Decided on July 05,1984

Rajasthan Rajya Sahkari Appellant
Judge Industrial Respondents

Referred Judgements :-


Cited Judgements :-



N.M.KASLIWAL, J. - (1.)BOTH the above cases are disposed of by one single order as they arise out of an award given by the Industrial Tribunal, Rajasthan, Jaipur, dated April 22, 19(sic)0 between the same parties.
(2.)CERTAIN demands were raised by Rajasthan Rajya Sahkari Samitiyan Vyavasthapak Union (hereinafter referred to as 'Vyavsthapak Union'), in respect of betterment and upliftment of the service conditions of Vyasthapaka (managers) employed in village Agricultural Co -operative Credit Societies (hereinafter referred to as the 'PACS'). After failure of conciliation proceedings the State Government referred 11 demands for aojudication to the Industrial Tribunal. Learned Industrial Tribunal gave an award on April 22, 1980 and dealt with all the 11 demands in detail. The Tribunal repelled the objection raised on behalf of the Rajasthan Co -operative Credit Institutions Cadre Authority (hereinafter referred to as the 'Cadre Authority) that the cadre authority was not an industry within the meaning of Section 2(j) of the Industrial Disputes Act, 1947 (hereinafter referred to as 'the Act.'). We would not refer to all the demands raised and decided by the Tribunal as the dispute before us now relates to demand No. 1 only and which has been decided by the Tribunal as point No. 3 This demand No. 1 raised by the Vyavastbapaks Union reads as under: .........[vernacular ommited text]........... Learned Tribunal, while dealing with the above demand decided as under;
Considering the above facts the pay scales of managers of PACS are determined as under: (a) PASC doing credit business less than Rs. 2.00 lacs: (1) 280 -6 -292 -8 -340 -10 -410 -15 -455. (2) 300 -8 -340 -10 -41 -150 -500. (b) for PACS doing credit business of Rs. 2.00 lacs and above: (1) 300 -8 -340 -10 -410 -15 -500. (2) 355 -10 -415 -15 -550 -20 -570.
The above pay scales will also encourage the managers of PACS to give better results of their societies. The managers appointed in the first pay scale of each group will be eligible for promotion in the second pay scale of such group as per provisions given in the rules. The union has claimed that the pay scales determined should be made applicable with effect from 17 -5 -77 from the next of the dispute raised, but the above said contention cannot be relied in this case looking to the limited resources and the business conditions of PACS and the limited resources of the cadre authority discussed above. In the circumstances it is deemed proper that the pay scales should be made applicable with effect from 1 -1 -1980. The fixation of managers of PACS who have already put in 5 years service on or before 1 -1 -1980 shall be made in the new pay scale Rs. 280 -6 -292 -8 -340 -10 -410 -16 -455 with effect from 1 -1 -1980 by allowing them one extra increment and the managers with less than 5 years service shall be fixed as per their present pay at the next higher slab in the new grade. The managers who are getting less than the minimum of pay scale will be fixed at the minimum of the new scale. There after the cadre authority would promote the required number of managers for the primary credit societies having credit business Rs. 2.00 lacs or above District wise on the basis of seniority cum -merit as per rules of promotion given in the service rules, 1977 & will put them as managers of PACS having credit business Rs. 2.00 lacs or above as per their last closed accounts, and fix them in the first scale of Rs.2.00 8 -340 -10 -410 -15 -500 provided for such PACS Such managers will be eligible for promotion given in second scale of their grond as per provision for promotion given in the rules. The managers of nonvoiable PACS on attaining voibility by such PACS, will also be fixed in the above mannere in futur. The managers who work in such PACS having credit business of Rs. 2.00 lacs or above till the managers in such PACS is appointed by a selection in the above manner, may be paid the difference of the pay they are getting and on which the incumbent would be fixed, as officiating pay for this intervening period. In this demand No. 1 the union has also claimed dearness allowance with respect of the pay scale made payable to the managers The demand may be considered reasonable to certain extent as the increased dearness is required to be neutralised by payment allowance that may be considered proper; but in the present case it is not considered expedient to grant the same as the paying capacity of the cadre authority is very limited as discussed above and therefore, it is not deemed advisable to burden it further by allowing the dearness allowance payable along with the above pay scales. However, it is observed that the cadre authorities should approach the proper authorities to devise means to raise its sources and to provide the same in the rules so that its paying capacity may increase to enable it to pay some dearness allowance to its PAC managers determinable in the manner recognised by law.
Aggrieved against the aforesaid award the cadre authority filed writ petition No. 1436/80 and the Vyavasthapak union filed writ petition No. 393/81. The writ petition filed by the Vyavasthapak union was beard and dismissed in limine by the learned single Judge by order, dated March 12, 1981. Aggrieved against the said order the Vyavsthapak union has filed the special appeal. During the course of hearing of the special appeal learned Counsel for both the parties submitted that the arguments in writ petition No. 1436/80 were idnentical and as such the writ petition may also be disposed of along with the special appeal. It was also submitted by the learned Counsel that in the writ petition as well as in the special appeal, the same award given by the Industrial Tribunal, dated April 22, 1980 was under challenge and in this view of the matter it was directed that the writ petition be connected with special appeal No. 169/81.

(3.)WE would first deal with the writ petition No. 14(sic)6/80 filed by the cadre authority challenging the award, dated April 22, 1980 passed by the Industrial Tribunal. The only contention raised by Mr. Pathak, learned Counsel for the cadre authority, was that the cadre authority was not an industry within the meaning of Section 2(j) of the Act and as such no industrial dispute could have been raised and the award given by the Industrial Tribunal was itself without jurisdiction. In this regard it was submitted by Mr. Pathak that the PACS, Managers, (Selection, Appointment and Service) Rules, 1977 clearly show the PACS managers are required to work in Gram Sewa Sahkari Samitis and their selection, appointment and service conditions are provided in the aforesaid rules of 1977. The cadre authority merely exercises control and authority on the managers of the PACS, the control over these PACS managers as the district level is vested in the Centre Co -operative Banks located in the District. The payment of salary and allowance to the managers of the PACS is made from the managers salary fund maintained at the level of Central Co -operative Banks in the District. The managers salary fund is created by rateable contribution from out of the margin of 2% profit gained by the Gram Sewa Sahkari Samitis by advancing loans to its members out of which 1.50% (now changed to 1% with effect from 1 -7 -79) is contributed towards the said funds. The Central Co -operative Banks at the district level also contributed a part of its profits on loaning towards this fund. The Apex Bank also contributed a part of its profits on loan, towards this fund. The cadre authority is only a controlling, transferring and disciplinary authority of managers of the PACS The cadre authority does no business whatsoever and is not a profit earning institution. It provides no service to anybody. The managers of the PACS work in the societies allotted to them and are paid from out of the funds created from contributions in the manner indicated above. The cadre authority has no capital of its own saving which is raised by rateable contribution from the bodies mentioned above. It is thus submitted that the learned Industrial Tribunal committed a serious error in holding that the cadre authority was an industry.

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