Describing that denial of subsistence allowance amounted to deprival of an employee’s livelihood, the Madras High Court has observed that the management of a cooperative society cannot deny payment of the allowance to a suspended employee on the ground that it was incurring loss.
In a recent order, Justice D. Hariparanthaman said, “If the society is running at loss, it can very well close its business. The alleged loss incurred by the management cannot be a ground to deny the payment of subsistence allowance.”
Petitioner G. Mohanan sought a direction to the authorities to disburse the subsistence allowance to him for the period under suspension from November 26, 2012 to May 31, 2015 to the tune of Rs. 8.99 lakh for every succeeding month.
Counsel appearing for the co-operative society said that though it was willing to pay the allowance, it sought six months to pay the arrears of subsistence allowance.
The judge said, “I am not inclined to give the time sought for. Denial of subsistence allowance amounts to deprival of livelihood and is violative of Article 21 of the Constitution.”
The judge further directed the president of Meyyur Primary Agricultural Co Operative Society at Uthukottai in Tiruvallur district to pay arrears of subsistence allowance to the petitioner within four weeks and continue to pay the allowance every month till the completion of disciplinary proceedings.
‘If the society is running at loss, it can very well close its business. The alleged loss incurred by tit cannot be a ground to deny the payment of subsistence allowance’
In a recent order, Justice D. Hariparanthaman said, “If the society is running at loss, it can very well close its business. The alleged loss incurred by the management cannot be a ground to deny the payment of subsistence allowance.”
Petitioner G. Mohanan sought a direction to the authorities to disburse the subsistence allowance to him for the period under suspension from November 26, 2012 to May 31, 2015 to the tune of Rs. 8.99 lakh for every succeeding month.
Counsel appearing for the co-operative society said that though it was willing to pay the allowance, it sought six months to pay the arrears of subsistence allowance.
The judge said, “I am not inclined to give the time sought for. Denial of subsistence allowance amounts to deprival of livelihood and is violative of Article 21 of the Constitution.”
The judge further directed the president of Meyyur Primary Agricultural Co Operative Society at Uthukottai in Tiruvallur district to pay arrears of subsistence allowance to the petitioner within four weeks and continue to pay the allowance every month till the completion of disciplinary proceedings.
‘If the society is running at loss, it can very well close its business. The alleged loss incurred by tit cannot be a ground to deny the payment of subsistence allowance’
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