IMPORTANT POINT
Labour Court and Industrial Laws are not applicable where complete machinery has been provided under the provisions of the Cooperative Societies Act.

Headnote:(i) LABOUR LAW—U.P. Cooperative Societies Act, 1965—Sections 122, 128 & 135—U.P. Industrial Disputes Act, 1947—Section 6H(1)—Grievances of employees of Cooperative Societies—Scope of jurisdiction of Addl. Labour Commissioner—Disputes arising out of terms and conditions of employment of Society’s employees—Ex-gratia payments to employees were suspended by circulars issued by the Registrar, Cooperative Societies—However, Board of Directors passed a resolution for grant of ex-gratia to employees—Agreement for ex-gratia payment for 1999-2000 was entered by the Chairman of the Union without Registrar’s permission—161 employees of the Union moved an application u/s 6H(1) of the U.P. I.D. Act on basis of rights under the Agreement—Additional Labour Commissioner allowed the application u/s 6H and issued recovery certificate — Writ petition — Whether jurisdiction of Addl. Labour Commissioner was rightly invoked—(No)—Agreement between the Chairman of the Bank and the workmen was not enforceable—Provisions of U.P. Industrial Disputes Act held not applicable to Cooperative Societies—Application under Section 6H(1) is an illegal settlement arrived at between the Chairman and the Employees’ Association.
       Held : The general legal principle in interpretation of statutes is that ‘the general Act should lead to the special Act’. Upon this general principle of law, the intention of the U.P legislature is clear, that the special enactment UP Co-operative Societies Act, 1965 alone should apply in the matter of employment of Co-operative Societies to the exclusion of all other Labour Laws. It is a complete code in itself as regards employment in co-operative societies and its machinery and provisions. The general Act the UPID Act, 1947 as a whole has and can have no applicability and stands excluded after the enforcement of the UPCS Act. This is also clear from necessary implication that the legislature could not have intended ‘head-on-conflict and collision’ between authorities under different Acts.(Para 59)
       We are therefore of the view that the Asst. Labour Commissioner (ALC)’s jurisdiction was wrongly invoked and his order dated 15.03.2003 under section 6H, U.P. Industrial Disputes Act, 1947 is without jurisdiction and hence null and void and it can be observed that, in view of the said general legal principle, it is immaterial whether or not the government has enforced section 135 (UPCS Act) because, in any case the said provision (S.135) had been included in the Act only by way of clarification and abundant caution.(Para 62)
       The ALC, in law is not competent to declare the statutory order of the Registrar, CS, under section 128 of the CS Act to be ‘not proper’ and thereby to disregard the same. An order under S.128 is final and binding and cannot be questioned in any of law in view of S. 102 and even otherwise on general principles of law, an authority under the UPID Act cannot ignore or wish away the statutory consequences of the statutory order passed by the Registrar under sections 128, 102 etc. of the UP Co-operative Societies Act.(Para 64)
       Also the Registrar’s directions and order dated 07.03.2001, 19.03.2001 and 22.06.2001 requiring the BOD to reconsider its (offending) resolutions and finally annulling the same in exercise of his powers under S.128 are statutory in nature. They are still valid and occupy the field. They become final and binding under S.102 in because, no appeal was filed under S.98 of the CS Act and no arbitration reference was made under S.70 and 71 of the CS Act.(Para 65)
       The Appellants viz. Ghaziabad Zila Sehkari Bank Ltd. is a Cooperative Societies registered under the provisions of the U.P. Cooperative Societies Act, 1965 (Societies Act, 1965). The services of the employees of the Bank are governed by the provisions of the U.P. Cooperative Societies Employees Service Regulation, 1975 (Service Regulations, 1975) framed by the U.P. Cooperative Institutional Service Board. The emoluments and other kinds of allowances payable to the employees of the Bank are also governed by the provisions contained in the Service Regulations, 1975. In the instant case, it is relevant to mention that no agreement or settlement between the bank and its employees have above been arrived at before the Conciliation Officer nor any money is due to the employees under the provisions of Section 6-J(2) of the U.P Act, 1947 or under any settlement or any award given under the provisions of this Act. Therefore, the application under Section 6-H(1) is an illegal settlement arrived at between the Chairman and the Employees’ Association viz. Respondent Nos. 3 and 4. (Para 69)
       (ii) U.P. Cooperative Societies Act, 1965—Sections 122, 128 & 135—U.P. Cooperative Societies Employees Service Regulations, 1975—Regulation 42 —Ban on payment of ex-gratia payment to employees of the Cooperative Bank —Addl. Labour Commissioner had no jurisdiction to adjudicate the matter of employees with regard to payment of ex-gratia amount which runs contrary to Regulation 42 of the Service Regulations as well as circulars issued by the Registrar, Cooperative Societies—Any allowance or pecuniary benefits to employees shall be given only by the special order of the Registrar Cooperative Societies.
       Held : For giving pecuniary benefits or allowances to the employees governed by the aforesaid Regulations, 1975, the Registrar’s general or special order is necessary and if the particular Cooperative Society wants to grant the benefit, then it can be given only with the permission of the Registrar. Admittedly, in the present case, no permission was ever sought from the Registrar, rather on the contrary, action was taken contrary to the circulars issued by the Registrar, Cooperative Societies, U.P. issued from time to time, prohibiting payment of ex-gratia in this regard.(Para 71)
       It is relevant to mention here that to avoid such a situation of illegal agreements by the Chairman who is an elected representative and to protect misuse of public fund by the employees amongst themselves, the cooperative Act Rules and Regulations framed thereunder requires prior permission of the Registrar Co-operative Societies for grant of any pecuniary benefits because Regulation 42 of the U.P. Cooperative Societies Employees Service Regulations 1975 provides that any allowance or pecuniary benefits to employees shall be given only by the special order of the Registrar Cooperative Societies, U.P. which order was missing throughout.(Para 73)
       The payment of ex-gratia is an incentive for an employee for his good work. Therefore, it is governed by Regulation 42 (2) that any cooperative society may also grant pecuniary incentive only with the prior permission of the Registrar to any employee or a class of employees for outstanding performance. It clearly provides that for payment of ex-gratia, permission of the Registrar is must. Regulation 42 is itself very clear and is not in conflict with any of the provisions of the U.P. Act, 1947.(Para 74)
       (iii) INTERPRETATION OF STATUTES—Special Statutes—General Act should lead to the Special Act—General Act’s operation may be curtailed by a later Special Act when—U.P. Cooperative Societies Act and U.P. Industrial Disputes Act—Special enactment of U.P. Cooperative Societies Act alone should apply in the matter of employment of Cooperative Societies to exclusion of all other Labour Laws—Labour Law.
       Held : The general legal principle in interpretation of statutes is that ‘the general Act should lead to the special Act’. Upon this general principle of law, the intention of the U.P legislature is clear, that the special enactment UP Co-operative Societies Act, 1965 alone should apply in the matter of employment of Co-operative Societies to the exclusion of all other Labour Laws. It is a complete code in itself as regards employment in co-operative societies and its machinery and provisions. The general Act the UPID Act, 1947 as a whole has and can have no applicability and stands excluded after the enforcement of the UPCS Act. This is also clear from necessary implication that the legislature could not have intended ‘head-on-conflict and collision’ between authorities under different Acts.(Para 59)

