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1998 Supreme(AP) 638

Andhra Pradesh High Court
Judges : N.Y.HANUMANTHAPPA, NEELAM SANJIVA REDDY
V.GOPALAKRISHNAIAH - Appellant
Versus
DISTRICT CO-OPERATIVE CENTRAL BANK, KAKINADA - Respondent
Decided On : 09-10-98

Headnote:AP SHOPS AND ESTAB-LISHMENTS ACT - -Sec47(3) - AP CO-OPERATIVE SOCIETIES RULES, 1964, R28(5) - Employees of Co-operative Central Bank - Age of superannuation - Employees working in the cooperative banks have no right to continue in service upto the age of 60 years, since statutory rules provided under Act, 1964 which governs the service conditions of the employees envisages the age of their retirement at the age of 58 years

N. Y. HANUMANTHAPPA, J.

( 1 ) ALL these writ petitions have been filed by the employees working in the district Co-operative Central Bank Ltd. , of various districts seeking a direction to the respondents in the nature of a writ of Mandamus declaring the action of the respondents in fixing the age of superannuation of the petitioners at 58 years and contrary to the provisions of the Andhra Pradesh Shops and establishments Act, 1988 (Act 20 of 1988) (for short the Act, 1988); and for a consequential order directing the respondents to continue the petitioners in service upto the age of sixty (60) years in the respondents-Banks.

( 2 ) THE point that arises for consideration in all these writ petitions is one and the same, Hence all these writ petitions are clubbed together and disposed of by this common judgment.

( 3 ) THE facts, in brief, are that the petitioners in these writ petitions are appointed in the respondents/banks in various districts under various capacities and discharging their duties. It is their contention that they have no managerial, administrative or supervisory power since their duties are basically clerical in nature, that the petitioners are working within the meaning of Section 2 Clause (s) of Industrial Disputes Act and also as per the provisions of Act, 1988. As per the bye-laws of the respondents/banks, the age of superannuation is 58 years. It is further submitted that as per Section 47 of the Act, 1988, an employee working in a shop or establishment is entitled to continue upto the age of 60 years and can retire either on medical grounds or for any reason by giving notice of fifteen days to the employer, that the respondents/bank is an establishment under the Act, 1988, that the provisions of the Act, 1988 will prevail over the bye-laws and the employees working, in the establishment are entitled to continue upto 60 years of age. As regards the sugar factories maintained by the Co-operative Societies, the Government itself issued G. O. Ms. No. 396 dated 3-9-1990 fixing the age of superannuation at 60 years. There is no rationale in retiring the employees working in the co-operative societies other than the co-operative sugar factories at the age of 58 years, that the petitioners were issued notices to retire from service at the age of 58 years. Therefore, the petitioners seek a direction from this Court to continue them in service till they attain the age of sixty (60) years.

( 4 ) ON the other hand, the General Manager of the respondents/bank filed a counter-affidavit contending that even if the provisions of the Act, 1988 are made applicable in the case of petitioners, the petitioners have an alternative statutory remedy and that the provisions of Section 47 (3) of the Act, 1988 fixes the age of retirement of the employees governed by the said Act. It is further submitted that the respondents/bank is not a commercial establishment as defined under Section 2 (5) of the Act, 1988, nor is it an establishment as defined under Section 2 (10) of the Act, 1988. Merely because the provisions of Section 77 of the Act, 1988 are made applicable to the Co-operative societies, notwithstanding anything contained in the Act, 1964, it cannot be said to be a co-operative society unless it comes within the definition of a commercial establishment or an establishment as defined in the Act, 1988, that the respondent/bank makes profits out of its transactions except to the extent specified by the NABARD to meet its establishment charges, that the respondents /bank does not carry on any commercial transactions of the nature contemplated under Section 2 (5) of the Act, 1988, that the respondent/bank is a co-operative bank as definied in Part-5 of the Banking Regulations Act, 1949, that though the respondents/bank is a co-operative society, its functioning and administration is governed by the provisions of the Banking regulations Act, 1949, that the provisions of Section 47 (3) of the Act, 1988 cannot be interpreted to


















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