Case Note & Summary
The dispute arose when an employee of a primary agricultural cooperative credit society, who was suspended on allegations of misappropriation of funds exceeding Rs.1 crore, sought payment of subsistence allowance for the period of suspension. The employee, having been suspended pending disciplinary proceedings, approached the competent authority under the Tamil Nadu Payment of Subsistence Allowances Act, 1981 (the Joint Commissioner of Labour), which passed an order on 14.12.2021 directing payment of Rs.17,51,266 as subsistence allowance. The cooperative society did not comply, leading the employee to file a writ petition (W.P. No. 6284 of 2022) seeking a mandamus to enforce the order. A learned single judge allowed the writ petition on 08.12.2025, directing the society to disburse the amount. Aggrieved, the society preferred an intra-court appeal contending that the application before the Joint Commissioner was not maintainable because the society is governed by the Tamil Nadu Co-operative Societies Act, 1983, a special law, and the employee must exhaust the remedies provided thereunder, particularly Section 153 for revision. The appellant also argued that the special bye-laws approved by the Registrar of Co-operative Societies govern service conditions, including subsistence allowance, and that the general Subsistence Allowance Act cannot confer jurisdiction. The employee countered that subsistence allowance is a basic right and the bye-law itself refers to the Subsistence Allowance Act for determining quantum, thus the approach to the competent authority was proper. The Division Bench examined the jurisdictional issue, analyzing Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988, which mandates special bye-laws for service conditions, and Clause 31(2) of the appellant society's bye-laws, which provides for payment of subsistence allowance in accordance with the Subsistence Allowance Act. The court held that while the quantum is determined by the general Act, the power to grant subsistence allowance arises from the bye-laws approved under the Co-operative Societies Act. Therefore, any grievance regarding non-payment must be addressed through the mechanism of the Co-operative Societies Act: first to the employer management, and if not satisfied, to the revisional authority under Section 153. The court further held that the Cooperative Societies Act, being a special enactment, prevails over the general Subsistence Allowance Act, and the Joint Commissioner of Labour had no jurisdiction to entertain the application. The court drew support from the analogous treatment of provident fund and gratuity under Sections 78 and 79 of the Co-operative Societies Act, which exclude the application of the respective general Acts. Relying on a Division Bench precedent in Registrar of Co-operative Societies v. V.M.Elango (2021), the court acknowledged that total denial of subsistence allowance could violate Article 21, but this right must be enforced within the framework of the special law. Consequently, the appeal was allowed, the writ order was set aside, and the employee was given liberty to approach the management and, if necessary, the revisional authority. No costs were awarded.
Headnote
A) Jurisdiction - Maintainability of Application Under General Law - Special Law Overrides General Law - Tamil Nadu Co-operative Societies Act, 1983, Sections 136-D, 153; Tamil Nadu Co-operative Societies Rules, 1988, Rule 149; Tamil Nadu Payment of Subsistence Allowances Act, 1981 - The court held that the Tamil Nadu Co-operative Societies Act, 1983 is a special enactment governing cooperative societies and their employees, and the special bye-laws approved by the Registrar provide for subsistence allowance. The referential incorporation of the Subsistence Allowance Act in the bye-laws does not confer jurisdiction on the Joint Commissioner of Labour, as the power to grant subsistence allowance rests with the employer under the bye-laws. The application before the competent authority under the general Act is therefore not maintainable, and the employee must seek remedy under the special law. (Paras 7-9, 15) B) Exhaustion of Remedies - Statutory Remedies Under Special Act - Employee Must Approach Disciplinary Authority and Revisional Authority - Tamil Nadu Co-operative Societies Act, 1983, Sections 153, 154 - The court directed that a suspended employee aggrieved by non-payment of subsistence allowance must first submit an application to the management of the cooperative society and, if not acceded to, approach the revisional authority under Section 153 of the Co-operative Societies Act. The employee cannot bypass the special law remedies by invoking writ jurisdiction or approaching the authority under the general Subsistence Allowance Act. (Paras 15-16) C) Right to Subsistence Allowance - Suspension and Livelihood - Violation of Article 21 if Totally Denied - Constitution of India, Article 21 - Relying on the Division Bench decision in Registrar of Co-operative Societies v. V.M.Elango (2021 (1) CTC 465), the court recognized that while a total denial of subsistence allowance to a suspended employee may violate the fundamental right to life under Article 21, the employee must still assert the claim through the proper channels provided in the Co-operative Societies Act. The subsistence allowance is a right of sustenance but its quantum and payment are subject to the bye-laws and the employer's discretion, to be exercised reasonably. (Paras 14-15) D) Application of General Labour Legislations to Cooperative Societies - Analogous Reasoning from Provident Fund and Gratuity - Sections 78, 79 of Tamil Nadu Co-operative Societies Act; Employees Provident Funds and Miscellaneous Provisions Act; Payment of Gratuity Act, 1972 - The court drew a parallel with provident fund and gratuity provisions under the Co-operative Societies Act, explaining that where a cooperative society has its own schemes approved by the Registrar, the general Acts like the EPF Act and Gratuity Act do not apply. This analogy reinforces the principle that the subsistence allowance claim similarly must be pursued under the special law and not under the general Subsistence Allowance Act. (Para 10)
Issue of Consideration
Whether an application filed by a suspended employee of a cooperative society before the competent authority under the Tamil Nadu Payment of Subsistence Allowances Act, 1981 is maintainable, and whether the employee must exhaust the remedies provided under the Tamil Nadu Co-operative Societies Act, 1983.
Final Decision
The writ appeal is allowed. The impugned writ order dated 08.12.2025 in W.P.No.6284 of 2022 is set aside. The application filed by the 1st respondent before the Joint Commissioner of Labour under the Tamil Nadu Payment of Subsistence Allowances Act, 1981 is held not maintainable. The 1st respondent is given liberty to submit an application claiming subsistence allowance before the management of the cooperative society, and if aggrieved, may approach the revisional authority under Section 153 of the Tamil Nadu Co-operative Societies Act. No costs. Connected miscellaneous petition closed.
Law Points
- Legal points not extracted
- Special law prevails over general law
- subsistence allowance for cooperative society employees governed by special bye-laws and Tamil Nadu Co-operative Societies Act
- 1983
- application before Joint Commissioner of Labour under Tamil Nadu Payment of Subsistence Allowances Act
- 1981 not maintainable
- exhaustion of statutory remedies under Section 153 of Co-operative Societies Act mandatory
- total denial of subsistence allowance violates Article 21 but remedy lies within special law
