Employees are entitled to their lawful terminal benefits, and such payments must be honored irrespective of the employer's financial difficulties.

JUDGMENT

The petitioner, who retired from the service of the 1st respondent Society, which is a Society registered under the Kerala Co-operative Societies Act, 1969 and the Rules made thereunder, on 31.01.2017, while working as Secretary, with a total service of 33 years and two months to his credit, has filed this writ petition under Article 226 of the Constitution of India, seeking a writ of mandamus commanding respondents 1 and 2 to pay the balance gratuity amounting to Rs.3 lakhs and leave surrender amounting to Rs.6,94,660/-, thus total Rs.9,94,660/- together with interest. The petitioner has also sought for a consequential declaration.

2. On 18.06.2018, when this writ petition came up for admission, this Court issued notice on admission by speed post to the respondents.

3. A counter affidavit has been filed by respondents 1 and 2. Paragraphs 3 to 8 of the said counter affidavit reads thus;

“3. it is true that writ petitioner retired as on superannuation as the Secretary of the bank w.e.f.

31.1.2017 after rendering more than 30 years of service.

4. Upon retirement, he was disbursed with lump sum pensionary benefits of Rs.3,28,630/- by the Co-operative Employees Pension Board on 8.12.2016. Together, he was released with Rs.24,952/- towards welfare fund amount from the Co-operative Employees Welfare Fund Office, Thiruvananthapuram as well.

5. Petitioner is also found eligible for gratuity amount of Rs.10,00,000/- out of which the bank so far could manage to pay Rs.7,00,000/- vide cheque No.6238 dt. 31.1.2017 drawn on Alappuzha District Co-operative Bank, Chengannur Branch. The balance gratuity payable to the petitioner is Rs.3,00,000/- only.

6. Likewise, petitioner is also eligible for earned leave surrender. The 2nd respondent Managing Committee is yet to resolve on the quantum of leave surrender due to him. Petitioner claims leave surrender value to be Rs.6,94,660/- for 300 days, which is yet to be fixed by the

2 nd respondent.

7. 1st respondent Co-operative bank is a Class V primary Agricultural Co-operative Society, which is running at loss now. The bank finds it extremely hard to make both ends meet in meeting the operational expenditure as well.

8. Even so, respondents 1 and 2 shall make all endeavor to pay off the remaining terminal benefits like balance gratuity and leave surrender due to petitioner, so found eligible by the 2 nd respondent at the earliest. The W.P.(C) may be disposed of accordingly.”

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4. Heard the learned counsel for the petitioner and also the learned counsel for the respondents.

5. The petitioner, who is a retired employee of the 1st respondent Society has approached this Court in this writ petition, seeking disbursement of his terminal benefits, i.e., an amount of Rs.3,00,000/- towards balance gratuity and leave surrender amounting to Rs.6,94,660/-, totaling Rs.9,94,660/-.

6. In the counter affidavit filed by respondents 1 and

2, the entitlement of the petitioner for payment of balance gratuity amounting to Rs.3,00,000/- is not in dispute. Regarding the claim of Rs.6,94,660/- towards leave surrender value for 300 days, the respondent would submit that the quantum of leave surrender is yet to be fixed by the 2nd respondent. Since the 1st respondent Society is running at loss, some time is required to pay the balance terminal benefits payable to the petitioner.

7. The learned counsel for respondents 1 and 2 would submit that the entire amount found payable to the petitioner can be disbursed, within a period of 6 months, in six equal monthly instalments.

8. The learned counsel for the petitioner would submit that, respondents may be directed to pay the balance terminal benefits, together with interest from the due date.

Having considered the submissions made by the learned counsel on both sides, this writ petition is disposed of by directing respondents 1 and 2 to pay the balance gratuity amounting to Rs.3,00,000/- and also the leave surrender value payable as per rules to the petitioner in six