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2022 Supreme(Ker) 341

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ALEXANDER THOMAS, VIJU ABRAHAM, JJ.
MOHANAN NAIR P.G. – Appellant
Versus
OMALLUR SERVICE CO-OPERATIVE BANK LTD. – Respondent
W.A. No. 297 of 2020
Decided On : 05-05-2022

Advocates Appeared:
For the Appellant : P.N. MOHANAN.
For the Respondents: SAIGI JACOB PALATTY, P.C. SASIDHARAN.

Point of Law: Secretary has no power to quantify and fasten the liability against an employee without recourse to the statutory procedure contained in Section 69 Kerala Co-operative Societies Act.

Headnote:

Kerala High Court Act - Section 5(i) - Kerala Cooperative Societies Act, 1969 - Section 69 - Kerala Co-operative Societies Rules - Rule 47 - Payment of Gratuity Act, 1972 - Section 7(3-A) - Pensionary benefits-Retirement of Service - Withholding of the terminal benefits due to him like gratuity, leave surrender amount, balance provident fund amount, welfare fund, etc. Rule 198(7) Kerala Co-operative Societies Rules has no application in the facts and circumstances of this case inasmuch as no memo of charge for disciplinary action was issued to the petitioner for the allegations.

Finding of the Court:

Impugned action of respondents 1 and 2 withholding the retiral benefits like gratuity, provident fund, is against the statutory provisions contained in the Kerala Co-operative Societies Act and the rules framed thereunder as well as the Payment of Gratuity Act, 1972 and since the said impugned action is in patent violation of the statutory provisions, writ jurisdiction is invokable in the facts and circumstances of the case, going by the dictum laid down by this Court in the decision in Association of Milma Officers vs. State of Kerala, 2015 (1) KLT 849 (LB).

Result: Writ Appeal (Civil) disposed of.

JUDGMENT :

ALEXANDER THOMAS, J.

1. The judgment rendered by the learned Single Judge on 21.2.2020 dismissing the instant Writ Petition (Civil) No. 24570/2019 is the subject matter of challenge in the instant intra court appeal instituted under Section 5(i) of the Kerala High Court Act.

2. The appellant in the W.A. is the petitioner in the W.P. (C) and the respondents in the W.A. are the respondents in the W.P. (C).

3. Heard Sri. P.N. Mohanan, learned counsel appearing for the appellant in the WA/petitioner in the W.P. (C), Sri. P.C. Sasidharan, learned counsel appearing for R-1 and R-2 in the WA/R-1 and R-2 in the W.P. (C) and Sri. Saigi Jacob Palatty, learned Senior Govt. Pleader appearing for R-3 in the WA/R-3 in the W.P. (C).

4. The prayers in the instant Writ Petition (Civil), W.P. (C) No. 25470/2019 are as follows:

    “(i) Call for the records leading to issue Ext.P-5 and quash the same by issuing a writ of certiorari or any other appropriate writ order or direction.

(ii) issue a writ of mandamus or any other appropriate writ order or direction directing the respondents 1 and 2 to pay gratuity amounting to Rs .7 lakhs, leave surrender of 300 days of Rs. 5.50 lakhs, balance provident fund amount of Rs. 95,000/- welfare fund of Rs. 50,000/- security deposit of Rs. 10,000/- bonus of Rs. 3000/- and salary arrears from 01.04.2014 to 30.4.2015 amounting to Rs. 1.25 lakhs with interest @ 12% as applicable to fixed deposits.

(iii) to declare that no amount can be recovered from the petitioner in the light of Ext.P-5 certificate issued by the first respondent.

(iv) Grant such other relief as this Hon'ble Court may deem fit and proper in the circumstances of the case.”

5. The petitioner herein had retired from service of the 1st respondent bank on 30.4.2015 and he was aggrieved by the withholding of the terminal benefits due to him like gratuity, leave surrender amount, balance provident fund amount, welfare fund, etc. in view of the issuance of Ext.P-5 liability certificate dated 17.8.2019 in pursuance of Ext.R-1(a) audit objections and has accordingly sought for directions from this Court for payment of those terminal benefits. The learned Single Judge after hearing both sides, has rendered the impugned judgment on 21.1.2020 dismissing the instant W.P. (C) No. 24570/2019, on the ground that the petitioner may challenge the decision to issue Ext.P-5 liability certificate dated 17.8.2019 in pursuance of Ext.R-1(a) audit objections, by approaching the co-operative arbitration court under Section 69 of the Kerala Cooperative Societies Act, 1969 and then seek for adjudication regarding his plea for release of terminal benefits, etc. It is the abovesaid verdict of the learned Single Judge dismissing the above W.P. (C) that is under challenge in the instant intra court appeal.

6. A reference to the facts of this case would be pertinent and relevant. The petitioner had joined the service of the 1st respondent bank on 28.7.1993 and had retired from the said service on 30.4.2015 while holding the post of Assistant Secretary. The pension application of the petitioner was considered by the statutory Pension Board and the petitioner is now getting a pension @ Rs. 10,858/- per month. According to the petitioner, he is legally entitled to get gratuity amount of Rs. 7 lakhs, leave surrender of 300 days coming to Rs. 5.5 lakhs, balance provident fund amount of Rs. 95,000/- welfare fund of Rs. 50,000/- security deposit of Rs. 10,000/- bonus of Rs. 3,000/- etc. It is stated by the petitioner that the gratuity payment is regulated on the basis of an arrangement made by the 1st respondent co-operative society bank with the Life Insurance Corporation of India and that now the petitioner has been informed as per Anx.A-2 letter dated 19.8.2021 issued by the LIC of India that the gratuity amount released by them to the 1st respondent bank for payment to the petitioner is Rs. 5,65,238/- and that the said amount has been credited on 12.5.2015 to the respondent society,

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