Gratuity entitlement under statutory provisions must be honored timely and accurately by employers.

J U D G M E N T

The petitioners are the retired employees of the 2^nd respondent-Institution, which is an autonomous Institution established by the Government of Kerala in the year 1984. The petitioners retired from service on different dates, on attaining superannuation and occupied different designations in the 2^nd respondent-Institution.

2. On completion of satisfied service, when an employee of the 2^nd respondent-Institution is retired from service, apart from all other service benefits, he/she is also entitled for the Gratuity, as per the rate applicable under the Payment of Gratuity Act , 1972 and when the petitioners retired from service on 31.05.2018, 31.01.2019 and 31.01.2018 respectively, most of the terminal benefits were paid to the petitioners as per the 9^th Pay Revision. According to the 9^th Pay Revision Scheme, the Gratuity limit fixed for a retired employee is Rs.7,00,000/-. The petitioners received the aforementioned amount as Gratuity at the time of their retirement. On 05.10.2021, the 1^st respondent has issued Ext.P3 order stating that the 10^th Pay Revision Scheme has been approved and according to Ext.P3 order, the petitioners are entitled to receive an enhanced Gratuity amount than specified in the 9^th Pay Revision Scheme.

3. The 1^st petitioner has submitted Ext.P3 representation before the 3^rd respondent concerning the non- payment of the enhanced terminal benefits and subsequently the petitioners submitted a joint representation before the 3^rd respondent. The 3^rd respondent has issued Ext.P4 reply to the said joint representation. In the said reply it is clearly stated that the service benefits shall be released to the petitioners as per the 10^th Pay Revision Scheme. Thereafter, the petitioners were again constrained to submit Ext.P5 representation dated 25.03.2024 to the 3^rd respondent. But no reply was received from the 3^rd respondent.

4. The petitioners are entitled for Gratuity at the rate prescribed in the 10^th Pay Revision Scheme and are entitled for Gratuity at appropriate rate, considering their length of service and last pay. However, the 3^rd respondent did not comply with the statutory mandate and disbursed the Gratuity to the petitioners at the pre-amended rate according to the 9^th Pay Revision Scheme. The attempt of respondents 2 and 3 was to delay the disbursement of due Gratuity as per the amended rate citing one or the other reason. The actions of respondents 2 and 3 are highly arbitrary and illegal. 5. Respondents 2 and 3 filed a counter affidavit and resisted the writ petition. Respondents 2 and 3 submitted that since there are no specific guidelines in the Service Rules of KSSTM concerning the Gratuity Rules applicable to its employees (i.e., whether they are entitled to DCRG under the Payment of Gratuity Act , 1972, or as per the DCRG Rules in the KSR), KSSTM has forwarded a detailed proposal to the Government for the approval of KSSTM - Employees Gratuity Rules. The approval of the said Rules has not yet been granted by the Government. The balance amount will be disbursed to the petitioners promptly, as per the 10^th Pay Revision Scheme, upon receiving Government approval for the KSSTM - Employees Gratuity Rules.

6. The Government Pleader filed a statement dated 22.12.2025. Paragraph 7 of the said statement reads as follows:-

“In view of the above facts, the Director, KSSTM has been directed to urgently sanction the Gratuity benefits to the employees who retired from KSSTM on or after 01.07.2014, as per the provisions of the Kerala Service Rules (KSR), based on the 10^th Pay Revision. Hence, there exists no hindrance for the Director, KSSTM, to effect the disbursement of the balance amount of Gratuity to the petitioners. Thus the relief sought by the petitioners is likely to be satisfied in view of the direction issued b