{"id":222890,"date":"2010-01-06T00:00:00","date_gmt":"2010-01-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/hospital-development-vs-p-v-kunhiraman-on-6-january-2010"},"modified":"2014-11-12T04:22:00","modified_gmt":"2014-11-11T22:52:00","slug":"hospital-development-vs-p-v-kunhiraman-on-6-january-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/hospital-development-vs-p-v-kunhiraman-on-6-january-2010","title":{"rendered":"Hospital Development &#8230; vs P.V. Kunhiraman on 6 January, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Hospital Development &#8230; vs P.V. Kunhiraman on 6 January, 2010<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 20020 of 2009(V)\n\n\n1. HOSPITAL DEVELOPMENT COMMITTEE\/SOCIETY\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. P.V. KUNHIRAMAN,\n                       ...       Respondent\n\n2. K.K. NARAYANAN, PRAJINAS HOUSE,\n\n3. COEMANT BASTAIN,KAARIKKUNNU HOUSE,\n\n4. RAGAHVAN  C,JEESHMA  NIVAS,\n\n5. M. RAGHAVAN, SHIJIL NIVAS,\n\n6. STANELY FERNANDES,\n\n7. M.BALAKRISHNAN NAMBIAR,\n\n8. M. PRABHAKARAN, THEJAS HOUSE,\n\n9. THE CONTROLLING AUTHORITY UNDER THE\n\n10. THE APPELLATE AUTHORITY\n\n                For Petitioner  :SRI.K.V.SOHAN\n\n                For Respondent  :SRI.P.M.PAREETH\n\nThe Hon'ble MR. Justice P.N.RAVINDRAN\n\n Dated :06\/01\/2010\n\n O R D E R\n                   P.N. RAVINDRAN, J\n                - - - - - - - - - - - - - - - - - -\n               W.P.(C) No.20020 of 2009\n             - - - - - - - - - - - - - - - - - - - - - -\n       Dated this the 06th day of January, 2010\n\n                      J U D G M E N T\n<\/pre>\n<p>     The petitioner is the hospital development committee<\/p>\n<p>of Government Hospital, Thalassery.               The respondents<\/p>\n<p>herein are ex-servicemen who were employed as Security<\/p>\n<p>Guards   by   the    petitioner      in   Government     Hospital,<\/p>\n<p>Thalassery, on daily wages at the rate of Rs.75\/- per day.<\/p>\n<p>Their services were terminated and thereupon they moved<\/p>\n<p>the Controlling Authority under the Payment of Gratuity Act<\/p>\n<p>1972 seeking payment of gratuity. By Ext.P1 to P8 orders<\/p>\n<p>passed on the same date viz. 7.7.2007, the Controlling<\/p>\n<p>Authority directed the petitioner to pay various amounts to<\/p>\n<p>the respondents towards gratuity. The petitioner thereupon<\/p>\n<p>filed appeals against Ext.P1 to P8 orders before the<\/p>\n<p>appellate authority. The appeals were dismissed by Ext.P9<\/p>\n<p>W.P.(C) No.20020 of 2009<br \/>\n<span class=\"hidden_text\">                               -2-<\/span><\/p>\n<p>order delivered on 19.1.2009.      Hence this writ petition<\/p>\n<p>challenging Ext.P1 to P9. The petitioner contends that their<\/p>\n<p>establishment is not the one coming within the purview of<\/p>\n<p>the Payment of Gratuity Act,1972. It is also contended that<\/p>\n<p>the petitioner is doing an act of charity and therefore they<\/p>\n<p>are not bound to pay gratuity to the respondents.<\/p>\n<p>      2. Section 1(3) of the Payment of Gratuity Act, 1972,<\/p>\n<p>states that it shall apply to &#8220;every shop or establishment<\/p>\n<p>within the meaning of any law for the time being in force in<\/p>\n<p>relation to shops and establishments in a State in which ten<\/p>\n<p>or more persons are employed or were employee on any day<\/p>\n<p>of the preceding 12 months&#8221;. Section 2(15) of the Kerala<\/p>\n<p>Shops and Commercial Establishments Act defines the term<\/p>\n<p>&#8216;shop&#8217; to mean &#8220;any premises where any trade or business<\/p>\n<p>is carried on or where services are rendered to customers&#8221;.<\/p>\n<p>The petitioner does not dispute the fact that it provides<\/p>\n<p>services      to     customers namely   patients\/visitors to<\/p>\n<p>Government Hospital, Thalassery by providing inter-alia,<\/p>\n<p>W.P.