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2026:MHC:502

W.A.No.1407 of 2023

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04.02.2026

CORAM:

THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM

AND

THE HONOURABLE MR.JUSTICE C.KUMARAPPAN

W.A.No.1407 of 2023

and

C.M.P.Nos.13743 & 13744 of 2023

K.Jayasankar, Secretary,

Thiruvalluvar Transport Corporation

Employees Co-operative Credit Society,

No.10, 23^rd Street, Jai Nagar,

Arumbakkam, Chennai – 600 106. ...Appellant

Vs.

1.M.Saleem

2.M/s.State Express Transport Corporation Ltd.,

Rep. by its Managing Director,

No.2, Pallavan Salai, Chennai – 600 002. ...Respondents

PRAYER: The Writ Appeal filed under Clause 15 of the Letters Patent praying

to set aside the order dated 22.03.2022 passed in W.P.No.4916 of 2018and to

allow the Writ Appeal.

For Appellant : Mr.C.S.K.Sathish

For Respondents : No appearance.

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W.A.No.1407 of 2023

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J U D G M E N T

(Judgment of the Court was delivered by S.M.SUBRAMANIAM, J.)

Under assail is the Writ order dated 22.03.2022 passed in W.P.No.4916 of

2018.

2. The Secretary of the Thiruvalluvar Transport Corporation Employees Co-

operative Credit Society instituted the present intra-Court appeal under Clause 15 of

the Letters Patent mainly on the ground that an agreement came to be entered into

between the employer and the Society in respect of recovery of loan dues from the

employee and the said undertaking since not complied, action was initiated. The

borrower/ member of the Co-operative Society instituted Writ proceedings seeking

the relief to forbear the Co-operative Society and there Subordinates from recovering

not more than Rs.8,105/- towards monthly instalment from the loan obtained by the

borrower from the Co-operative Society. The writ Court since allowed the Writ

Petition, the present Writ Appeal came to be instituted by the Society.

3. The writ Court has not considered the direct provision contemplated under

Section 60 of the Multi State Co-operative Societies Act, 2002 [hereinafter referred to

as “the Act”]. Once the employee, who is a member of the Co-operative Society

entered into an agreement and thereby agreeing to recover the loan dues from the

salary and such amount of monthly instalment must be recovered by the employer

and to be deposited to the Co-operative Society. Section 60 of the Act is extracted

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W.A.No.1407 of 2023

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hereunder:--

60. Deduction from salary to meet multi-state cooperative

society’s claim in certain cases

(1) Notwithstanding anything contained in any law for the

time being in force, a member of a multi-state cooperative

society may execute an agreement in favour of that society

providing that his employer disbursing the salary or wages shall

be competent to deduct every month from the salary or wages

payable to him, such amount as may be specified in the

agreement and to pay the amount so deducted to the society in

satisfaction of any debt or other demand the member owes to

the society.

(2) On the execution of such agreement, the employer

disbursing the salary or wages of the members shall, if so

required by the multi-state cooperative society, by a requisition

in writing and so long as the society does not intimate that the

whole of such debt or other demand has been paid, make the

deduction in accordance with the agreement and pay the

amount so deducted to the society within a period of fourteen

days of the date on which deduction has been made, as if it

were a part of the salary or wages payable on the day as

required under the Payment of Wages Act, 1936 (4 of 1936),

and such payment shall be valid discharge of the employer for

his liability to pay the amount deducted.

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(3) If after the receipt of a requisition made under sub-

Section (2), the employer di