High Court Allows Writ Petition for Service Benefits Payment in Instalments Due to Financial Crisis. Court Holds Writ Maintainable Under Statutory Provisions of Tamil Nadu Cooperative Societies Act, 1983.

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

The case involved a writ petition filed by the petitioner seeking a Writ of Mandamus to direct the respondents to relieve him from the Virudhachalam Taluk Co-operative Housing Society and to pay his service benefits amounting to Rs.16,58,143/-. The petitioner submitted his resignation due to health issues, which was accepted by the society, and he sought the payment of his Provident Fund and gratuity as per the Tamil Nadu Cooperative Societies Act, 1983. The first respondent opposed the maintainability of the writ petition, citing a previous Full Bench decision, while the second respondent did not contest the claim. The court found that the petitioner was entitled to the benefits under statutory provisions, thus ruling that the writ petition was maintainable. The court acknowledged the financial difficulties of the society but ordered the payment of the service benefits in three instalments to ensure the petitioner received his dues. The court's decision emphasized the importance of statutory compliance in the payment of service benefits.

Headnote

A) Constitutional Law - Writ of Mandamus - Maintainability of Writ Petition - Article 226 of the Constitution of India - The court held that the writ petition is maintainable as the petitioner seeks enforcement of rights protected under statutory provisions of the Tamil Nadu Cooperative Societies Act, 1983. The court noted that the petitioner is not claiming rights under the bye-laws but under the statute, thus allowing the writ petition (Paras 8-9).

B) Cooperative Societies Law - Service Benefits - Payment of Provident Fund and Gratuity - Tamil Nadu Cooperative Societies Act, 1983, Sections 78 and 79 - The court directed the respondents to settle the service benefits amounting to Rs.16,58,143/- in three instalments due to the financial crisis faced by the society, while ensuring the petitioner receives the entitled amounts (Paras 10-12).

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Issue of Consideration

Whether the writ petition is maintainable and if the petitioner is entitled to service benefits under the Tamil Nadu Cooperative Societies Act.

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Final Decision

The court allowed the writ petition, directing the respondents to settle the service benefits amounting to Rs.16,58,143/- in three instalments due to the financial crisis faced by the society.

Law Points

  • Writ of Mandamus
  • maintainability of writ petition
  • statutory provisions
  • Tamil Nadu Cooperative Societies Act
  • service benefits
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Case Details

2026 LawText (MAD) (09) 318

WP No. 25553 of 2024

2026-09-11

C.Kumarappan

2026:MHC:3981

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

V.Nagarajan

The Deputy Registrar of Co-operative Societies (Housing), Virudhachalam Taluk Co-operative Housing Society Ltd.

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Nature of Litigation

Writ petition seeking relief from a cooperative society and payment of service benefits.

Remedy Sought

Petitioner sought a Writ of Mandamus to direct the respondents to relieve him and pay service benefits.

Filing Reason

Petitioner filed due to acceptance of resignation and non-payment of dues.

Previous Decisions

Previous Full Bench decision questioned the maintainability of the writ petition.

Issues

Maintainability of writ petition Entitlement to service benefits under statutory provisions

Submissions/Arguments

Petitioner argued for entitlement to benefits under statutory provisions. Respondent contended that the writ petition is not maintainable due to financial crisis.

Ratio Decidendi

The court held that a writ petition is maintainable for enforcement of rights under statutory provisions, specifically Sections 78 and 79 of the Tamil Nadu Cooperative Societies Act, 1983.

Judgment Excerpts

The withholding of the gratuity and Provident Fund amounts is contrary to the provisions of Sections 78 and 79 of the Tamil Nadu Cooperative Societies Act. The court directed the respondents to settle the service benefits amounting to Rs.16,58,143/- in three instalments.

Procedural History

The writ petition was filed under Article 226 of the Constitution of India, with the petitioner seeking relief from the cooperative society and payment of service benefits.

Acts & Sections

  • Tamil Nadu Cooperative Societies Act: 78, 79
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