IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.01.2010 CORAM: THE HON’BLE MR. JUSTICE K.CHANDRU W.P.Nos.7335 and 18976 of 2009 & M.P.Nos.1 & 2 of 2009 TAMIL NADU STATE TRANSPORT CORPORTION (SALEM DIVISION-I) EMPLOYEES CO-OP. THRIFT & CREDIT SOCIETY LTD SS NO.59 REP. BY ITS SECRETARY P.PERIASAMY S/P.PERIATHAMBI UDAIYAR, 117/5D, RAJA NAGAR, JOHNSONPET, SALEM 636 007. ..PETITIONER IN W.P.No.7335/2009 D.D.158 TAMIL NADU STATE TRANSPORT CORPORATIONN (SALEM DIVISION- II) EMPLOYEES CO-OPERATIVE THRIFT AND CREDIT SOCIETY. LTD REP. BY ITS SECY. BHARATHIPURAM SALEM MAIN ROAD DHARMAPURI- 636 705. ..PETITIONER IN W.P.No.18976/2009 Vs THE MANAGING DIRECTOR TAMIL NADU STATE TRANSPORT CORPORATION (SALEM) LIMITED NO.12, RAMAKRISHNA ROAD, SALEM-636 007. ..RESPONDENT IN BOTH W.Ps. Prayer in W.P.No.7335/2009: Petition under Article 226 of the Constitution of India praying for a Writ of Certiorarified Mandamus to call for the records in pursuant to the Impugned Order passed by the Respondent in proceeding Ka.No.E4/325/ThaAPoKa (Salem)/2008 dated 15.03.08 and quash the same and consequently direct the Respondent to recover the balance loan dues from the deceased employees of the Respondent Corporation and remit the same to the Petitioner Society within a stipulated period. https://hcservices.ecourts.gov.in/hcservices/ Prayer in W.P.No.18976/2009: Petition under Article 226 of the Constitution of India praying for a Writ of Mandamus directing the respondent to recover the entire pending loan due amount from the Death Cum Retirement Gratuity (DCRG) amount of the borrowed deceased employees of the respondent and remit the same to the petitioner society within a stipulated time period as may be fixed by this Honourable Court. For Petitioner in W.P.No.7335/2009 : Mr.S.M.Subramaniam For Petitioner in W.P.No.18976/2009 : Mr.T.Sundaravadhanam For Respondents in W.P.No.18976/2009 : Mr.Jayesh Dolia O R D E R In the two Writ Petitions, the petitioners are Thrift and Credit Cooperative Societies comprising of employees of the respondent Transport Corporation. The respondent Transport Corporation is a State owned Transport Corporation registered under section 617 of the Companies Act. Their employees have floated these two cooperative societies. In the first Writ Petition, the Cooperative Society operates in Salem District and in the second Writ Petition, it operates in the Dharmapuri District. 2. The grievance of the petitioner society was that notwithstanding the written agreement with the employees of the respondent Corporation, when the members of the society are in due to the Cooperative Society and when requisitions are made for recovery of the amount, the respondent Corporation is not taking appropriate steps to recover either from the salary or wages or the terminal dues payable to such employees. Because of this non- cooperation by the respondent Corporation, they have come forward to file the present Writ Petitions seeking for a direction to the respondent Corporation to comply with the statutory provision found under the Tamil Nadu Cooperative Societies Act, 1983 more particularly Section 48(1) of the said Act. 3. Section 48(1)(a)(b) of the Act reads as follows: "(1) A member of a registered society may execute an agreement in favour of that society providing that- (a) his employer or the officer disbursing his salary or wages shall be competent, on a requisition in writing https://hcservices.ecourts.gov.in/hcservices/ from the society to deduct every month from the salary or wages payable to him such amount as may be specified in the requisition towards the amount; and (b) if he ceases to be an employee, his employer shall be competent on a requisition in writing from the society to deduct from the gratuity payable to such employee such amount as may be specified in the requisition towards the entire balance, due by him to the society in respect of any debt or other demand owing by the member to the society." 4. It is the case of the petitioner society that each one of the members, who are the employees of the respondent Corporation have executed an agreement in terms of Section 48(1)(a) and (b) of the Tamil Nadu Cooperative Societies Act. When they retired from the service of the respondent, they leave the office without paying the dues to the society without any justification and the respondent Corporation is also not deducting the amounts payable to the society. Such a stand on the part of the respondent Corporation is clearly breach of the statutory provisions contained in Section 48(1) (b), which is set out above. 5. Mr.S.M.Subramanian, learned counsel for the petitioner inW.P.No.7335 of 2009 also brought to the notice of this Court a similar direction given by this Court in W.P.No.3864 of 2008 in respect of another society floated by the employees of the State Transport Corporation employees. The petitioner also filed a similar case in W.P.No.2596 of 2009. This Court by a common order dated 17.2.2009 disposed of the Writ Petitions after referring to the legal provisions with the following directions: "18. In view of the above, all the Writ Petitions are allowed and the orders impugned therein are set aside. The respondents are directed to continue to effect recovery of dues to the Cooperative Societies from the salaries of those employees, who have an agreement with the Cooperative Societies and in respect of whom a requisition in writing has been made by the respective societies." 6. Notwithstanding this direction, the petitioner society found that the employees are allowed to retire and walk away with the lump sum terminal benefits without settling the dues of the society. This forced them to file the present Writ Petitions. 7. Section 48(7) of the Act reads as follows: "(7) The provisions of this section shall apply notwithstanding any law to the contrary for the time being in force." https://hcservices.ecourts.gov.in/hcservices/ 8. They received the assent of the President on 15.7.1993. Therefore, in terms of Article 254 (2) of the Constitution, the said law will prevail over any other law. If there is any repugnancy between the Act and the other laws in question, Section 48(7) has overriding effect over these laws. The respondent Corporation cannot feign ignorance about the legal provisions. 9. On notice from this Court, the respondent Corporation has filed a counter affidavit dated 14.12.2009 stating that the previous order passed by this Court is not applicable to the present prayer in question and that the gratuity payable to the employees are governed by separate Rules, namely Anna Transport Corporation Limited Gratuity Trust Rules and Regulations. Therefore, the Writ Petition is not maintainable. In W.P.No.18976 of 2009, the respondents have not filed any counter affidavit. The stand taken by the respondent Corporation is unsustainable. 10. In the light of the earlier ruling given by this Court as well as the legal provisions found under the Cooperative Societies Act extracted above, since the employees of the Corporation have executed tripartitie agreement and the respondent Corporation being a garnishee in terms of such an undertaking and there being a statutory obligation under section 48 (7) of the Act recovering certain amount, the respondent's action in not deducting the amounts due to the Cooperative Society is certainly illegal and impermissible. 11. In the light of the above, both the Writ Petitions stand allowed. However, there will be no order as to costs. The connected Miscellaneous Petitions stand closed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar ajr To THE MANAGING DIRECTOR TAMIL NADU STATE TRANSPORT CORPORATION(SALEM) LIMITED NO.12 RAMAKRISHNA ROAD, SALEM-636 007. + 1 c.c. to Mr. S. M. Subramaniam, Advocate. S.R.No.4279. + 1 c.c. to Mr. T. Sundaravadhanam, Advocate. S.R.No.4336. W.P.Nos.7335 and 18976 of 2009 MRD (CO) GSK 02.02.2010. https://hcservices.ecourts.gov.in/hcservices/