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A.Nagaraj vs M.Ekambaram
2023 Latest Caselaw 5197 Mad

Citation : 2023 Latest Caselaw 5197 Mad
Judgement Date : 1 June, 2023

Madras High Court
A.Nagaraj vs M.Ekambaram on 1 June, 2023
                                                                                  Cont.P.No.213 of 2008

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                  DATED : 01.06.2023

                                                       CORAM :
                        THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD

                                     Contempt Petition No.213 of 2008
                                               in W.P.No.10032 of 2007
                    A.Nagaraj                                                          ... Petitioner
                                                           Vs.

                    1.M.Ekambaram,
                      Joint Registrar of Common Cadre Authority,
                      Dharmapuri Region,
                      Dharmapuri.

                    2.M.Kathavarayan,
                      President,
                      Veeramalai Primary Agricultural Co.op. Bank Ltd.,
                      Rep. by its Special Officer,
                      Veeramalai, Krishnagiri District.
                                                                                  … Respondents
                              This Contempt Petition filed under Section 11 of Contempt Act, 1971,
                    praying to punish the respondents for willful disobedience and violation of
                    the order dated 11.04.2007 passed in W.P.No.10032 of 2007 on the file of
                    this Court.

                              For Petitioner   : Mr.G.Ethirajulu

                              For Respondents : Mr.S.Silambanan,
                                          Additional Advocate General,
                                          Assisted by,


                    Page No.1 of 12

https://www.mhc.tn.gov.in/judis
                                                                                               Cont.P.No.213 of 2008

                                              Mr.A.M.Ayyathurai,
                                              Government Advocate
                                                ORDER

This Contempt Petition has been filed under Section 11 of Contempt

Act, 1971, praying to punish the respondents for willful disobedience and

violation of the order passed by this Court in W.P.No.10032 of 2007 dated

11.04.2007. For better appreciation, the relevant paragraph of the said order

is extracted hereunder:

“Therefore, while dismissing this Writ Petition, a direction is issued to the respondents to pay subsistence allowance to the petitioner in accordance with G.O.Ms.No.55, dated 24.03.200, within a period of two weeks from the date of receipt of a copy of this order and continue to pay the same until the suspension is revoked.

No costs. Consequently, the connected M.P.Nos.1 and 2 of 2007 are also dismissed.”

2. When the matter was taken up for hearing on 01.08.2022, this

Hon'ble Court directed the first respondent to pay a subsistence allowance of

Rs.6,05,677/-, which is due to the petitioner on or before 27.08.2022 and the

same was paid to the petitioner on 27.08.2022 at the office of the first

respondent. The above said amount of Rs.6,05,676/- was paid to the

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

petitioner, based on the calculation made by the second respondent. When

the matter came up for hearing on 29.08.2022, learned counsel for the

petitioner submitted a fresh memo of calculation to the respondents.

According to which, he claimed a sum of Rs.12,93,939/-, out of which, the

petitioner has received a sum of Rs.6,05,677/- and the remaining subsistence

allowance is yet to be paid to the petitioner. Hence, this Court directed the

learned counsel appearing for the respondents to verify the same with the

authorities and posted the case on 12.09.2022.

3. The first respondent has filed a memo of calculation dated

23.03.2023, in which it is stated that the petitioner has submitted a fresh

memo of calculation for a sum of Rs.12,93,939/- vide his letter dated

08.09.2022 and the same was verified with the connected records and

revealed that the petitioner calculated Dearness Allowance (DA) and House

Rent Allowance (HRA) as admissible to Government Servants working under

the Government of Tamil Nadu. It is pertinent to mention here that the

employees of co-operative society, the Dearness Allowance and House Rent

Allowance are sanctioned as per the circular instructions issued from time to

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

time by the Registrar of Co-operative Societies, Kilpauk, Chennai. A

criminal case was filed against the petitioner and others and the case is under

trial in C.C.No.83/2010 in JM Court, Pochampalli.

