The Hindu Business Line : HC ruling on subsistence allowance for suspension period

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HC ruling on subsistence allowance for suspension period

Our Legal Correspondent

Co-operative society case

Chennai , Jan. 2

The contention of a co-operative society that a dismissed employee could claim payment of subsistence allowance only if he contested the dismissal successfully was not valid since such allowance was payable under the TN Payment of Subsistence Allowance Act 1981, which had been made applicable to the co-operative societies, the Madras High Court has ruled.

However, the Panruti Agricultural Producers Co-op Marketing Society was correct in contending that all sums computed by the Labour Court and payable to Mr K. Chakrabani, who was a cashier, could not be granted and that he was only eligible for subsistence allowance in terms of the rules, Mr Justice K. Chandru held.

The petitioner, who was suspended from service pending enquiry by order dated August 29, 1985 was dismissed on September 18, 1997. He approached the Labour Court, Cuddalore, claiming certain amounts, which, according to him, were payable on account of his prolonged suspension under Section 33(0(2) of the Industrial Disputes Act. The Labour Court passed an order on February 23, 1999, which was being challenged now.

The Judge said that with the enactment of the 1981 law, the rate of subsistence allowance would have to be calculated only in terms of that Act.

Hence the `fancy' claims of the petitioner, including claim for full wages as well as bonus, surrender leave, etc were all without any basis.

The contention of the society that the petitioner would have to first question the order of dismissal could not be accepted in light of clear law in favour of workman.

In these circumstances, writ petition was liable to be allowed in part, and the order of the Labour Court was liable to be set aside to the extent that it granted amounts under various heads.

Writ petition stood allowed and the society was directed to compute the amount payable to the petitioner in terms of 1981 Act, and make payment within eight weeks.

If the society successfully challenged the dismissal of the employee, he could certainly make a claim on other heads, which he had made in present claim petitions.

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