Citation : 2025 Latest Caselaw 903 Mad
Judgement Date : 14 July, 2025
2025:MHC:1667
W.A.No. 1151 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 14.07.2025
CORAM
THE HONOURABLE MR JUSTICE R. SUBRAMANIAN
AND
THE HONOURABLE MR.JUSTICE K. SURENDER
W.A.No. 1151 of 2024
and
CMP.No. 8272 of 2024
The Additional Registrar/
Managing Director,
Erode District Central Co-operative Bank Ltd.,
Erode ..Appellant
Vs
1. Tmt S.Chandra Prapha
W/o. C.S. Murali Krishna
2.The Deputy Registrar of Co-operative Societies,
Erode Circle,
Erode -638009.
3.The Additional Registrar/Enquiry Officer,
Under Section 81 of Tamil Nadu Cooperative
Societies Act,
PE 62. Tamil Nadu Cooperative Textile,
Thrift and Credit Society Ltd.,
Bhavani Main Road,
Erode-638004. ..Respondents
1
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W.A.No. 1151 of 2024
Writ Appeal is filed under Clause 16 of Letters Patent to set aside the
order dated 14.12.2023 made in W.P.No. 19773 of 2023 passed by this Court .
For Appellant : Mr.P.Kannankumar
For Respondents : M/s.E.Ranganayaki, AGP – R2 & R3
JUDGMENT
(Order of the Court was made by the Hon'ble R.Subramanian J.)
Challenge in the appeal was to the order of suspension dated 26.04.2023,
made by the management on the ground that a criminal investigation is pending
against the appellant as provided under Special By-law 22(I)(ii).
2. The 1st respondent who was employee of the cooperative society was
charged with certain delinquencies and surcharge proceedings were conducted
against her and final order came to be passed in the surcharge proceedings on
25.04.2023, imposing a punishment of recovery of value of the increment for
one year, which amounted to Rs.43,392/-. However, on the very next day, the
1st respondent was suspended from service on the ground that criminal
proceedings were pending against him. Upon challenge, this order was set aside
by the learned Single Judge on the ground that in order to enable the employer
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to suspend the employee under Clause 22 (1)(ii) of the special By-laws, it
should shown that the employee should be under investigation for a criminal
offence or should be on trial of criminal offence.
3. Admittedly, an FIR was registered against the employee only
sometime in November 2024. Therefore, it cannot be said that the employee
was under investigation for a criminal offence or was on trial for a criminal
offence at the time of suspension. The writ Court took note of this clause and
concluded that the order of suspension could not be justified. Aggrieved by the
same, the employer has filed the present appeal.
4. Clauses 22(1) of the Special Bylaw which dealt with the circumstances
under which the employee can be suspended, reads as follows;
22. SUSPENSION
(1) An employee of the bank may be placed under suspen
sion from service where:-
(i) an inquiry into grave charges against him is contem plated or pending; or
(ii) a complaint against him of any criminal offence is un der investigation or trial and if such suspension is neces
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sary in the public interest or in the interest of the bank.
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5. Admittedly, Sub clause (i) does not arise in the case on hand, since
surcharge proceedings are over and the punishment has been imposed on the
employee/1st respondent. Sub Clause (ii) can be invoked under two
circumstances as pointed by us earlier. Those two circumstances are non exist
ent; we are therefore unable to find any fault with the writ Court for having
allowed the writ petition and quashed the order of suspension. The appeal fails
and it is accordingly dismissed. Consequently, connected miscellaneous petition
is closed. No costs.
(R.S.M., J.) (K.S., J.)
14.07.2025
Index : Yes
Internet : Yes
Neutral Citation : Yes
ak
To
1.The Deputy Registrar of Co-operative Societies, Erode Circle, Erode -638009.
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2.The Additional Registrar/Enquiry Officer, Under Section 81 of Tamil Nadu Cooperative Societies Act, PE 62. Tamil Nadu Cooperative Textile, Thrift and Credit Society Ltd., Bhavani Main Road, Erode-638004.
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/07/2025 05:21:31 pm )
R. SUBRAMANIAN, J.
and
K. SURENDER, J.
ak
14.07.2025
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