After Years Without Pay, Madras HC Orders Pro-Rata Salary Arrears for Adult-Education Centre Staff Despite Society’s Dissolution

The petitioners, employees of the State Resource Centre for Adult and Continuing Education, initially sought permanent absorption into an equivalent Government post. By the time the matter was heard, they had superannuated, and the question of absorption no longer arose.

They instead pursued salary arrears, claiming that salaries had not been paid from November 2019 after Central Government funding ceased.

The State acknowledged salary dues and the Centre’s available funds, but raised the limitation in its bylaws that no more than 25% of funds generated in a year could be used for staff welfare.

The State also stated that the Tamil Nadu Board of Continuing Education, under which the Centre was established, had been dissolved under Section 44(4) of the Tamil Nadu Societies Registration Act, 1975.

Section 44(4) of the Tamil Nadu Societies Registration Act, 1975 provides for a registered society to be deemed dissolved upon publication of the prescribed notice.

Its proviso preserves the liability, if any, of every officer and member of the society, which may be enforced as if the society had not been dissolved.

The Court applied this proviso to the employees’ salary claim, treating it as a liability that survived dissolution.

The Court noted that the petitioners’ claim for salary from November 2019 was not seriously disputed, and that the State had disclosed the Centre’s bank balances and fixed deposits.

Although the State raised the bylaw restriction limiting the use of funds for staff welfare, the Court focused on the statutory proviso preserving liabilities after dissolution.

It held that the salary claim fell within that proviso and directed the State respondents to exercise their powers under Section 44(4) to enforce the liability and disburse the arrears.

It did not grant the original absorption relief, as the petitioners had superannuated.

No costs were awarded, and the connected miscellaneous petitions were closed.