Madras High Court
S.Manjula vs The Joint Registrar Of Co-Operative ... on 30 September, 2024
Author: N.Anand Venkatesh
Bench: N.Anand Venkatesh
Writ Petition No.24487 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 30.09.2024
CORAM
THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH
Writ Petition No.24487 of 2024
and
W.M.P.Nos.26798 & 26799 of 2024
S.Manjula
W/o.G.Selvaraj ... Petitioner
Vs.
1.The Joint Registrar of Co-operative Societies,
Cuddalore Region,
Cuddalore District.
2.The Deputy Registrar of Co-operative Societies,
Cuddalore District.
3.The Management of
I.I.556 Tholar Primary Agricultural
Co-operative Credit Society Ltd.,
Cuddalore District. ... Respondents
Writ Petition filed under Article 226 of the Constitution of
India seeking issuance of a Writ of Certiorarified Mandamus calling for
the records of the impugned order passed by second respondent in
Na.Ka.33/2023 Tho.Va.Sa dated 07.05.2024 and quash the same and
consequently, direct the respondents to pay petitioner retirement benefits
namely Employee Provident Fund of Rs.4,21,633/-, Gratuity of
Rs.4,31,394/- and Leave Encashment of Rs.1,99,400/- with interest at
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1/11
Writ Petition No.24487 of 2024
10%, Rs.3,85,890/- and a total amount of Rs.14,38,317/- with 10%
statutory interest from the date of retirement death of petitioner's husband
Selvaraj i.e. 01.12.2020 till the payment is made within stipulated time
fixed by this Court.
For Petitioner : Mr.L.P.Shanmugasundaram
For Respondents : Mr.P.Ganesan
Additional Government Pleader
*****
ORDER
This writ petition has been filed challenging the impugned
proceedings of the second respondent dated 07.05.2024 and for a
consequential direction to the respondents to pay the terminal benefits of
the petitioner's husband to the tune of Rs.14,38,317/- with interest from
the date of retirement till the settlement of the amount.
2. The case of the petitioner is that her husband was working as
an Office Assistant in the third respondent society from the year 1988.
He died in harness on 01.12.2020. The grievance of the petitioner is that
even after the demise of her husband, the terminal benefits were not
settled on the ground that there is some audit objection. The petitioner
made a representation in this regard. The second respondent, through the
impugned proceedings dated 07.05.2024, informed the petitioner that
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Writ Petition No.24487 of 2024
there is an audit objection and that a total sum of Rs.14,09,341/- is due
and payable by the petitioner's husband and the same is being adjusted
towards the amount payable to the petitioner's husband and in spite of the
same, there is an excess amount that is due and payable on the side of
petitioner. Accordingly, the second respondent, through the impugned
proceedings, rejected the claim made by the petitioner for the terminal
benefits of her husband. The same has been put to challenge in the
present writ petition.
3. The second respondent has filed a counter affidavit. The
second respondent has taken a stand that the present writ petition is not
maintainable since the petitioner has an alternative remedy to file a
revision under Section 153 of the Tamil Nadu Co-operative Societies
Act, 1983. The second respondent has also taken a stand that the
petitioner's husband did not properly maintain the Books of Accounts
and did not take any initiative to collect the overdue loans that are
payable by the members of the society and as a result, the society
suffered huge loss. Hence, audit objection was raised and the amount that
is recoverable from the petitioner's husband was adjusted from the
amounts that are due and payable from the terminal benefits.
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Writ Petition No.24487 of 2024
Accordingly, the second respondent has sought for the dismissal of this
writ petition.
4. When the matter came up for hearing on 29.08.2024, this
Court passed the following order:
"Mr.P.Ganesan, learned Additional Government
Pleader takes notice for the respondents.
2. This is an unfortunate case where the terminal
benefits are not being paid to the petitioner on the ground that
there is some audit objection and as a result, the claim made by
the petitioner for payment of a sum of Rs.14,38,317/- towards
terminal benefits of her husband is deprived.
3.Post this case under the caption 'for orders' on
12.09.2024.
4.In the mean time, the respondents are directed to file
counter or the learned Additional Government Pleader shall take
written instructions."
