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SUPREME COURT OF INDIA
A.K. SIKRI, R.K. AGRAWAL, JJ.
THE MAHARASHTRA STATE COOPERATIVE HOUSING FINANCE CORPORATION LTD. – APPELLANT(S)
VERSUS
PRABHAKAR SITARAM BHADANGE – RESPONDENT(S)
CIVIL APPEAL NO. 1488 OF 2017
Decided On : 30-03-2017
(b) Maharashtra Cooperative Societies Act, 1960 – Section 91(1) – Jurisdiction of Cooperative court – Will not have jurisdiction to grant reinstatement in case of a workman being dismissed. (Para 7)
(1976) 2 SCC 58 – Relied upon
1970 1 LLJ 32; 1959 SCR 1236; 1964 1 LLJ 1 – Referred
(c) Service law – Contract of personal services – Not enforceable under common law – Section 14, r/w section 41(e), Specific Relief Act, 1963 – Civil court not having jurisdiction to grant reinstatement as it would amount to enforcing contract of service – Exceptions – Employee not falling under any exception cannot claim reinstatement – He can only seek declaration that termination was wrongful and claim damages for such wrongful termination of services – Appellant Corporation not a ‘State’ – Respondent not a Government/public servant nor a ‘workman’ – Entitled to claim damages in civil court. (Para 7, 8)
(d) Maharashtra Cooperative Societies Act, 1960 – Section 91(1) – ‘Business of the society’ – Would not cover service disputes of employer and employee. (Para 13)
(1969) 1 SCR 887; (1969) 2 SCC 43; (2006) 6 SCC 80 – Relied upon
(e) Maharashtra Cooperative Societies Act, 1960 – Section 91(1) – ‘Management of the society’ – – Would not cover service disputes of employer and employee. (Para 14)
(1979) 3 SCC 123; (1979) 3 SCC 123 – Relied upon
(1997) 5 SCC 125 – Distinguished
Facts of the case:
The respondent had joined the services in the appellant Corporation in the year 1975 as an Inspector and was promoted to the post of Branch Manager (Class-I) in the year 2000. For certain acts of misconduct he was put under suspension and after enquiry he was dismissed. His departmental appeal was also dismissed.
The respondent approached the Cooperative Court challenging the orders of dismissal from service as well as the order rejecting the departmental appeal.
The Corporation challenged the jurisdiction of the Cooperative Court to entertain and decide the service dispute between the employer and the employee which was dismissed.
Appeal thereagainst was dismissed.
Writ petition challenging these orders has also been dismissed.
Finding of the Court:
Cooperative Court does not have the jurisdiction to entertain the claim filed by the respondent.
Result: Appeal allowed.
Understood. Please provide the legal document content (inside
JUDGMENT
A.K. SIKRI, J.
The appellant, Maharashtra State Cooperative Housing Finance Corporation Limited (hereinafter referred to as the ‘Corporation’), is a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960 (hereinafter referred to as the ‘Act’). The respondent had joined the services in the appellant Corporation in the year 1975 as an Inspector. He was promoted to the post of Branch Manager (Class-I) in the year 2000. For certain acts of misconduct allegedly committed by the respondent, he was put under suspension vide orders dated July 11, 2003. Thereafter, a charge-sheet was served upon him and the departmental inquiry conducted, which resulted in dismissal order dated April 28, 2006 passed by the Corporation, dismissing the respondent from service. His departmental appeal having dismissed, the respondent approached the Cooperative Court at Aurangabad, which is set up under the Act, on April 19, 2007 challenging the orders of dismissal from service as well as the order rejecting the departmental appeal by filing Dispute No. 61 of 2007. On receiving the notice in the said dispute petition, the Corporation filed an application for rejection of the petition of the respondent on the ground that the Cooperative Court set up under the Act did not have the jurisdiction to entertain and decide the service dispute between the employer and the employee, inasmuch as the dispute in question did not touch upon the business of the society and was not covered by the provisions of Section 91 of the Act. The Cooperative Court dismissed the said application holding that it had the requisite jurisdiction to decide the dispute. Order of the Cooperative Court was challenged by the appellant before the Cooperative Appellate Court in the form of an appeal. This appeal was dismissed confirming the orders of the Cooperative Court. Further challenge was laid by the appellant by filing a writ petition before the High Court of Judicature at Bombay, Aurangabad Bench. This writ petition has also been dismissed vide judgment dated January 21, 2014. Present appeal assails the said judgment of the High Court.
2. From the aforesaid, it becomes clear that the issue that needs to be decided is as to whether the Cooperative Court established under the Act has the requisite jurisdiction to decide ‘service dispute’ between a cooperative society established under the Act and its employees.
3. Section 91(1) of the Act, scope whereof is to be examined, reads as under:
"91. Disputes. - (1) Notwithstanding anything contained in any other law for the time being in force, any dispute touching the constitution, elections of the committee or its officers other than elections of committees of the specified societies including its officer, conduct of general meetings, management or business of a society shall be referred by any of the parties to the dispute, or by a federal society to which the society is affiliated or by a creditor of the society, to the Cooperative Court if both the parties thereto are one or the other of the following -
(a) a society, its committee, any past committee, any past or present officer, any past or present agent, any past or present servant or nominee, heir or legal representative of any deceased officer, deceased agent or deceased servant of the society, or the liquidator of the society or the official assignee of a deregistered society;
(b) a member, past member of a person claiming through a member, past member of a deceased member of society, or a society which is a member of the society or a person who claims to be a member of the society;
(c) a person other than a member of the society, with whom the society, has any transactions in respect of which any restrictions or regulations have been imposed, made or prescribed under Section 43, 44 or 45, and any person claiming through such person;
(d) a surety of a member, past member or deceased member, or surety of a person other than a member with whom the society
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