IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08.09.2011 CORAM: THE HON’BLE MR. JUSTICE K.CHANDRU W.P.No.20581 of 2011 & M.P.No.1 of 2011 1 INDIAN OVERSEAS BANK AWARD STAFF AND OFFICERS SC/ST WELFARE ASSOCIATION (REGD. No.266/2011) REP.BY ITS GENERAL SECRETARY MR. P. GANESAN 245, SRP COLONY, 9TH STREET CHENNAI 82 [ PETITIONER ] Vs 1 INDIAN OVERSEAS BANK REP BY ITS CHAIRMAN AND MANAGING DIRECTOR CENTRAL OFFICE 762 ANNA SALAI CHENNAI 2 2 THE GENERAL MANAGER PERSONNEL AND ADMINISTRATION DEPARTMENT INDIAN OVERSEAS BANK CENTRAL OFFICE 762 ANNA SALAI CHENNAI 2 [ RESPONDENTS ] Prayer : Petition under Article 226 of the Constitution of India praying for a Writ of Mandamus directing the respondents to continue to carry out the instructions/advise of the 2nd respondent in the letter of 23.6.2011 and not to restore check off system for any society whose registration has been cancelled and award costs. For Petitioner :: Mr.V.Prakash, senior counsel for Mr.K.Sudalaikannu https://hcservices.ecourts.gov.in/hcservices/ O R D E R Heard Mr.V.Prakash, learned senior counsel appearing for the petitioner. 2. The petitioner is a welfare association of Indian Overseas Bank Award Staff and Officers belonging to S.C and S.T.Community. In this Writ Petition, the petitioner association, who is the Registered society registered under the Societies Registration Act with Registration No.266 of 2011, seeks for a direction to the respondent to continue to carry out the instructions and advice of the 2nd respondent in their letter dated 23.6.2011 and also not to restore check off system for any society whose registration has been cancelled. 3. It is the stand of the petitioner association that the association by name All India Indian Overseas Bank SC/ST Welfare Association with Regn. No.163 of 1978 had failed to take steps to comply with the statutory requirements in law. The society's name was published in the Government Gazette stating that the said society was not carrying on business and if appropriate reply was not received, then the name of the society will be struck off from the Register and the society will be dissolved. A Notification dated 15.12.2010 under Section 44(2) of the Tamil Nadu Societies Registration Act, 1975 came to be published in the Tamil Nadu Government Gazettte on 22.12.2010. Notwithstanding the publication in the Gazette through statutory notification, the Bank Officers are deducting subscriptions from the employees towards the membership fee to the said association. The petitioner also sent a letter to this effect on 30.7.2011, 9.8.2011 and 20.8.2011. Since deduction from the salaries of the employees of the bank are credited to the said association, they have come forward to file the present Writ Petition. 4. Mr.V.Prakash, learned senior counsel for the petitioner contended that it is not open to the respondent Statutory bank to act illegally and deduct moneies from the employees and credited to a non-existing association. Copies of the representation sent by the petitioner association is also enclosed in the typed set. Their complaint to the Bank was also with reference to one Deputy General Manager (PAD) by name V.C.Ramachandran. According to them, it was the handiwork of the said officer that such illegal events were happening and therefore they seek direction from this court not to restore the check off system for the non-existing society. https://hcservices.ecourts.gov.in/hcservices/ 5. However, this Court is not inclined to entertain the Writ Petition for more than one reason. No employee of the Indian Overseas Bank, whose salaries were deducted have made any complaint. They alone can be said to be an aggrieved party. If the petitioner association had sent representation and no reply has been forthcoming, they can always have recourse to Right to Information Act for the steps taken by the bank on their complaint. On the other hand, the entire exercise by the petitioner association was to tear away members from the so-called defunct society and by preventing the check off system, they seek to achieve such a benefit. 6. A statutory notification under Section 44 (2) of the Tamil Nadu Societies Registration Act is not final. Under Section 44(b), an aggrieved person can make an appeal within one year to the Inspector General of Registration against the order notifying the dissolution of the society. As against the order of Inspector General of Registration, a further appeal lies to the Government under Section 44(6). It is only when a name of the registered society is struck off from the register and if it had not been restored or if the period allowed for appeal had lapsed or no appeal was preferred or an appeal has been made but was dismissed, then the registered society can be directed not to function and thereafter section 39 of the Act shall come into operation. Under Section 39, it has been held that when the registration of a registered society is cancelled, the registered society shall forthwith cease to carry on its business, except in so far it may be required for the benefit of winding up thereof, for which purpose it shall pass a special resolution and dissolve itself in the manner provided under section 41. 7. Therefore, in the present case, since the notification dated 25.4.2011 was published in the Gazette on 22.6.2011, the office bearers or the members the of the said society have time to file appeal to the Inspector General of Registration failing which further appeal to the Government. The fictional clause for restriction under Section 45 will come into operation only after the expiry of the said period. Therefore, the petitioner's contention that by virtue of the notification, the All India Overseas S.C & S.T.Employees Welfare Association with Registration No.163 of 1978 had come to an end, does not hold good and unless the statutory period referred to under the provisions of the Act comes into operation, a presumption of the society ceasing to exist cannot be made. https://hcservices.ecourts.gov.in/hcservices/ 8. The issue can be looked in a different angle also. A similar question came up for consideration before this Court regarding the deduction made by the Nationalised Bank in deducting the subscription towards a minority trade union. When the same was challenged by the majority trade union by contending that deduction towards subscription for trade union, which is not recognised by the Bank amounts to unfair labour practice and not authorised by law and that a recognised majority union alone can enjoy the facility of a check off system. 9. A Division Bench of this Court in State Bank Staff Union, State Bank of India Officer's Association vs. State Bank of India, Union of India etc.., reported in 1989 (1) LLJ 554 dealt with the issue. Instead of going into the larger issue relating to the right of recognized union, the Court after referring to the provisions of the Payment of Wages Act (wherein the employer's authority to deduct wages of employee was set out and it includes the deduction towards subscription of the membership to a trade union) held it was a lawful deduction. If a deduction is done under the authorisation of an employee, no court can find fault with the said deduction. 10. Ultimately, it is a person, who has given an authorisation to the bank for deducting the money from their salary and the employees alone can give a complaint to the bank stating that their association had come to an end, in view of the dissolution of the trade union/society. Even thereafter, if the bank continues to deduct amounts towards the subscription, then there will be time enough for such members/employees to complain about the illegal deduction. It is certainly not open to a rival body like the petitioner to come forward to challenge deductions made by the Bank on the basis of lack of authorisation given by employees. 11. In view of the above, the contentions raised by the petitioner association cannot be countenanced by this Court. Hence, the writ petition stands dismissed. No costs. The connected Miscellaneous Petition is closed. Sd/- Asst.Registrar. /true copy/ Sub Asst.Registrar. ajr https://hcservices.ecourts.gov.in/hcservices/ To 1 CHAIRMAN AND MANAGING DIRECTOR INDIAN OVERSEAS BANK CENTRAL OFFICE 762 ANNA SALAI CHENNAI 2 2 THE GENERAL MANAGER PERSONNEL AND ADMINISTRATION DEPARTMENT INDIAN OVERSEAS BANK CENTRAL OFFICE 762 ANNA SALAI CHENNAI 2 1 cc to Mr.K. Sudalaikannu, Advocate, Sr. 55943 W.P.No.20581 of 2011 KV (CO) kk 22/9 https://hcservices.ecourts.gov.in/hcservices/