5. When the matter was listed for hearing on 12.09.2024, this
Court passed the following order:
"Pursuant to the earlier order passed by this Court,
learned Additional Government Pleader produced the written
instructions received from the second respondent. The relevant
portions are extracted hereunder:
@jpU/$p/bry;tuh$; vd;gth; 01/02/2020
md;W ,aw;if va;jpdhu;/ ,tUf;F II 556
bjhshu; bjhlf;f ntshz;ik Tl;Lwt[ fld;
r';fj;jpypUe;J bfhLglntz;oa epjpg;gad;fs;
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Writ Petition No.24487 of 2024
tptuk; fPHf
; z;lthW
1 FLk;g ey epjp 200000
2 tU';fhy itg;g[ epjp jdpegh; 106665
g';F
3 tU';fhy itg;g[ epjp r';fj;jpd; 314968
g';F
4 gzpf;bfhil 431394
5 <l;;oa tpLg;g[ xg;gilg;g[ rk;gsk; 199400
(cj;njrkhf 240 ehl;fSf;F ?
mjpfgl;r bjhif fzf;fLP
bra;ag;gl;Ls;sJ)
TLjy; 1252427
6 kDjhuUf;F tH';fg;gl;Ls;s 200000
FLk;g eyepjp
7 tH';f ntz;oa epYit 1052427
jpU/$p/bry;tuh$; vd;gth; 20/12/2016
Kjy; brayhsuhf gzpg[hpe;J te;Js;shh;/
,tuJ gzpf;fhyj;jpy; 2016?2017 Kjy;
2020?2021 tiua[ss ; jzpf;if mwpf;ifapd;go
jzpf;ifahsuhy; kWf;fg;gl;Ls;s bjhif
kw;Wk; ,th; brYj;j ntz;oa bjhif
Mfpatiffs; fzf;fL P bra;jjpy; gpd;tUk;
tptug;go bjhif brYj;j ntz;oa[ss ; J
1 2016?2017 jzpf;if 123736
mwpf;ifapd;go brYj;j ntz;oaJ
2 2017?2018 jzpf;if 190160
mwpf;ifapd;go brYj;j ntz;oaJ
3 2018?2019 jzpf;if 342932
mwpf;ifapd;go brYj;j ntz;oaJ
4 2019?2020 jzpf;if 154940
mwpf;ifapd;go brYj;j ntz;oaJ
5 2020?2021 jzpf;if mwpf;ifapd;go 597573
brYj;j ntz;oaJ
TLjy; 1409341
jpU/$p/bry;tuh$; vd;gtUf;F r';fk; 10,52,424
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Writ Petition No.24487 of 2024
bfhLgl ntz;oa bjhif
jpU/$p/bry;tuh$; vd;gth; 14,09,341
r';fj;jpw;F brYj;j ntz;oa
bjhif
vdnt r';f jzpf;if mwpf;ifapd;go
jpU/$p/bry;tuh$;. brayhsh; (kiwt[) vd;gtu;
r';fj;jpw;F brYj;j ntz;oa bjhif bfhLgl
ntz;oa mjpfk; cs;sjhy; epjpg;gad;fis
tH';f tHptif ,y;iy vd;gij
bjhptpj;Jf;bfhs;fpnwd;/@
2. Learned counsel for petitioner shall take instructions
and make his submissions.
3. In the mean time, the second respondent is also
directed to file an affidavit with all details.
Post this writ petition under the caption 'for orders' on
30.09.2024."
6. Heard Mr.L.P.Shanmugasundaram, learned counsel for
petitioner and Mr.P.Ganesan, learned Additional Government Pleader
appearing for respondents.
7. The short issue that arises of consideration in the present
writ petition is as to whether the terminal benefits that are due and
payable to the petitioner's husband can be adjusted from the amounts that
are recoverable from the petitioner's husband.