4. It is pertinent to extract Section 3(1) of the Tamil Nadu Payment of

Subsistence Allowance Act, 1981 and the same reads as follows:

“where the enquiry or criminal proceedings is prolonged beyond the period of ninety days for reasons directly attributable to the employee, the subsistence allowance shall, for the period exceeding ninety days, be reduce to fifty percentum of the wages, which the employees was drawing immediately before his suspension”.

According to the aforesaid Act, the subsistence allowance has been

calculated at Rs.6,06,677/- and the entire amount has been paid to the

petitioner.

5. Learned counsel for the petitioner submitted that Section 3(1) of the

Payment of Subsistence Allowance Act,1981 provides the right of

subsistence allowance payable to an employee, who is placed under

suspension and the same is extracted hereunder:

“Payment of Subsistence allowance.- (1) an employee who is placed under suspension shall, during the period of each

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

suspension, be entitled to receive payment from the employer as subsistence allowance, an amount equal to fifty percentum of the wages which the employee was drawing immediately before suspension, for the first ninety days reckoned from the date of such suspension:

Provided that where the period of suspension exceeds ninety days, but does not exceed one-hundred and eighty days, the employee shall be entitled to receive, after the said period of ninety days, a subsistence allowance equal to seventy-five percentum of the wages which the employee was drawing immediately before his suspension:

Provided further that where the period of suspension exceeds one hundred and eight days, the employee shall be entitled to receive wages in full which the employee was drawing immediately before his suspension.

Provided also that where the enquiry or criminal proceeding is prolonged beyond the period of ninety days for reasons directly attributable to the employee, the subsistence allowance shall, for the period exceeding ninety days, be reduced to fifty percentum of the wages, which the employee was drawing immediately before his suspension.” Therefore, as far as the rate of payment of subsistence allowance is

concerned, the by-law has incorporated the provisions of the Tamil Nadu

Payment of Subsistence Allowance Act, 1981. Hence, one has to look into

the provisions of the Tamil Nadu Payment of Subsistence Allowance Act to

decide the rate of subsistence allowance payable to an employee during the

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

period of suspension.

6. Learned counsel for the petitioner submitted that the petitioner has

filed writ petition in W.P.No.10032 of 2007, challenging the suspension

order dated 06.07.2005 in Na.Ka.No.3128/2005 issued by the first respondent

and the same was dismissed by this Court on 11.04.2007. Aggrieved by the

said order, the first respondent preferred Writ Appeal in W.A.No.539 of 2011

and the same was dismissed by Division Bench of this Court dated

21.10.2011. For better appreciation, the relevant paragraph of the said order

is extracted hereunder:

“5. The Hon'ble Supreme Court, in the judgment reported in the case of JAGDAMBA PRASAD SHUKLA v.

STATE OF U.P. ((2000) 7 S.C.C.90), has held that the payment of subsistence allowance to an employee under suspension is not a bounty, but it is fundamental right. The payment of subsistence allowance to the employee under suspension is to maintain his family and to attend the departmental enquiry. In such circumstances, we see no reason to interfere with the order passed by the learned Judge. The writ appeal fails and the same is dismissed. Consequently, the connected M.P. is also dismissed.”

7. Learned counsel for the petitioner further submitted that the

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

petitioner has filed writ petition in W.P.No.29925 of 2011 in which, this

Court by its order dated 23.12.2011 passed the following order and the same

is extracted hereunder:

“Having placed the petitioner under suspension, the respondents are duty bound to pay Subsistence Allowance. If Subsistence Allowance is not paid to the petitioner, the respondents are directed to pay the same to the petitioner on or before 07.01.2012. In the event of any failure on the part of the respondents in paying Subsistence Allowance to the petitioner on or before 07.01.2012, there shall be an order of interim stay of operation of the suspension order. If Subsistence Allowance has already been paid to the petitioner, the respondents need not pay the same for the second time and it would suffice if Subsistence Allowance is paid for the future period.”

8. Learned counsel for the petitioner further submitted that the

petitioner has filed another Writ Petition in W.P.No.9764 of 2008 and this

Court by its order dated 06.06.2012 has directed the respondents to pay the

Subsistence Allowance to the petitioner. Subsequently, the petitioner was

reinstated into service by the first respondent vide proceeding in

Na.Ka.No.3689/2012 dated 28.10.2013.

