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S. M. SUBRAMANIAM, C. KUMARAPPAN
Secretary, Government Regional Workshop Employees Co-Operative Thrift and Credit Society Ltd. – Appellant
Versus
G. Pandurangan – Respondent
JUDGMENT :
[Judgment of the Court was delivered by S.M.SUBRAMANIAM, J.]
Prayer: Writ Appeal filed under Clause 15 of Letters Patent praying to set aside the order dated 04.03.2022 passed in WP.No.16488/2013 in so far as appellant is concern.
The writ appeal on hand is instituted by the Secretary, Government Regional Workshop Employee Co-operative Thrift and Credit Society Limited challenging the writ order dated 04.03.2022 in WP.No.16488 of 2013. The appellant is the 3rd respondent in the writ petition. The appellant is a Cooperative Society registered under the provisions of The Tamil Nadu Cooperative Societies Act 1983. The employees working in the Government Regional Workshop are eligible to become the Members of the Cooperative Society and the Society itself was formed by the employees of the Government Regional Workshop and registered under the Tamil Nadu Cooperative Societies Act.
2. There is no Government funding for the Cooperative Society. The funds contributed by the members are utilized for the purpose of granting the loan to other eligible members.
3. Admittedly, the first respondent stood as a guarantor to the borrower, who is also a member of the appellant-Cooperative Soci
Section 48 of the Tamil Nadu Cooperative Societies Act allows recovery of loan dues from a guarantor's gratuity, overriding other laws.
Liability in surcharge proceedings must be determined based on individual employee involvement during the relevant period, not collectively.
Amended regulations on deductions from retirement gratuity do not apply retroactively to loans granted before their enactment, preserving previously established employee consents.
The lack of a tripartite agreement precludes the Central Government from deducting dues from DCRG payable to absorbed employees.
The court reinforced that cooperative banks must adhere to statutory schemes to refund fixed depositors while establishing a framework for recovering debts and ensuring compliance with financial regu....
Surcharge proceedings cannot be continued after the retirement of an employee, and the gratuity amount is protected from attachment under Section 13 of the Payment of Gratuity Act, 1972.
The financial viability of a Co-operative Society and the applicability of the Minimum Wages Act to such societies were central to the judgment.
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