S. Siri Jagan, J.

A very important question affecting the employees of the Co-operative Societies across the State of Kerala arises in this case. The question is whether the gratuity payable to retired employees or legal heirs of deceased employees of Co-operative Societies should be restricted to the maximum prescribed under S.4(3) of the Payment of Gratuity Act, 1972, (for short ‘the Act’), R.59 of the Kerala Co-operative Societies Rules, 1969 (hereinafter referred to as ‘the Rules’) and the bye-laws framed under the said R.59, even in cases where the Societies have entered into arrangement with the L.I.C. to have their liability for payment of gratuity to its employees insured as per the “Employees Group Gratuity Life Assurance Scheme” of the L.I.C., as per which more amounts than the statutory maximum payable as per S.4(3) of the Payment of Gratuity Act, R.59 and bye-laws of the society are payable to the employees.

2. The facts of the case fall in a narrow compass. According to the petitioners, the 1st respondent-Society had constituted a Gratuity Fund Trust under the Payment of Gratuity Act in order to ensure payment of gratuity to its employees as per the Act. The