R. Baji v. Kerala State Road Transport Corporation Ltd.
2023-08-24
DEVAN RAMACHANDRAN
body2023
DigiLaw.ai
JUDGMENT : The petitioners in these Writ Petitions seek a very basic relief – that Kerala State Road Transport Corporation (KSRTC), in which they are serving in various capacities, be directed to pay them salary, without break, every month. 2. At first blush, one may ask why there is a controversy because, the obligation to pay salary is enjoined on the employer; and it would not, normally, require orders from this Court to such effect. 3. However, the KSRTC pleads incapacity to pay on account of financial crisis and they explain this by making available the break down of the expenses they incur every month, viz-a-viz the income generated. 4. As the records reveal, these Writ Petitions have been pending before this Court for some time now. Several orders have been issued during the life of these matters, taking note of the relevant and germane circumstances presented and projected each such time. 5. The first of the major interim orders in these cases was issued as early as on 01.06.2022, as below : “The predicament of the employees of the Kerala State Road Transport Corporation (KSRTC), in allegedly not obtaining salary on time, and sometimes after several days it becomes due, is certainly a very serious one – if it is true. 2. The KSRTC is stated to be a company and obviously, therefore, the officers in its charge will have to ensure that such issues obtain resolution effectively and expediently. 3. There is also a complaint impelled that officers and supervisory personnel get their salary in time and that the KSRTC first services their loans with the available income, thus relegating the payment of the salary to other employees – who have no other source of livelihood – to the least priority 4. Sri. Deepu Thankan – learned Standing Counsel for the KSRTC, tried to explain the various problems and impediments faced by his client, including that the price of diesel has been inordinately hiked. 5. Whatever be the reasons that the KSRTC may lay out, it is inevitable that the plight of its employees cannot be lost sight of and that they have to be paid salary without any avoidable delay. 6.
5. Whatever be the reasons that the KSRTC may lay out, it is inevitable that the plight of its employees cannot be lost sight of and that they have to be paid salary without any avoidable delay. 6. This Court cannot rest upon the excuses offered or to be offered by the KSRTC and it is imperative that they explain how they propose to attain the necessary levels of efficiency, so that it can become self - reliant and take care of its employees and services. This may not be very easy, but certainly has to be done if it is to survive in future. 7. At this stage I do not want to say further, since the KSRTC must respond to the various allegations through cogent and reliable figures and inputs. 8. I must also record that the petitioners strongly seek that the officials and supervisory personnel of the KSRTC be ordered not to be paid their salaries, until such time as theirs and that of other similarly placed persons, are honoured. This request is justified because the employees will certainly feel discriminated if the officers and supervisory personnel alone are favoured salary in time. There is also some justification in the grievance that their payments are being honoured with least priority. I, therefore, make it clear that if it so becomes warranted, this Court may pass such orders, but only after the KSRTC responds to this properly; for which purpose, I give them time till the next posting date. 9. Before I part, I must record the submissions of Sri. Deepu Thankam, that the KSRTC operates its fleet in public interest and therefore, that profits cannot be its primary objective. This contention has a inherent problem entwined to it because, if the Corporation is not able to achieve operational profits, then it would have to rely on the Government to step in and make good the loss. Obviously, therefore, this is an issue that should be answered by Government at the appropriate level and I record that the learned Government Pleader – Smt. Resmi Thomas, seeks time to obtain instructions in this regard. Taking note of the abject difficulties stated to be faced by the petitioners and other employees of the KSRTC, I deem it appropriate that this matter be listed without delay. List, therefore, on 08.06.2022”. 6.
