Facts
The 1st Respondent, an accountant at the appellant Co-operative Society, was placed under suspension following allegations of financial irregularities and the registration of a criminal case
Source reference: p. 6Seeking subsistence allowance for the suspension period, the Respondent approached the Assistant Commissioner of Labour under the Tamil Nadu Payment of Subsistence Allowance Act, 1981, who ordered the Society to pay sums of ₹16,53,795.40 and ₹9,06,391
Source reference: p. 2The Society challenged this order via a writ petition, which was dismissed on 16.03.2023
Source reference: p. 2The Society subsequently filed this intra-court appeal, contending that the Co-operative Societies Act, as a Special Act, overrides general labor laws regarding jurisdiction
Source reference: p. 2-3Issues
1. Whether an application for subsistence allowance under the Tamil Nadu Payment of Subsistence Allowance Act, 1981, is maintainable against a Co-operative Society governed by the Tamil Nadu Co-operative Societies Act, 1983
Source reference: p. 2, 42. Whether an employee of a Co-operative Society must exhaust statutory remedies under the Co-operative Societies Act before seeking external legal redress for service-related grievances
Source reference: p. 2, 4-5Law Applied
The Court applied the principle that a Special Act (Tamil Nadu Co-operative Societies Act, 1983) prevails over General Law (Payment of Subsistence Allowance Act, 1981)
Source reference: p. 3-4Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988, which mandates that societies adopt special bye-laws for service conditions
Source reference: p. 3Sections 153 (Revision) and 154 (Review) of the Co-operative Societies Act regarding statutory remedies
Source reference: p. 4-5The Court also referenced the Division Bench precedent in Registrar of Co-operative Societies v. V.M. Elango (2021), which establishes that while subsistence allowance is a fundamental right under Article 21, its recovery must follow the specific statutory framework and bye-laws of the Society
Source reference: p. 7-8Reasoning
The Court reasoned that since the appellant Society is registered under the Special Act (Co-operative Societies Act), its service conditions, including suspension and subsistence allowance, are strictly governed by Rule 149 and society-specific bye-laws
Source reference: p. 3-4While Clause 31 of the Special Bye-laws references the procedure of the Subsistence Allowance Act, the authority to grant such allowance remains with the Society’s Board or Special Officer
Source reference: p. 4Consequently, the Assistant Commissioner of Labour lacks inherent jurisdiction to adjudicate claims involving co-operative employees
Source reference: p. 5The Court observed that the 1st Respondent failed to exhaust the hierarchy of remedies available under Sections 153 and 154 of the Special Act
Source reference: p. 4-5The Court noted that the Society is empowered to initiate three-fold actions—criminal, disciplinary, and surcharge proceedings—simultaneously to protect financial interests
Source reference: p. 6Holding
The Court held that the application filed before the Assistant Commissioner of Labour was not maintainable due to lack of jurisdiction
The High Court set aside the writ order dated 16.03.2023 and allowed the Writ Appeal
Source reference: p. 9However, acknowledging that subsistence allowance is a basic right, the Court granted the 1st Respondent liberty to apply for the allowance directly to the Society’s Management, with a further right to approach the Revisional Authority under Section 153 of the Co-operative Societies Act if aggrieved
Source reference: p. 9Original Court PDF
Special OfficervsT.Mohan
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