Co-operative society by-laws cannot restrict statutory rights to subsistence allowance for suspended employees under the Payment of Subsistence Allowance Act regardless of retirement status.

ORDER :

D.BHARATHA CHAKRAVARTHY, J.

A.The Writ Petitions:

The Writ Petition No.4617 of 2019 is filed challenging the order of the original authority, viz., the Assistant Commissioner of Labour – the Competent Authority under the Payment of Subsistence Allowance Act, 1981 and the Deputy Commissioner of Labour – II - Appellate Authority under Payment of Subsistence Allowance Act, 1981 , Chennai made in PSA No.20/2010 and PSA (Appeal) No.1/2016 dated 19.10.2015 and 10.05.2017 respectively.

The Writ Petition No.30642 of 2024 is filed challenging the order of the order of the 1^st respondent, culminating in impugned order dated 23.01.2023 made in PSA (Appeal) No.1 of 2022 and quash the same.

B.Case of the Petitioner:

2. The brief facts leading to the filing of the Writ Petitions are that the petitioner viz., The Kancheepuram Central Co-operative Bank Ltd., is a Co- operative Society registered under the Tamil Nadu Co-operative Societies Act, 1983. The 3^rd respondent in W.P.No.4617 of 2019 - G.Purushothaman (Workman) was its employee. Since he died pending the Writ Petition, the respondents 4 to 6 are now substituted and represented as his legal heirs.

2.1. It is the case of the petitioner that the said workman entered the services of the petitioner – Society as a Manager. While so, three charge memoranda were issued against the workman. On 29.07.2004, a charge was levelled against him that after advancing a loan, he has not taken steps to promptly recover the outstanding loan amount, even after default. On 16.08.2004, two charges were levelled that (i) he failed to submit the monthly accounts of the branch, in which he was serving and (ii) failed to reconcile the six accounts mentioned in the said charge No.2 and submit a report.

2.2. On 20.09.2004, three charges were levelled against him stating that

(i) with reference to the loan of one – C.Govindarajan, instead of getting collateral security worth, twice the loan amount of Rs.4,75,000/-, he had accepted collateral security of a property worth only of Rs.6,00,000/-, leading to the loan being outstanding;

(ii) The second charge is that with reference to the said property, after executing the mortgage deed, he failed to obtain the encumbrance certificate, ensuring whether the mortgage in the name of the bank is reflected in the encumbrance certificate or not; and

(iii) The third charge is that he failed to recover the said loan amount every month and resulting in the loss of business to the petitioner – Society.

2.3. When enquiry into these charge memoranda were pending, the workman was to superannuate from service on 01.12.2005, and therefore, he was placed under suspension on 30.11.2005, so as to continue the disciplinary enquiry. On 31.12.2007, the Deputy Registrar of Co-operative Societies submitted all three enquiry reports. It is seen that certain charges were held to be proved and certain charges were held to be not proved. Thereafter, in the year 2010, a second show cause notice was issued to the workman, calling for his further explanation.

2.4. It is at that juncture, 01.07.2010, the workman filed an application for payment of subsistence allowance, before the original authority – the 2^nd respondent in W.P.No.4617 of 2019, under Section 3 of the Tamil Nadu Payment of Subsistence Allowance Act, 1981 (hereinafter in short ‘the Act’), claiming subsistence allowance to the tune of Rs.13,60,369/- from the date of suspension till 30.06.2010. Even after the filing of the application, the disciplinary enquiry was never concluded and was kept pending by the petitioner – Society. Neither an order of p