GHAZIABAD ZILA SAHKARI BANK LTD Vs. ADDL LABOUR COMMISSIONER
LAWS(SC)-2007-1-5
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on January 17,2007

GHAZIABAD ZILA SAHKARI BANK LTD Appellant
VERSUS
ADDL.LABOUR COMMISSIONER Respondents

JUDGEMENT

A.R.Lakshmanan, J. - (1.) THE present appeals were filed challenging the final judgment and order dated 04.04.2003 passed by the High Court of Judicature at Allahabad in Civil Misc. Writ Petition No. 12890 of 2003 whereby the High Court dismissed the writ petition.
(2.) THE consequence of the dismissal of the writ petition is that the High Court has affirmed the order dated 15.03.2003 passed by the Addl. Labour Commissioner, Ghaziabad, U.P., who according to the appellant has got no power to pass such an order explaining the scope of the powers of the Registrar under Section 128 of the U.P. Cooperative Societies Act. According to the appellant under the U.P. Cooperative Societies Act, 1965 (hereinafter called 'the Act') read with U.P. Cooperative Societies Employees Service Regulation, 1975 framed by U.P. Cooperative Industrial Service Board and which has also been approved by the Governor and published in the official gazette under Section 122 of the U.P. Cooperative Societies Act, 1965, a full fledged remedy and mechanism to agitate the grievances of tees of Cooperative Societies are already contained. According to the appellant, the U.P. Cooperative Societies Act, 1965 being a special enactment will prevail over the U.P. Industrial Disputes Act and in any view of the matter application made by the employees of the Bank under Section 6H(1) of the U.P. I.D. Act on the basis of an agreement improperly entered into is not maintainable. Therefore, it is submitted that the Addl. Labour Commissioner U.P. Ghaziabad exceeded his jurisdiction in passing the order dated 15.03.2003. By the said order, the Addl. Labour Commissioner allowed the payment of Rs.11,10,398/- as an ex-gratia payment to the employees of the appellant-Bank for the year 1999-2000 from the public fund. According to the Bank, if such a payment is allowed, then there are 50 more such banks and employees of said Banks who will claim same relief on the ground of parity and discrimination which will erode the public money running in several crores as similar payments made were the reasons for liquidation of District Cooperative Bank, Gonda. It was further contended that if the above payment is allowed, then all credit Cooperative Societies will crumble down and the cooperative movement shall vanish in the entire State of U.P.
(3.) THE U.P. Cooperative Societies Employees Service Regulations, 1975 were framed by the U.P. Cooperative Institutional Service Board constituted by the State Government. THE Government issued a circular prohibiting ex-gratia payment (over and above pay) by Cooperative Societies. In September, 1989, the Registrar, Cooperative Societies issued circulars prohibiting payment of ex-gratia amounts on 11.09.1987, 10.05.1995, 29.10.1997 and 17.02.2000 since the same was contrary to Rules. Accordingly, ex-gratia payments to employees were suspended. However, on 13.01.2001, the Board of Directors passed a resolution for grant of ex-gratia to employees on 13.01.2001. Agreement for ex-gratia payment for 1999-2000 was entered by the Chairman of the Union without Registrar's permission under Regulation 42. Agreement reads thus: JUDGEMENT_14_TLPRE0_2007Html1.htm On 14/17.02.2001, Secretary wrote to the Chairman to refer to the Board of Directors resolutions dated 13.01.2001 and 3.2.2001 to the Registrar. The Chairman failed to do so. Hence, the Secretary himself referred the matter to the Registrar under Rule 130. JUDGEMENT_14_TLPRE0_2007Html2.htm ;


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