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HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mrs Justice S.SRIMATHY
R.A.412,ARUPPUKOTTAI PANCHAYAT – Appellant
Versus
THE DISTRICT COLLECTOR, – Respondent
WP(MD)/4034/2015
COOPERATIVE SOCIETIES - SECTION 48 - STATUTORY PROVISION - BINDING ON ALL CO-OPERATIVE SOCIETIES - DUTY OF PAY DISBURSING OFFICER TO DEDUCT AND REMIT LOAN AMOUNT - ABSENCE OF EMPLOYEE DOES NOT RELIEVE EMPLOYER FROM LIABILITY - EMPLOYER LIABLE TO REMIT WHATEVER AMOUNT IS UNDER THE ACCOUNT OF THE EMPLOYEE INCLUDING GRATUITY OR SALARY TO THE SOCIETY.
Fact of the Case:
The petitioner, a cooperative society, filed a writ petition seeking a direction to the respondents, the District Collector, Block Development Officer, and Commissioner of Panchayat Unions, to withhold the gratuity and salary of the fourth respondent, a member of the society, to satisfy a loan amount owed by him to the society. The fourth respondent had obtained a loan from the society while working as a Rural Welfare Officer under the second respondent. As per the agreement, the second respondent, being the Pay Disbursing Officer, was to deduct the monthly installment from the fourth respondent's salary and pay it to the society. However, the fourth respondent was transferred to another Panchayat Union and stopped paying the loan installments. The society initiated arbitration proceedings and obtained a decree against the fourth respondent. Despite repeated demands, the respondents failed to deduct the amount from the fourth respondent's salary or remit it to the society.
Finding of the Court:
The court held that Section 48 of the Tamil Nadu Co-operative Societies Act is a statutory provision binding on all Co-operative Societies. The second respondent had given an undertaking to deduct and remit the amount. The absence of the fourth respondent from duty did not relieve the respondents from their liability to deduct the amount from his salary or remit it to the society. The court directed the respondents to remit whatever amount was under the account of the fourth respondent, including gratuity or salary, to the society within four weeks.
Issues: Whether the respondents were liable to deduct the loan amount from the fourth respondent's salary and remit it to the society despite his absence from duty.
Ratio Decidendi: The court relied on Section 48 of the Tamil Nadu Co-operative Societies Act, which imposes a statutory duty on the Pay Disbursing Officer to deduct and remit loan amounts from the salary of employees who have obtained loans from cooperative societies. The court held that the absence of the fourth respondent from duty did not relieve the respondents from their liability under this provision.
Final Decision: The court directed the respondents to remit whatever amount was under the account of the fourth respondent, including gratuity or salary, to the society within four weeks.
W.P.(MD)No.4034 of 2015:
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 12.01.2022
CORAM
THE HONOURABLE MRS.JUSTICE S.SRIMATHY
W.P.(MD)Nos.4034 and 4035 of 2015
and
M.P.(MD)Nos.1 and 1 of 2015
W.P.(MD)No.4034 of 2015:
R.A.412, Aruppukottai Panchayat Union
School and Aided School Teachers
Cooperative Thirft and Credit Society
Limited,
represented by its Secretary,
Aruppukottai,
Virudhunagar District.
... Petitioner
vs.
1.The District Collector,
Virudhunagar District.
2.The Block Development Officer,
Aruppukottai Panchayat Union,
Virudhunagar District.
3.The Commissioner,
Narikudi Panchayat Union,
Virudhunagar District.
4.K.Dhanasekaran
... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India for issuance of Writ of Mandamus, to direct the second and
third respondents to withhold the gratuity amount payable to the
fourth respondent to the extent to satisfy the loan amount and remit
the same to the petitioner society, namely R.A.412, Aruppukottai
Panchayat Union School and Aided School Teachers Cooperative Thirft
and Credit Society Limited, in complying with Section 48 of Tamil
Nadu Cooperative Societies Act.
W.P.(MD)No.4035 of 2015:
R.A.412, Aruppukottai Panchayat Union
School and Aided School Teachers
Cooperative Thirft and Credit Society
Limited,
represented by its Secretary,
Aruppukottai,
Virudhunagar District.
... Petitioner
vs.
1/5
https://hcservices.ecourts.gov.in/hcservices/
W.P.(MD)No.4034 of 2015:
1.The District Collector,
Virudhunagar District.
2.The Block Development Officer,
Aruppukottai Panchayat Union,
Virudhunagar District.
3.The Commissioner,
Aruppukottai Panchayat Union,
Virudhunagar District.
4.A.Karuppasamy
... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India for issuance of Writ of Mandamus, to direct the second and
third respondents to withhold the salary payable to the fourth
respondent to the extent to satisfy the loan amount and remit the
same to the petitioner society, namely R.A.412, Aruppukottai
Panchayat Union School and Aided School Teachers Cooperative Thirft
and Credit Society Limited, in complying with Section 48 of Tamil
Nadu Cooperative Societies Act.
In both cases:
For Petitioner
: Mr.D.Shanmugaraja Sethupathi, Advocate
For R1 to R3
: Mr.D.Sachi Kumar
Additional Government Pleader
For R4
: No appearance
COMMON ORDER
The Writ Petition in W.P.(MD)No.4034 of 2015, is filed for
issuance of a Writ of Mandamus, to direct the second and third
respondents to withhold the gratuity amount payable to the fourth
respondent to the extent to satisfy the loan amount and remit the
same to the petitioner society, namely R.A.412, Aruppukottai
Panchayat Union School and Aided School Teachers Cooperative Thirft
and Credit Society Limited, in complying with Section 48 of Tamil
Nadu Cooperative Societies Act.
2.The Writ Petition in W.P.(MD)No.4035 of 2015, is filed for
issuance of a Writ of Mandamus, to direct the second and third
respondents to withhold the salary payable to the fourth respondent
to the extent to satisfy the loan amount and remit the same to the
petitioner society, namely R.A.412, Aruppukottai Panchayat Union
School and Aided School Teachers Cooperative Thirft and Credit
Society Limited, in complying with Section 48 of Tamil Nadu
Cooperative Societies Act.
2/5
https://hcservices.ecourts.gov.in/hcservices/
W.P.(MD)No.4034 of 2015:
3.The petitioner is the Secretary of Aruppukottai Panchayat
Union School and Aided School Teachers Cooperative Thrift and Credit
Society Limited. The fourth respondent is the member of the
Society. While he was working as a Rural Welfare Officer under the
second respondent, the fourth respondent obtained loan for
Rs.78,660/-, from the petitioner Society on 03.06.2002. The
petitioner entered into a statutory contract under
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