Taking note of the abject difficulties stated to be faced by the petitioners and other employees of the KSRTC, I deem it appropriate that this matter be listed without delay. List, therefore, on 08.06.2022”. 6. Thereafter, on 08.06.2022, a further order was issued - which was intended to ensure that most vulnerable sections of the employees of the KSRTC, like Drivers, Conductors, Mechanics etc., are not denied salary in preference to the Managerial and Supervisory staff – which is ut infra : “The Kerala State Road Transport Corporation (KSRTC) has filed a counter affidavit, wherein, they have detailed their problems, along with their available sources of revenue. 2. They admit that the Corporation is going through loss and the pleadings on record do not show, even in the foreseeable future, how it can be turned around. 3. Therefore, until further orders, the KSRTC is directed to ensure that all the drivers, conductors, mechanics and store staff in their services are paid salary without delay, as far as practically possible; and further that no supervisory personnel – whatever be their rank – is disbursed salary before every of the afore category is so granted. 4. As far as the CMD of the corporation is concerned, the stand of the KSRTC is that he draws the salary from the Government – being an I.A.S officer I do not propose to speak on this at this time, but this Court will consider this aspect also in future. 5. As regards the operation of the KSRTC is concerned, going by the averments and materials placed on record by them, it is rather difficult to believe that they will be able to attain self reliability on their own, any time in the future. The Government certainly will have to step in and decide how best this can be achieved. 6. Sri. Santhosh Kumar – learned Special Government Pleader, submitted that the Government is thinking about this and that they will respond through their counter pleadings within the next two weeks. 7. That being so, it is common knowledge and therefore, justified to be taken judicial notice of by this Court, that the KSRTC has assets both in terms of vehicles and properties and buildings. The figures they have given as regards their liabilities to Banks and other institutions are certainly very worrisome.
7. That being so, it is common knowledge and therefore, justified to be taken judicial notice of by this Court, that the KSRTC has assets both in terms of vehicles and properties and buildings. The figures they have given as regards their liabilities to Banks and other institutions are certainly very worrisome. Even when they try to explain how this liability has become so high over the years, it is also to be borne in mind that the servicing of interest on such huge debts every month will only lead to further escalation of the liability in future. The Government certainly must, therefore, decide what is to be done with this liability, because as long as it remains at the level at which it is now presented, any chance of the KSRTC reaching self reliance is impossible. 8. Sri. Deepu Thankan – learned Standing Counsel for the KSRTC, also asserted that the plight of the Corporation has come to this level because of the non-co-operation of the various sections of the employees, particularly those who owe their allegiance to the Unions therein. Sri. Santhosh Kumar – learned Special Government Pleader, however, answered that this is inevitable because, being a service industry, the employees certainly must obtain the right to form Unions and to engage in collective bargaining. 9. As this Court has already said earlier, excuses would be of no avail, if the KSRTC is to continue forward. By the manner it is presently going, one can even visualize a situation where it will become impossible for it to exist and this is not something that this Court will countenance in any manner. 10. Indubitably, the Government has to consider all these aspects in its proper perspective and I am sure that Sri. Santhosh Kumar will ensure that sufficient pleadings and materials are brought on record in answer to the afore concerns of this Court. 11. In the meanwhile, so as to enable this Court to obtain a comprehensive view of the status of KSRTC, I direct them to place on record, in a compendious statement, the details of their assets, which must include vehicles as also their fixed assets and the details of the liabilities, explaining succinctly why they were availed and for what purpose they have been used. 12.
12. In asking for this information, it need not be construed that this Court is trying to enter into a roving enquiry; but the endeavour 08-06-2022 Is only to, within the permissible parameters, to render the KSRTC as efficient as possible and make it self reliant which, as the learned Special Government Pleader also affirms, is the primary aim of the Government. This information, therefore, will surely help the Government also in their afore venture. List for further consideration on 21.06.2022”. 7. Subsequently, on 11.07.2022, after assessing all rival contentions, a further order was issued, directing the KSRTC to ensure, as is practically possible, that the salary for each month be paid at least by the 5th or 10th of the next month. This order is extracted below, since it is pivotal in the consideration of these matters. “The learned Special Government Pleader – Sri. Santhosh Kumar, submitted that, keeping in view the initiative of this Court, the Government has released Rs.20 Crores to the Kerala State Road Transport Corporation (KSRTC) on 10.07.2022 as an interim measure; and that the High Level Committee has already begun its unofficial meetings. He explained that since the Legislative Assembly Session is till 21.07.2022, the Hon'ble Chief Minister has not been able to call for official meetings and take decisions. He submitted that, hence, if time is granted till 31.07.2022, the Government will be able to respond with suggestions that are practical and workable. 2. Sri. Deepu Thankan – learned Standing Counsel for the KSRTC, submitted that, for the first time in several months at least, the KSRTC has shown a surplus of Rs.3.52 Crores last month and explained that this was on account of the fact that some expenditure has come down. He added that, if the KSRTC is able to make a few changes in its operation, it is impossible that the target of Rs.8 Crores a day from ticket collections can be achieved. He added that, in obedience to the earlier orders of this Court, the Unions of employees have stopped their agitation, at least in front of the offices of the KSRTC. 3. It is gratifying to this Court that the KSRTC is making efforts for its revival and that the Unions and the employees are also actively supporting it.
