The law permits the withholding of employee benefits due to a company's financial incapacity, overriding previous settlement agreements.

ORDER:

NAMAVARAPU RAJESHWAR RAO, J.

This Writ Petition is filed seeking to declare the action of the respondents in not releasing the amount towards balance service wages to the petitioner as arbitrary and violative of the terms of the settlement under section 18(1) of the Industrial Disputes Act and Article 14 of Constitution of India and set aside the proceedings in Rc.No.WP.15842/2004/277, dated 18.12.2004. Consequently, direct the respondents to release the sanctioned amount towards the balance service wages along with interest @ 12% per annum with quarterly rests from the date of sanction till the date of actual payment.

2. Heard Sri Goda Siva, Learned Senior Counsel, argued on behalf of Smt. Goda Ramalakshmi Learned Counsel for the petitioner and Sri V. Hari Haran, Learned Senior Counsel, argued on behalf of Sri Rohit Pogula, learned Government Pleader for services – III, appearing for respondents. Perused the material available on record.

3. The original petitioner by name Sri G. Anjaiah (hereinafter referred to as “deceased employee”), filed the present Writ Petition, and during pendency of the Writ Petition, he died and his wife was brought on record as petitioner No.2, vide orders, dated 09.02.2024.

4. The brief facts of the case are as follows,

(a) The deceased was appointed as a Typist in Land Mortgage Bank, Medak, on 01.10.1968. The State Government took a decision to rename the Land Mortgage Banks as Primary Agriculture Development Banks. The deceased continued to serve the said bank in the capacity of Typist till 1984. During 1983-84, he underwent cooperative training and on completion of training, promoted as Supervisor of the Bank. Since then, he continued to discharge his duties as Supervisor of the bank.

(b) While so, the State Government introduced a single window system for catering to all the credit needs of the agriculturists by amending the Andhra Pradesh Cooperative Societies Act and from 01.04.1987, the Primary Agricultural Development Banks which were catering to the long term credit needs were merged with District Cooperative Central Banks, which cater to the short term needs. Thus, the deceased became an employee of the 3rd respondent Bank from 01.04.1987. Thereafter, he was promoted to the post of Assistant Manager in the year 2000.

(c) Due to paralytic attack, the deceased had to undergo treatment for quite some time, as such; he had applied for retirement on grounds of medical invalidation on 08.05.2003. By proceedings dated 04.06.2003, the 3^rd respondent Bank had constituted a Medical Board for satisfying itself whether his claim was genuine or not. The Medical Board certified that could be relieved on medical invalidation grounds. Based upon the certificate so issued, the Management Committee of the 3rd respondent Bank on 06.11.2003 accepted the deceased employee’s request for retirement on medical invalidation and he be paid the amounts due. The decision of the Management Committee was communicated to him vide proceedings, dated 08.12.2003 and subsequently, he was relieved with effect from 13.06.2003.

(d) Thereafter, the 3rd respondent Bank had passed an order on 31.12.2003 sanctioning an amount of Rs.2,41,320/- towards gratuity; Rs.73,940/- towards encashment of leave and Rs.1,92,330/- towards balance service wages on medical invalidation for two and half years to the deceased employee. The 3^rd respondent Bank was bound to release the benefits immediately. But, the 3rd respondent did not pay any amount to him. Aggrieved, he had submitted a representation on 23.01.2004 seeking early settlement of the am