Sumam T.G. vs State of Kerala, The Joint Registrar of Co-operative, The Mayyanad Regional Co-operative and The Life Insurance Corporation of India

P.N. Ravindran, J.—The petitioner was a former employee of the third respondent bank. She retired from service on 29.2.2008. The petitioner was a member of the L.I.C. Group Gratuity Life Assurance Scheme. After she retired from service, the fourth respondent sanctioned payment of the sum of Rs. 4,76,043/= to the petitioner and thereafter forwarded a cheque for the said sum to the Secretary of the third respondent bank along with Ext.P2 letter dated 11.7.2008. After the cheque was received, the third respondent bank encashed the cheque and paid over the sum of Rs. 3,00,000/= to the petitioner in two instalments. The first instalment of Rs. 2,00,000/= was paid on 16.8.2008 and the second instalment of Rs. 1,00,000/= on 1.11.2008. The remaining amount of Rs. 1,76,043/= was not paid. This writ petition is filed seeking a direction to respondents 1 to 3 to pay the said sum of Rs. 1,76,043 towards gratuity. The petitioner also claims payment of the sum of Rs. 1,85,000/= as surrender value of earned leave.

The learned Counsel appearing for the petitioner submits that after this writ petition was filed, the surrender value of earned leave was paid and that the petitioner is now confining her claim to the payment of the sum of Rs. 1,76,043/= towards gratuity.

Though the respondents had been served, they have not chosen to file a counter affidavit till date. The petitioner has in the writ petition contended that the issue raised by her is covered in her favour by a decision of a learned single Judge of this Court in Retnavalli Vs. Ambalapadu Service Co-operative Bank Ltd., which was affirmed by a Division Bench of this Court in W.A. No. 1250 of 2007. In Retnavalli''s case (supra) a learned single Judge of this Court held that notwithstanding the stipulations in Section 4(3) of the Payment of Gratuity Act, an employee is entitled to receive a better terms of gratuity under an award, agreement or contract with the employer. It was held that if under the L.I.C. Group Gratuity Life Assurance Scheme the employee is entitled to a higher gratuity, the provisions in Section 4(3) of the Payment of Gratuity Act cannot stand in the way of such payment being made. In the instant case, Ext.P4 establishes beyond doubt that the sum of Rs. 4,76,043/= was sanctioned by the Life Insurance Corporation of India towards payment of gratuity to the petitioner. In such circumstances, in the light of the decision of this Court in Retnavalli''s case (supra) as affirmed by the Division Bench in W.A. No. 1250 of 2007, the respondents are bound to disburse to the petitioner the said sum of Rs. 4,76,043/= in full.

I accordingly dispose of this writ petition with a direction to the third respondent to disburse to the petitioner the sum of Rs. 1,76,043 towards gratuity. Payment as directed above shall be made within one month from the date on which the petitioner produces a certified copy of this judgment before the third respondent.