PRABHAKARAN C Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioners in all these cases are officers retired from Travancore Cochin Chemicals Limited ('TCC' for short). They are aggrieved by the action of the TCC in fixing a ceiling of Rs. 10 lakh as the gratuity payable to them. They seek directions to the respondents to disburse their gratuity at a rate which existed on 30.12.2010, the date on which amendment to the trust deed was effected. As the issue arising in all these cases is one and the same, these writ petitions are disposed of by this common judgment. Parties and documents referred to in this judgment are as described in W.P.(C).No.20174 of 2012.

(2.) The petitioners in W.P.(C).No.20174 of 2012, retired from service on 20.06.2012 and 20.05.2012 while working in TCC, which is a public sector Company. They have challenged the provision, pointing out that persons who retired prior to their date of retirement got gratuity far in excess of Rs. 10 lakh. It is also pointed out that when they retired from service the Company themselves had mentioned the gratuity amount due to them as Rs. 11,18,631.00, in the case of the first petitioner, whereas the actual gratuity amount paid was Rs. 10 lakh.

(3.) The TCC along with 5 trustees executed Ext.P1 Trust Deed on 07.10.1985, for constitution of a Trust viz., TCC Gratuity Fund ('Fund' for short), as a welfare measure for payment of gratuity to its employees. As per the terms of that deed, the TCC was to remit a sum equal to 8-1/3% of the salary of each employee for each year of his service as on 01.04.1985 and every year thereafter, to the Fund. As per Rule 3 of TCC Gratuity Fund Rules, the employees were eligible for gratuity at the time of their retirement at the rate of half month's salary last drawn for each completed year of their service or portion thereof exceeding six months subject to a maximum of 20 months' salary. The amount transferred to the Fund was to be remitted in the Post Office Savings Bank or in the current Deposit of any scheduled Bank or in any manner specified in Rule 67(2) of Income Tax Rules.