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2026 Supreme(Ker) 391

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Harisankar V. Menon, J.
The Kundara Ksheera Vyavasaya Co-Operative Society Ltd – Petitioner
Versus
The State Of Kerala, Represented By The Secretary To The Department Of Cooperation - Respondent
WP(C) NO. 7403 OF 2023
Decided On : 19-03-2026

Advocates Appeared:
For the Petitioner: Shri.George Sebastian, Sri.M.Ajith (Karicode)
For the Respondent: Shri.M.Sasindran, Shri.T.R.Harikumar, Sri.Arjun Raghavan, Sri. Sunil Nath, Gp

The court emphasizes the necessity of undertaking inquiry under prescribed statutes for pension contributions and allows the waiver of interest on delayed payments based on genuine contestation.

Headnote:The judgment concerns the disbursement of pensionary benefits of a former secretary of a co-operative society. The court found that the society did not dispute the pension fund contribution's calculation after an inquiry mandated by earlier judgments. The court concluded that the reasons for the delay in payment were substantial enough to waive accumulated interest. The court directed the society to remit only the principal pension contribution amount.

Table of Content
1. the petitioners' identity as a cooperative society seeking clarity on pension payments is established. (Para 2)
2. arguments revolve around appropriate inquiries needed under governing pension provisions and the secretary's regularization status. (Para 3 , 4 , 5)
3. the court emphasized the need for a proper process under the pension scheme following concerns of liability disputes. (Para 6 , 7 , 8 , 9)
4. the court determined the basis for waiving interest on overdue contributions, affirming the society's obligations. (Para 10 , 11)
5. final ruling on the petitioner's liabilities regarding pension contributions is confirmed. (Para 12)

JUDGMENT :

Harisankar V. Menon, J.

The 1st petitioner is a co-operative society represented by its secretary. The 2nd petitioner is the Managing Committee of the same. The 6th respondent herein was admittedly the secretary of the society from 1987 to 2015. Admittedly, his services were not originally regularised, and it was regularised only after his retirement. After his retirement, he instituted W.P.(C) No.33009 of 2015 seeking for the disbursement of the pensionary benefits. By Ext.P1 judgment dated 11.01.2017, this Court specifically noticed the contention raised by the 6th respondent that he was entitled for receiving at least Rs.40 lakhs towards the terminal benefits. According to the petitioner herein, who was the respondent in that case, the entitlement of the 6th respondent was only for Rs.29,58,817/-. This Court also noticed the contention raised by the society that the 6th respondent herein had to pay an amount in excess of Rs.10,70,905/- to the society. Ultimately, this Court directed the society to disburse Rs.18,87,912/- and another amount of Rs.6,14,409/- to the Pension Board. The society also filed I.A No.1460 of 2017 in the afore writ petition, pointing out that the amount of Rs.18,87,912/- was inclusive of the amount payable to the Pension Board. Therefore, the judgment at Ext.P1 was corrected by permitting the society to disburse Rs.12,73,503/- to the 6th respondent along with a sum of Rs.6,14,409/- to the Pension Board. Admittedly, the amount of Rs.6,14,409/- has been satisfied by the 1st petitioner society, as evidenced by Ext.P3 dated 31.07.2017. Later, the 6th respondent had approached this Court by filing W.P.(C) No.11591 of 2019, pointing out that the proportionate pension requires to be extended to him. By Ext.P5 judgment dated 04.06.2019, the 6th respondent was permitted to make a request before the Board for extension of the same. At that point of time, the 5th respondent – Pension Board, had issued Ext.P6 notice, directing the 1st petitioner to remit an amount of Rs. 7,27,901/- more towards the contribution payable to the Pension Board, after crediting the amount paid pursuant to Ext.P3 receipt. The afore demand was challenged by the petitioners by filing W.P.(C) No.14514 of 2021 before this Court. By Ext.P10 judgment dated 08.06.2022, a learned Single Judge of this Court disposed of the afore writ petition, finding that the demand could be enforced only after carrying out an enquiry under the provisions of Clause 38 of the Kerala Co-operative Societies Employees Self Financing Pension Scheme (for short ‘Scheme’). On the basis of the directions issued, an order at Ext.P12 was issued by the 5th respondent, finding that the society is liable to satisfy the amounts as calculated originally. Therefore, the proceedings at Ext.P12 were taken up in appeal before the Government by filing Ext.P13 appeal. By the impugned order at Ext.P16, the Government having rejected the same, the petitioners have instituted the captioned writ petition.

2. I have heard Sri.George Sebastian, the learned counsel for the petitioners, Sri.N.B.Sunil Nath, the learned Government Pleader for respondents 1 to 4, Sri.M.Sasindran, the learned counsel for the 5th respondent, as well as Sri.T.R.Harikumar, the learned counsel for the legal heirs of the 6th respondent, who passed away during the

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