Rathin T.Prasad vs. Central Warehousing Coporation
Held
The High Court upheld the petitioner's termination for unauthorized absence but ruled that the subsequent demand for notice pay amounted to a double penalty and was unjustifiable. Consequently, the Court set aside the orders for recovery of notice pay and directed the Corporation to release the petitioner's terminal benefits within three months.
Facts
The petitioner, a probationer with Central Warehousing Corporation, resigned to take up alternative employment. When he failed to serve the three-month notice period or pay the equivalent, the Corporation terminated his service for unauthorized absence. Subsequently, the Corporation sought to recover the three months' notice pay along with 18% GST from his terminal benefits and through his new employer.
Key Issues
The key legal issues were whether an employer, having terminated an employee for unauthorized absence, could subsequently recover notice pay, and the validity of demanding GST on such notice pay.
Sections Cited
None
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN THURSDAY, THE 28TH DAY OF JANUARY 2021 / 8TH MAGHA, 1942 WP(C).No.19351 OF 2020(T) PETITIONER :- RATHIN T.PRASAD, AGED 31 YEARS S/O.THANKA PRASAD, VISMAYAM, VATTAPPARA.P.O, THIRUVANANTHAPURAM – 695 028. BY ADVS. SRI.R.T.PRADEEP SMT.M.BINDUDAS SRI.K.C.HARISH RESPONDENTS :- 1 CENTRAL WAREHOUSING COPORATION REPRESENTED BY ITS REGIONAL MANAGER, REGIONAL OFFICE, MAVELI ROAD, GANDHI NAGAR, KADAVANTHRA, ERNAKULAM – 682 020. 2 REGIONAL MANAGER, CENTRAL WAREHOUSING CORPORATION, REGIONAL OFFICE, MAVELI ROAD, GANDHI NAGAR, KADAVANTHRA, ERNAKULAM – 682 020. 3 WAREHOUSE MANAGER, CENTRAL WAREHOUSE, KAKKANAD, KINFRA EPIP, KUSUMAGIRI.P.O, COCHIN – 682 030. 4 DIRECTOR OF EMPLOYMENT, NATIONAL EMPLOYMENT SERVICE(KERALA), VIKAS BHAVAN, THIRUVANANTHAPURAM – 695 001. BY ADV. SRI.K.R.GANESH BY ADV. SMT.T.S.LIKHITHA BY ADV. SRI.ELVIN PETER P.J. BY SRI.BIJOY CHANDRAN, GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.01.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.19351 OF 2020(T) JUDGMENT Dated this the 28
th day of January 2021 This writ petition is filed seek
The judgment continues below.
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