IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 32557 of 2007(A)
1. THE CANNANORE CO-OPERATIVE SPINNING
... Petitioner
Vs
1. V.P. RAJAN, S/O. KRISHNAN,
... Respondent
2. THE CONTROLLING AUTHORITY UNDER THE
For Petitioner :SRI.A.M.SHAFFIQUE (SR.)
For Respondent :SRI.P.M.PAREETH
The Hon'ble MR. Justice S.SIRI JAGAN
Dated :23/05/2008
O R D E R
S.SIRI JAGAN, J
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W.P.(C).Nos. 32557, 32589 &32603 of 2007
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Dated this the 23rd day of May, 2008.
J U D G M E N T
In all these three writ petitions the petitioners are
challenging orders of authorities under Payment of Gratuity Act
directing payment of gratuity to three retired employees of the
petitioner company. The petitioner’s main contention is that the
petitioner is unable to pay off amounts due to the retired
employees on account of precarious financial condition of the
company. It is also submitted that the petitioner is a
Government company. However, now it is admitted that the
principal amount of gratuity due to the petitioners in W.P.(C).
Nos. 32589 & 32557 of 2007 has been paid. In W.P.(C).No.
32603 of 2007, I had directed payment of Rs. 50,000/- as an
interim measure which is also paid. The contention of the
petitioners is that the petitioners are making all efforts to pay off
gratuity amounts due to all the retired employees of the company
and they are paying gratuity in accordance with the priority of
date of retirement at the rate of 10 employees per month. They
W.P.(C).Nos. 32557, 32589 &32603 of 2007 2
are willing to pay the balance principal amount due to the
petitioner in W.P.(C).No. 32603 of 2007 also within a week.
However, the petitioners challenge the liability to pay interest. I
am not inclined to accept that contention since the liability to pay
interest is statutory. In the above circumstances, this writ
petition is disposed of with the following directions:
The balance principal amount due to the 1st respondent in
W.P.(C).No. 32603 of 2007 shall be paid within a period of one
week from the date of receipt of a copy of this judgment. The
interest due to the 1st respondent in each of the three writ
petitions shall be paid within two months from the date of receipt
of a copy of this judgment. The validity of the scheme put
forward by the petitioner for payment of gratuity to retired
employees of the petitioner is left open to be agitated in any
future litigation that may arise.
S.SIRI JAGAN, JUDGE
bkn/-