D. Govindarasan v. Joint Registrar of Co-operative Societies Tiruvallur
2014-07-10
D.HARIPARANTHAMAN
body2014
DigiLaw.ai
Judgment : 1. Heard both sides. By consent, the writ petition is taken up for final disposal. 2. The petitioner is an employee of the second respondent Society. He joined service on 15.09.1971 and retired from service on reaching the age of superannuation on 30.06.2010. However, the gratuity payable to the petitioner was not paid. Hence, he has filed this writ petition seeking for a direction to the respondents to disburse the gratuity to the tune of Rs.5,50,000/-. 3. The learned counsel for the petitioner has submitted that the Society established gratuity fund as per the Tamil Nadu Co-operative Societies Act, 1983 and the second respondent shall pay the gratuity amount from the said fund. 4. In fact, on 24.06.2014, this Court passed the following order in this writ petition: “The Secretary of the second respondent is present. It is stated that as per Section 79 of the Tamilnadu Cooperative Societies Act, the second respondent Society established gratuity fund and the funds are accordingly deposited with the State Land Development Bank at Kancheepuram for every employee of the second respondent Bank. 2. The Secretary has produced the Audit report that in the gratuity fund, amount of Rs.4,54,348/-is available as far as the petitioner is concerned. It is further stated that a criminal case is pending. Now, the cadre strength is four. i.e. one Secretary and 3 Supervisors. It is further stated that during 1980, the cadre strength was 10 and ten employees were employed and later on, reduced. 3. For filing counter, post on 03.07.2014.” That is, the Secretary, who was present on 24.06.2014, admitted about the establishment of gratuity fund and an amount of Rs.4,54,348/- is lying in the said fund towards the gratuity payable to the petitioner. According to him, the gratuity was withheld due to the pendency of some criminal proceedings pending against him. 5. In my view, the gratuity fund shall be established by the Society, whenever the Payment of Gratuity Act, 1972, is not applicable to the Society, as per Section 79 of the Tamil Nadu Cooperative Societies Act, 1983. Gratuity payable from the said fund is protected under Section 79 of the Act as the gratuity is protected under Section 13 of the Payment of Gratuity Act. Section 79 of the Tamil Nadu Co-operative Societies Act, 1983 is extracted hereunder: “79.Gratuity Fund.
Gratuity payable from the said fund is protected under Section 79 of the Act as the gratuity is protected under Section 13 of the Payment of Gratuity Act. Section 79 of the Tamil Nadu Co-operative Societies Act, 1983 is extracted hereunder: “79.Gratuity Fund. - (1) A registered society not being an establishment to which the Payment of Gratuity Act, 1972 (Central Act 39 of 1972) applies, may provide in its by-laws for payment of gratuity to the employees at such rates and on such conditions as may be specified in the by-laws and such society may establish a Gratuity Fund or make other arrangements for the purpose. (2) A Gratuity Fund, if any, established by a registered society under sub-section (1) shall be invested in the financing bank, but shall not - (a) be used in the business of the society; (b) form part of the assets of the society; (c) be liable to attachment or be subject to any other process of any Court or other authority.” 6. Section 79(2) of the Tamil Nadu Co-operative Societies Act, 1983, makes it clear that similar protection is given to the gratuity payable to an employee of the Co-operative Society, which is not governed by the Payment of Gratuity Act, as provided under the Payment of Gratuity Act. 7. In fact, today I have considered Section 13 of the Payment of Gratuity Act, 1972, in W.P.No.27296 of 2013 and I have held that the gratuity amount shall not be denied to an employee, on the ground of pendency of surcharge proceeding. In the similar way, pendency of a criminal proceeding cannot be a reason to deny payment of gratuity, for the service rendered by the employee. 8. Therefore, the second respondent Society is liable to pay a sum of Rs.4,54,348/- towards the gratuity amount payable to the petitioner, from the gratuity fund. In fact, the audited statement, produced by the learned counsel for the Society, also reflects that the petitioner rendered 36 years of service and he received a sum of Rs.9,470/- as Basic Pay and Rs.12,406/- as Dearness Allowance and a sum of Rs.4,54,348/- is lying in his gratuity fund account. 9. Accordingly, the writ petition is disposed of directing the second respondent Society to pay the gratuity amount to the petitioner forthwith, not later than two weeks from the date of receipt of a copy of this order. No costs.