WP/26977/2023 of M.RAMAKRISHNAN Vs THE JOINT REGISTRAR OF COOPERATIVE SOCIETIES on 11 September 2026

ORDER

The present writ petition has been filed for issuance of a writ of certiorarified mandamus calling for the entire records relating to the impugned order passed by the 3rd respondent in his proceedings Nil dated 28.08.2023 and quash the same and consequently, direct the respondents to disburse interest at the rate of 18% for belated payment of Gratuity to the petitioner.

2. The learned counsel for the petitioner submitted that the petitioner was appointed as Clerk in the 3rd respondent Society and he was working as Secretary at the time of retirement. He was superannuated on 31.03.2020 and on the date of his retirement, he is entitled to have gratuity amount of Rs.8,18,862/-. However, the respondents have withheld the amount on account of one of the borrowers to whom the petitioner has advanced loan in the capacity of Secretary committed default. It is the specific submission of the learned counsel for the petitioner that advancement of loan is only a part of the petitioner’s duty and that he neither stood as a guarantor and nor at his risk, he advanced the loan. He further submitted that by following all the procedures and in accordance with the Society norms he has advanced the loan in favour of one Sri Lakshmi Self Help Group to the tune of Rs.1,78,000/-. It is not the case of the respondents that in advancing such loan, there was irregularity. In spite of that, on their request, the petitioner had given a letter to withhold Rs.1,77,576/- from his Gratuity and requested them to permit him to retire. The conduct of the respondents for asking the petitioner to give a letter to withhold a sum of Rs.1,77,576/- from his Gratuity amount and not settling the Gratuity amount since March 2020 till 21.03.2023 is against all canons of law and it directly affects the petitioner's right to life. Hence, the present writ petition.

3. Per contra, the learned Additional Government Pleader totally objected the submissions made by the learned counsel for the petitioner and submitted that during the tenure of the petitioner as a Secretary, he was responsible for the recovery of the loan amounts due from Self Help Groups and that certain loan amounts remain un-recovered. On verification, an amount of approximately Rs.1,77,576/- was found to be recoverable, in respect of a loan transaction relating to one Sri Lakshmi Women Help Group. The petitioner being fully aware about the said outstanding, has voluntarily executed a letter on 26.03.2020 requesting the respondents to withhold Rs.1,77,576/- from his retirement benefits and only based on his request, after withholding the above amount, his retirement benefits were settled, except Gratuity amount and the Gratuity amount was credited into the respondent's account on 07.05.2020. The moment the Self Help Group loan was waived as per G.O.M.S.No.114 dated 31.03.2021 and which order was received by the petitioner on 18.03.2023, the respondent had released the Gratuity amount on 20.03.2023 and therefore there is absolutely no fault or delay on the part of the respondents. Therefore the question of granting any interest does not arise. It is also the contention of the learned Additional Government Pleader that the petitioner has got appellate remedy and therefore, the filing of the present writ petition is liable to be dismissed.

4. Heard both sides and perused the materials available on record.

5. It is not in dispute that the petitioner has got an appellate remedy. However, the contention of the petitioner is that by withholding of his terminal benefits, his right to life has been infringed by the respondents. It is a well settled principle of law that notwithstanding the availability of the alternative remedy, wherever the fundamental right or constitutional right violated, the parties are entitled to file a writ petition to protect their constitutional right. In the case on hand, the petitioner admittedly retired from service on 31.03.2020. However, the respondents paid the Gratuity amount only on 21.03.2023. It is no longer res integra that Gratuity and other terminal benefits would come within the definition of the term “property” as defined under Article 300 (3) of the Constitution. Therefore, whenever any property right is affected, the authority cannot act according to their own whims and fancies and they must act in accordance with law. Though the learned Additional Government Pleader relies on Section 48 of the Tamil Nadu Cooperative Societies Act, 1983 to contend that if there is any wilful negligence, they can withhold the amount, there are no materials available before this Court to demonstrate the alleged wilful negligence on the part of the petitioner.

6. On perusal of the records, what emerges is that on the date of retirement, some of the amount which was advanced by the petitioner in his capacity as Secretary, that too in accordance with law, was defaulted by the borrower. For the default of the borrower, the respondents appear to have obtained certain letter from the petitioner so as to withhold a sum of Rs.1,77,576/- from his Gratuity amount. Even for argument sake, if the respondents have withheld the amount only based upon the letter of the petitioner, the letter which has been submitted to the respondents would only indicate that the petitioner has given consent to withhold a sum of Rs.1,77,576/- from the Gratuity amount, whereas the total Gratuity amount is Rs.8,18,082/-. Therefore, withholding the entire Gratuity amount, as rightly contended by the learned counsel for the petitioner, would directly impinge his constitutional right and right to life. Therefore, an employee of any institution cannot be left to the discretion of the higher officials and the higher officials should act in accordance with law. As already stated, this Court absolutely does not find any ground for the respondents to withhold the Gratuity amount. Therefore, this Court is of the firm view that the withholding of entire Gratuity amount of Rs.8,18,082/- is not in accordance with law. However, there is a justification on the part of the respondents to withhold a sum of Rs.1,77,576/- as the petitioner himself has given a letter to that effect.

7. A perusal of the counter affidavit filed by the third respondent would show that the Gratuity amount was credited to the Society account on 07.05.2020, whereas it was disbursed to the petitioner only on 20.03.2023. Out of Rs.8,18,082/-, a sum of Rs.1,77,576/- was deducted as the petitioner himself had agreed to withhold the same. As far as the remaining amount of Rs.6,40,506/- is concerned this Court is of the firm view that the petitioner is entitled to have a reasonable interest for the above remaining amount. In this regard, it is relevant to advert to the judgment of the Honorable Supreme Court in the case of S. K. Dua Vs State of Haryana and another [(2008) 3 SCC 44]. In the above judgment, it has been clearly held that even if no rule or law provides for awarding of interest, the Court, while exercising the power under Article

226, in order to protect the constitutional right, can award interest for the default made by the authorities concerned. In this case, as per the detailed discussion herein above, the authorities have committed a grave injustice to the petitioner by withholding the amount for nearly about three years. For this period, the petitioner is entitled to have interest. Hence, to meet the interests of justice, this Court directs the respondents to pay interest at the rate of 6% per annum, from the date of credit i.e., 07.05.2020 till the date of actual disbursal dated 20.03.2023 for the amount of Rs.6,40,506/-.

8. With the above observation and direction, this writ petition is disposed of. No costs. Consequently, connected miscellaneous petition is closed. 11-09-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No DPQ

C.KUMARAPPAN, J. DPQ To

1. The Joint Registrar Of Cooperative Societies, Cuddalore Region, Cuddalore, Cuddalore District.

2. The Deputy Registrar Of Coop. Socities, Cuddalore Circle, Cuddalore, Cuddalore District.

3. The Administrator/management, E-2547, Nallathur Primary Agricultural, Co-op Credit Society, Nallthur Post, Cuddalore Taluk And District. WP No. 26977 of 2023 11-09-2026