P.O., ANDALUR, KANNUR-670 661.** **BY ADV. SRI.THAMPAN THOMAS** ## **RESPONDENT/S:** |**1**|**KADIRUR SERVICE CO-OPERATIVE BANK LTD.NO.F.1262**| |---|---| ||**KADIRUR P.O., KANNUR 670642,**| ||**REPRESENTED BY ITS SECRETARY.**| |**2**|**THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES**| ||**(GENERAL), THAVAKKARA, KANNUR, KERALA-670 002.**| |**3**|**STATE OF KERALA, REPRESENTED BY THE SECRTARY,**| ||**CO-OPERATIVE DEPARTMENT, SECRETARIAT,**| ||**THIRUVANANTHAPURAM-695 001.**| |**4**|**THE DIVISIONAL MANAGER (PENSION AND GROUP SCHEMES**| ||**DEPARTMENT),LIFE INSURANCE CORPORATION,**| ||**DIVISIONAL OFFICE, KOZHIKODE-673 001.**| **BY ADVS. SRI.M.SASINDRAN SRI.P.B.SAHASRANAMAN SRI.T.S.HARIKUMAR SMT. C.S. SHEEJA, SR. GOVERNMENT PLEADER SRI. S. EASWARAN, STANDING COUNSEL.** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN. CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 11 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 18TH DAY OF JULY 2019 / 27TH ASHADHA, 1941 WP(C).No.16827 of 2019** ## **PETITIONERS:** - **1 ANILKUMAR.K, AGED 59 YEARS S/O. KUNHIRAMA, AMAR, EDANNOORE KURICHIYIL P.O., THALASSERRY, KANNUR 670 102.** - **2 ARAVINDAN.E,AGED 59 YEARS S/O. THAMU, CHAITHANYA, PURATHIYATH PANNIYANNUR P.O., THALSSSERY, KANNUR 670 671.** - **3 MANULA.N.K.,AGED 59 YEARS D/O. LATE NELLIKKA ACHUTHAN, C.K. HOUSE, ERANHOLI, PERUNTHATTIL P.O., THALASSERY, KANNUR 670 107** - **4 RAMESH BABU. P.V.,AGED 59 YEARS, S/O. VASU, THEERTHAM, KUTTIMAKOOL THIRUVANGAD P.O., THALASSERY KANNUR 670 103.** - **5 MADHU A.,AGED 59 YEARS, S/O. RAGHAVAN AZHIKODAN HOUSE, PALLIKUNNU KANNUR 670 004. BY ADV. SRI.THAMPAN THOMAS** ## **RESPONDENT/S:** - **1 THALASSERY CO-OPERATIVE RURAL BANK LTD. NO.F.1263 THIRUVANGAD P.O., THALASSERY, KANNUR 670 103. REPRESENTED BY ITS SECRETARY.** - **2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) THAVAKKARA KANNUR, KERALA 670 002.** WPC 14001/19 & connected cases 12 **3 STATE OF KERALA REPRESENTED BY THE SECRETARY., CO-OPERATION DEPARTMENT, SECRETARIAT THIRUVANANTHAPURAM 695 001.** **4 THE DIVISIONAL MANAGER (PENSION AND GROUP SCHEMES DEPARTMENT), LIFE INSURANCE CORPORATION, DIVISIONAL OFFICE, KOZHIKODE 673 001.** **BY ADVS. SRI.C.P.UDAYABHANU SMT.PRABHA R.MENON SRI.NAVANEETH.N.NATH SMT. C.S. SHEEJA, SR. GOVERNMENT PLEADER, S. EASWARAN, STANDING COUNSEL** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2019, ALONG WITH WP(C).14001/2019 & CONN.CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 14001/19 & connected cases 13 ## **JUDGMENT** In all these cases the issue raised is whether on account of Rule 59 (iii) of the Kerala Co-operative Societies Rules (KCS Rules for short), the statutory limit of gratuity, imposed by Section 4(2) of the Payment of Gratuity Act, would stand overridden. 2. Even though I have heard Sri.Thampan Thomas, learned counsel for the petitioners, in great detail, it is now obvious that I do not need to restate the position of law, since it has been already settled, without any reason for doubt, by a Full Bench of this Court in **Chandrasekharan Nair G. v. Kerala State Cooperative Agricultural and Rural Development Bank Limited [2017(5) KHC 15]** which has been followed by me in **Jayarajan V.T. & Others v. Kozhikode District Co-operative Bank and Others [2019(3) KHC 239].** 3. The sum total of the observations of WPC 14001/19 & connected cases 14 this Court in these cases is that if there is a contract between the employer and the employee to pay a higher gratuity than what is statutorily limited, then notwithstanding Rule 59 (iii) and the proviso thereunder or Section 4(2) of the Payment of Gratuity Act, the employee is entitled to such payment. In fact, in **Jayarajan** (supra), I have taken a view that in a case where the employer pays higher premium to the Life Insurance Corporation of India (LIC for short), under the 'Group Gratuity' Scheme, enabling a higher pay-out of gratuity by the said Insurance Company, an implied contract will be construed and that the employee, consequently, will be entitled to all such amounts paid by the LIC on his/her account. 4. However, whether such facts are available in these cases or if there is an express or implied contract between the parties are issues which are exclusively in the factual WPC 14001/19 & connected cases 15 realm, but which are not immediately discernible from the pleadings on record. 