IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. DHANDAPANI, J.
Korattur Milk Consumers Co-operative Society, Rep by its President – Petitioner
Versus
The Joint Commissioner of Labour (Minimum Wages), Chennai-6 – Respondent
W.P. Nos.19119 and 19205 of 2024 and W.M.P. Nos.21064, 20966, 41436 and 42076 of 2024
Decided On : 06-04-2026
| Table of Content |
|---|
| 1. factual background of employee misappropriation and termination. (Para 1 , 2) |
| 2. arguments concerning jurisdiction and forum selection. (Para 3 , 4 , 5 , 6 , 7 , 8) |
| 3. legal reasoning on establishment jurisdiction and back wages. (Para 9 , 10 , 11) |
| 4. final orders modifying reinstatement and back wages. (Para 12 , 13) |
COMMON ORDER :
M. DHANDAPANI, J.
These writ petitions are filed challenging the respective orders passed by the 1st respondent, in T.N.S.E. II/01/2016 and T.N.S.E. II/03/2016, whereby the 1st respondent directed reinstatement of the respective private respondents with full back wages and attendant benefits.
2. Brief facts :-
a) The petitioner is the Administrator of MD-520, Korattur Milk Consumers Co-operative Society, Chennai, a society registered under the provisions of the Tamil Nadu Co-operative Societies Act and Rules. Upon expiry of the tenure of the elected Board, the petitioner was appointed as Administrator to manage the affairs of the Society.
b) The 2nd respondent in W.P. No.19119 of 2024, Tmt. M. Anandha, was employed as an Assistant in the petitioner Society. During the course of her employment, serious financial irregularities came to light. It was found that she had failed to deposit the milk card sale collections amounting to Rs.25,301/- into the bank and had misappropriated the said amount. Further, she had unauthorisedly paid a sum of Rs.63,927/- to one Thiru S. Sekar, Depot Keeper, without any valid reason or supporting vouchers, thereby causing financial loss to the Society. Apart from the financial misconduct, the 2nd respondent was also irregular in attendance, frequently absenting herself from duty without prior intimation and without submitting leave applications.
c) In view of the above misconduct, the 2nd respondent in W.P. No.19119 of 2024 was placed under temporary suspension and a charge memo was issued to her. A domestic enquiry was conducted by affording her sufficient opportunity to defend herself. Upon completion of the enquiry, the Disciplinary Authority found all the charges proved and, accordingly, imposed the punishment of termination from service.
d) Likewise, the 2nd respondent in W.P. No.19205 of 2024, Thiru S. Sekar, was employed in the petitioner Society and had, at one point of time, worked as an Assistant in the head office. During the course of his employment, serious financial irregularities and misconduct came to light. It was found that he had misappropriated a sum of Rs.31,316/- received from wholesale dealers towards the Society. Further, he had received an amount of Rs.70,297/- from Tmt. M.Anandha, representing public milk card sales collections, and failed to remit the same to the Society, thereby embezzling the said amount.
e) Apart from the financial misconduct, the 2nd respondent was irregular in attending duties, frequently absented himself without prior intimation, and failed to submit proper leave applications. In view of these grave irregularities, he was placed under temporary suspension. A charge memo was issued by the Board of the Society, and a domestic enquiry was instituted after affording him sufficient opportunity to defend himself.
f) The Enquiry Officer, upon a detailed examination of the materials and evidence placed on record, submitted a report holding that the charges levelled against the 2nd respondent were proved. Based on the findings of the domestic enquiry, a show cause notice was issued, followed by a notice proposing termination. Thereafter, the Disciplinary Authority, being satisfied that the charges were established, passed an order terminating the services of the 2nd respondent / private respondents.
g) Aggrieved by the order of termination, the 2nd respondent in both W.P.s preferred an appeal before the 1st respondent, under Section 41(2) of the Tamil Nadu Shops and Establishments Act, 1947, in T.N.S.E. II/03/2016 and T.N.S.E. II/01/2016, contending that they have not been afforded sufficient opportunity during the enquiry pr
The petitioner must exhaust further remedies under the Tamil Nadu Co-operative Societies Act, including facing the pending criminal case and approaching the Reviewing Authority under Section 154 for ....
The financial viability of a Co-operative Society and the applicability of the Minimum Wages Act to such societies were central to the judgment.
The court confirmed the validity of termination due to substantiated charges of misconduct and financial irregularity, emphasizing integrity in public service.
Special Co-operative Societies Act and bye-laws exclude Shops Act jurisdiction for employee disciplinary appeals in co-operative banks.
Special Co-operative Societies Act prevails over general Shops Act; appeal under Shops Act Section 41 not maintainable for co-operative bank employees.
Special Co-operative Societies Act prevails over general Shops Act; appeal under Shops Act not maintainable for co-operative bank employees.
The Tamil Nadu Shops and Establishments Act is not applicable to cooperative bank employees governed by the Tamil Nadu Cooperative Societies Act, establishing the primacy of special laws over general....
The standard of proof required under the Co-operative Societies Act is distinct and different from that required under Criminal Law, and preponderance of probabilities suffices for punishment under t....
The dismissal from employment based on proven misappropriation and habitual misconduct is justified under the Tamil Nadu Co-operative Societies Act.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.