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2022 Supreme(Cal) 220

IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
SABYASACHI BHATTACHARYYA, J.
The Calcutta Tramways Employees' Co-operative Credit Society Limited – Appellant
Versus
The State of West Bengal & Others – Respondents
W.P.O. No. 56 of 2014 & IA. No. GA/1 of 2015 (Old No. GA/3881 of 2015) & GA/5 of 2021
Decided on : 20-05-2022

Advocate Appeared:
For the Appellant : Saptanshu Basu, Shibnath Bhattacharya, Abhishek Bhattacharjee.
For the Respondents:Soumya Majumdar, Deblina Chattaraj, Advocates.

The employer's liability under Section 59 of the West Bengal Co-Operative Societies Act, 2006 continues to be enforceable even after the limitation period for a money suit, and the withholding of dues infringes the fundamental rights of the employees.

Headnote:

Co-operative Society - Withholding of Dues - West Bengal Co-Operative Societies Act, 2006, Section 59

Fact of the Case:

The petitioner, a registered credit co-operative society, raised a grievance that the due deductions payable to them by the employer under Section 59 of the West Bengal Co-Operative Societies Act, 2006 were withheld. While some payments were made, a major part of the interest due under Section 59(3) had not been paid.

Finding of the Court:

The court found that the cause of action was continuing, and the employer's liability under Section 59 of the 2006 Act continues to be enforceable even after the limitation period for a money suit. The court also held that the writ petition was maintainable against a public authority, and the withholding of dues infringed the fundamental rights of the employees.

Issues: The issues included the time-barred nature of the money claim, the maintainability of the writ petition against a public authority, and the interpretation of the employer's liability under Section 59 of the 2006 Act.

Ratio Decidendi: The court held that the employer's liability under Section 59 of the 2006 Act continues to be enforceable even after the limitation period for a money suit, and the writ petition was maintainable against a public authority. The withholding of dues was found to infringe the fundamental rights of the employees.

Final Decision: The court directed the respondent nos. 2 and 3 and/or the employer to disburse the balance due of interest at the statutory rate of 12% per annum to the petitioner-society in monthly instalments, with default leading to recovery as an arrear of land revenue.

JUDGMENT :

1. The petitioner is a registered credit co-operative society of the employees of the erstwhile Calcutta Tramways, now under the West Bengal Transport Corporation Limited. The grievance raised in the writ petition was originally that the due deductions payable to the petitioner-society by the employer company under Section 59 of the West Bengal Co-Operative Societies Act, 2006 (hereinafter referred to as "the 2006 Act") was withheld by the employer, as represented through the respondent nos. 2 and 3.

2. Subsequently, some payments were made by the said respondents pursuant to different orders passed by co-ordinate Benches of this court and the principal dues have admittedly been cleared. However, according to the petitioner, a major part of the interest due under Section 59(3) of the 2006 Act has not yet been paid. Respondent nos. 2 and 3, however, assert that there are no further dues on account of interest as well.

3. Section 59 of the 2006 Act is set out below for convenience:

    "59. Deduction of dues to Co-operative, societies from members and sureties.- (1) A member of a Co-operative society may execute an agreement in favour of the Co-operative society providing that his employer or the drawing and disbursing officer where applicable shall be competent to deduct from the salaries or wages and retiring gratuity or death gratuity payable to him by such employer or the drawing and disbursing officer where applicable such amount as may be specified in the agreement and to pay the amount to the Co-operative society in satisfaction of any debt or other demands of the Co-operative society against the member. A copy of such agreement shall be furnished to the employer or the drawing and disbursing officer where applicable.

(2) Upon the execution of the agreement under sub-section (1), the employer or the drawing and disbursing officer where applicable shall on the requisition of the Co-operative society in writing and for so long as the Co- operative society does not intimate that the debt or demand has been fully paid, make the deduction in accordance with the agreement and pay the amount to the Co-operative society within fifteen days from the date of such deduction as if it were part of the wages payable by him under the Payment of Wage Act, 1936 (4 of 1936) on the date on which he makes the payment.

(3) If the employer or the drawing and disbursing officer fails to make the deduction under sub-section (2) or defaults in making payment to the Co- operative society, he shall be liable to make the payment to the Co-operative society together with interest at twelve per cent per annum and the entire amount shall be recoverable from the employer or drawing and disbursing officer by the Co-operative society as an arrear of land revenue and such amount shall rank in priority in respect of the liability of the employer or drawing and disbursing officer as wages in arrear."

4. Counsel for both sides have orally argued and filed written notes of arguments. Upon going through the pleadings, annexures thereto and arguments, the court arrives at the following decision:

5. A moot objection taken by the respondents is that the writ petition is for a money claim, which is time-barred and beyond the writ jurisdiction.

6. As far as the first question is concerned, contrary to the submissions of the respondents, the cause of action is continuing, in view of the language of Section 59 of the 2006 Act. The employer or the drawing and disbursing officer, as the case may be, shall upon deduction, go on paying the amounts to the co-operative society within fifteen days from the date of the deduction. However, the liability does not end there.

7. In the event the employer fails to make the deduction or defaults in making such payment to the society, he shall be "liable to make the payment to the Co-operative society together with interest at twelve per cent per annum and the entire amount shall be recoverable from the employer..." by the co-operativ

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