WP(C) No.6782 of 2025 1 2025:KER:31065 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN TUESDAY, THE 4TH DAY OF MARCH 2025 / 13TH PHALGUNA, 1946 WP(C) NO.6782 OF 2025 PETITIONER: KARUVANNUR SERVICE CO-OPERATIVE BANK LTD HEAD OFFICE, KARUVANNUR P.O, THRISSUR DISTRICT,REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER CUM ACTING SECRETARY RAJESH K.R, PIN - 680711 BY ADVS. V.BINOY RAM K.C.HARISH K.R.MONISHA RESPONDENTS: 1 DEPUTY LABOUR COMMISSIONER OFFICE OF THE DEPUTY LABOUR COMMISSIONER, CHEMBOOKAVU, THRISSUR, PIN - 680020 2 DISTRICT LABOUR OFFICER OFFICE OF DISTRICT LABOUR COMMISSIONER, CIVIL STATION, AYYANTHOLE, THRISSUR, PIN - 680003 3 DEPUTY TAHSILDAR OFFICE OF THE DEPUTY TAHSILDAR, MUKUNDAPURAM TALUK, CHEMMANDA ROAD, IRINJALAKUDA, PIN - 680125 WP(C) No.6782 of 2025 2 2025:KER:31065 4 VILLAGE OFFICER VILLAGE OFFICE, KARUVANNUR, PORATHISSERY, PIN - 680711 5 JILSE C.K S/O. KUMARAN, CHELLIKKARA HOUSE, PORATHISSERY, THRISSUR, PIN – 680125 BY ADV.SMT.C.S.SHEEJA, SR.GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) No.6782 of 2025 3 2025:KER:31065 JUDGMENT The petitioner Society has approached this Court challenging Ext.P9 order dated 23.05.2023 passed by the 1st respondent, the authority under the Payment of Subsistence Allowance Act, 1972 [for short, ‘the Act’]. 2. According to the petitioner, the 5th respondent was working as the Administrator/Manager of three supermarkets being run by the Society. Pursuant to Ext.P1 inquiry report submitted by the Chief Accountant of the Society, the 5th respondent was placed under suspension as per Ext.P2 in contemplation of an inquiry on the allegation that the 5th respondent has misappropriated stock of goods and committed certain irregularities. The 5th respondent was arrayed as an accused in the FIR registered under Sections 406, 420, 409, 465 and 34 of the Indian Penal Code, 1860 and the investigation WP(C) No.6782 of 2025 4 2025:KER:31065 is going on. In the meanwhile, the 5th respondent filed Ext.P8 application before the 1st respondent claiming subsistence allowance for the period from 24.08.2020 to 24.11.2020. The 1st respondent, vide Ext.P9 order, directed the petitioner to pay an amount of Rs.75,711/- as subsistence allowance to the 5th respondent for the said period. Pursuant to Ext.P9, Ext.P10 show-cause notice was issued by the 1st respondent as to why recovery steps shall not be taken against the petitioner for not complying with the directions in Ext.P9. By Ext.P11, the Secretary- in-charge of the petitioner informed the 1st respondent that criminal cases as well as domestic inquiry and surcharge proceedings were initiated against the 5th respondent and he is not entitled for subsistence allowance. Pursuant to Ext.P11 revenue recovery proceedings were initiated against the petitioner vide Exts.P12 and P13. Challenging WP(C) No.6782 of 2025 5 2025:KER:31065 Exts.P9, P12 and P13, the petitioner has filed this writ petition. 3. Heard the learned Counsel for the petitioner and the learned Senior Government Pleader. 