DEVADAS Vs. DY LABOUR COMMISSIONER

JUDGEMENT

(1.) IN the above Original Petitions the question that is mooted for consideration is whether the Assistant Secretary of Chittur Service co-operative Bank is entitled to subsistence allowance during his period of suspension. Contention of the Society is that he would not be entitled to any subsistence allowance as he was holding the post of an Assistant Secretary at the time of his suspension. It is contended that for that reason he is not an employee as defined under S. 2 (a) of the Kerala Payment of Subsistence Allowance act, 1972. Counsel for the Society argued that the Assistant Secretary was employed mainly in a managerial or administrative capacity and so he is disentitled from claiming subsistence allowance. Counsel relied on Sherthallai taluk Co-op. Land Mortgage Bank Ltd. v. Deputy Labour Commissioner (1990 (2)KLT 175) where a Division Bench of this Court held that Secretary of a society who is in full charge of the executive administration is a person who is employed in a managerial capacity and hence cannot be regarded as an employee as defined in S. 2 (a) of the Subsistence Allowance Act. He also relied on chittur Service Co-op. Bank Ltd. v. State of Kerala, (1992 (1) KLT 168) where a division Bench of this Court held that Branch Manager of a co-operative society is not an employee as defined in the Payment of Subsistence Allowance Act. Based on the said rulings counsel for the petitioner-Society submitted that assistant Secretary of the Society who is holding a post above that of a Branch manager cannot claim to be an employee under the aforesaid Act to claim subsistence allowance. .

(2.) LEARNED counsel appearing for the Assistant Secretary invited our attention to the proviso added to R. 198 (6) of the Kerala co-operative Societies Rules, 1969. The proviso reads: "provided that an employee not coming under the purview of the Kerala Payment of Subsistence Allowance Act, 1972 (27 of 1973)shall be entitled to subsistence allowance at the rate admissible to State government Employees as prescribed under the Kerala Service Rules. " The proviso was introduced on 26-6-1990. On the basis of the above proviso it is contended that whatever be the position earlier, subsistence allowance can be claimed by an employee of live society who does not come within the purview of the Payment of Subsistence Allowance Act. To counter the said argument counsel for the Society submitted that the claim of subsistence allowance by the Assistant Secretary was for various periods prior to the introduction of the proviso and as the proviso cannot have any retrospective operation he is not entitled to claim subsistence allowance.

(3.) THAT being the position, we hold that the Assistant secretary of the Society is entitled to subsistence allowance.