Tamil Nadu   

“Varsity bound to pay subsistence allowance”

-- PHOTO: R. Biksham Ruther

MADURAI: The Madurai Kamaraj University cannot escape from its liability to pay subsistence allowance to suspended employees as it is bound by the Tamil Nadu Payment of Subsistence Allowance Act, 1981, the Madurai Bench of the Madras High Court has ruled.

Dismissing a writ petition filed by the institution, Justice K. Chandru rejected its argument that the Tamil Nadu Subsistence Allowance Act would not apply to the varsity because it was an autonomous institution governed by the Madurai Kamaraj University Act, 1965. “The legal maxim generalia specialibus non derogant (special law will override the general law) will apply to the present case.

The Subsistence Allowance Act is undoubtedly a special law in so far as the obligation and the rate of payment of subsistence allowance is concerned. Therefore, the question of any conflict between the two legislations does not arise,” he said.

On the other contention of the university that it would not fall under the term ‘establishment’ found in the Tamil Nadu Subsistence Allowance Act, the Judge said that the Act defines the term ‘establishment’ as a place where an industry, trade, business, undertaking, manufacture, occupation or service was carried on.

Further, the term, ‘industry,’ has been given a wider interpretation by a seven-Judge Bench of the Supreme Court in 1978 and it was held that a university was also an industry though its teachers were not covered under the Industrial Disputes Act.

With reference to Section 5 of the Subsistence Allowance Act which states that the Act shall not affect any right or privilege which is more favourable to an employee, Mr. Justice Chandru said: “The petitioner university not having shown to have better terms of subsistence allowance, it is bound by the provisions of the Tamil Nadu Payment of Subsistence Allowance Act.”

The university had filed the writ petition against an order passed by the Deputy Commissioner of Labour to pay subsistence allowance to a watchman-cum-gardener who was suspended in 2002 for his negligence that left trees worth Rs.45 lakh being stolen from the varsity.

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