Kerala High Court
Against Judgment Dated ... vs M.B.Raveendranathan @ ... on 23 March, 2021
WA 1208/2020 1/5
IN THE HIGH COURT OF KERALA AT ERNAKULAM
Present:
THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS
&
THE HONOURABLE MR.JUSTICE K. BABU
Tuesday,the 23rd day of March 2021/2nd Chaithra, 1943
For information purpose only
WA No.1208/2020
Against Judgment dated 30-06-2020 in WP(C) No.12983/2020 of this Court.
APPELLANT/PETITIONER IN WP(C) 12983/2020
M.B.RAVEENDRANATHAN @ RAVEENDRANATH,
MANNETH HOUSE, PUTHUVASSERY, KANJIRAMATTOM P.O.,
KANJIRAMATTAM, ERNAKULAM - 682 315.
BY ADV.SRI.P.P.JACOB
RESPONDENTS/RESPONDENTS IN WP(C) 12983/2020
1. THE KEECHERI SERVICE CO-OPERATIVE BANK LTD.
NO.668, KEECHERI, MAMPUZHA, KULAYETTIKKARA P.O., PIN - 682 317,
REPRESENTED BY ITS SECRETARY.
AND 3 OTHERS
BY ADVS.SRI.GEORGE POONTHOTTAM (SENIOR) FOR R1 & R2
SMT.NISHA GEORGE, ADVOCATE FOR R1, R2 & R3
SRI.B.UNNIKRISHNA KAIMAL, GOVERNMENT PLEADER FOR R4
Prayer for interim relief in the Writ Appeal stating that in the circumstances stated in the
appeal memorandum the High Court be pleased to stay the operation of the impugned
Judgment pending disposal of the above writ appeal.
This Writ Appeal again coming on for admission on 23.3.2021 upon perusing the appeal
memorandum, and this Court's order dated 12-03-2021 , the court on the same day passed the
following:-
[p.t.o]
WA 1208/2020 2/5
ALEXANDER THOMAS & K.BABU, JJ.
-------------------------------------------------------------------------
W.A. No. 1208 of 2020
[arising out of the impugned judgment dated 30.6.2020 in
W.P.(C) No. 12983 of 2020 ]
&
W.P.(C) No. 23483 of 2016
For information purpose only
-------------------------------------------------------------------------
Dated this the 23rd day of March, 2021
ORDER
Heard Sri.P.P.Jacob, learned counsel appearing for the appellant in the above Writ
Appeal/the petitioner in above WP(C), Sri.George Poonthottam, learned senior counsel
instructed by Smt.Nisha George, learned counsel appearing for the respondent Service Co-
operative Bank and Sri.B.Unnikrishna Kaimal, learned Government Pleader appearing for the
official respondents.
2. After hearing both sides on previous occasion, we felt that the final disposal of these
matters may await some more time. Then, Sri.P.P.Jacob, learned counsel appearing for the
appellant/writ petitioner, submitted that his party has not been granted subsistence allowance
lawfully due to him by the employer for a very long period, and that directions may be issued
by this Court to ensure that the subsistence allowance admissible to him as per the rules may
be directed to be paid by the employer Co-operative Bank without any further delay. The
learned advocate appearing for the respondent employer Co-operative Bank had then sought
time to get instructions.
3. One of the prayers in the WP(C) is for the directions to the respondents concerned to
pay due arrears of subsistence allowance during the relevant period to the writ petitioner, etc.
4. Today when the matter has been taken up for consideration, it is submitted on behalf of
the respondent Service Co-operative Bank that the subsistence allowance admissible to the
petitioner for the period from 16.5.2015 to 15.11.2015 has already been sanctioned and paid.
But that, the appellant/writ petitioner has not been paid the subsistence allowance for the
period after 15.11.2015 due to the following grounds:
1. The appellant/writ petitioner has not submitted the proper application in that
regard.
WA 1208/2020 3/5
2. He has not submitted non employment certificate to claim subsistence allowance.
3. From reliable sources it is learned that he had gainful employment in the State and
outside the State of Kerala.
4. Most of the period from the time after the reporting of fake gold scam, he had
absconded from his house and due to his absence most of the communication sent
to him were returned unclaimed.
For information purpose only
5. Due to his fraudulent act of misbehaviour, the loss caused to the bank as per audit
report is Rs.1.72 Crores.
6. As per the Co-operative Department Audit Certificate the Bank is running in bad
financial status due to the fake gold scam for which M.B.Raveendranathan, former
senior clerk (Branch Manager-in-charge, Morning and Evening Branch,
Arayankavu) was solely responsible.
7. The Bank is not in a position to sanction the arrear subsistence allowance due to
the bad financial status. If granted, the same will be a permission for dishonesty.
5. Per contra, Sri.P.P.Jacob, learned counsel appearing for the appellant/writ petitioner
submits that, the abovesaid contentions may not be tenable and that the documents marked as
Ext.P-12 in WP(C).No.23483/2016 is a request made by the petitioner for grant of due
subsistence allowance, and further that the petitioner has not been gainfully employed
elsewhere either in the State of Kerala or outside, and further that the other allegations are
pertaining to disciplinary proceedings and the said allegations are wrong and have not been
proved in the manner known to law, etc.
