The Hindu Business Line : Co-op bodies can't deny subsistence allowance to suspended employees: HC

Chennai April 9 If an employee of a cooperative society was kept under suspension pending enquiry, and when bye-laws of society were either silent on the question of suspension or did not provide for any payment of subsistence allowance, decisions on this were very clear - there should be no shirking by society from paying subsistence allowance, the Madras High Court has held.

Mr Justice K. Chandru, while allowing a writ petition by Mr S. Sukumar, Manager, Dharapuram Public Servants' Co-op Thrift & Credit Society, challenging an order dated November 2, 2004 of the society ordering recovery of subsistence allowance paid to him, said that courts had held time and again that without subsistence allowance, it would be difficult for employees to make a sustenance and denial of such allowance even infringed Article 21 of Constitution. Hence, objection raised by the society was overruled.

The Society contended that petitioner being a manager was not covered by TN Payment of Subsistence Allowance (PSA) Act. So, he could not claim payment of subsistence allowance.

The Judge said that a person like petitioner might not be covered by the PSA Act. Though PSA Act might apply to respondent society, petitioner could not be held to be a workman within definition of Act.

In the light of clear legal pronouncements by various courts, including Supreme Court, this Court was inclined to quash order of the society, the Judge said. The court could not approve the decision of the society in recovering allowance from petitioner. The writ petition shall stand allowed and impugned order of recovery was hereby set aside. Since petitioner had suffered punishment of reduction in rank (from manager to a clerk), no further direction was given in terms of any balance amount to be paid to petitioner.

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Co-op bodies can't deny subsistence allowance to suspended employees: HC