(C) No.20020 of 2009<br \/>\n<span class=\"hidden_text\">                             -3-<\/span><\/p>\n<p>the service of security guards. Therefore, going by Section<\/p>\n<p>2(15) of Kerala Shops and Commercial Establishments Act,<\/p>\n<p>1960, the petitioner&#8217;s establishment is an establishment to<\/p>\n<p>which the Payment of Gratuity Act 1972 applies.              I<\/p>\n<p>therefore, overrule the petitioner&#8217;s contention that the<\/p>\n<p>Payment of Gratuity Act, 1972 does not apply to them.<\/p>\n<p>      3. The next contention of the petitioner is that as they<\/p>\n<p>are doing an act of charity, they cannot be burdened with<\/p>\n<p>liability to pay gratuity. It is also contended that the<\/p>\n<p>petitioners are drawing pension and that they had received<\/p>\n<p>gratuity at the time of their discharge from the armed<\/p>\n<p>forces.     The appellate authority had considered these<\/p>\n<p>aspects, overruled the said contentions and held that, as the<\/p>\n<p>respondents were employed in Government Hospital,<\/p>\n<p>Thalassery as security guards by the petitioner, the<\/p>\n<p>petitioner is bound to pay gratuity.\n<\/p>\n<p>      4. Under Section 4 of the Payment of Gratuity Act,<\/p>\n<p>1972, gratuity is payable to an employee on the termination<\/p>\n<p>W.P.(C) No.20020 of 2009<br \/>\n<span class=\"hidden_text\">                               -4-<\/span><\/p>\n<p>of his employment after he has rendered services for not<\/p>\n<p>less than five years. The petitioner does not dispute the fact<\/p>\n<p>that the respondents have rendered more than 5 years of<\/p>\n<p>service, or the fact that their services were dispensed with.<\/p>\n<p>Section 4 of the Payment of Gratuity Act, 1972 does not<\/p>\n<p>stipulate that, where an establishment is a charitable<\/p>\n<p>institution, gratuity need not be paid to employees,<\/p>\n<p>otherwise eligible for the same. It also does not stipulate<\/p>\n<p>that ex-service men who are receiving pension and have<\/p>\n<p>received terminal benefits at the time of their discharge are<\/p>\n<p>not eligible for gratuity. In such circumstances, I am not<\/p>\n<p>persuaded to agree with the learned counsel appearing for<\/p>\n<p>the petitioner that they are not bound to pay gratuity to the<\/p>\n<p>respondents.\n<\/p>\n<p>      For the reasons stated above, I hold that there is no<\/p>\n<p>merit in the writ petition. The writ petition fails and is<\/p>\n<p>accordingly dismissed. The petitioner shall pay the amount<\/p>\n<p>ordered to be paid towards the gratuity in Ext.P1 to P8<\/p>\n<p>W.P.(C) No.20020 of 2009<br \/>\n<span class=\"hidden_text\">                              -5-<\/span><\/p>\n<p>orders together with interest at the applicable rates within<\/p>\n<p>six weeks from today, failing which the competent authority<\/p>\n<p>shall initiate steps for recovery, in accordance with the<\/p>\n<p>provisions of Section 8 of the Payment of Gratuity Act 1972.<\/p>\n<p>                                       P.N. RAVINDRAN<br \/>\n                                              (JUDGE)<\/p>\n<p>nl<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Hospital Development &#8230; vs P.V. Kunhiraman on 6 January, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 20020 of 2009(V) 1. HOSPITAL DEVELOPMENT COMMITTEE\/SOCIETY &#8230; Petitioner Vs 1. P.V. KUNHIRAMAN, &#8230; Respondent 2. K.K. NARAYANAN, PRAJINAS HOUSE, 3. COEMANT BASTAIN,KAARIKKUNNU HOUSE, 4. RAGAHVAN C,JEESHMA NIVAS, 5. M. RAGHAVAN, SHIJIL NIVAS, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-222890","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hospital Development ... vs P.V. 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