Salary Paid Overlooking Other Essential Expenses, Forced To Cut Down Trips: KSRTC Seeks 10 More Days To Disburse Pending Salary Before Kerala High Court

The Kerala State Transport Employee Association (KSRTC) has sought ten more days from the Kerala High Court to disburse salary yet to be paid to its employees. 

This comes after the Court directed KSRTC to disburse salary to its employees for the months of June and July before August 10 while adjudicating on a plea alleging that the employees were not being paid promptly. 

Although the Corporation managed to disburse the salary for the month of June, it has now sought 10 more days to disburse the same for July. 

In the additional affidavit filed through Advocate Deepu Thankan, it has been submitted that it could not disburse salary only due to its financial difficulties.  

"There are no willful latches on the part of the Corporation in complying with the orders of this Hon'ble Court and only due to the paucity of funds, the salary could not be paid within the time stipulated by this Hon'ble Court," reads the affidavit.

The State had released Rs.30 crores for the disbursal of salary for June which had to used to clear the remaining dues of the overdraft taken to pay salary in May.

KSRTC has submitted that the salary for June was paid utilising the funds generated in the first few weeks of August and the funds reserved for payment towards diesel purchase and other daily expenses. Consequently, oil corporations stopped supplying diesel to KSRTC and which caused a stoppage of many schedules. 

"The salary has been paid keeping aside all other required expenses, which ultimately resulted in curtailment of many trips."

It was further mentioned that KSRTC only receives only a portion of the amount from its daily collection since Rs.1 crore had to be paid daily towards the consortium banks.

The Corporation emphasised that payment towards the supply of diesel is the major expenditure of the Corporation, coming up to approximately Rs. 95 crores per month. 

Adding to this, due to the litigation pending before the Apex Court regarding the pricing of the diesel, Oil Corporations have taken a joint stand not to supply diesel on credit as done in the past. Therefore, now payment of diesel has to be made in advance to the oil companies.

"A delay in payment would result in curtailment of trips. Therefore, payment towards the supply of diesel is an essential expenditure of the Corporation as that of salary."      

The affidavit also contends that though KSRTC sought financial assistance from the Government, no positive steps have been taken by the Finance Ministry yet. 

It has been argued that when the buses could not operate due to a shortage of diesel, considering the plight of the travelling public, the State intervened in the matter and directed to release an amount of Rs 20 crore towards the payment of diesel. However, it is alleged that the said amount has not so far been released by the Finance Ministry for reasons not known to the Corporation. 

Anticipating the amount directed to be released by the Government, the Corporation has released an amount of Rs.10 crores towards the supply of diesel. However, in view of the non-release of the offered amount by the Finance Ministry, the Corporation could not start the disbursal of the salary. 

It has been submitted that the casual labourers' wages will be released in a day.

However, the salary of the remaining employees can be paid only when the Corporation receives financial assistance from the Government.

On these grounds, KSRTC sought an extension of the time to disburse the salary of the employees for a period of another 10 days. 

Case Title: R. Baji & Ors. v. KSRTC & Ors.