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1979 Supreme(Ker) 37

Judges : V.P.GOPALAN NAMBIYAR,G.BALAGANGADHARAN NAIR
DEPUTY LABOUR COMMISSIONER - Appellant
Versus
EMMANUAL - Respondent
Case No : W.A. No. 287 of 1978
Decided On : 02/08/1979
Advocates Appeared :
M.M. Abdul Khader; For Appellants K. Balachandran Nair; V.K. Subramonian; K. Shahul Hameed; P.P. Mathew; For Respondents

The Payment of Subsistence Allowance Act, being a special law, prevails over the provisions of the general law, the Co-operative Societies Act, based on the scheme, purpose, and object of the two enactments.

Headnote:

Payment of Subsistence Allowance - Co-operative Societies - Kerala Co-operative Societies Act, 1969, R.198(o) - Kerala Payment of Subsistence Allowance Act, 1972 (Act 27 of 1973)

Fact of the Case:

The appeal concerns the regulation of subsistence allowance payment to employees of a Co-operative Society under the Kerala Co-operative Societies Act, 1969 and the Kerala Payment of Subsistence Allowance Act, 1972.

Finding of the Court:

The court found that the Payment of Subsistence Allowance Act is a special law that must prevail over the provisions of the general law, the Co-operative Societies Act. The judgment of the learned Judge was set aside, and the appeal was allowed.

Issues: The main issue was whether the payment of subsistence allowance to the employees of a Co-operative Society is regulated by the provisions of R.198(o) of the Kerala Co-operative Societies Rules or by the statutory provisions of the Kerala Payment of Subsistence Allowance Act, 1972.

Ratio Decidendi: The court held that the Payment of Subsistence Allowance Act is a special law that must override the provisions of the general law, the Co-operative Societies Act, based on the scheme, purpose, and object of the two enactments.

Final Decision: The appeal was allowed, and the judgment of the learned Judge was set aside. O. P. No. 1250 of 1978 was dismissed with no order as to costs.

Judgment :-

1. The appeal is by the Deputy Labour Commissioner, Ernakulam, and the Registrar of Co-operative Societies, Trivandrum against the decision of a learned judge in O.P. No. 1250 of 1978. The question raised is short and interesting, namely, whether the payment of subsistence allowance to the employees of a Co-operative Society governed by the Kerala Co-operative Societies Act, 1969 is regulated by the provisions of R.198(o) of the Kerala Co-operative Societies Rules or by the statutory provisions of the Kerala Payment of Subsistence Allowance Act, 1972 (Act 27 of 1973). The learned judge in his judgment under appeal held that the former Act is a special Act, and the employees of the Co-operative Societies must have the subsistence allowance paid to them under the provisions of R.198 (o) which should be regarded as a special Rule on the subject, and that the Payment of Subsistence Allowance Act should be regarded as a general Act.

2. The question arises in connection with certain disciplinary proceedings taken by the Society, the 1st respondent herein, against the second respondent, who was kept under suspension. Exts. P9 and P12 are the orders passed with respect to payment of subsistence allowance, ordered under the provisions of the Kerala Payment of Subsistence Allowance Act. These were sought to be quashed by the Co-operative Society, the petitioner in the writ petition on the ground that subsistence allowance under R.198 (o) of the Co-operative Societies Rules would work out at more favourable rates to the 1st respondent society and on less beneficial terms to the 2nd respondent. The argument raised on behalf of the Co-operative Society was sought to be supported on the ground that the Co-operative Societies Act and the Rules are special enactments which should override the general enactment, namely, the Payment of Subsistence Allowance Act.

3. We have given the matter our careful attention. We find it difficult to agree with the learned judge. The Co-operative Societies Act no doubt deals specifically with Co-operative Societies, their control, their management, their administration and regulation of their affairs. In that enactment, we get S.80 (3) which provides as follows:

'80. Officers, etc. of Co-operative Societies:

(3) The Government shall, in consultation with the State Co-operative Union, make rules regulating the qualification, remuneration, allowances and other, conditions of service of the officers and servants of the different classes of societies specified in subsection (1).'

It is by virtue of this power that R.198 (o) of the Co-operative Societies Rules was framed. That rule lays down:

'198. Disciplinary Action.

x x x x

(o) An authority competent to appoint an employee may suspend him pending enquiry into serious charges against such employee. No employee shall however be kept under suspension for a period exceeding six months at a time. In no case an employee shall be kept under suspension for a continuous period exceeding one year without the prior approval of the Registrar. An employee under suspension shall be entitled for subsistence allowance at the rates admissible to State Government employees as prescribed under the Kerala Service Rules.'

It is to be noticed that the Rules are to be framed by the Government in consultation with the State Co-operative Union and they are to regulate the qualification, remuneration, allowance and other conditions of service of officers and servants of the different classes of Co-operative Societies. We turn now to Payment of Subsistence Allowance Act, 1972. The title of the Act recites that it was an Act to provide for the payment of subsistence allowance to the employees in certain establishments during the period of suspension. The preamble recites that the Act was passed as it was expedient to provide for payment of subsistence allowance to the employees in certain establishments. The definition of an 'establishment' is given in S.2 (c) of the Act. It is unneces







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