High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE D. MURUGESAN & THE HONOURABLE MR. JUSTICE V. PERIYA KARUPPIAH
I.558 Kuthiraichandal Primary Co-operative Bank Limited
Versus
A. Asokan & Another
Writ Appeal No.750 of 2007
Decided On : 12-11-2008
Subsistence Allowance - Co-Operative Bank Secretary - Tamil Nadu Payment of Subsistence Allowance Act, 1981, G.O.Ms.No. 55 Co-Operation Food and Consumer Protection Department - Section 2(a), 2(b), 2(c), 2(g), Regulation 29(d) - The court discussed the applicability of the Subsistence Allowance Act to the Secretary of the Co-Operative Bank, the interpretation of G.O.Ms.No. 55, and the entitlement of subsistence allowance to common cadre employees. The court held that the Secretary is entitled to payment of subsistence allowance under G.O.Ms.No. 55 during the period of his suspension.
Fact of the Case:
The writ petitioner, a Secretary of the Primary Agricultural Co-Operative Bank, was suspended and sought payment of subsistence allowance as per G.O.Ms.No. 55. The Co-Operative Bank resisted the payment, leading to a writ petition and subsequent appeal.
Finding of the Court:
The court found that the Secretary is entitled to payment of subsistence allowance under G.O.Ms.No. 55 during the period of his suspension, and the writ appeal filed by the Co-Operative Bank was dismissed.
Issues: The main issue was the entitlement of the Secretary to subsistence allowance under G.O.Ms.No. 55 during his suspension period.
Ratio Decidendi: The court interpreted the provisions of the Subsistence Allowance Act, G.O.Ms.No. 55, and the regulations under the Tamil Nadu Co-Operative Societies Act, 1983 to establish the entitlement of the Secretary to subsistence allowance.
Final Decision: The court held that the Secretary of the Co-Operative Bank is entitled to payment of subsistence allowance in terms of G.O.Ms.No.55 Co-Operation, Food and Consumer Protection Department, dated 12.03.2000, during the period of his suspension.
D. Murugesan, J.
The short question that arises for consideration in this writ appeal is
"Whether the Secretary of Primary Agricultural Co-Operative Bank belonging to Common Cadre Service is entitled to payment of subsistence allowance in terms of G.O.Ms.No. 55 Cp.Operation Food and Consumer Protection Department, dated 12.03.2000, during the period of his suspension?
2. The above issue arises under the following circumstances. The writ petitioner, while he was working as Secretary of the Primary Agricultural Co-Operative Bank Limited, Kuthiraichandal was suspended from service in contemplation of inquiry into grave charges on 19.03.2002. He was paid subsistence allowance till 31.03.2003. However, the said payment of subsistence allowance was stopped thereafter. He made several representations from 21.06.2003 and lastly on 16.09.2006, for payment of subsistence allowance. All his representations, though were acknowledged by the special Officer of the Co-Operative Bank, no subsistence allowance was paid. In the mean time he was also issued with the charge memo dated 27.05.2000 and the inquiry was kept pending.
3. As his requests for payment of subsistence allowance was not conceded by the Co-Operative Bank, he approached this Court by way of writ petition seeking for direction to the Special Officer to pay subsistence allowance as per G.O.Ms.No. 55 Co-Operation, Food and Consumer Protection Department, dated 12.03.2000 from 01.04.2003 and continue to pay the same till the date of completion of the disciplinary proceedings into the charge-memo dated 27.05.2000. By order dated 23.03.2007, the writ petition came to be allowed directing the Special Officer to pay subsistence allowance as prayed for. The writ appeal filed at the instance of the Primary Agricultural Co-Operative Bank, questions the above order.
4. Heard Mr. G. Sankaran, learned Addl. Government Pleader and Mr.S.Venkataraman,learned counsel appearing for the first respondent.
5. The request for payment of subsistence allowance is mainly resisted by the Co-Operative Bank on the ground that the first respondent is the Secretary of the Co-Operative Bank and he has got over all control of the Co-Operative Bank and therefore, he cannot be considered to be an employee as defined under Section 2(c) of Tamil Nadu Payment of Subsistence Allowance Act, 1981 (herein after referred to "the Subsistence Allowance Act"). Further, G.O.Ms.No. 55 Co-Operation Food and Consumer Protection Department, dated 12.03.2000, does not provide any specific provision for payment of subsistence allowance to the employees belonging to the common cadre service and therefore, the Secretary of the Co-Operative Bank is not entitled to payment of subsistence allowance.
6. Let us first consider the question, as to whether the provisions of Payment of Subsistence Allowance Act, would be applicable to a Secretary of the Co-Operative Bank. In terms of the Standing Orders under the Industrial Establishment Standing Orders Act, 1946, the Industrial Establishment should make a provision for payment of subsistence allowance and to get certification. When the attention of the State Government was drawn to the fact that larger number of establishments viz., out of 1675 Establishments for which Standing Orders were certified, 1631 Establishments did not amend the Standing Orders to provide for payment of subsistence allowance to the employees during the period of their suspension. It was felt by the Government that there was no satisfactory progress for which the Management and the Government have been receiving frequent representations for incorporation of model standing orders in every Industrial Establishment. As the incorporation of model standing orders in every establishment is a cumbersome process, a separate legislation was considered. Only under the above back-ground the Government enacted The Tamil Nadu Payment of Subsistence Allowance Act, 1981. The statement of objects and reasons of th
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