Peroorkada Service Co-op. Bank Ltd. v. B. Prasannakumary

Payment of Gratuity Act, 1972 — Section 4(5) — Kerala Co-operative Societies Act, 1969 — Kerala Lok Ayukta Act, 1999 — Sections 7, 8(1) & Second Schedule, Clause (d)

Second Schedule, Clause (d): (i) Jurisdiction of Lok Ayukta — Service Claims On Retirement — Under Section 8(1) read with Clause (d) of the Second Schedule to the Kerala Lok Ayukta Act, 1999, while general conditions of service are excluded, specific claims relating to pension, gratuity, provident fund, or claims arising upon retirement fall within the competence and investigative jurisdiction of the Lok Ayukta. (ii) Payment of Gratuity — Entitlement Exceeding Statutory Ceiling — Employees of a Co-operative Society registered under the KCS Act are governed by its bylaws or the statutory provisions of the Payment of Gratuity Act, 1972. In the absence of a specific provision in the bylaws or a contract/policy expressly agreeing to pay higher gratuity without ceiling under Section 4(5) of the 1972 Act, employees cannot claim sums exceeding the statutory maximum ceiling limit. A Master Policy with the LIC capped at the statutory ceiling limit does not entitle employees to higher payments, even if higher amounts were mistakenly disbursed by LIC and subsequently refunded. Held — Order of the Lok Ayukta directing payment of gratuity beyond the statutory ceiling set aside. W.P.(C) No. 26484 of 2010 allowed; W.P.(C) No. 4374 of 2010 dismissed.