M P PARAMESWARAN NAMBOODIRI Vs. ALUVA MUNICIPALITY

JUDGEMENT

(1.) IN these two writ petitions, the petitioners are retired employees of the Municipal Common Service, who have opted for receiving retirement benefits through the Aluva Municipality. The petitioners' grievance is that the retirement benefits due to the petitioners have not been released yet. The stand of the Municipality is that, although the entitlement of the petitioners for receiving the retirement benefits is not disputed, the money for the same should come from the Director of Urban Affairs, who is the other respondent in the writ petitions. They particularly rely on Rules 9, 10 and 11 of the Kerala Municipality (Employees Death-Cum-Retirement Benefit) Rules, 1996, in support of their contention. They submit that, as per those Rules, the Director of Urban Affairs has to forward the DDs for payment of retirement benefits due to the petitioners and the duty of the Municipality is only to disburse the same. According to the Municipality, they are yet to receive the DDs in respect of the petitioners and that is why the Municipality could not pay the amount.

(2.) THE stand of the Director of Urban Affairs in the matter is that, for payment of retirement benefits due to the retired members of the Municipal Common Service, the Government is maintaining a fund called 'Central Pension Fund'. All Municipalities in the State are expected to pay contributions deducted from the salary of the particular employee to the Government. The retirement benefits due to the retired employees can be paid only from that fund. According to the learned Government Pleader, most of the Municipalities do not pay the contributions in time. According to them, as and when funds are available in the Central Pension Fund, the same would be disbursed to the Municipality. The submission of the learned Government Pleader is that, at present, the amount available in the Central Pension Fund is only Rs.1,06,744/- as on 31.7.2012. Therefore, the Municipality has to pay the amount from their own funds, is the contention raised by the learned Government Pleader.

(3.) IN the above circumstances, the respondents are directed to see that the entire retirement benefits due to the petitioners are paid to them, as expeditiously as possible, at any rate, within one month from the date of receipt of a copy of this judgment. If the same is not so paid, the amount would carry interest at the rate of 10% per annum on the amounts due. The interest, if has to be paid so, shall be recovered from the person or persons, who is/are responsible for the default and shall not be debited to the State Exchequer. The writ petitions are disposed of as above.