Writ petition decision underscores that withholding terminal benefits violates statutory rights under labor law, mandating their release with interest.

ORDER

The present writ petition is filed by the petitioner under Article 226 of the Constitution of India seeking the following main relief:

“to declare the action of the respondents though the petitioner is entitled for arrears of salary of Rs.2,28,260/- and gratuity, encashment of earned leave not releasing retiral benefits to the petitioner till date without any valid reasons prolonging the issue with a malafide intention as illegal, arbitrary and void and consequently direct the respondents to release the arrears of salary and terminal benefits with interest and to pass…..”

2. Heard Smt.Akella Padma, learned counsel for the petitioner, learned Assistant Government Pleader for respondent Nos.1, 2 and 3. Ms.Umadevi, learned Standing Counsel appeared for respondents 4 and 5. Perused the material on record.

3. The petitioner was initially appointed as decadarised Secretary in the 3^rd respondent Sambara Agricultural Cooperative Society, Vizianagaram, which is under the control of the 4^th respondent/ District Cooperative Central Bank Ltd., Vizianagaram (in short ‗DCCB‘) on 28.06.1977. The petitioner worked in various cooperative societies at Vizianagaram District and while he was working in 2^nd respondent society as paid secretary, he was promoted as Special Category Employee on 01.03.2009 in 4^th respondent bank and rendered his services without any blemish.

4. The petitioner attained superannuation on 30.09.2011 while he was working as a Cashier at Telam Branch of 4^th respondent bank. Though the petitioner discharged his duties without any remark and retired from service in the year 2011, he was not paid the salaries for 14 months from May 2004 to June 2005 and for 21 months from June 2007 to February 2009, totaling to Rs.2,28,260/- apart from his terminal benefits, which have to be paid by the respondents.

5. In this connection, the petitioner submitted a representation to the respondents for payment of his arrears of salary and also retiral benefits, such as, gratuity, earned leave encashment and provident fund etc. On such representation, the 2^nd respondent society passed a resolution on 12.05.2014 whereby requesting the 4^th respondent bank to advance the amounts payable to the petitioner. The said resolution further reveals that petitioner has not involved in any financial irregularities during his services.

6. Even prior to this, the District Cooperative Officer, Vizianagaram, addressed a letter dated 03.10.2009 to the 2^nd respondent society, directing to take necessary action for payment of arrears of salary pending against the petitioner by following the existing bye-laws and rules in vogue. But, till the date of filing of the writ petition, the petitioner was paid neither the arrears of salary nor terminal benefits of gratuity, leave encashment of earned leave and provident fund. Hence, having been left with no other efficacious remedy, the petitioner, who is a senior citizen being deprived of his terminal benefits i.e., gratuity and leave encashment, has approached this Court under Article 226 of the Constitution of India, by filing the instant writ petition.

7. It is the further case of the petitioner that he being a senior citizen, non- release of the terminal benefits i.e., gratuity and leave encashment, etc, would cause multifarious problems and adversely affect him and his family members physically, psychologically and fiscally and has put his right to life in peril.

8. On 02.11.2016, the 2^nd respondent filed its counter while admitting its liability submits that the 2^nd respondent society does not have any funds of its own and is merely wo