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Case Law Details

Case Name : T.M.Dinesh Kumar Vs Malabar Cancer Centre Socity (Kerala High Court)
Appeal Number : WP(C).No. 37894 of 2016 (J)
Date of Judgement/Order : 14/03/2017
Related Assessment Year :
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Having considered the rival contentions on either side, it would appear that all these objections initially arose on the ground that there was no discussion held with the employees’ association regarding the shifting to the new official bank, as seen from Ext.P1 1. Therefore, it was a matter which could have been resolved at the end of the 1st respondent itself and the matter has reached this court as a result of the ego which played between the petitioners as well as those who are at the helm of affairs of the 1st respondent.

As far as the drawal of salary through a bank account is concerned, it will not be necessary that each of the employees should have the salary account with official bank itself. The official bank can very well transfer the salary of the petitioners to their accounts existing in SBI, on a request/standing instruction from the accounts wing of the 1st respondent. For such transfers, the 1st respondent need not compel the petitioners to open zero balance account or salary account with IDBI, in case they do not want to have any transaction with the IDBI. The audit objection raised against making payment in cash could have been rectified by placing proper instructions to the official bank of the 1st respondent having the financial transactions including salary of the staff of the 1st respondent to transfer the salary due to the petitioners to their account. As soon as the account number and other details of the petitioners are furnished to the official Bank, it is quite possible that the amounts due to each of the employee are credited to their account. Thereby the 1st respondent will get the services of the IDBI also as explained by them in the counter affidavit even without insisting the petitioners to have accounts with the IDBI. Such trivial matters could have been solved at the end of the 1st respondent itself. Therefore, denial of salary to the petitioners on the ground that they did not open account with IDBI bank is illegal.

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