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.

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 Article 300A of the Constitution of India . According to Article 300A of the , unless there is a statutory Rule, the property rights cannot be deprived. In this case, though the learned counsel would submit that the continuance of surcharge proceedings is a ground to withhold the terminal benefits, there is no provision under the Co-operative Societies Act to withhold the terminal benefits on the above grounds. Though the learned Additional Government Pleader would refer about the order dated 10.03.2025, the same was challenged before the Revisional Authority. Against the Revisional order, the present writ petition has been filed, wherein this Court hold that in the absence of any provision, the terminal benefit cannot be withheld on the ground of pendency of surcharge proceedings. In such view of the matter, the withholding of the terminal benefits by the respondents is in contravention to the