Madras High Court Allows Writ Appeal in Cooperative Society Case — Writ Petition Not Maintainable. The court ruled that service-related grievances of cooperative society employees must be addressed through alternative remedies under the Tamil Nadu Cooperative Societies Act.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The dispute arose from a writ petition filed by the first respondent seeking settlement of his terminal benefits after resigning from his position as Junior Assistant on 11.01.2019. The Tamil Nadu Co-operative Federation, the appellant, contested the maintainability of the writ petition, arguing that the first respondent was not an employee of the Federation and that the settlement of terminal benefits should follow the procedures outlined in the Act and Rules. The first respondent contended that the non-settlement of his benefits violated his rights under Article 21 of the Constitution. The court analyzed the arguments, referencing the larger bench judgment in K. Marappan v. The Deputy Registrar of Co-operative Societies, which clarified that cooperative societies are not 'State' under Article 12, and thus, service-related grievances cannot be addressed through writ petitions. The court concluded that the writ petition was not maintainable and set aside the writ order, allowing the first respondent to pursue a revision petition under Section 153 of the Tamil Nadu Cooperative Societies Act. The appeal was allowed, and the court directed that any such revision petition be entertained without reference to delay (Paras 1-24).

Headnote

A) Constitutional Law - Writ Jurisdiction - Maintainability of Writ Petition - Article 226 of the Constitution of India - The court held that service-related grievances of employees of cooperative societies cannot be addressed through writ petitions under Article 226, as cooperative societies are not considered 'State' under Article 12. The court emphasized the need to exhaust alternative remedies provided under the Tamil Nadu Cooperative Societies Act before approaching the High Court (Paras 22-24).

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Issue of Consideration

Whether the writ petition for settlement of terminal benefits was maintainable under Article 226 of the Constitution of India.

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Final Decision

The writ order dated 02.04.2026 was set aside, allowing the first respondent to file a revision petition under Section 153 of the Tamil Nadu Cooperative Societies Act, with directions for the competent authority to entertain the petition without reference to delay and decide on merits expeditiously.

Law Points

  • Writ jurisdiction
  • Cooperative societies
  • Terminal benefits
  • Article 21
  • Alternative remedy
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Case Details

2026 LawText (MAD) (09) 273

WA No. 2023 of 2026

2026-09-10

S. M. Subramaniam, Krishnaswamy Govindarajan

Mr.S.Kanmani Annamalai, Mr.M.S.Palaniswamy, Ms.A.Suganya

The Managing Director Tamil Nadu Co-operative Federation

P.Padmanaban

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Nature of Litigation

Writ appeal against the order of the Writ Court regarding terminal benefits.

Remedy Sought

The appellant sought to set aside the Writ Court's order and absolve liability for the fourth respondent society.

Filing Reason

The first respondent filed a writ petition for settlement of terminal benefits after resignation.

Previous Decisions

The Writ Court allowed the writ petition based on a previous Division Bench judgment.

Issues

Whether the writ petition for settlement of terminal benefits was maintainable under Article 226 of the Constitution of India. Whether the appellant was liable for the terminal benefits claimed by the first respondent.

Submissions/Arguments

The appellant argued that the writ petition was not maintainable as the first respondent was not an employee of the Federation and that terminal benefits should be settled according to the Act and Rules. The first respondent contended that the non-settlement of terminal benefits violated his rights under Article 21 of the Constitution.

Ratio Decidendi

The court held that cooperative societies are not 'State' under Article 12, and service-related grievances must be addressed through alternative remedies under the Tamil Nadu Cooperative Societies Act.

Judgment Excerpts

The writ order impugned dated 02.04.2026 made in W.P.No.19725 of 2022 is set aside. The service conditions of the employees of the cooperative society are governed under its byelaws, which are approved by the Registrar of Cooperative Societies.

Procedural History

The first respondent filed a writ petition seeking terminal benefits, which was allowed by the Writ Court. The appellant then filed a writ appeal against this order.

Acts & Sections

  • Tamil Nadu Cooperative Societies Act: Section 78, Section 79, Section 153
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