UTHAMAN Vs. K S R T C

JUDGEMENT

(1.) The petitioners in these Original Petitions were employees of the Kerala State Road Transport Corporation. They have not been paid the retiral benefits due to them. That is why they have approached this Court seeking directions for payment of the retiral benefits. They submitted that even though the monthly pension and DCRG have been sanctioned only 50% is directed to be paid. The balance 50% is directed to be paid in four equal annual instalments. This is illegal. The entire amount of retirement benefits shall be paid in lumpsum.

(2.) During the last few months, I noticed that several cases are being filed in this Court by retired employees of the K.S.R.T.C. seeking payment of retirement benefits. Even admittedly 50% of the amount also was not being paid to the employees. Every day atleast half a dozen cases of the same nature were coming up for admission and similar directions were used to be issued in all the cases directing payment within three months. This became a prevalent practice. Then I directed the Managing Director of the K.S.R.T.C. to file an affidavit stating how many retired employees had been paid their retirement benefits without the intervention of the Court. From the details collected from the Registry I could notice that from 1.4.2000 to 16.11.2000 several cases have been filed. Out of that, 100 cases have already been disposed of and 121 cases are still pending. That means, 221 cases had been filed during the aforesaid period regarding payment of retirement benefits concerning a single establishment alone. In several of these cases there are more than one petitioner. The affidavit filed by the Managing Director shows that 1144 employees retired during the period from 1.4.2000 to 31.10.2000. Out of that, 53 persons were given pensionary benefits without the intervention of the court. That means, 1091 persons were not paid the retiral benefits due to them by the respondents. As mentioned above, 221 cases have been filed during the said period which includes the persons retired from 1.4.2000 and in several petitions there are more than one petitioner. Thus, whoever had not been paid their retirement benefits during the last six months have approached this Court, except the fortunate 53 who had been satisfied by the Management of the K.S.R.T.C. It is a pathetic situation that retired employees after serving their whole man life in the Corporation have to stand with begging bowl before the respondents seeking payment of their entitlement and have to finally turn to litigation spending large amounts to get their entitlement. It is submitted that the Corporation is unable to find fund because of its present financial situation to pay the retiral benefits. That shall not be the stand of the Corporation which has been established long ago. Provident fund amount is the amount collected from the employees. That has to be really accounted and disbursed. No employer can say that no fund is available to pay the welfare fund and provident fund which are the amounts collected from the employees from their monthly salary. It is incumbent on every management to set apart fund every year to pay off the dues towards retiral benefits. The quantum of the fund necessary can be easily ascertained as the Corporation knows the number of employees retiring every month and the extend of their eligibility. The K.S.R.T.C. can not say that it ahs no fund to disburse the retiral benefits. This is a matter which should engage the attention of the Government which constituted the Corporation. It is a matter regarding policy necessitating strict directions to be issued in terms of S.34 of the Road Transport Corporation Act. Accordingly, I directed the Government to bestow its attention urgently to this aspect and to issue necessary directions to redress the grievances of the retired employees so that they shall not be compelled to approach court to get their entitlement on retirement.

(3.) As mentioned above, there is a contention that because of the paucity of fund the Corporation is unable to pay off DCRG, commuted value of pension, provident fund, welfare fund etc. So 50% of the amount be paid immediately and the balance in instalments.