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2015 Supreme(Mad) 1860

IN THE MADURAI BENCH OF MADRAS HIGH COURT
S. TAMILVANAN, V.S. RAVI & V.M. VELUMANI, JJ.
S. Andiyannan & Another - Appellants
Versus
The Joint Registrar, Co-operative Societies, Madurai Region, Madurai & Others - Respondents
Writ Petition (MD) Nos. 2602 of 2009 & 12007 of 2011
Decided On : 27-03-2015

Headnote:

Tamil Nadu Co-operative Societies Act, 1983 - Section 87 - Constitution of India, 1950 - Article 226 – Appeal against an employee of a co-operative society – Employment and Service matter - Disciplinary proceedings – Surcharge – Retirement - Whether disciplinary proceedings initiated against an employee of a co-operative society, governed by Act, 1983, could be continued even after retirement of said employee - Issuance of Writ of mandamus, directing first respondent therein to issue suitable direction to second respondent to pay all retirement benefits, including leave salary, due and payable to petitioner, with interest from date of retirement till realization - Held, It clear that legal position is that authority could continue departmental enquiry against retired employee, only subject to applicable statutory Rules or bye-law, which govern terms and conditions of his service of employee - Hence, relevant Rules governing service conditions of employee is determining factor as to whether and in what manner a domestic enquiry can be continued against an employee, who retired after reaching age of superannuation - There could be no authority vested with employer for continuing any disciplinary proceeding, in absence of relevant service Rules permitting employer to continue disciplinary proceeding - If there is no service Rules or bye-law of society empowering employer to continue departmental proceeding, employer, would have no authority to continue departmental proceeding after retirement of employee - Surcharge is not penal in nature, hence if there is admission with regard to loss caused by employee or same is established by co-operative institution, based on proceeding already initiated for surcharge, same could be recovered in manner known to law - Section 87 of Act is not impliedly empowering disciplinary authority to continue any disciplinary proceeding against an employee, who retired from service, in absence of any Service Rules or Bye-law – Order accordingly.

Judgment

S. Tamilvanan, J.

This Reference has been made to this larger Bench of Three Judges by the Hon'ble The Chief Justice to answer the following questions of Law:

"1.Whether the disciplinary proceedings initiated against an employee of a co-operative society, governed by the Tamil Nadu Co-operative Societies Act, 1983, could be continued even after retirement of the said employee?

2. Whether Section 87 of the Tamil Nadu Co-operative Societies Act, 1983 could be considered as an enabling provision impliedly empowering the disciplinary authority to continue the disciplinary proceedings even after the retirement of an employee of a co-operative society, governed by the Tamil Nadu Co-operative Societies Act, 1983?"

2. The Hon'ble Mr. Justice S. Nagamuthu made the Order of Reference, in view of the conflicting views rendered by three Division Benches of this Court. In Registrar of Co-operative Societies vs. G. Manoharan, reported in 2010 (2) CTC 234, it was held by a Division Bench that disciplinary proceedings could be continued even after retirement of an employee of a co-operative society, if it is proved that he has caused loss to the establishment and the other decisions in P. Thangavel vs. The Chairman, Common Cadre Committee, reported in 2012 (3) CTC 488 and R. Murugesan v. Joint Registrar of Co-op. Societies, reported in (2014) 4 MLJ 513, it was held by two Division Benches of this Court that in the absence of Service Rules or Bye-law empowering the Society to continue the disciplinary proceedings, no disciplinary proceedings could be continued after the employee is allowed to retire or reached the age of superannuation. On account of the conflicting views taken by three Division Benches of this Court, the matter has been referred to this Larger Bench of three Judges.

3. The Reference made before this Bench relates to the following writ petitions :

It is seen that the Writ Petition in W.P.(MD)No.2602 of 2009 is filed under Article 226 of the Constitution of India for issuance of Writ of certiorarified mandamus, calling for the records pertaining to the order of the first respondent in Revision Petition No.5 of 2006 Sa.Pa., dated 07.01.2009, seeking an order to quash the same and consequently direct the 2nd respondent to return back the amount recovered from the retirement benefit and the gratuity of Rs.36,844/- and 17,116/-, respectively, with reasonable interest.

Writ Petition in W.P.(MD)No.12007 of 2011 has been filed under Article 226 of the Constitution of India for issuance of Writ of mandamus, directing the first respondent therein to issue suitable direction to the second respondent to pay all the retirement benefits, including leave salary, due and payable to the petitioner, with interest from the date of retirement till realization.

4. The first question of the Reference relates to the disciplinary proceeding being initiated against employees of any co-operative society, governed by the Tamil Nadu Co-operative Societies Act, 1983 and this Bench has been asked to consider and answer, whether the disciplinary proceeding initiated against an employee of a co-operative society could be continued even after the retirement of the employee. The second question of law relates to the scope of Section 87 of the Tamil Nadu Co-operative Societies Act, 1983 to decide whether it could be considered as an enabling provision, impliedly empowering the disciplinary authority to continue the disciplinary proceeding. In other words, the question is to decide whether the disciplinary authority is impliedly empowered to continue the disciplinary proceeding even after the retirement of any employee of a co-operative society, in view of Section 87 of the Tamil Nadu Co-operative Societies Act, 1983, on the ground that it is an enabling provision.

5. Mr. Veera Kathiravan, learned counsel appearing for the petitioner in W.P. (MD) No. 12007 of 2011, drew the attention of this Court to Section 87 of the Tamil Nadu Co-operative Societies Act, 1983,

























































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