The Payment of Gratuity Act overrides other statutory provisions regarding deductions from gratuity, protecting employee entitlements unless an explicit agreement exists.

ORDER

The management Co-Operative Printing Press limited has preferred this writ petition as against the orders of the 2^nd respondent in PG No.305 of 2016 dated 20.12.2017 on the application filed by the 3^rd respondent under the Payment of Gratuity Act . As against the order passed by the 2^nd respondent the petitioner has filed an appeal under Section 7 (7) of the , however with a delay of 205 days and therefore, the appellate authority has not entertained the appeal and dismissed the same on the ground of delay. Therefore, this writ petition is filed as against the orders of the 2^nd respondent dated 20.12.2017 passed in PG.No.305 of 2016. Pending this writ petition the 3^rd respondent / employee died and therefore, his legal heirs were impleaded as respondents 5 to 9.

2.The 2^nd respondent vide order dated 20.12.2017 directed the petitioner management to pay a sum of Rs.2,34,808/- together with 10% interest. The 3^rd respondent has filed an application before the 2^nd respondent seeking gratuity that he has retired from service on 31.03.2013, but he has not been paid with the gratuity amount by the petitioner management. The petitioner management has contended before the 2^nd respondent that the 3^rd respondent while was in service had availed loan from the 4^th respondent thrift society on the undertaking of the petitioner management to deduct and remit the dues to the society. Therefore, according to the petitioner management the 3^rd respondent owes a sum of Rs.2,76,233/-as on 31.05.2014 and therefore, this gratuity amount due to the 2^nd respondent was deducted as per the provisions under Section 48 of the Tamil Nadu Co-Operative Societies Act . Considering the rival submission the 2^nd respondent has passed an order directing the management to pay the gratuity amount together with interest by order dated 20.12.2017.

3.The learned counsel for the petitioner submits that the 3^rd respondent availed loan from the 4^th respondent thrift society on the assurance given by the petitioner management that dues to the society would be recovered from the salary and other service benefits of the employee and it would be remitted to the 4^th respondent society. The learned counsel has also relied on the provision under Section 48 of the Tamil Nadu Co-Operative Societies Act and submits that this provision enables the management to deduct salary, wage or gratuity from the member of the registered society.

“48. Deduction from salary, wages or gratuity.__

(1) A member of a registered society may execute an agreement in favour of that society providing that-

(a) his employer or the officer disbursing his salary or wages shall be competent, on a requisition in writing from the society to deduct every month from the salary or wages payable to him such amount as may be specified in the requisition towards the amount; and

(b) if he ceases to be an employee, his employer shall be competent on a requisition in writing from the society to deduct from the gratuity payable to such employee such amount as may be specified in the requisition towards the entire balance, due by him to the society in respect of any debt or other demand owing by the member to the society.

(2) (a) Where any such agreement as is referred to in sub-section (1) has been executed by a member of a registered society, the employer or the officer disbursing the salary or wages of such member shall, on receipt of a requisition from the society, make the deduc