He added that, in obedience to the earlier orders of this Court, the Unions of employees have stopped their agitation, at least in front of the offices of the KSRTC. 3. It is gratifying to this Court that the KSRTC is making efforts for its revival and that the Unions and the employees are also actively supporting it. The survival of the KSRTC is vital and not even a whispering mention of its closure at any point can be countenanced because it provides direct and indirect employment to large sections of persons, while it is used by over six lakhs of people everyday for their travel. There can be no substitution to this through any other method, particularly in a welfare State. 4. That said, the basic amenities of the KSRTC will require to be modernized and bettered, particularly its wash areas, toilets and such other, so that more and more people will come back to the KSRTC for travel. This is “Back to 'KSRTC” movement and this will certainly be possible with the initiatives that this Court is willing to oversee. 5. Sri. Deepu Thankan – the learned Standing Counsel for the KSRTC, submitted that within the means that the KSRTC has presently, it will certainly consider betterment of such facilities, thus encouraging people to travel with the KSRTC again and again. Certainly, this undertaking is welcome and I record it. 6. That said, while this Court passed earlier orders with respect to the payment of salary in priority to that to be paid to the Supervisory Personnel, an inadvertent omission – because it is not brought to this Court's notice – was made with respect to the Sweepers, Part-time Sweepers, Garage Masdoor, Peon/Office Attenders - whether regular or on contract. These persons are from the lowest strata of the society and certainly require to be granted the same benefit, as was ordered by this Court in the case of Drivers, Conductors and such other. 7. I, therefore, modify the earlier orders by including the afore categories of persons also along with Drivers, Conductors, Mechanics and such other and direct that they also to be paid their salaries before the Supervisory Personnel. 8.
7. I, therefore, modify the earlier orders by including the afore categories of persons also along with Drivers, Conductors, Mechanics and such other and direct that they also to be paid their salaries before the Supervisory Personnel. 8. As said above, since the learned Special Government Pleader says that the Government will be able to come back to this Court with affirmative decisions by the 31st of this month, I deem it apposite to adjourn these matters to that date. However, in the meanwhile, I direct the KSRTC to ensure that, as far as is practical, the salary to be paid next month be attempted on the 5th or at least by the 10th. List on 02.08.2022”. 8. However, virtually, on the eve of the Onam last year, it was again noticed that payment of salaries were being delayed by the KSRTC, solely citing incapacity due to financial constraints; and, therefore, an order dated 24.08.2022 was issued, directing the Government to release necessary amounts towards salary and eligible bonuses. 9. But, the Government filed an appeal against the afore interim order, taking the stand that there is no legal obligation on them to pay any amounts to KSRTC, since it is a statutory Corporation under the Road Transport Corporation Act, 1951; and it transpires that it was stayed and certain directions were issued by a learned Division Bench. However, in spite of this, the Government, on their own, paid the requisite amounts to the KSRTC; and resultantly, the appeal was closed. 10. The scenario thus continued without change, with the Government voluntarily offering fiscal support every month to the KSRTC, which was used by the latter for payment of salary and other unexpendable components. 11. Several months later, on 13.07.2023, the petitioners again brought to the notice of this Court that their salary for the month of May, 2023 had not been paid. They also pointed out that the KSRTC had brought out a circular, dated 16.02.2023, stipulating that the salaries to the employees will be paid in two tranches – on the 5th of every month; and the next, as and when the Government makes available its assistance. 12.