9. Heard the learned counsel on either side and perused the materials

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

available on record.

10. In this case, it is pertinent to extract Section 3(1) of the Tamil Nadu

Payment of Subsistence Allowance Act, 1981:

“Payment of Subsistence allowance.- (1) an employee who is placed under suspension shall, during the period of each suspension, be entitled to receive payment from the employer as subsistence allowance, an amount equal to fifty percentum of the wages which the employee was drawing immediately before suspension, for the first ninety days reckoned from the date of such suspension:

Provided that where the period of suspension exceeds ninety days, but does not exceed one-hundred and eighty days, the employee shall be entitled to receive, after the said period of ninety days, a subsistence allowance equal to seventy-five percentum of the wages which the employee was drawing immediately before his suspension:

Provided further that where the period of suspension exceeds one hundred and eight days, the employee shall be entitled to receive wages in full which the employee was drawing immediately before his suspension.

Provided also that where the enquiry or criminal proceeding is prolonged beyond the period of ninety days for reasons directly attributable to the employee, the subsistence allowance shall, for the period exceeding ninety days, be reduced to fifty percentum of the wages, which the employee

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

was drawing immediately before his suspension.”

11. According to the above section “when the period of suspension

exceed one-hundred and eighty days, the employee shall be entitled to

receive wages in full, which the employee was drawing immediately before

his suspension. The above said Act was amended on 15.05.2017, by which,

the above provision providing the employees entitle to receive wages in full

before his suspension was amended. Hence, according to the amended act,

the petitioner is entitled only for 75% of the wages, which the employee was

drawing immediately before his suspension.

12. In this case, the amended provision, which came into effect on

15.05.2017 is not applicable to this case for the reason that the order was

passed by this Court on 11.04.2007 and the proceeding of the respondent was

issued on 06.07.2005. The Subsistence Allowance for a sum of Rs.6,05,677/-

was paid to the petitioner vide Cheque No.002255 dated 24.08.2022 in the

office of the first respondent on 27.08.2022. Hence, according to the proviso

of 3(1) pre-amended, the petitioner is entitled for full backwages. For better

appreciation, the said provision is extracted hereunder:

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

“Provided further that where the period of suspension exceeds one hundred and eight days, the employee shall be entitled to receive wages in full which the employee was drawing immediately before his suspension.” The amendment to the Tamil Nadu Payment of Subsistence Allowance Act,

1981 came into effect only on 15.05.2017, whereas the proceeding of the

respondent is of the year 2005 and the order of this Court in 2007. It is

crystal clear and evident that any amendment will have only prospective

effect and will not have any retrospective effect. Moreover in this case, the

enquiry or criminal proceeding was not prolonged beyond the period of 90

days for the reasons directly attributable to the employee and on this aspect

also the petitioner is entitled for full backwages.

13. In view of the above, this Court is of the considered view that the

respondents have committed wilfull disobedience of the order passed by this

Court dated 11.04.2007, and the petitioner is entitled for remaining 50% of

Subsistence Allowance as per the proviso of Section 3(1) of the Tamil Nadu

Payment of Subsistence Allowance Act, 1981 (pre amended) and the

respondents are directed to pay/settle the remaining sum to the petitioner,

within a period of six weeks from the date of receipt of a copy of this order.

https://www.mhc.tn.gov.in/judis Cont.P.No.213 of 2008

14. List the case under the caption for “Reporting Compliance” on

10.07.2023.




                                                            01.06.2023   (vm)



                    Index      :         Yes/No
                    Speaking Order       :    Yes/No




                                                          J.SATHYA NARAYANA PRASAD,J.

                                                                                                 vm




                                                              Contempt Petition No.213 of 2008




https://www.mhc.tn.gov.in/judis
                                       Cont.P.No.213 of 2008




                                             01.06.2023






https://www.mhc.tn.gov.in/judis

 
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