JUDGMENT

Dr. AR. Lakshmanan, J.—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.

3. 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 the employees 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.

4. 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.

BACKGROUND FACTS :

5. 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.

6. Agreement reads thus:

“AGREEMENT

Keeping in view, the position likely to ensue on resorting to total strike, talks were held, as per programme fixed prior to 24.01.2001, in the interest of bank, between Sarvashri Mukesh Gaud, Nirdosh Singh, Ghandharva, Satyendra Singh, and K.P. Singh, on behalf of the Cooperative Bank Employees Union Ghaziabad as well as Sarvashri S.S. Bhatia, Rakesh Sharma, Vinod Kumar and Narendra Prasad Sharma on behalf of the Cooperative Bank Staff Association Union, Ghaziabad both being the organization of Bank employees on one side, and Shri Krishna Veer Singh Sirohi, the Chairman of the Bank on behalf of the District Cooperative Bank Ltd. Ghaziabad (The Soil Sahkari Bank Ltd. Ghaziabad) on the other side, on the subject of the Joint Notice No. C-1 dated 26.12.2000.

After the talks, a consensus wa

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2007 Supreme(SC) 67

IMPORTANT POINTLabour Court and Industrial Laws are not applicable where complete machinery has been provided under the provisions of the Cooperative Societies Act.

Cases Referred (16)

IMPORTANT POINT
Labour Court and Industrial Laws are not applicable where complete machinery has been provided under the provisions of the Cooperative Societies Act.