JUDGMENT :

S.M. SUBRAMANIAM, J.

Prayer: Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Certiorari, calling for the orders of the first respondent culminating in the order dated 27.08.2014 made in PGA Case No. 10 of 2014 on the file of the first respondent and quash the same in so far as the third respondent is concerned.

1. The order dated 27.08.2014 made in P.G.A. Case No. 10 of 2014, is sought to be quashed in the present writ petition.

2. The writ petitioner states that the writ petitioner-District Central Cooperative Bank is a Cooperative Society Registered under the provisions of the Tamil Nadu Cooperative Societies Act, 1983. The affairs of the writ petitioner-District Central Cooperative Bank is regulated under the provisions of the Tamil Nadu Cooperative Societies Act and the Rules as well as the bye-laws approved by the Competent Authority, namely, the Registrar of Cooperative Societies.

3. The grievance of the employees of the writ petitioner- District Central Cooperative Bank is that the gratuity amount, as applicable, as though paid, lesser amount has been paid to them. Consequently, the employees of the writ petitioner- District Central Cooperative Bank approached the Controlling Authority under the provisions of the Payment of Gratuity Act, 1972 and the application was submitted. The Controlling Authority allowed the claim of the employees, against which the writ petitioner-District Central Cooperative Bank preferred Gratuity Appeal and the Appellate Authority confirmed the order of the Controlling Authority. Thus, the writ petitioner- District Central Cooperative Bank is constrained to move the present writ petition.

4. The learned Senior Counsel appearing on behalf of the writ petitioner-District Central Cooperative Bank made a submission that the gratuity amount is calculated and even paid with reference to the Special Bye-Laws approved by the Registrar of Cooperative Societies. In this regard, Clause 28 of the Special Bye-Law covering the service conditions of the employees of the writ petitioner-District Central Cooperative Bank provides gratuity. Accordingly “the Bank may provide for payment of gratuity to the employees in accordance with the provisions contained in the Payment of Gratuity Act, 1972 or in accordance with the Group Gratuity Cash Accumulation Scheme of Life Insurance Corporation of India, whichever is beneficial to the employee.”

5. In this regard, the learned Senior Counsel for the writ petitioner-District Central Cooperative Bank made a submission that the Group Gratuity Cash Accumulation Scheme of Life Insurance Corporation of India is being implemented in respect of the employees of the writ petitioner-District Central Cooperative Bank, as the said Scheme is more beneficial than that of the Payment of Gratuity Act, 1972.

6. As per the said Scheme, the Bank is settling the gratuity amount to the employees and therefore, there is no infirmity, as such, in respect of the payment of gratuity is concerned. In this context, the Payment of Gratuity Act, 1972 itself is inapplicable, as there is a Special Scheme constituted under Section 79 of the Tamil Nadu Cooperative Societies Act, 1983.

7. Section 79 of the Tamil Nadu Cooperative Societies Act, 1983 provides the Gratuity Fund. Accordingly “a registered society not being an establishment to which the Payment of Gratuity Act, 1972 (Central Act 39 of 1972) applies, may provide in its by-laws for payment of gratuity to the employees at such rates and on such conditions as may be specified in the by-laws and such society may establish a Gratuity Fund or make other arrangements for the purpose.”

8. In the present case, such a special fund has already been created and as per the Scheme approved in the Special Bye-Law, the gratuity amount is paid to the employees of the Cooperative Societies. Thus, as per Section 79 of the Tamil Nadu Cooperative Societies Act, 1983, the provisions of the Payment of Gratuity