THIRUVALLUVAR TRANSPORT CORPORATION EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD Vs. N THIYAGARAJAN MANAGING DIRECTOR STATE EXPRESS TRANSPORT CORPORATION LTD

JUDGEMENT

(1.) THIS Contempt Petition has been filed by M/s. Thiruvalluvar Transport Corporation Employees' Co-operative Credit Society ltd., represented by its Secretary and the respondent is the Managing Director of the State Express Transport Corporation Limited, Chennai. THIS Contempt Petition arises out of the order passed by this Honourable High Court in W.P. No.356609 of 2003 dated 17.2.2003.

(2.) ACCORDING to the petitioner, the petitioner is a Co-operative Society formed for the benefit of the welfare of the members who are all employees of the State Express Transport Corporation who is the respondent herein. The object of the society is to borrow funds to be utilized for loans to members, in the process, deposits are collected from members and loans are granted for the members for various purposes and the loan amounts are repayable in monthly instalments. The member employees are to give consent to the respondent-Corporation for deducting the loan instalments from the salary. The society is to send a statement on 25th of every month containing the details from the amounts to be deducted form each member employee and based on the statement, the respondent-Corporation should deduct the amount from the salaries of the member employees every month on the date of payment. The deducted amount from the salary of all the employees to be sent to the society along with the statement on or before 14th of every month. In the said process, as the respondent failed to make the payment of the amount which was deducted form the salary of the employees from the month of July, 2003, the petitioner-Society was forced to file W.P.No.35609 of 2003 praying for a direction to the respondent not to withhold the amount deducted for more than 11 days from the date of deduction and also for a direction to pay the amount already recovered and not paid. On 17.12.2003, an order was passed by this Honourable Court in the said Writ Petition as follows:"Whatever arrears is due to the petitioner society as on 31.12.2003, after giving credit to the remittance already made, shall be paid by the respondent in any event not later that 31.3.2004. The respondent is directed to deduct from the salary of each member (borrowers) commencing from the month of January, 2004, when the payment of salary is made and remit the deducted amount to the credit of respective members in the petitioner-Society within 14 days from the date of such deduction.".

(3.) MR. S. Ayyadurai, learned counsel appearing for the petitioner admitted that the deducted amount as mentioned in the counter affidavit has been paid to the society by the respondent and even for the period up to July, 2009, cheques have been issued for the amount deducted in the salary of the members, be the interest accrued has not been paid by the respondent till date.