Back
2024 Supreme(Ker) 292
IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J.
Shankara Narayanan P.A. – Petitioner
Versus
Kerala State Beverages (M&M) Corporation Ltd. – Respondent
W.P. (C) Nos. 35649, 36325, 37503 of 2022
Decided On : 13-03-2024
Advocate Appeared:
For the Petitioners: Deepu Thankan, Ummul Fida, Lakshmi Sreedhar, Lekshmi P. Nair, Shahnas K.P.
For the Respondents: T. Krishnamoorthy, Naveen T.
IMPORTANT POINT
Abkari workers are not entitled to claim gratuity under the Payment of Gratuity Act, 1972 as they are governed by the provisions of the Kerala Abkari Workers Welfare Fund Act, 1989.
Headnote:
Gratuity - Abkari Workers - Payment of Gratuity Act, 1972, Kerala Abkari Workers Welfare Fund Act, 1989 - Section 4(1), 4(2), Clause 36, Clause 37 - The court discussed the entitlement of Abkari workers to gratuity under the Payment of Gratuity Act, 1972 and the Kerala Abkari Workers Welfare Fund Act, 1989. It interpreted the definitions and provisions of both acts and concluded that Abkari workers are not entitled to claim gratuity under the Gratuity Act as they are governed by the provisions of the Kerala Abkari Workers Welfare Fund Act and the Scheme.
Fact of the Case:
The case involved the entitlement of Abkari workers to gratuity under the Payment of Gratuity Act, 1972 and the Kerala Abkari Workers Welfare Fund Act, 1989. The petitioners, retired Abkari workers, claimed gratuity under the Gratuity Act in addition to the amounts received under the KAWWF Act.
Finding of the Court:
The court found that the petitioners, as Abkari workers, are not entitled to claim gratuity under the Gratuity Act as they are governed by the provisions of the Kerala Abkari Workers Welfare Fund Act and the Scheme. The regular employees of the Corporation, working in sanctioned posts, are the only ones entitled to claim gratuity under the Gratuity Act.
Issues: The main issue was whether the Abkari workers working in the respondent corporation are entitled to gratuity under the Payment of Gratuity Act, 1972, when they are paid gratuity and provident fund under the Kerala Abkari Workers Welfare Fund Act, 1989.
Ratio Decidendi: The court held that the definitions and provisions of the Payment of Gratuity Act, 1972 and the Kerala Abkari Workers Welfare Fund Act, 1989 clearly establish that Abkari workers are not entitled to claim gratuity under the Gratuity Act. The regular employees of the Corporation, working in sanctioned posts, are the only ones entitled to claim gratuity under the Gratuity Act.
Final Decision: The court dismissed the Writ Petitions, stating that the Abkari workers cannot claim gratuity under the Gratuity Act in addition to the amounts received under the KAWWF Act, as it would amount to double payment of gratuity, which is unlawful enrichment.
JUDGMENT :
BASANT BALAJI, J.
1. In these Writ Petitions, a common question arises for consideration, and therefore, they are heard together, and a common judgment is passed. The question to be decided is whether the Abkari workers working in the 1st respondent corporation are entitled to gratuity under the Payment of Gratuity Act, 1972, when they are paid gratuity and provident fund under the Kerala Abkari Workers Welfare Fund Act, 1989 (for short ‘the KAWWF Act’).
2. For a proper understanding, W.P. (C) No. 36325 of 2022 is taken as a leading case, and the facts in brief are extracted below:
The petitioners are retired Abkari workers of the 1st respondent Corporation. The petitioners were inducted to be workers of the corporation as early as in 2001. The service of the employees of the corporation, including the Abkari workers, are governed by the Service Rules for the Employees of the Kerala State Beverages (M&M) Corporation Ltd (for short, ‘the Service Rules’). Chapter V of the Service Rules deals with the Provident Fund, gratuity and medical benefits.
3. As per Rule 76 of the Service Rules, all the employees of the corporation are entitled to get gratuity at the time of termination of employment.
4. As per the KAWWF Act, on superannuation, the employees are entitled to gratuity and pension from the contribution fund. As per section 4 of the Act, employers and employees are liable to pay an equal amount of the contribution fund, and it shall be paid back as provident fund, gratuity, and family pension on superannuation.
5. When the petitioners retired from service, they were paid lumpsum amount as provident fund and gratuity under the KAWWF Act from 2009 and EPF amount from 2001 to 2009, based on the contributions made. As per Rule 76 of Chapter v of the service rules, the petitioners are entitled to gratuity as in the case of other regular employees. The Government has not exempted the corporation by invoking section 5 of the Payment of Gratuity Act, 1972 (for short, ‘the Gratuity Act’). Therefore, it is a duty cast upon them to pay the gratuity under Rule 76 to the petitioners. The payment of gratuity is a statutory obligation and need not be on an application. Section 7(2) of the Gratuity Act casts a duty on the employer to pay the gratuity immediately after the superannuation of the employee.
6. A counter affidavit is filed in W.P. (C) No. 37503 of 2022, and it is adopted in all the cases. The main contention raised is that the petitioners are retired Abkari workers, and they were absorbed into the service of the corporation in view of the policy decision taken by the Government. The Service Rules of the Corporation came into force on 7.1.1986. There is no sanctioned post, by the name of Abkari worker, in the Corporation. The regular employees of the Corporation are working under sanctioned posts and are covered under the Gratuity Act as provided under Rule 76 of the Service Rules. The KAWWF Act has been enacted to provide social security to the Abkari workers. As per Section 3 of the KAWWF Act, the fund has to be utilised to pay gratuity, pension, provident fund, family pension etc. As per the Kerala Abkari Workers’ Welfare Fund Scheme, 1990 (for short, ‘the Scheme’) an eligible employee is entitled to gratuity benefits under clause 36 of the Scheme. The petitioners are members of the Abkari Workers Welfare Fund. The corporation is bound to remit amount collected towards the contribution from the workers as well as contribution of the employer to the Welfare Fund Board.
7. A settlement was arrived between corporation and various unions representing the Abkari workers on 28.10.2002. As per the settlement, it was agreed that the corporation shall make statutory contributions to get the provident fund and gratuity to the members. The Abkari workers can continue up to the age of 60 when the regular employees have to retire at the age of 58 years. The gratuity of the Abkari workers, who are members of the Board, is enhanced from 5%