They also pointed out that the KSRTC had brought out a circular, dated 16.02.2023, stipulating that the salaries to the employees will be paid in two tranches – on the 5th of every month; and the next, as and when the Government makes available its assistance. 12. Hence, another order on that day was issued to the following effect : “This is the same story repeating again: the salary to the employees of Kerala State Road Transport Corporation (KSRTC), has not yet been paid for the last month. 2. This Court has issued several orders in the past, particularly those dated 08.06.2022, 21.06.2022 and 11.07.2022 – which are all detailed in its tenor – reminding the Authorities the plight of the hapless employees of the KSRTC, if their salaries and allowances are defaulted even for a few days – they all being members of the most vulnerable financial state of society. It is thus that directions were issued in the last of the said orders to make sure that the KSRTC shall, as far as it is practical, pay salary on the 5th, or at least by the 10th of each month. 3. This Court is now told that, in spite of these directions, the KSRTC has come out with a Circular dated 16.02.2023, saying that the employees will be paid whatever is possible on the 5th of every month and the balance as and when the Government assists them. I am further told by the learned counsel appearing for the KSRTC today, that until this month, payments were made in terms of the afore Circular. 4. The question whether the afore Circular is proper or otherwise is not being looked into today, because my limited endeavor, as of now, is to ensure that all the employees are paid their salaries, one way or another, without delay. 5. However, it appears not to be, as far as the last month is concerned, because, even on this date, the salary remains unpaid fully. 6. These matters have been pending before this Court for more than a year now. Several suggestions have been made and incorporated in the various interim orders of this Court; but which appear to have been, at least prima facie, disregarded by the stakeholders. 7.
6. These matters have been pending before this Court for more than a year now. Several suggestions have been made and incorporated in the various interim orders of this Court; but which appear to have been, at least prima facie, disregarded by the stakeholders. 7. The learned counsel for the KSRTC says that her client has sought assistance from the Government and that an amount of Rs.30 crore is likely to be credited today. She added that, this amount will be disbursed to the employees towards their salary without any avoidable delay. 8. One fails to understand why the KSRTC is being pushed into this kind of financial distress when their employees are working at more than satisfactory levels, which is evident from the income that is generated – stated to be over 220 crore per month now. 9. As this Court said earlier, it is obvious that the KSRTC is burdened by their prior commitments and that amounts are being used to honour them, before the salaries are paid. This, if true, is contrary to the spirit of the order dated 21.06.2022. 10. The net effect is that the employees of the KSRTC are toiling, but they are left without being paid salary. 11. This Court fails to understand how long this can go on, particularly when the Government appears to take the stand that they cannot take full responsibility for the Corporation. 12. Pertinently, this Court has been making suggestions for the benefit of the KSRTC, but as I have said above, they appear to have all fallen on deaf ears even today. 13. The situation cannot be allowed to continue like this. 14. I, therefore, adjourn this matter to be called on 20.07.2023, at 1.45 p.m.; and if the salaries of the employees are not fully honoured by then, the Managing Director of the KSRTC shall remain present online to explain why. List on 20.07.2023”. 13. On 20.07.2023, Sri. Biju Prabhakar Managing Director of KSRTC appeared online to say that the salaries upto the months of May, 2023 has been paid; but affirmed that, without the Government offering substantial sums, the salaries for the subsequent months cannot be honoured. This was recorded in the order of the said day and the matter adjourned. 14. When these Writ Petitions were, thereafter, considered on 16.08.2023, the learned Special Government Pleader – Sri.
