The President, Perumagalur Primary Agriculture Co-operative and Credit Society vs Thamarai Selvan and Others

S. Manikumar, J.—1. Challenge in this appeal is to an order made in W.P.(MD) No. 792 of 2016, dated 18.01.2016, by which a learned Single Judge of this Court has directed that the terminal benefits due and payable to respondent No. 1, be paid by the President, Perumagalur Primary Agriculture Co-operative and Credit Society, the appellant herein, in six equal monthly instalments and the first instalment shall be paid on or before 08.02.2016.

The facts leading to writ appeal are as follows:

"Respondent No. 1 was employed in Perumagalur Primary Agriculture Co-operative and Credit Society, Thanjavur District, appellant herein. He retired from service on 28.02.2015, after rendering 40 years of service. On 25.08.2015, the Deputy Registrar of Co-operative Societies, Pattukottai, Thanjavur District, in his proceedings has stated that a sum of Rs. 10,97,598/- was due and payable by Perumagalur Primary Agriculture Co-operative and Credit Society, Thanjavur District, appellant herein, towards the terminal benefits of respondent No. 1. At the time of retirement of respondent No. 1, a sum of Rs. 1,00,000/- has alone been paid. In the same proceedings dated 25.08.2015, the Deputy Registrar of Co-operative Societies, Pattukottai, Thanjavur District, respondent No. 2 has also stated that the balance retirement benefits would be settled according to the financial conditions of the appellant Society. Except payment of Rs. 1,00,000/- as stated supra, no action was taken thereafter, in the above said circumstances, the respondent No. 1 has filed W.P.(MD) No. 792 of 2016 for a writ of mandamus, directing the President, Perumagalur Primary Agriculture Co-operative and Credit Society, Thanjavur District, appellant herein to pay the balance retirement benefit of Rs. 9,97,598/- within a stipulated time, as fixed by this Court."

Mr. T.R. Janarthanan, learned Additional Government Pleader, seemed to have appeared for both the Deputy Registrar of Co-operative Societies, Pattukottai, Thanjavur District and the President, Perumagalur Primary Agricultural Co-operative and Credit Society, Perumagalur, Peruvurani Taluk, Thanjavur Taluk, Thanjavur District, the respondents therein, and sought for permission to make the payment in instalments, on the grounds that the above said Co-operative Society is not in good financial condition. Mr. R.M. Arun Swaminathan, learned counsel for the Writ Petitioner had no objection for the above course of action. Recording the submissions of the learned counsel for the parties, vide order dated 18.01.2016, passed in W.P. (MD) No. 792 of 2016, the Writ Court has ordered as follows:

"5. Hence, the writ petition is disposed of with the following directions:

(a) The terminal benefits payable by the second respondent to the petitioner shall be paid in six equal monthly instalments and the first instalment shall be paid on or before 08.02.2016.

(b) If there is default in payment of instalments, the defaulted amount will carry 12% interest per annum.

However, there shall be no order as to costs."

Being aggrieved by the above said order, President, Perumagalur Primary Agricultural Co-operative and Credit Society, Perumagalur, Peruvurani Taluk, Thanjavur District, has filed the present writ appeal No. 280 of 2016, contending inter-alia that the Writ Court, without providing any opportunity to the appellant Society to present its financial crisis has directed payment in instalments. Mr. N. Balakrishnan, learned counsel for the appellant Society, further submitted that in addition to the 1st respondent, who had worked as Secretary and retired, four other employees of the same Society had also retired earlier and without considering the financial position of the bank, they would also press for earlier disbursement of retirement benefits and in the event of failure, move this Court for appropriate orders.

Mr. N. Balakrishnan, learned counsel for the appellant Society, fairly submitted that the appellant Society is liable to pay the terminal benefits due and payable to its employees. But, according to them as on today, there is a financial constraint. It is also his submission that instead of protecting the interest of the appellant Society by extending financial assistance, the Deputy Registrar of Co-operative Society, Pattukottai, Thanjavur District, respondent No. 2, is also putting pressure on the Society to make payments on the ground that consent had already been given to the Writ Court.

Heard the learned counsel for the appellant and the learned Special Government Pleader for the second respondent and perused the materials available on record.

The fact that the Deputy Registrar of Co-operative Societies, Pattukottai, Thanjavur, respondent No. 2, had determined that a sum of Rs. 10,97,598/- was due and payable to the respondent No. 1 towards payment of terminal benefits, and that a sum of Rs. 1,00,000/- alone was paid to him at the time of retirement has not been disputed. The further fact that in the same proceedings dated 25.08.2015, the Deputy Registrar of Cooperative Societies has stated that the balance amount of Rs. 9,57,958/- would be settled as per the financial condition of the appellant Society is also not disputed. The appellant Society has assailed the impugned order only on the ground, inter-alia that no opportunity was given by the writ Court to express the present financial crisis and thus sought for interference. This Court is not inclined to accept the said contention. Before the writ Court, on behalf of both the appellant Society and the Deputy Registrar of Co-operative Societies, Pattukottai, Thanjavur District, respondent No. 2, Mr. T.R. Janarthanan, learned Additional Government Pleader has submitted that the Society is not in a good financial condition and thus sought for disbursement of the terminal benefits in instalments. Recording the same, the Writ Court ordered as above.

Even taking for granted, Society was not given any opportunity to explain the financial position before the writ Court, even in this appeal, the stand of the appellant society regarding the financial status remains the same. For brevity, grounds in paragraph 5 and 7 are extracted:

"5. The appellant submits that as per the Auditing Report during the year 2013-2014 there is a huge loss to be bank to the tune of Rs. 2,79,68,598/- and the appellant has become defunct with namesake existence.

...

The appellant humbly submits that it does not deny its obligation to terminal benefits to 1st respondent. But as on date there is no fund at all. It is not the case of 1st respondent there is sufficient fund with 2nd respondent and he is withholding it. As soon as the back limbs back to normalcy the amount due to 1st respondent would be paid positively."

The submission of the Additional Government Pleader before the writ Court has only been reiterated in the above grounds.

The fact remains that the Society is not in a good financial condition. Perusal of ground No. 4 of the Memorandum of Appeal, shows that respondent No. 1, had retired from the post of Secretary on 28.02.2015. Prior to his retirement, four other persons viz., (1) R. Mani, (2) M. Rajarethinam, (3) C. Somasundaram and (4) K. Muthusamy, had also retired. Submission of the learned counsel for the appellant Society that the other employees retired much earlier to respondent No. 1 also would seek disbursement of retirement benefits and if not done at the earliest, they would also approach this Court, seeking for an issuance of mandamus and therefore, on that ground the order impugned in this writ appeal has to be set aside, cannot be accepted. Such plea is untenable.

Courts have consistently held that no sooner an employee retires, he is entitled to terminal benefits. From ground No. 4 it could be deduced that the employees, who had retired in 2008 and thereafter, have not been paid terminal benefits. Courts have also held delay in payment of terminal benefits even attract interest. If for any reason, the Society is not in a position to meet out the financial constraint, it is high time the Deputy Registrar of Co-operative Societies, Pattukottai, Thanjavur District, to take appropriate action under the provisions of the Tamil Nadu Cooperative Societies Act, 1983 and the rules made thereunder.

Going through the materials on record and adverting to the submissions, we find no reason to interfere with the order of the Writ Court. Accordingly, this Writ Appeal is dismissed. No costs.