5. Of course, I am aware of the submissions of Sri.Thampan Thomas, learned counsel for the petitioners, that the Insurance Policy taken by the various Societies in these cases coupled with the premium paid by them to the LIC would normally indicate and establish an implied contract and therefore, that the views of this Court in **Jayarajan** (supra) would apply to these cases also. 6. Even when I hear Sri.Thampan Thomas on the afore lines, it is indubitable from the pleadings on record that these facts have not been established and therefore, that I am certainly disabled from entering into an affirmative conclusion on these issues in the absence of cogent and reliable materials. 7. That said, however, I do not intend to shut down any of the remedies of the petitioners WPC 14001/19 & connected cases 16 since, if they are able to establish, by credible evidence, that there is an express or implied contract between them and their respective employers, which can bring it under the ambit of Section 4(5) of the Payment of Gratuity Act, then certainly, they would be entitled to the reliefs sought for in these Writ Petitions. 8. However, since the factual circumstances are amorphous in these Writ Petitions, I deem it appropriate to reserve liberty to the petitioners to invoke their alternative statutory remedies, by either approaching the competent Authority under Section 69 of the KCS Act or the Controlling Authority under the Payment of Gratuity Act, as they may be advised, so that their contentions regarding an implied contract can be established by them in terms of law, leading to the reliefs to be obtained by them under the provisions of WPC 14001/19 & connected cases 17 the applicable Statutes, Rules and Regulations. Reserving such liberty, I close these Writ Petitions without any further orders. **Sd/-** **DEVAN RAMACHANDRAN** RR **JUDGE** WPC 14001/19 & connected cases 18 ## APPENDIX OF WP(C) 14001/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF RELEVANT PAGES OF THE MASTER POLICY ISSUED BY THE 2ND RESPONDENT. WPC 14001/19 & connected cases 19 ## APPENDIX OF WP(C) 14351/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF RELEVANT PAGES OF THE MASTER POLICY ISSUED BY THE 2ND RESPONDENT. WPC 14001/19 & connected cases 20 ## APPENDIX OF WP(C) 14767/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF RELEVANT PAGES OF THE MASTER POLICY ISSUED BY THE 2ND RESPONDENT WPC 14001/19 & connected cases 21 ## APPENDIX OF WP(C) 14796/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF RELEVANT PAGES OF THE MASTER POLICY ISSUED BY THE 2ND RESPONDENT WPC 14001/19 & connected cases 22 ## APPENDIX OF WP(C) 14993/2019 ## PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE CERTIFICATE ISSUED BY THE 1ST RESPONDENT TO THE 1ST PETITIONER DATED 22.5.19. EXHIBIT P2 TRUE COPY OF THE CERTIFICATE ISSUED BY THE 1ST RESPONDENT TO THE 2ND PETITIONER DATED 22.5.19. EXHIBIT P3 TRUE COPY OF THE CERTIFICATE ISSUED BY THE 1ST RESPONDENT TO THE 3RD PETITIONER DATED 22.5.19. EXHIBIT P4 TRUE COPY OF THE CERTIFICATE ISSUED BY THE 1ST RESPONDENT TO THE 4TH PETITIONER DATED 22.5.19. WPC 14001/19 & connected cases 23 ## APPENDIX OF WP(C) 15511/2019 ## PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES (PAGE NO.1 & 7) OF THE MASTER POLICY ISSUED BY THE LIFE INSURANCE CORPORATION OF INDIA. WPC 14001/19 & connected cases 24 ## APPENDIX OF WP(C) 16107/2019 ## PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES (PAGE NO.1 & 3) OF THE MASTER POLICY ISSUED BY THE LIFE INSURANCE CORPORATION OF INDIA. WPC 14001/19 & connected cases 25 ## APPENDIX OF WP(C) 16111/2019 ## PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES (PAGE NO.1 & 3) OF THE MASTER POLICY ISSUED BY THE LIFE INSURANCE CORPORATION OF INDIA WPC 14001/19 & connected cases 26 ## APPENDIX OF WP(C) 16799/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES (PAGE NO.1 & 3) OF THE MASTER POLICE ISSUED BY THE LIFE INSURANCE CORPORATION OF INDIA. WPC 14001/19 & connected cases 27 ## APPENDIX OF WP(C) 16827/2019 ## PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES PAGE NO.1 & 8 OF THE MASTER POLICY ISSUED BY THE LIFE INSURANCE CORPORATION OF INDIA.