2001 Supreme(Ker) 343
Judges : KURIAN JOSEPH
Uminer - Appellant
Versus
Kerala State Road Transport Corporation - Respondent
Case No : O.P. No. 13280 of 1999
Decided On : 08/02/2001
Advocates Appeared :
Sunny Malhew For Petitioner N. James Koshy For Respondents
Headnote:
K.S.R.T.C. - Justification - One thing that is certain as far as an employee is concerned is date of retirement - Hence by retirement employee should also get his due benefits and disbursement of same is duty of employer - If employer is not able to discharge its obligations in matter of payment of wages and retirement benefits there is no meaning in existence of establishment benefits that are due to an employee on retirement are as follows - Held, As far as employees who have already retired from service and to whom gratuity and commuted value of pension are not paid K.S.R.T.C. is given time up to in the facts and circumstances of case - This does not mean that K.S.R.T.C. is given time up to for all cases time is given to enable K.S.R.T.C. to pay up arrears in a phased manner payment should be only on basis of the priority list maintained by K.S.R.T.C - In case of retired employees in any case monthly pension should be paid to them within one month from date of their retirement - Petition dismissed
Kurian Joseph, J.
The petitioners are employees retired from the K.S.R.T.C. It is unfortunate that the first thing that an employee, after his retirement, has to do is to file a Writ Petition for a direction in the matter of disbursement of his pensionary benefits. That is not a healthy practice. It is high time hence, certain general directions are issued so that the retired employees Of the K.S.R.T.C. would get peace. One thing that is certain, as far as an employee is concerned, is the date of retirement. Hence by retirement, the employee should also get his due benefits, and disbursement of the same is the duty of the employer. If the employer is not able to discharge its obligations in the matter of payment of wages and retirement benefits, there is no meaning in the existence of the establishment. The benefits that are due to an employee on retirement are as follows:
1. Provident Fund
2. Staff Welfare Fund
3. Death cum Retirement Gratuity
4. Pension-Commuted value of pension.
2. It is seen from the factual position that is available in these Original Petitions that, even the employees retired two years back are not paid the benefits stated above. It is also seen that there is no priority for the K.S.R.T.C. for the disbursement of the retirement benefits. It would be really unfortunate, if the retirement benefits are given only to persons who approach this Court and obtain orders. More unfortunate is the situation when disbursement of pensionary benefits, as pointed out in some of the cases, is only to a favoured few.
3. Learned Standing counsel for the K.S.R.T.C. submits that paucity of funds is the only reason for the delay in disbursement of the pensionary benefits. That by itself cannot be paused as a reason to delay the benefits. These are situations where the delay even tantamounts to denial. It is shocking to note that the Provident Fund and Staff Welfare Fund are also not paid on retirement. As far as these two amounts are concerned, there is absolutely no justification for retaining those amounts. Retention of such amounts, to put it mildly, would amount to breach of trust and misappropriation, because the K.S.R.T.C. has no right to withhold and use such amounts. Provident fund is a fund constituted of amounts provided by the employees only. On termination of relationship on retirement, the employer ceases to be the custodian of such amounts.
4. In that view of the matter, as far as Provident Fund and Staff Welfare Fund amounts are concerned, there will be a direction to the K.S.R.T.C. to see that these two amounts are paid to all employees who retire from service within a period of six weeks from the date of retirement. In the case of those who have already retired, the payment will be made within a period of six weeks from today.
5. The situation is not different as far as gratuity is also concerned. The employees build high hopes over the retirement benefits. So, it would be unjust and improper to delay the payment. True, there is paucity of funds, as rightly pointed out by learned standing counsel. But, there must be some priority as far as retirement benefits are concerned. There should also be a priority list as far as the disbursement of pensionary benefits are concerned. It is unfair to drive all the retired employees to this court for getting their legitimate dues after retirement. Therefore, it is only just, fair and proper and in the interests of justice to issue a general direction to the K.S.R.T.C. that pensionary benefits, by way of death cum retirement gratuity, commuted value of pension and other benefits like leave salary, arrears of pension, etc. should be disbursed only on the basis of a priority list maintained by the K.S.R.T.C, The list shall be prepared on the basis of the date of retirement. Those who retired earlier should be given priority. The K.S.R.T.C. shall strictly follow the said list in the matter of payment of retirement benefits.
6. Learned standing counsel submits that there a