The Managing Director v. B.Shanthi
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 30.06.2017
CORAM:
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MR.JUSTICE P.VELMURUGAN W.A.[MD].No.871 of 2017 and C.M.P(MD)No.5820 of 2017 1.The Managing Director, Head Office, Panthiyan Road, Chennai.
2.The Regional Manager, Andal Street, Alagappan Nagar, Madurai-625 003.
: Appellants/Petitioners Vs.
B.Shanthi.
...Respondent/Respondent
PRAYER: Writ Appeal is filed under Clause 15 of the Letters Patent against the order dated 09.02.2017 made in W.P.(MD).No.166 of 2009 on the file of this Court.
Prayer in WP(MD). 166/ 2009 :
Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, calling for the records relating to the impugned proceedings of the 2nd respondent in RC/Theni Co-optex/Debt Recovery pending/2007/J, dated 17.4.2007 and quash the same in so far as fastening liability on the petitioner's deceased husband late P.Balasubramanian, employed as Manager Grade- III and consequently direct the respondents herein to disburse the death-cum-terminal benefits of Rs. 4,60,621-20 to the petitioner on the death of here husband together with interest at 12% pa., and all the arrears within a reasonable time.
For Appellants : Mr.M.P.Senthil For Respondent : Mr.K.Appadurai.
JUDGMENT
************* [Judgment of the Court was delivered by T.S.SIVAGNANAM, J.] Heard Mr.M.P.Senthil, learned counsel appearing for the appellants and Mr.K.Appadurai, learned counsel appearing for the respondent.
2.By consent, the Writ Appeal is taken up for final disposal. 3.This Writ appeal is directed against the order dated 09.02.2017 made in W.P.(MD).No.166 of 2009.
4.The respondent challenged the order of recovery passed by the second appellant dated 17.04.2007, by filing the writ petition insofar as fastening the liability on the respondent's husband late P.Balasubramanian, who was employed as Manager Grade-III and sought for a consequential direction to disburse the death-cumterminal benefits of Rs.4,60,621.20 to the respondent along with interest. The Writ Court after considering the case of the parties and referring to the decision of the case rendered in Manimozhiyal V. Chief Executive Officer, Tamil Nadu Khadi and Village Industries Board reported in (2006)2 MLJ, 359, allowed the writ petition and directed the appellants to disburse the death cum terminal benefits of the respondent's deceased husband being a sum of Rs.4,60,621.20 to the respondent with interest at 12% per annum. Challenging the same, the appellants are before us with this writ appeal.
5.After hearing the learned counsel for the appellants, we are of the considered view that the order passed by the learned Single Judge, in allowing the writ petition and quashing the order of recovery is proper. However, the direction issued for payment of Rs.4,60,621.20 along with interest at 12% per annum, is not sustainable for the following reasons.
6.The respondent has produced the statement of account showing the dues payable to the husband of the respondent. The respondent's husband died on 26.10.2006. According to the statement of the respondent's husband is liable to pay a sum of Rs.4,96,302.55. This amount includes a sum of Rs.4,33,620.60 being the credit sales old dues. (that is the dues which were not recovered or recoverable from the persons who purchased goods on credit.) 7.The learned Single Judge, following the Judgment in the case of Manimozhiyal (cited supra) and quashed the impugned recovery order holding that the appellant society cannot fasten the liability of credit sales old dues of Rs.4,33,620.60 on the late
husband of the respondent herein. The appellants admit that the respondent's husband has settled the staff society dues of Rs. 49,786/-. The remaining amount recoverable is Rs.12,895/-. Though the respondent contested the same, considering the fact that the late husband passed away in the year 2006, we direct that the said amount can be recovered from the amount payable to the respondent. In other words, the appellants are entitled to deduct a sum of Rs.12,895/- from out of sum of Rs.4,60,621.20ps., and disburse the remaining sum of Rs.4,47,726.20ps., to the respondent within a period eight weeks from the date of receipt of a copy of this Judgment. This direction will put an end of the dispute between the parties.
It is made clear that no further recovery can be made from the respondent nor the respondent can demand any further claim against the appellant's society. With regard to grant of interest, the Writ Court did not assign any specific reason as to why the interest has to be awarded. Merely because, there is a delay in disbursement of amount that by itself cannot be the reason for the grant of interest as ordered by the Writ Court as it is a penal levying and there should be a specific finding as why interest is payable. Further the reason for setting aside the order of recovery was on account of the decision rendered by this Court in the case of Manimozhiyal (cited supra) that on account of a legal interpretation. Therefore, the respondent was granted relief by virtue of such legal interpretation.
Hence, we are of the view the respondent is not entitled for the interest on the said amount as ordered by the learned Single Judge.
8.In the result, this Writ Appeal is partly allowed and the appellants are entilted to deduct a sum of Rs.12,895/- from Rs.4,60,621.20ps., and disburse the remaining sum of Rs.4,47,726.20ps., within two weeks from the date of receipt of a copy of this judgement. The order directing payment of interest is set aside. No costs. Consequently, connected miscellaneous petition is closed.
Sd/- Assistant Registrar(Writs) /True Copy/ Sub Assistant Registrar To
1. The Managing Director, Head Office, Panthiyan Road, Chennai.
2. The Regional Manager, Andal Street, Alagappan Nagar, Madurai-625 003.
+1 cc to Mr.M.P.Senthil , Advocate in SR.No. 62974 +1 cc to Mr.K.Appadurai , Advocate in SR.No. 62945 Myr/ia AE/KP/SAR3/09.08.2017/4P/5C JUDGMENT MADE IN W.A.[MD].No.871 of 2017 and C.M.P(MD)No.5820 of 2017 30.06.2017