Retirement gratuity is a statutory right under the Payment of Gratuity Act, and exemptions from the Act cannot apply retrospectively to negatively impact employees' entitlements.

JUDGMENT :

T.R.RAVI, J.

The writ petition has been filed praying for a direction to the respondents to release the arrears of Pay and Leave Surrender salary due to the petitioners as per the 7^th Central Pay Revision Scales for the period from 01.01.2016, and to quash Exts.P9 and Ext.P10 to the extent they deny the right of the petitioners for retirement gratuity under the Payment of Gratuity Act, 1972 (hereinafter referred to as 'the 1972 Act'), and to disburse the amounts with interest and costs.

2. The petitioners retired on superannuation from the service of the 2^nd respondent (hereinafter referred to as RCC) after 01.01.2016, and between 2018 and 2020. Petitioners have the qualifying service required for full pension. Exts.P4 to P8 give the service details of the petitioners, including their entry into service and length of service. Ext.P12 Government Order dated 6.2.1987 relates to the bifurcation of the staff and segregation of funds of the 2^nd respondent. It says that terminal benefits applicable to the State Government employees who retire from service on superannuation, will be given to the employees of the Medical Education Department working in the RCC who opt for absorption, that conditional option will be treated as not opting for absorption in RCC and that on becoming regular employees of the RCC, they will be governed by the service rules of the RCC. By Ext.P1 Government Order dated 26.2.2021, revision of pay as per the 7^th Central Pay Revision was sanctioned to the employees of RCC. Petitioners fall within the Non- Academic staff category and come under Sl.Nos.14,15, and 39 in Ext.P1. Paragraph II (b) of Ext.P1 says that the multiplication factor applicable on the existing basic pay (pay in the band + GP) as on 31.12.2015, is 2.57. Paragraph 5 of Ext.P1 shows that the date of effect of pay revision will be 1.1.2016, and allowances shall be prospective from 1.1.2021, and that arrears will be settled later.

3. Ext.P3 is the order issued on a request made by the 3^rd petitioner, pursuant to directions issued by this Court. It is stated therein that the request for benefits of the 7^th pay revision will be considered along with the case of all employees who retired from 1.1.2016 to 31.5.2021 on receiving clarification from the Government. Regarding gratuity, it is stated that the employees of RCC are governed by Rule 44(a) of the RCC Service Rules, and not by the Payment of Gratuity Act, 1972 . It is stated that RCC has been exempted from the provisions of the 1972 Act as per a statutory notification issued by the Government of Kerala. The petitioners submit that the Government has neither issued any clarification nor any statutory notification, exempting the RCC from the provisions of the 1972 Act. Regarding the pension, it is stated in Ext.P3 that it will be paid as 40% of Basic Pay + DA till modified orders are issued by the Government. By Ext.P9 order, the 1^st respondent granted sanction for payment of an enhanced rate of DCRG of ₹17,00,000/- to the employees of the 2^nd respondent. The amount payable under the 1972 Act was ₹20,00,000/-. However, the same was restricted to ₹17,00,000/- and that too on a prospective basis, subject to the condition that the additional financial commitment will be met from the own funds of the 2^nd respondent. Ext.P9 is dated 21.11.2022. It can be seen from Ext.P10 order relating to the 3^rd petitioner that the amount of gratuity was restricted to ₹10,00,000, even though the admissible retirement gratuity was ₹11,12,426/-.

4. Heard Sri S. Abdul Razzak, learned counsel for the petitioner, Sri P.M.Sameer, Government Pleader, for the 1^st res