IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Civil Writ Petition No.15268 of 2010 Date of Decision : August 26, 2010. Gurbinder Singh and others .....Petitioners versus State of Punjab and others .....Respondents CORAM : HON'BLE MR.JUSTICE SURYA KANT. Present : Mr.Sandeep Arora, Advocate, for the petitioners. -.- 1. Whether Reporters of Local papers may be allowed to see the judgment? 2. To be referred to the Reporters or not? 3. Whether the judgment should be reported in the Digest? --- Surya Kant, J. (Oral) The petitioners are employees of a Co-operative Society, namely, the Tarn Taran Cooperative Sugar Mills Limited which is under liquidation in accordance with the procedure laid down under the Punjab State Cooperative Societies Act, 1961. Their claim for the conversion of Dearness Allowance equal to 50% of the existing pay into the Dearness Pay at par with other common cadre employees, has been turned down by the Registrar, Cooperative Societies, Punjab, vide the impugned order dated 24.5.2010 (Annexure P-15) after observing as follows:- “As per Section 59 of the Punjab State Cooperative Societies Act, 1961 and guidelines for Liquidation of Cooperative Societies, the liabilities payable on the date C.W.P.No .15268 of 2010 2 of liquidation are to be discharged in the following priorities:- j) Liquidation expenses. k) Government dues. l) Claims of employees in respect of Provident & Security Deposit. m) Pay and other claim of the employees. n) Secured Creditors (both principal and interest). o) Ordinary creditors (Principal only). p) Interest to ordinary creditors. q) Share money to the members. r) Any surplus should be disposed as ordered by the Registrar. Since Tarn-Taran Cooperative Sugar Mill is under liquidation, this demand of conversion of DA equal to 50% of existing pay into dearness pay do not fall in the above priorities, as it is an extended future liability. Thus, it is not justified to increase the liability on this account and therefore, this demand is rejected. As far as point No.2 is concerned, it is stated that the Tarn-Taran Cooperative Sugar Mills is under liquidation since 10.3.2006. The mill is not running and resultantly, its employees are not working. The employees of Tarn Taran Cooperative Sugar Mill cannot be equated with the employees of other Cooperative Sugar Mills which are running. Since Tarn-Taran Cooperative Sugar Mills has no source of income at prsent and not generating any funds, therefore, in the absence of source of income, this benefit of pay revision, cannot be granted to the employees of the mills under liquidation. C.W.P.No .15268 of 2010 3 As far as point No.3 is concerned, it is stated that the benefit regarding grant of interim relief @ 5% of pay/pension including dearness pay/dearness pension is purely applicable to those employees drawing pay on the basis of Government pattern. This benefit has not been given to any employees governed under Sugar Wage Board of any Cooperative Sugar Mills. Thus, the demand is unjustified and therefore, rejected.” I have heard learned counsel for the petitioners at some length and perused the impugned order. It could indeed be not disputed that in the event of liquidation of a Cooperative Society, the sale proceeds of its assets are liable to be disbursed in terms of the priorities given under Section 59 of the Act. No preferential treatment over and above the other statutory priorities can be given to the petitioners. Dismissed. August 26, 2010 (SURYA KANT) Mohinder JUDGE