The main legal principle established is that the Special Act, i.e., the Tamil Nadu Cooperative Societies Act, prevails over the general law, and employees of cooperative societies are entitled to claim gratuity only under the specific provisions of the Tamil Nadu Cooperative Societies Act.

JUDGMENT :

(Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, calling for the records relating to A.G.A.No.45/2001 dated 25-8-2003 on the file of the first respondent herein, quash the same.)

1. The order dated 25.08.2003 passed in A.G.A.No.45/2001 is under challenge in the present writ petition.

2. The petitioner is K-113, Kugalur Primary Agricultural Co-operative Bank Limited, which is a society registered under the provisions of the Tamil Nadu Cooperative Societies Act, 1983. One Mr.K.S.Arumugam was appointed as an Appraiser in the writ petitioner Bank and later on, he was promoted as appraiser-cum-Assistant Secretary. On account of certain serious allegations of misappropriation, the disciplinary proceedings were initiated against the said employee. However, before completion of the disciplinary proceedings, the employee died and thereafter, further action was taken. It is an admitted fact that no final order has been passed in the disciplinary proceedings. The 3rd respondent, who is the blood brother of the deceased employee, filed an application for settlement of gratuity under the Payment of Gratuity Act, 1972. The claim of the 3rd respondent was allowed against which the writ petitioner Cooperative Bank filed an appeal before the Appellate authority and the Appellate Authority also confirmed the claim made out by the 3rd respondent. Challenging the said order, the present writ petition is filed.

3. The learned counsel for the writ petitioner states that the 3rd respondent is not the Class-I legal heir of the deceased employee and therefore, he has to produce the Succession certificate and other relevant certificates for the purpose of claiming gratuity. This apart, the writ petitioner is the Cooperative Bank registered under the provisions of the Tamil Nadu Cooperative Societies Act and the By-law approved by the Registrar of Cooperative Society provides the mode of payment of gratuity to the employees. The gratuity fund is maintained by the writ petitioner Bank in the Financing Bank namely, the Central Cooperative Bank. Thus, the gratuity is to be paid from and out of the said fund by following the procedures as contemplated in the By-laws of the Cooperative Societies. The procedure for payment is also stipulated in the By-laws.

4. This being the factum, the payment of Gratuity Act in respect of the employees of the Cooperative Societies is not applicable. They are entitled to claim gratuity under Section 79 of the Tamil Nadu Cooperative Societies Act and by virtue of the said provision, a separate gratuity fund is created by the society through its By-laws and the fund is maintained in a separate account in the Financing Bank.

5. The preliminary issue is raised by the learned counsel for the writ petitioner stating that the Gratuity petition before the 1st respondent under the Gratuity Act itself is not maintainable in view of the provisions of the Tamil Nadu Cooperative Societies Act, 1983 which is a Special Act and will prevail over the general Act.

6. In order to ascertain the maintainability of the Gratuity Petition under the Gratuity Act, this Court has to consider the provisions of the Tamil Nadu Cooperative Societies Act, which is applicable in respect of the Cooperative Societies registered under the said Act.

7. Admittedly, the writ petitioner Cooperative Bank registered under the provisions of the Tamil Nadu Cooperative Societies Act. Thus, the said Act alone will be applicable and only in the absence of any provision for payment of Gratuity and other service conditions, the general law would be applicable. The legal principles in this regard is that when the Special Act is in force, the same will prevail over the general law in respect of the employees of the Cooperative Societies. In this regard, it is relevant to consider Section 79 of the Tamil Nadu Cooperative Societies Act. Section 79 speaks about the Gratuity fund and the same reads as under:

“79