Point of Law: Payment of Gratuity Act, 1972, would deal with, not merely statutory corporations, but various other employer bodies which are non statutory bodies, like registered companies/registered societies and even employer bodies, who may be partnership firms, proprietary concerns, etc.

JUDGMENT :

ALEXANDER THOMAS, J.

1. These intra court appeals are disposed of on the basis of this common judgment, as more or less identical and similar issues arise in these cases.

2. Heard the learned Senior Counsel, instructed by the learned Standing Counsel for the appellants and the learned Advocates appearing for the respective respondent-writ petitioners.

3. The writ petitioners are retired employees of the appellant Company, viz. M/s. Kerala State Financial Enterprises Ltd. (KSFE Ltd.) which is fully owned by the Government of Kerala and they are essentially aggrieved by the non-disbursal of non-statutory service benefits, like Earned Leave surrender, arrears of Dearness Allowance, salary revision arrears, festival incentives, flood relief amount, etc. The main ground of denial of these benefits, put forth by the appellant Company, is the pendency of liabilities, due to the alleged grant of sticky loans/chits by the writ petitioners, which is allegedly in violation of the appellant Company's circulars and norms.

4. The learned Single Judge, after hearing both sides, has rendered the impugned judgments in these cases, finding that no disciplinary proceedings were ever initiated against the petitioners, while they were in service, on account of the abovesaid allegations and further that, no rule or regulation, enabling the company to initiate the proceedings for recovery or for withholding the abovesaid benefits after retirement, is in existence of the company. Hence, the learned Single Judge has held that the non-disbursal of the abovesaid benefits, based on an unsubstantiated allegation of having caused loss to the Company, is not only illegal but also ultra vires and that it would amount to violation of the property right of the writ petitioners, guaranteed in terms of Article 300-A of the Constitution of India. On this basis, the learned Single Judge has issued directions for disbursal of the abovesaid benefits within a period of three months of receiving a copy of the judgment. Incidentally, at the W.P. (C) stage, gratuity amounts were also the subject matter of disputes and the learned Single Judge has directed that the gratuity and other benefits, due to the petitioners, shall be paid within 3 months and that the unpaid gratuity amount will carry interest @ 6% p.a. computed from the first day of the next month of the retirement of the respective writ petitioners, etc. Further, in case of failure to pay the amounts within 3 months, the amounts will carry interest @ 9% p. a. reckoned from the respective dates of retirements of the petitioners.

5. The learned Standing Counsel for the appellant company has submitted that now statutory terminal benefits, like gratuity, etc. have already been disbursed and the only dispute is regarding the other service benefits mentioned above.

6. According to the appellant company, their usual practice is to quantify the liability of each employee, prior to the settlement of retirement benefits of the incumbents concerned and for that purpose, liabilities/non-liability reports are collected from the Head Offices and branches, where the employees had worked, and in the process, if any liability is reported, they will have to be deducted from the benefits due to the employees. Further that, the writ petitioners have sanctioned sticky loans and chitties, in violation of the norms and that the said liability amounts will also have to be deducted from the above benefits.

7. The appellant company is registered and incorporated as a Company, as per the Companies Act and hence, it is a non-statutory body. The learned Advocates, appearing for the respondent-writ petitioners, have made available copies of the Manual of Procedure being followed by the appellant company as well as a copy of the Standing Orders applicable to employees of the appellant-KSFE. Clause 3.21 of the Manual of Procedure deals