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Writ Petition No.24487 of 2024
8. The issue that is involved in the present writ petition is
squarely covered by the earlier order passed by this Court in
W.P.No.6657 of 2023, dated 11.07.2023. That was also a case where the
petitioner therein had retired from service and his terminal benefits were
not paid on the ground that audit objections were raised to the effect that
the petitioner therein had involved in some irregularities resulting in loss
to the society. While dealing with this issue, learned Single Judge, after
taking into account the earlier judgments, has held as follows:
"6. Though certain discrepancies were found in the
audit for the year 2018-2019, it is relevant to note that based on
the audit report, no surcharge proceedings were initiated under
Section 87 of the Tamil Nadu Co-operative Societies Act. Now,
the petitioner though was not permitted to retire, it appears that no
departmental proceedings were also initiated against him
however, he was relieved from service on 31.07.2022. It is
relevant to note that even assuming that any surcharge
proceedings culminates as against the petitioner which is
enforceable order. Whereas as per Sections 78 and 79 of the
Tamil Nadu Co-operative Societies Act, there is clear bar for
attaching the Provident Fund as well as Gratuity. Further, the
Division Bench of this Court in W.A.No.1466 of 2015, after
perusing various statutory proceedings including the Payment of
Gratuity Act, 1972, the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952 and Sections 78 and 79 of
the Tamil Nadu Co-operative Societies Act, 1983, held that the
terminal benefits cannot be withheld in the absence of any
statutory provision enabling the same and directed the
respondents to pay the amount.
7. It is the case of the petitioner that there is totally a
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Writ Petition No.24487 of 2024
sum of Rs.16,59,831/- payable to the petitioner though he was not
permitted to retire from service. In such view of the matter, the
respondents are directed to release all the retirement benefits
namely Provident Fund, Gratuity and Leave Encashment to the
petitioner, within a period of two months from the date of receipt
of a copy of this order and liberty is hereby granted to the
respondents to proceed against the petitioner in the event of any
surcharge proceedings reached its logical conclusion for recovery
of any alleged amount as per law. However, the respondents are
directed to settle the retirement benefits as indicated above, with
statutory interest at the rate of 10% per annum, within a period of
two months from the date of receipt of a copy of this order and in
the event of failure to settle the amount, the amount shall carry
12% interest till the amount is settled."
9. It is quite clear from the above order that audit objections by
itself will not be a ground to deprive the settlement of terminal benefits.
It must have resulted in some proceedings initiated for recovery of the
amount. That apart, learned Single Judge had also taken note of Sections
78 and 79 of the Tamil Nadu Co-operative Societies Act, 1983, where
there is a bar for attaching provident fund, gratuity, etc. Learned Single
Judge also took into consideration the judgment of the Division Bench
and held that terminal benefits cannot be withheld in the absence of any
statutory provision enabling the same and merely based on some audit
objections.
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Writ Petition No.24487 of 2024
10. In the instant case, no proceedings were initiated against
the petitioner's husband when he was alive. On the demise of the
petitioner's husband, no proceedings can be initiated. Hence, merely
because there are some audit objections, that cannot be a ground to
deprive the petitioner from receiving the terminal benefits that are due
and payable on the demise of her husband. The above order will squarely
apply to the facts of the present case.
11. The second respondent has taken a stand that the amount is
not due and payable by the respondents 1 and 2 and it is the third
respondent to make the necessary payment to the petitioner. The
petitioner is not able to get the terminal benefits from the third
respondent society only in view of the order passed by the second
respondent. Therefore, if the said order is interfered by this Court, there
will be no bar for the third respondent society to settle the terminal
benefits to the petitioner.
12. In the light of the above discussion, the impugned
proceedings of the second respondent dated 07.05.2024 is hereby
quashed. There shall be a direction to the third respondent society to pay
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Writ Petition No.24487 of 2024
the entire terminal benefits viz., employees provident fund, gratuity and
leave encashment with statutory interest at the rate of 10% p.a. from the
N.ANAND VENKATESH, J
gm
date on which it became due and payable till the date of actual payment.
This amount shall be settled to the petitioner within a period of eight (8)
weeks from the date of receipt of a copy of this order.
In the result, this writ petition is allowed with the above
direction. No costs. Consequently, connected miscellaneous petitions are
closed.
30.09.2024
Neutral Citation: Yes/No
Index: yes/no
Speaking Order/Non-Speaking Order
gm
To
1.The Joint Registrar of Co-operative Societies,
Cuddalore Region,
Cuddalore District.
2.The Deputy Registrar of Co-operative Societies,
Cuddalore District.
3.The Management of
I.I.556 Tholar Primary Agricultural
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