2025 Supreme(Online)(Mad) 66760
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.Kumarappan, J
B.Sridharan – Appellant
Versus
The Chairman Common Cadre Authority / Joint Registrar Of Cooperative Societies, Kallakurichi Region – Respondent
WP No. 22340 of 2025
For the Appellants/Petitioners: M/s. C.Prakasam
For the Respondents: Dr.S.Suriya A.G.P.
The withholding of retirement benefits due to pending surcharge proceedings is impermissible under the Tamil Nadu Co-operative Societies Act and goes against established legal principles.
Headnote:(A) Constitution of India - Article 226 - Terminal benefits - Withholding of terminal benefits on grounds of pendency of surcharge proceedings is not permissible as per Full Bench decision - Termination or withholding benefits post-retirement lacks statutory authority under Tamil Nadu Co-operative Societies Act. (Paras 6, 7)
(B) Writ - Scope and ambit - A writ petition can be filed where there is a violation of established legal principles regarding property rights and entitlement to benefits. (Paras 6, 8)
Facts of the case:
The petitioner challenged the withholding of terminal benefits due to pending surcharge proceedings, referencing a Full Bench ruling that prohibits this practice.
Findings of Court:
The withholding of terminal benefits violates both statutory rules and the Full Bench's decision, compelling the court to quash the impugned order.
Issues: The main issues were the authority to withhold terminal benefits during pending surcharge proceedings and the rights under the Constitution.
Ratio Decidendi: The court found that without statutory provision, withholding benefits post-retirement is impermissible, emphasizing property rights under Article 300A.
Result: The writ petition stands allowed.
| Table of Content |
|---|
| 1. withholding terminal benefits is illegal without statutory grounds. (Para 1 , 6) |
| 2. the grounds for withholding benefits were disputed. (Para 2 , 4) |
| 3. judicial review confirms entitlement to retirement benefits. (Para 3 , 8) |
ORDER
The instant writ petition has been filed challenging the impugned order dated 11.08.2023, wherein the petitioner's terminal benefits is ordered to be withheld on the ground of pendency of surcharge proceedings.
2. Heard Mr.C.Prakasam, learned counsel for the petitioner and Dr.S.Suriya, learned Additional Government Pleader appearing for the respondents.
3. It is the submission of the learned counsel for the petitioner that the Hon'ble Full Bench of this Court inS.Andiyannan v. Joint Registrar, Co- operative Societies reported in2015 (4) CTC 1 has held that the pendency of surcharge proceedings cannot be a ground to withhold the terminal benefits. The learned counsel would further submit that the impugned order does not reflect the correct factual position. Hence, prayed to interfere with the same.
4. Per contra, the learned Additional Government Pleader would vehemently contend that the very same impugned order has already been challenged by way of Revision and that the Revisional Authority has passed an order on 10.03.2025. Therefore, the order impugned has already been subjected before the Revisional Authority and suffered an order. Therefore, the present writ petition is not maintainable. Apart from that, it is the submission of the learned Additional Government Pleader that in view of the pendency of surcharge proceedings, the question of settling the terminal benefits does not arise. Hence, prayed to dismiss the present writ petition.
5. I have given my anxious consideration to either side submissions.
6. The only ground urged by the respondents to withhold the terminal benefits is, the surcharge proceedings. The Hon'ble Full Bench of this Court has categorically held that the mere pendency of surcharge proceedings cannot be a ground to withhold the terminal benefits. While referring to the issue in respect of the continuance of surcharge proceedings and disciplinary proceedings after the retirement of Co-operative Society employee, the Hon'ble Full Bench has held as follows:-
“30. Answer to the first question referred to this Bench :
Under the Tamil Nadu Co-operative Societies Act , 1983, once an employee retired from service, there could be no authority vested with the employer for continuing any disciplinary proceeding, in the absence of relevant service Rules permitting the employer to continue the disciplinary proceeding. In other words, if there is no service Rules or bye-law of the society empowering the employer to continue the departmental proceeding, the employer, would have no authority to continue the departmental proceeding after the retirement of the employee.”
7. The present writ petition is filed to claim terminal benefits and that the Hon'ble Supreme Court has categorically held that the terminal benefits are nothing but the property rights, as has to be dealt by following