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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.Vaidyanathan, R.Kalaimathi, JJ.
R.Swaminathan (died) and ors. - Appellants
Versus
The Coimbatore District Central Co-operative Bank Limited and ors. – Respondents
W.A.No.621 of 2022
Decided On : 10-02-2023
Writ Appeal - Employees' Benefits - Tamil Nadu Co-operative Societies Act, 1983, Section 11 - Settlement dated 30.03.1979, G.O.Ms.No.488, Finance (Pension) Department, dated 12.08.1996 - The court discussed the applicability of the settlement and by-law amendments to extend benefits to employees, the dispute over managerial status, the requirement of approval for by-law amendments, and the issue of delay in claiming monetary benefits.
Fact of the Case:
The employees sought benefits in accordance with the settlement and by-law amendments. The employer disputed the pre-existing right of the employees to claim benefits under Section 33(C)(2) of the Industrial Disputes Act, 1947, and raised objections regarding the managerial status of the employees and the delay in filing claims.
Finding of the Court:
The court found that the employees were entitled to the benefits as the by-law amendments had been approved and registered, creating a pre-existing right. The court also held that the delay in claiming monetary benefits did not negate the accrued rights of the employees.
Issues: The issues involved the applicability of the settlement and by-law amendments to extend benefits, the dispute over the managerial status of the employees, and the impact of delay in claiming monetary benefits.
Ratio Decidendi: The court determined that the employees had a pre-existing right to claim benefits based on the approved and registered by-law amendments. The court also clarified that the delay in claiming monetary benefits did not nullify the accrued rights of the employees.
Final Decision: The Writ Appeal was allowed, setting aside the order of the learned Single Judge and restoring the order of the Labour Court. The employer was directed to implement the order of the Labour Court within three months, failing which, it would incur interest at 9% p.a.
JUDGMENT :
Prayer: Writ Appeal filed under Clause 15 of Letter Patent to set aside the order dated 25.09.2019 passed in W.P.No.32279/2004 and allow the Writ Appeal.
Challenging the order passed in W.P.No.32279 of 2004 dated 25.09.2019, the present Writ Appeal has been preferred by some of the workmen of Coimbatore District Central Cooperative Bank Limited, along with others, who are the legal heirs of the deceased employees and were parties to the proceedings in the Labour Court.
2. The employees concerned have joined the services in various designations and retired from service prior to 01.07.1996. On 01.07.1996, the By-law got amended wherein it has been decided to extend certain benefits in terms of the Government Order as per the clause in the Settlement dated 30.03.1979. In terms of Clause No.38 of the Settlement, the Management has agreed to grant encashment of the monetary benefits of the Unearned Leave on Private Affairs in terms of Rules in force that would be applicable to the employees working in the Tamil Nadu State Government. The Government has issued G.O.Ms.No.488, Finance (Pension) Department, dated 12.08.1996 wherein, it has been decided to extend the benefit of encashment of 50% of the unearned leave on private affairs up to the maximum period of 90 days itself and the relevant clause in the Government Order is extracted below:
''2. The Government have decided to accept the long pending demand of various associations of employees to surrender half pay leave on private affairs at the time of retirement and also to grant full leave salary for encashment of the entire earned leave at credit of retiring employees. Accordingly, Government pass the following Orders:-
(a) At the time of retirement, 50% of the leave on private affairs standing to the credit of the employees, upto a maximum of 90 days, be entitled for full leave salary. The Head of office shall draw the leave salary on encashment of leave on private affairs, as in the case of encashment of earned leave.''
The By-law of the bank was amended incorporating the extension of the benefit of encashment of leave on private affairs and the leave amendment is extracted below:-
''(c) Unearned Leave:- Every employee of the Bank shall be entitled to unearned leave on private affairs for six months on half pay and allowances and medical certificate upto 18 months during the entire period of service on full pay and allowances and such leave may be granted not exceeding two months at a time.
The above leave shall be regulated as follows:
|
| Period of Service | Leave on Private affairs to which the employee will be entitled with half pay |
|
| 1 | 2 |
| 1. | For the first ten years | 3 months |
| 2. | Beyond ten years | 6 months |
| II. | Period of Service | Leave on Medical Certificate with full pay to which the employee will be entitled. |
| 1. | Upto 5 years | 3 months |
| 2. | More than 5 years but less than 10 years | 6 months |
| 3. | More than 10 years but less than 15 years | 9 months |
| 4. | More than 15 years but less than 20 years | 12 months |
| 5. | More than 20 years | 18 months |
"The leave under this by law shall be governed as per the rules applicable to Tamil Nadu State Government servants, subject to Regulations framed by the Board of Management from time to time and approved by the Registrar.''
3. The Bank, on 24.02.2001, has approved that the amendment would come into effect from 01.07.1996. The relevant portion is extracted hereunder:
''Add the following under Special by laws relating to service conditions of employees No.8(1) (c )
''I shall be competent to the authority sanctioning unearned leave on private affairs to permit the employees to encash the unearned leave on private affairs at their credit on the date of superannuation /voluntary/pre mature retirement /Death while in service, 50% of leave on private affairs, standing at the
AI
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