K-113, KUGALUR PRIMARY AGRICULTURAL CO-OPERATIVE BANK LTD. Vs. THE JOINT COMMISSIONER OF LABOUR (APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT) AND ORS.

JUDGEMENT

(1.) The order dated 25.08.2003 passed in A.G.A.No.45/2001 is under challenge in the present writ petition.

(2.) The petitioner is K-113, Kugalur Primary Agricultural Co- operative Bank Limited, which is a society registered under the provisions of the Tamil Nadu Cooperative Societies Act, 1983. One Mr.K.S.Arumugam was appointed as an Appraiser in the writ petitioner Bank and later on, he was promoted as appraiser-cum-Assistant Secretary. On account of certain serious allegations of misappropriation, the disciplinary proceedings were initiated against the said employee. However, before completion of the disciplinary proceedings, the employee died and thereafter, further action was taken. It is an admitted fact that no final order has been passed in the disciplinary proceedings. The 3rd respondent, who is the blood brother of the deceased employee, filed an application for settlement of gratuity under the Payment of Gratuity Act, 1972. The claim of the 3rd respondent was allowed against which the writ petitioner Cooperative Bank filed an appeal before the Appellate authority and the Appellate Authority also confirmed the claim made out by the 3rd respondent. Challenging the said order, the present writ petition is filed.

(3.) The learned counsel for the writ petitioner states that the 3rd respondent is not the Class-I legal heir of the deceased employee and therefore, he has to produce the Succession certificate and other relevant certificates for the purpose of claiming gratuity. This apart, the writ petitioner is the Cooperative Bank registered under the provisions of the Tamil Nadu Cooperative Societies Act and the By-law approved by the Registrar of Cooperative Society provides the mode of payment of gratuity to the employees. The gratuity fund is maintained by the writ petitioner Bank in the Financing Bank namely, the Central Cooperative Bank. Thus, the gratuity is to be paid from and out of the said fund by following the procedures as contemplated in the By-laws of the Cooperative Societies. The procedure for payment is also stipulated in the By-laws.