4. Ext.P9 is dated 23.05.2023. The writ petition was filed on 11.04.2024. The defects noted by the Registry were cured and the writ petition was represented with a delay of 34 days, which was condoned by this Court. When the writ petition came up for consideration on 20.02.2025, the learned Counsel for the petitioner sought time and the writ petition is posted today. The main contention of the petitioner is that, the 5th respondent was working in an administrative capacity as he was given charge as Administrator/Manager of three supermarkets run by the Society. Going by Ext.P9, it can be seen that the petitioner has not raised any such contention WP(C) No.6782 of 2025 6 2025:KER:31065 before the 1st respondent. As per Section 198(6) of the Kerala Co-operative Societies Act, 1969 [for short, ‘the KCS Act’], the 5th respondent, not being the Chief Executive Officer of the Society, comes within the ambit of the KCS Act. No contention has been raised before the 1st respondent that the 5th respondent is not an employee as defined under the the Kerala Payment of Subsistence Allowance Act, 1972. The petitioner also did not have a case that the 5th respondent had accepted employment in any establishment during the period of suspension. Accordingly, the 1st respondent, by Ext.P9 order, directed the petitioner to pay subsistence allowance to the 5th respondent. Even in Ext.P11 reply to Ext.P10 show-cause notice issued by the 1st respondent, the petitioner had no case that the 5th respondent will not come within the ambit of an employee under the Act. Further, the writ petition WP(C) No.6782 of 2025 7 2025:KER:31065 is filed before this Court after about eleven months of passing Ext.P9 order. The reason projected for not filing the writ petition within time is that investigation is going on into the irregularities committed by the 5th respondent. I do not think that the same can be a reason for denying subsistence allowance to the 5th respondent. The pendency of criminal case also cannot be a reason for denying subsistence allowance, if the 5th respondent is otherwise eligible for the same. The writ petition lacks merits and the same is dismissed. Sd/- MURALI PURUSHOTHAMAN JUDGE sp/04/03/2025 WP(C) No.6782 of 2025 8 2025:KER:31065 APPENDIX OF WP(C) 6782/2025 PETITIONER EXHIBITS Exhibit-P1 TRUE COPY OF THE ENQUIRY REPORT DATED 21.08.2020 FOR THE PERIOD OF 2018-19 SUBMITTED BY CHIEF ACCOUNTANT TO THE PETITIONER Exhibit-P2 A TRUE COPY OF THE MEMO DATED 22.08.2020, GIVEN TO THE 5TH RESPONDENT BY THE PETITIONER Exhibit-P3 A TRUE COPY OF THE FIR NO. 0650 OF 2021 DATED 14.07.2021 FILED AGAINST PETITIONER SHOWING 5TH RESPONDENT AS AN ACCUSED Exhibit-P4 A TRUE COPY OF PROCEEDINGS OF STATE POLICE CHIEF DATED 21.07.2021 Exhibit-P5 A TRUE COPY OF SUBSEQUENT FIR LODGED BY STATE CRIME BRANCH BEARING FIR NO. 0165 OF 2021, DATED 21.07.2021 Exhibit-P6 A TRUE COPY OF RELEVANT PORTION WHERE DISCUSSION OWING TO THE 5TH RESPONDENT, FROM VOLUMINOUS ATTACHMENT ORDER OF ENFORCEMENT DIRECTORATE DATED 13.10.2023 Exhibit-P7 A TRUE COPY OF THE REPORT OF JOINT REGISTRAR (GENERAL) CO-OPERATIVE DEPARTMENT ISSUED UNDER SECTION 68(2) OF THE KERALA CO-OPERATIVE SOCIETIES ACT, 1969 Exhibit-P8 A TRUE COPY OF THE APPLICATION DATED 28.01.2023, FILED U/S. 4 OF THE PAYMENT OF KERALA SUBSISTENCE ALLOWANCE ACT, 1972 WP(C) No.6782 of 2025 9 2025:KER:31065 Exhibit-P9 A TRUE COPY OF THE ORDER OF THE 1ST RESPONDENT DATED 23.05.2023 TO PAY SUBSISTENCE ALLOWANCE TO THE 5TH RESPONDENT Exhibit-P10 A TRUE COPY OF SHOW-CAUSE NOTICE DATED 04.07.2023, ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER Exhibit-P11 A TRUE COPY OF COMMUNICATION DATED 20.07.2023 SENT BY THE PETITIONER TOWARDS THE 1ST RESPONDENT Exhibit-P12 A TRUE COPY OF ORDER ISSUED BY THE 3RD RESPONDENT DATED 09.01.2024 AGAINST THE PETITIONER Exhibit -P13 A TRUE COPY OF DEMAND NOTICE DATED 10.01.2024, ISSUED BY THE 3RD RESPONDENT