This was recorded in the order of the said day and the matter adjourned. 14. When these Writ Petitions were, thereafter, considered on 16.08.2023, the learned Special Government Pleader – Sri. Santhosh Kumar, submitted that a High Level meeting had been convened by the Government, between three Honourable Ministers and the registered Trade Unions of the KSRTC; and that they were hopeful of obtaining a viable permanent solution to all the issues. 15. On 21.08.2023, the learned Special Government Pleader reported that the afore said meeting had made certain recommendations, including that the Government will chip in necessary funds for payment of salary to the employees of the KSRTC for the month of July, 2023; but that resources for the festival bonuses and allowances will have to be found by the management of the KSRTC. He added that it had also been agreed in the said meeting, by all the stake holders - including the Trade Unions - that KSRTC must attempt to stand on its own and ought to find its own revenue sources, by increase of its income and reduction of operational expenditure among others. 16. It is in such manner that the afore Writ Petitions are listed today. 17. I have extracted the various interim orders in detail afore because, it is now indubitable that nothing more remains to be said by this Court. Pertinently, each of them have been accepted and acted upon by the parties, including the Government, as is unequivocally admitted by Sri. Santhosh Kumar and Sri. Deepu Thankan. 18. The 'KSRTC' is a statutory Road Transport Corporation, under the State Transport Corporation Act; and ideally, in a perfect sceario, it must operate as an autonomous institution, guided by the policy decisions of the Department of Transport and the Government. However, the ills that plague the KSRTC are not something which have its genesis in the recent past, but travels over several years, if not decades. The losses now stated to be aggregated by the KSRTC are, admittedly, on account of various unavoidable facets, including loans availed in the past. 19. Of course, as indited in the various orders of this Court in these matters, the suggestions proferred by various stakeholders have been adverted to, including that the under utilized properties of the KSRTC be monitised; and that its operational functions be rationalized, to be made more professional.
19. Of course, as indited in the various orders of this Court in these matters, the suggestions proferred by various stakeholders have been adverted to, including that the under utilized properties of the KSRTC be monitised; and that its operational functions be rationalized, to be made more professional. However, this Court can only recommend, but cannot insist that they be implemented - either by the Government or the KSRTC - since it is within their exclusive province to take apposite decisions, as they would deem fit. 20. As long as such decisions have to be taken in the policy realm, the jurisdiction of this Court is barricaded to a large extent, except suggesting and nothing more. 21. As matters now stand, the KSRTC certainly is – as is fully conceded - relying upon the assistance of the Government every month to honour the salary component to the employees. It is unnecessary for this Court to keep reminding or restating, that the employees of the KSRTC are the mainstay for its operations. Most of them – borrowing in the words of the Managing Director of the KSRTC himself - are hardworking, committed and upto speed to their responsibilities; though there are allegations made by the Government, as also the Management, against certain elements in the organization. I do not propose to tread into such areas, because, again, these are matters for the competent Authorities to take note of and deal with - it being beyond the purview of this Court to even consider it on its merits. 22. That said, it is taking into account all the factors as afore, that this Court issued the interim order dated 13.07.2023, extracted in paragraph 12 above. 23. As usual, every observation and directions of this Court – as limpid from all the afore extracted orders – have been fully accepted by the Government, as also the KSRTC; and it is submitted today, by Sri. Santhosh Kumar – learned Special Government Pleader, which is affirmed by Sri.
23. As usual, every observation and directions of this Court – as limpid from all the afore extracted orders – have been fully accepted by the Government, as also the KSRTC; and it is submitted today, by Sri. Santhosh Kumar – learned Special Government Pleader, which is affirmed by Sri. Deepu Thankan – learned Standing Counsel for the KSRTC, that the Government has released Rs.40 Crores to the KSRTC, with the aid of which, salary for the month of July 2023 has already been paid; and that, in addition, each of its employee has been offered a festival allowance of Rs.2,750/-, along with Rs.7,500/- as salary advance - the latter being at their option, to be recovered from their subsequent salaries in five months. 24. It is thus perspicuous that every interim order issued by this Court, including the afore extracted ones, have been unreservedly accepted and acted upon by the Government, as well as the KSRTC; and obviously, therefore, it would not require this Court to now say anything further. 25. In fact, the interim order of this Court dated 11.07.2022 extracted in paragraph 7 supra, already commands the KSRTC to pay salaries to their employees by the 10th day of each succeeding month. This date was fixed being imbued by Section 5(6) of the Payment of Wages Act, 1936; and the learned Standing Counsel for the KSRTC affirms that his client accepts it and intends to pay accordingly. His only apprehension was that, should the Government not offer assistance in any month, or delays it, his client might not be able to honour it. He, therefore, sought liberty for the KSRTC to approach this Court, if it becomes so unexpendable in future, for necessary orders/clarifications. 26. In summation, it is apodictic - as the sum total of the above discussion indubitably presents - the KSRTC will be able to honour the salaries of their employees, at least by the afore said time frame, only if the Government assists them adequately.
