The Kerala High Court on Wednesday directed the State government to quantify, at least tentatively, its dues to the Kerala State Road Transport Corporation (KSRTC) and pay half of the quantified amount to the corporation. Justice Dama Seshadri Naidu ordered that the dues be quantified in 30 days.
The court also directed the government to take necessary steps to implement the revival package formulated for the KSRTC. The government should take all necessary corrective steps administratively vis-à-vis the KSRTC to give a quietus to the persisting issue of pension payment.
The directives were issued while disposing of a batch of petitions filed by KSRTC pensioners seeking a directive to the State government to bail the KSRTC out of its financial crunch.
The Judge noted that the government had floated a revival package for the KSRTC which included conversion of government loans to equity, stopping of free passes to retired employees, introduction of pension cess on tickets aboveRs.25 for creating pension fund, swapping of existing loans with low interest rate loan and longer repayment period. The government also assured that it would monitor the execution of the revival scheme.
The court observed that the Corporation owed its existence to the State government, drew sustenance from it and would die, if the government did not want it. The government could not view itself different and distinct from the Corporation in discharging its statutory and constitutional obligations. The government could not wriggle itself out of the onerous task of setting the Corporation right.
The KSRTC contended that while the Corporation generated a revenue of Rs.165 crore a month, the total monthly payment came to Rs.254 crore, leaving a deficit of Rs.89 crore. The corporation was paying Rs.43 crore towards pensions a month. It was meeting its financial obligations by borrowing from various sources. The Corporation was compelled to introduce the monthly pension in 1984 on a directive of the State government.
The government took the stand that the KSRTC could not always depend on it for the working capital requirements, including payment of pensions. It had to find out its own resources to meet its liabilities. The government contended that it could not provide financial help to public sector undertakings merely on the ground that they were doing some social obligations and catering to public needs.
The court observed that nobody could find fault with the welfare measures, including the introduction of statutory pension to KSRTC employees. In fact, the government had also shouldered the burden of the Corporation.
News: The Hindu
