Madras High Court Allows Writ Appeal in Cooperative Society Dispute — Writ Petition Not Maintainable. Non-settlement of terminal benefits does not constitute a violation of statutory public duty under the Tamil Nadu Cooperative Societies Act, 1983.

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 Tamil Nadu Cooperative Societies Act and its byelaws. 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 considered 'State' under Article 12, and thus, service-related grievances cannot be addressed through writ petitions. The court emphasized the necessity of exhausting alternative remedies provided under the Act before approaching the court. Ultimately, the court set aside the writ order and allowed the appellant's appeal, directing that the first respondent could file a revision petition under Section 153 of the Tamil Nadu Cooperative Societies Act to seek redress for his grievances. The court mandated that any such petition be entertained without reference to delay and decided on merits expeditiously.

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 redressed through writ petitions as cooperative societies are not 'State' under Article 12, and alternative remedies must be exhausted first. (Paras 11-22)

B) Cooperative Societies - Terminal Benefits - Non-settlement of Benefits - Tamil Nadu Cooperative Societies Act, 1983 - The court ruled that the non-settlement of terminal benefits does not constitute a violation of statutory public duty, and employees must seek redress through the statutory provisions rather than through writ petitions. (Paras 15-21)

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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 writ appeal. The first respondent was permitted to file a revision petition under Section 153 of the Tamil Nadu Cooperative Societies Act, which must be entertained without reference to delay and decided on merits.

Law Points

  • Writ jurisdiction
  • Cooperative societies
  • Terminal benefits
  • Alternative remedy
  • Article 226
  • Article 12
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Case Details

2026 LawText (MAD) (09) 274

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.

Filing Reason

The first respondent filed 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. Whether the non-settlement of terminal benefits constituted a violation of statutory public duty.

Submissions/Arguments

The appellant argued that the writ petition was not maintainable as the first respondent was not an employee of the Federation. The first respondent contended that the non-settlement of benefits violated Article 21 of the Constitution.

Ratio Decidendi

The court held that cooperative societies are not 'State' under Article 12, and thus, service-related grievances cannot be addressed through writ petitions. Employees must exhaust alternative remedies provided under the Tamil Nadu Cooperative Societies Act before approaching the court.

Judgment Excerpts

The writ petition is not maintainable in view of the judgment of the larger Bench of this Court. The service conditions of the employees governed by its bye-laws cannot be enforced through a writ petition. The writ order impugned dated 02.04.2026 made in W.P.No.19725 of 2022 is set aside.

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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