HEMANT KUMAR SARASWAT Vs. THE JACKSON CO-OPERATIVE CREDIT SOCIETY
LAWS(RAJ)-2016-11-10
HIGH COURT OF RAJASTHAN
Decided on November 29,2016

Hemant Kumar Saraswat Appellant
VERSUS
The Jackson Co-Operative Credit Society Respondents

JUDGEMENT

NAVIN SINHA,J. - (1.) The present appeal assails order dated 13.09.2013 allowing S.B. Civil Writ Petition No.18575/2012. The Learned Single Judge set aside the Award dated 09.07.2012 of the Central Government Industrial Tribunal-cum-Labour Court, Jaipur directing reinstatement with 25% back wages, holding that the Central government was not the "appropriate Government" for making the reference under Section 10 of the Industrial Disputes Act,1947 (hereinafter referred to as 'the ID Act')
(2.) Learned Counsel for the Appellant submits that membership of the respondent Society is restricted to railway employees only. An employee ceases to be a member upon retirement. The bye-laws provide that the General Manager of the western railways was the nominated President of the Society, and the Financial Controller and Chief Accounts officer were the nominated Vice President and Financial advisor of the Society. The loans given by the Society to its members were recovered by deduction from their salary by the railways, incorporated in their pay slips. The railways charged a fee from the Society for making such deduction. The Society therefore functions under the control and authority of the railways. The State Government cannot interfere with the management and functioning of the Society. The Circular dated 1.5.1912 issued for establishment of the Society makes it evident that it was established at the behest of the officers of the western railways.
(3.) Under Section 38 of the Multi-State Co-operative Societies Act, 2002 (hereinafter called 'the Multi-State Co- operative Act'), the President alone was authorised to represent the Society at meetings with other societies. Referring to Section 48 it was submitted that the Central Government had the right to make such number of nominations to the Board of Directors of the Society dependent on the subscribed share capital by it. Section 77 empowered the Central Government to direct special audit into the affairs of a multi-state co-operative society. The Central Government could give directions to the Society under Section 122 in public interest or for proper implementation of the Act and that under Section 123, the Central Government could supersede a Society and appoint an Administrator if it was negligent in performance of duties under the Act or was acting prejudicial to the interest of the Society or its member.;


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