26. In summation, it is apodictic - as the sum total of the above discussion indubitably presents - the KSRTC will be able to honour the salaries of their employees, at least by the afore said time frame, only if the Government assists them adequately. This remains without any contest because the Government, as well as the KSRTC, admits it without any hesitation – which is manifest from the circular dated 15.02.2023 issued by the latter, notifying the employees that only one half of their salary will be able to be paid by the 5th of every month and that the balance will be disbursed as and when they obtain assistance from the Government. 27. It is needless to say again, therefore, that KSRTC maintains – without any room for doubt - that they cannot go on without the continuous assistance from the Government. 28. The above situation can hope to obtain a change only if the Government takes vital effort to ensure that KSRTC is rendered self reliant – to the extent possible – which will entail appropriate policy decisions to be taken and laid in place. The learned Special Government Pleader agreed to this; adding that requisite steps are already under implementation in such direction, under the guidance of the Hon’ble Minister for the Department of Transport and to be executed through the Managing Director of the KSRTC, who is also the Secretary of the said department. 29. The turning around of the KSRTC surely will take time; but the employees cannot be put to prejudice for this. It is primarily for the Government to take and effectively enforce decisions to make KSRTC stand on their own; but cannot shirk away from its responsibility of assisting them – to the level absolutely necessary - until such time, as it is done. 30. In fact, I do not need to expatiate this any further because, the learned Special Government Pleader - Sri. Santhosh Kumar, candidly conceded - without any reservation - that the Government cannot, even whisperingly, countenance a suggestion for winding up of the KSRTC, or to privatize it; and that it is hence willing to offer assistance as long as it requires; but that the employees and their Unions have to co-operate implicitly.
Santhosh Kumar, candidly conceded - without any reservation - that the Government cannot, even whisperingly, countenance a suggestion for winding up of the KSRTC, or to privatize it; and that it is hence willing to offer assistance as long as it requires; but that the employees and their Unions have to co-operate implicitly. In the afore circumstances, I dispose of these writ petitions, confirming the afore extracted interim orders, as also others issued in these cases during its life; with a consequential direction to the KSRTC to ensure that salary of the employees on their roll is disbursed not later than 10th of each succeeding month. However, acceding to the request of Sri. Deepu Thankan, I also reserve liberty to the KSRTC to seek any order/clarification from this Court, should such a situation become unavoidable for any valid reason, in future. After I dictated this part of the judgment, Sri. T. Sanjay – learned counsel appearing for the petitioner in WP(C)No.23949/2022, submitted that there is an adscititious plea made by his client, namely as prayer No.4, that the KSRTC be ordered to remit the amounts recovered from their employees towards Provident Fund, State Life Insurance, Group Insurance etc., into appropriate accounts, within a time frame to be fixed; and further that they be directed to do so, qua future contributions, within a week of such recovery. Sri. Deepu Thankan – learned Standing Counsel for the KSRTC, in response, submitted that it is only on account of the extraordinary and extreme financial crisis that there has been delay in making the afore remittances in the past; and that all efforts have been taken now on to do so – which, he asserted, is evident from the fact that payments until the month of May, 2023, have been already given credit to into the appropriate accounts. He undertook that KSRTC will remit the contributions to be recovered in future into such accounts without any delay, but sought liberty to approach this Court in this regard also, should they encounter any predicament in the days to come. This is recorded. Needless to say, since I have not considered any of the other contentions or prayers of the petitioners urged and made in these writ petitions, they are all left open to be impelled in future, if it becomes so warranted, or if any of the afore undertakings recorded and directions issued are violated.