Authority: Madurai Bench of Madras High Court (Justice M. Dhandapani)

Order Date: 07 July 2026

Case Overview

  • Petitioner: Sri Vinayagamoorthy Primary Agricultural Cooperative Credit Society, represented by President Kulumani (Trichy District).
  • Respondents: (1) The Controlling Authority under the Payment of Gratuity Act 1972 / Deputy Commissioner of Labour, Office of the Joint Commissioner of Labour, Trichy; (2) K. Chelladurai (former clerk/secretary of the Society).
  • Background:
  • K. Chelladurai was appointed Clerk in 1976 and later served as Secretary.
  • He was suspended on 25‑01‑2007 and dismissed on 29‑02‑2008 after a domestic enquiry.
  • He appealed the dismissal before the Appellate Authority under the Tamil Nadu Shops and Establishments Act; the appeal was allowed on 31‑08‑2011, setting aside the dismissal.
  • The Society previously filed a writ petition (W.P.(MD) No.2097 of 2012) which was dismissed on 18‑12‑2014.
  • Chelladurai subsequently filed a computation petition for back wages (25‑01‑2007 to 31‑10‑2011) claiming a last drawn salary of Rs 17,367/‑ but stating his basic salary at termination was Rs 9,119/‑. The Labour Court awarded Rs 3,92,117/‑ for back wages (31‑03‑2011 to 31‑10‑2014), which has been paid.
  • He then applied to the Deputy Commissioner of Labour for gratuity under the Payment of Gratuity Act for the period 04‑09‑1976 to 30‑10‑2014 (38 years of service). The Deputy Commissioner fixed his last drawn salary at Rs 24,427/‑ and directed payment of Rs 5,35,515/‑ as gratuity.
  • Petitioner's Contentions: The petitioner argued that Chelladurai’s last drawn salary should be Rs 9,119/‑ (as per his own statements and the Labour Court’s basis) and that the Deputy Commissioner’s figure of Rs 24,427/‑ was unsustainable.
  • Respondent's Contentions: Chelladurai relied on salary revision documents (Exs. A5 and A6) and a Government Order (G.O. No.189 dated 17‑Nov‑2009) approving the salary enhancement, supporting the Rs 24,427/‑ figure.

Final Outcome

  • The Court examined the affidavit and the salary revision documents, concluding that the revision was duly approved and applied to Chelladurai.
  • Accordingly, the Court held that the Deputy Commissioner’s fixation of the last drawn salary at Rs 24,427/‑ for gratuity calculation was correct and did not merit interference.
  • The writ petition (W.P(MD) No.6187 of 2023) was dismissed with no costs awarded to either party.
  • The connected miscellaneous petition was also closed.

Topics: Gratuity Law, Cooperative Society Employment Dispute