6. Rule 198(6) of the Kerala Co-operative Societies Rules, 1969, deals with suspension of
an employee of a co-operative society and it is inter alia stipulated therein that an employee
under suspension from service shall be entitled to subsistence allowance payable under the
Kerala Payment of Subsistence Allowance Act, 1972, (State Act 27 of 1973). Section 3 of the
Kerala Payment of Subsistence Allowance Act, 1972, deals with payment of subsistence
allowance, and the same reads as follows:
"3. Payment of subsistence allowance.-(1) Whenever an employee is placed
under suspension, he shall be paid by the employer for the period during which he is
under suspension subsistence allowance of an amount equal to fifty per centum of the
wages which the employee was drawing immediately before such suspension:
provided that:
(a) Where the period of suspension exceeds ninety days, the amount of subsistence
WA 1208/2020 4/5
allowance shall, for the period exceeding ninety days, be seventy-five per cent of the
wages; and
(b) Where the period of suspension exceeds one hundred and eighty days, the amount
if subsistence allowance shall, for the period exceeding one hundred and eighty days,
be equal to be wages, which the employee was drawing immediately before such
suspension:
Provided further that an employee shall not be entitled to any subsistence allowance
if he accepts employment during the period of suspension in any establishment other
than the establishment where he had been working immediately before his
suspension.
2. An employee shall not in any event be liable to refund or forfeit any part of the
For information purpose only
subsistence allowance admissible to him under sub-section (1), but when an employee
is exonerated of the charge which caused his suspension, the subsistence allowance
paid to him for any period shall be adjusted against the full wages admissible to him
for the same period.
3. Where any employee has been placed under suspension before the commencement of
this Act and such suspension is in force at such commencement, he shall be deemed to
have been placed under suspension on the date of such commencement."
7. A reading of the abovesaid provisions of the Rules and the Act would make it clear that
ground Nos. 4 to 7 mentioned hereinabove may not be very relevant or germane for the
purpose of deciding about the entitlement or otherwise of an employee for subsistence
allowance in terms of the provisions contained in Rule 198(6) of the Kerala Co-operative
Societies Rules, 1969, and Section 3 of the Kerala Payment of Subsistence Allowance Act,
1972. Hence, from the submissions of respondent Service Co-operative employer it appears
that the appellant in the above Writ Appeal/the petitioner in above WP(C) has not been paid
subsistence allowance for the period from 15.11.2015. In order to avoid unnecessary
controversies as to whether the appellant/writ petitioner has submitted the necessary
application in that regard it is ordered that, it is for the petitioner to immediately file formal
application claiming subsistence allowance for the period from 15.11.2015, which may be
addressed to the Secretary of the respondent Service Co-operative Bank without any further
delay. The appellant/writ petitioner will also submit the requisite non employment
certificate/undertaking stating that he has not been gainfully employed elsewhere during the
period of suspension, if that is the case of the appellant/writ petitioner. The appellant/writ
petitioner may also file an affidavit attested by an advocate stating that he has not been
gainfully employed elsewhere during the period of suspension.
8. On receipt of said application along with undertaking and affidavit, it will be open to the
Secretary of the respondent Service Co-operative Bank to conduct an enquiry to ascertain as to
WA 1208/2020 5/5
whether the appellant/writ petitioner was not gainfully employed elsewhere during the period
of suspension and if so, its details and the remuneration received by the petitioner. Enquiry in
this regard should be duly completed within 2 to 3 weeks, and a copy of enquiry report should
also be given to the appellant/writ petitioner in advance. Thereafter, the Secretary of the
respondent Service Co-operative Bank will afford reasonable opportunity of being heard to the
appellant/writ petitioner through his authorised representative or counsel if any, and then
For information purpose only
should pass an order as regards the entitlement of the appellant/writ petitioner for subsistence
allowance strictly in terms of the provisions contained in Rule 198(6) of the Kerala Co-
operative Societies Rules, 1969, and Section 3 of the Kerala Payment of Subsistence
Allowance Act, 1972, without much delay, preferably within a period of 6 weeks from the
date of receipt of a copy of the application claiming subsistence allowance along with the
requisite details in that regard. It is made clear that, ground Nos. 4 to 7 mentioned hereinabove
will not be relevant or germane for denying subsistence allowance claimed by the
appellant/writ petitioner. Orders so passed by the Secretary of the respondent Service Co-
operative Bank shall be furnished to the appellant/writ petitioner immediately thereafter, and
in case it is found that the appellant/writ petitioner is entitled for subsistence allowance for the
period in question, then the amounts due to him should also be disbursed and paid without any
further delay.
9. The respondent Service Co-operative Bank may report compliance of the directions in
this order well before the next posting date by filing a statement/affidavit of the Secretary of
the respondent Service Co-operative Bank.
List these cases on 31.5.2021.
Hand over to both sides.
Sd/-.
ALEXANDER THOMAS, JUDGE
Sd/-.
K.BABU, JUDGE
MMG
/true copy/
Sd/-
ASSISTANT REGISTRAR
