SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2001 Supreme(Kar) 549

Karnataka High Court
Rajajinagar Co-operative Bank Limited, Bangalore - Appellant
Versus
Presiding Officer, Bangalore - Respondent
Decided On : 08-27-01
W.A. : 5770 of 1998

Advocates:
K.Subba Rao, N.S.Sanjay Gowda

Headnote:Karnataka Co-operative Societies Act, 1959-Sections 129(1) and 79, Karnataka Co-operative Societies Rules, 1960-Rules 18(1) and 17, Industrial Disputes Act, 1947-Sections 2(00) and 25F-Termination of employee of Society-termination of services of employee whose appointment made in disregard of criteria of rules of recruitment can not held retrenchment.

       

G. C. BHARUKA, A. C. J.

( 1 ) THE appellant is a Co-operative Bank within the meaning of clause (b) of Section 2 of the Karnataka Co-operative Societies Act, 1959 (in short, "the Co-operative Act" ). The power of the appellant to create the strength of its establishment, eligibility for appointments, the procedure to be followed for the same and the conditions of service of its officials and employees are governed by Rules 17 and 18 of the Karnataka Co-operative Societies Rules, 1960 (in short, "the Co-operative Rules" ). It is not in serious dispute that tile respondent- Smt. B. Shantha was given appointment by the appellant-Society on the post of Accounts clerk in violation of eligibility criteria pertaining to age limit and therefore as being required by the authorities under the Act, after giving due notice and sufficient time, her service came to be terminated by a memo dated January 14, 1988.

( 2 ) THE respondent questioned the validity of the above termination before the Labour court by filing an application under sub-section (4-A) of Section 10 of the Industrial Disputes act, 1947 (in short, "the I. D. Act") as inserted by the Karnataka Amendment Act 36 of 1964. The Tribunal, under its award dated September 19, 1994, took the view that since the termination was made without compliance of section 25-F of the Industrial Disputes Act and accordingly directed for reinstatement with full back wages. The appellant-Bank questioned the said award by filing a writ petition. The learned single Judge under his impugned judgment agreed with the reasoning and award of the labour Court but with slight modification by restricting the entitlement of back wages only to the extent of 75%.

( 3 ) ON hearing the rival contentions raised by Shri N. S. Sanjaya Gowda, the learned counsel for the appellant-Bank and Shri K. Subbarao, Senior Counsel, appearing for the respondent, the following legal issues require our consideration: (I) Whether on the facts of the present case, the termination of the respondent can be said to be "retrenchment" within the meaning of Section 2 (oo) of the I. D. Act? (II) Whether the disputes arising between the co-operative Societies and its employees can be subjected to the adjudicatory process under the I. D. Act?

( 4 ) THE Facts.- It is not in dispute that the date of birth of the respondent is February 11, 1941. The appellant-Bank appointed her as accounts Clerk on daily wages on December 3, 1983. At that time her age was 42 years. With effect from August 1, 1985 her salary was fixed on a consolidated sum of Rs. 550. 00 p. m. , which was increased to Rs. 700. 00 p. m. with effect from August 1, 1986.

( 5 ) IT has come on record through evidence that in the month of July 1988, the Deputy registrar of Co-operative Societies wrote a letter to the appellant - Co-operative Bank that several illegal appointments have been made by it and if appropriate corrective measures are not taken its management may be superseded. The appellant-Bank had produced the letters issued to the said effect by the Assistant Registrar and the deputy Registrar of Co-operative Societies, which were marked as Exs. M. 1 and M. 2.

( 6 ) ON receiving the above letters, the appellant-Bank issued a memo dated January 14, 1988 to the respondent (Ex. WW5) which reads as under:"rcb-2848/87-88 January 14, 1988 MEMO smt. B. Shantha is appointed as Accounts clerk on consolidated remuneration of Rs. 700. 00 per month from August 1, 1987 to july 31, 1988. Before the expiry of this period you have to obtain permission from registrar of Co-operative Societies for relaxation of your age, failing which your services will be terminated on expiry of the said period. For Rajajinagar Co-operative Bank Limited, Sd/-Hon. Exe. Director. "

( 7 ) ADMITTEDLY, after receiving the above memo the respondent continued in service till july 31, 1988 but since she could not secure any order of relaxation of age, her service got terminated. It was under the above circumstances























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

SupremeToday

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top