2000 Supreme(Kar) 574
Karnataka High Court
Naganath - Appellant
Versus
Common Cadre Committee, Bidar - Respondent
Decided On : 09-26-00
W.A. : 5084 of 1998
K.SUBBA RAO, SHANTESH GURREDDI
The main legal point established is that individuals employed mainly in managerial or administrative capacities are not considered 'workmen' under the I.D. Act.
Headnote:
Labour Court - Secretaries - Industrial Disputes Act, 1947, Section 33-C(2), Payment of Bonus Act, 1965 - Societies Act, NABARD Act - The court discussed the relationship between the secretaries, the primary societies, and the central bank, and the jurisdictional issue of whether the secretaries are workmen within the meaning of the I.D. Act. The court found that the secretaries are not workmen and set aside the award of the Labour Court.
Fact of the Case:
The appellants, secretaries of Primary Agricultural Credit Co-operative Societies, filed an application seeking payment of bonus under the Payment of Bonus Act. The validity of the award was challenged, and the court was required to determine whether the appellants are workmen within the meaning of the I.D. Act.
Finding of the Court:
The court found that the secretaries are not workmen within the meaning of the I.D. Act and set aside the award of the Labour Court.
Issues: The main issue was whether the secretaries are workmen within the meaning of the I.D. Act.
Ratio Decidendi: The court held that the secretaries, appointed to discharge managerial, executive, and administrative functions, are not 'workmen' under the I.D. Act.
Final Decision: The court set aside the order of the learned single Judge and quashed the award of the Labour Court.
( 2 ) THE validity of the above award was assailed by the District Central Co-operative bank Limited, Bidar District, as also the committee by filing three writ petitions before this Court which had been disposed of by the learned single Judge by the impugned order inter alia remanding the matter to the Labour court to record a finding as to whether the appellants are workmen within the meaning of the I. D. Act. The appellants being aggrieved by the said order have preferred this appeal.
( 3 ) SRI Subba Rao, learned counsel appearing for the appellants, submitted that on the facts and circumstances of the present case there was no occasion on the part of the learned single Judge to remand the case to the Labour court for arriving at a finding as to whether the appellants are workmen within the meaning of the I. D. Act or not since such an objection was never taken by the Committee before the labour Court.
( 4 ) IN order to decide the issue raised on behalf of the appellant certain more fundamental aspects touching upon the mutual relationship of the contesting parties requires to be examined. We first proceed to do so. RE : JURISTIC STATUS AND INTER SE relationship OF THE SOCIETIES
( 5 ) THE Primary Societies for which the appellants had been appointed as Secretaries are registered co-operative societies under the provisions of the Karnataka Co-operative societies Act, 1959 (in short "the Societies act" ). These are Primary Rural Credit societies within the meaning of clause (n) of section 2 of the National Bank for Agriculture and Rural Development Act, 1981 (in short "the NABARD" Act ). Their functions are to provide financial accommodation to their respective members for agriculture, agricultural operations, for the marketing of crops or for rural developments.
( 6 ) BIDAR District Central Co-operative bank Ltd. (in short "the Central Bank") is also a registered co-operative society under the provisions of the Societies Act. It is a "central co-operative Bank" within the meaning of clause (d) of Section 2 of the NABARD Act. Its primary object is to finance other co-operative societies in the district of Bidar like the Primary Societies.
( 7 ) SECTION 9 of the Societies Act declares that registration of a co-operative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and do all things necessary for the purposes for which it was constituted. Therefore both the primary Societies as well as the Central Bank are independent juristic persons owing their existence and functions to the statutory provisions referred to above.
( 8 ) IT may be noticed here that the short term and medium term agricultural credit to the agriculturists in the Bidar district is being provided by the Primary Societies of the district which in turn are affiliated to the Central Bank which functions as the federal society in respect of such Primary Societies. The