Madras High Court
B.Ilamaran vs The Joint Registrar Of ... on 25 June, 2021
W.P.(MD)No.8846 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 25.06.2021
CORAM:
THE HONOURABLE MS.JUSTICE V.M.VELUMANI
W.P.(MD)No.8846 of 2021
and
W.M.P(MD)No.6651 of 2021
B.Ilamaran ... Petitioner
Vs.
1.The Joint Registrar of Co-operative Societies,
Office of the Joint Registrar of
Co-operative Societies,
Ramnad.
2.The Deputy Registrar of Co-operative Societies,
Paramakudi Region,
Ramnad Division,
Ramnad.
3.The Managing Director,
Q 1102 Kamuthi Co-operative Urban Bank Ltd.,
Kamuthi-623 603. ... Respondents
PRAYER: Writ Petition under Article 226 of the Constitution of
India, to issue a Writ of Mandamus, directing the respondents to
pay the petitioner's Earned Leave Salary, Gratuity and Provident
Fund on the basis of the petitioner's representations, dated
06.06.2020 and 27.08.2020.
1/7
https://www.mhc.tn.gov.in/judis/
W.P.(MD)No.8846 of 2021
For Petitioner : Mr.C.Jeganathan
For Respondents : Mr.P.Subbaraj
Government Advocate
ORDER
The petitioner has filed the present writ petition for a
direction to the respondents to pay the petitioner's Earned Leave
Salary, Gratuity and Provident Fund, on the basis of the petitioner's
representations, dated 06.06.2020 and 27.08.2020.
2. According to the petitioner, while he was working as
Assistant Manager in the third respondent Bank, an enquiry under
Section 81 of the Tamil Nadu Co-operative Societies Act, was
ordered and the Enquiry Officer reported that the petitioner and
other persons have caused loss to the third respondent Bank to the
tune of Rs.3,00,000/- (Rupees Three Lakhs only). A surcharge
proceedings under Section 87 of the Tamil Nadu Co-operative
Societies Act was initiated against the petitioner and others.
3. The learned counsel appearing for the petitioner submitted
that the petitioner and others paid the entire amount with interest
and penal interest during the year 2016 and hence, there is no loss
https://www.mhc.tn.gov.in/judis/
W.P.(MD)No.8846 of 2021
to the Bank. Based on the same, the second respondent dropped
the surcharge proceedings by the proceedings, dated 05.10.2016.
Based on the Enquiry Report, a criminal complaint was lodged
against the petitioner and three others under Sections 406, 402
and 109 of IPC and the same is pending in C.C.No.267 of 2017, on
the file of the Judicial Magistrate Court No.I, Ramanathapuram.
While so, the petitioner was suspended on 28.04.2020 due to
pendency of the criminal case. The petitioner attained the age of
superannuation on 30.04.2020. He was not allowed to retire from
service. The petitioner sent various representations, dated
12.05.2020, 06.06.2020, 23.07.2020 and 27.08.2020 respectively,
to release his Gratuity, Earned Leave salary and Provident Fund
amount. The respondents paid only the petitioner's contribution to
the Provident Fund amount and failed to pay the other amounts.
When there is no loss to the third respondent Bank, the petitioner
is entitled to get Gratuity. The amounts lying to the credit of
Provident Fund account, Leave salary and Gratuity cannot be
withheld by the respondents even if he is suspended and not
permitted to retire from service. The learned counsel appearing
for the petitioner relied on the order of this Court, dated
https://www.mhc.tn.gov.in/judis/
W.P.(MD)No.8846 of 2021
13.12.2018 made in W.P(MD)No.22823 of 2018 [M.Raveendran vs.
The Joint Registrar of Co-operative Societies, Sivagangai and
another] and prayed for allowing the writ petition.
4. Heard the learned counsel appearing for the petitioner and
the learned Government Advocate appearing for the respondents
and perused the entire materials available on record.
5. In the present writ petition, the petitioner is seeking a
direction to disburse the Earned Leave Salary, Gratuity and
Provident Fund by considering his representation. The payment of
encashment of leave salary, Provident Fund, Gratuity, cannot be
withheld by the authority, even if the petitioner is suspended and
not permitted to retire from service. This issue was considered by
the Division Bench of the Principal Bench of this Court, dated
26.02.2016, made in W.A.No.207 of 2016 (TANGEDCO, The
Chairman-cum-Managing Director and others Vs.
P.K.Panchaksharam). The Division Bench of this Court upheld
the order of the learned Single Judge that encashment of Earned
Leave and Provident Fund are the properties of the employee and
https://www.mhc.tn.gov.in/judis/
W.P.(MD)No.8846 of 2021
even if he is dismissed from service, he is entitled to recover the
said amount.
6. As far as the payment of Gratuity is concerned, if the
petitioner caused any financial loss to the respondents, the
respondents are entitled to deduct the said amount and to pay the
balance amount to the petitioner. In the present case, it was held
that the petitioner and others caused loss to the third respondent
Bank to the tune of Rs.3,00,000/- (Rupees Three Lakhs Only) and
the petitioner and others paid the said amount together with
interest and penal interest to the third respondent. In view of the
said payment, there is no loss to the third respondent Bank. The
ratio laid down in the judgment, dated 26.02.2016 made in W.ANo.
207 of 2016 is squarely applicable to the facts of the present case.
Therefore, the respondents are directed to calculate the amounts
payable to the petitioner towards Earned Leave Salary, Provident
Fund and Gratuity and paid the same within a period of four weeks
from the date of receipt of a copy of this order.
https://www.mhc.tn.gov.in/judis/
W.P.(MD)No.8846 of 2021
7. With the above direction, the writ petition is allowed. No
costs. Consequently, connected miscellaneous petition is closed.
Index:Yes/No
Internet:Yes/No 25.06.2021
am
Note :
In view of the present lock down owing to
COVID-19 pandemic, a web copy of the
order may be utilized for official purposes,
but, ensuring that the copy of the order that
is presented is the correct copy, shall be the
responsibility of the advocate / litigant
concerned.
To
1.The Joint Registrar of Co-operative Societies,
Office of the Joint Registrar of
Co-operative Societies,
Ramnad.
2.The Deputy Registrar of Co-operative Societies,
Paramakudi Region,
Ramnad Division,
Ramnad.
3.The Managing Director,
Q 1102 Kamuthi Co-operative Urban Bank Ltd.,
Kamuthi-623 603.
V.M.VELUMANI, J.
https://www.mhc.tn.gov.in/judis/
W.P.(MD)No.8846 of 2021
am
W.P.(MD)No.8846 of 2021
25.06.2021
https://www.mhc.tn.gov.in/judis/
