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2003 Supreme(Kar) 383

Karnataka High Court
Karnataka Sugar Workers Federation - Appellant
Versus
State of Karnataka, Rep.by Secretary - Respondent
Decided On : 05-26-03
W.P. : 36625 of 2000

Advocates:
B.ANAND, B.B.BALLARI, B.C.PRABHAKAR, B.PRABHU DEVARU, BASAVARAJ GODACHI, Basavaraj Kareddy, C.S.RAMDAS, D.LEELA KRISHNA, G.BALAKRISHNA SHASTRI, JAYAKUMAR S.PATIL, K.M.NATARAJ, K.Subba Rao, K.T.MOHAN, M.BABU RAO, M.C.Narasimhan, M.R.C.RAVI, M.R.RAVI, PRAVIN RAIKOTE, PUTTIGE R.RAMESH, RAMESH B.ANNEPPANAVAR, RAVI G.SABHAHIT, Subba Rao, T.L.KIRAN

The main legal point established in the judgment is the validity of the amendment to Section 70 of the Karnataka Co-operative Societies Act, which excluded the jurisdiction of the Labour Court and Industrial Tribunal in resolving disputes between co-operative societies and their employees.

Headnote:

Co-operative Societies Act - Jurisdiction of Labour Court - Section 70 of the Karnataka Co-operative Societies Act, 1959 - The court upheld the validity of the amendment to Section 70, which excluded the jurisdiction of the Labour Court and Industrial Tribunal in resolving disputes between co-operative societies and their employees. The court found that the State had the legislative competence to make the amendment, and the amendment received the assent of the President, making it constitutional. The court also emphasized that the amendment did not deprive workers of their rights and that the Registrar of Co-operative Societies could effectively adjudicate disputes as provided under the Act.

Fact of the Case:

The Karnataka Sugar Workers Federation and other co-operative societies challenged the validity of amendments made to the Co-operative Societies Act, specifically Section 70, which excluded the jurisdiction of the Labour Court and Industrial Tribunal in resolving disputes between co-operative societies and their employees. They argued that the amendment was contrary to law and violative of Articles 14 and 21 of the Constitution.

Finding of the Court:

The court found that the amendment to Section 70 of the Karnataka Co-operative Societies Act was valid and constitutional. It upheld the exclusion of the jurisdiction of the Labour Court and Industrial Tribunal in resolving disputes between co-operative societies and their employees. The court also emphasized that the Registrar of Co-operative Societies could effectively adjudicate disputes as provided under the Act.

Issues: The main issues were the validity of the amendment to Section 70 of the Karnataka Co-operative Societies Act and the exclusion of the jurisdiction of the Labour Court and Industrial Tribunal in resolving disputes between co-operative societies and their employees.

Ratio Decidendi: The court held that the State had the legislative competence to make the amendment, and the amendment received the assent of the President, making it constitutional. The court also emphasized that the amendment did not deprive workers of their rights and that the Registrar of Co-operative Societies could effectively adjudicate disputes as provided under the Act.

Final Decision: The court upheld the validity of the amendment to Section 70 of the Karnataka Co-operative Societies Act, which excluded the jurisdiction of the Labour Court and Industrial Tribunal in resolving disputes between co-operative societies and their employees. The matters were referred to the learned Single Judge for further proceedings.

( 1 ) A learned Single Judge of this Court has made this Reference vide Order dated 7. 12. 2000, passed in W. P. No. 36625/2000 to a larger Bench, for reconsideration of the law as enunciated in the division Bench judgment reported in W. P. No. 14792 - 804/1998 c/w 14095/1998 dated 9. 3. 2000 (M/s. Veerashaiva Co-op. Bank Ltd. vs presiding Officer, Labour Court and others) on the ground that amendment brought to Section 70 of the Co-operative Societies Act ousts the jurisdiction of Labour Court by conferring the jurisdiction on the Registrar of the Co-operative Societies. This Reference was placed before us on 9. 4. 2003 as per the order of the Hon ble Chief justice dated 1. 4. 2003.

( 2 ) BRIEF facts leading to the Order of Reference, as alleged, are: the Karnataka Sugar Workers Federation (R) represented by its president has filed W. P. No. 36625/2000 challenging the validity of amendments made to the Co-operative Societies Act by the karnataka Co-operative 2nd Amendment Act, 1997 as published in the Karnataka Gazette dated 27. 3. 2000, in so far as it relates to amendment made to Section 70 (1) (d) and Section 70 (2) (d) of the karnataka Co-operative Societies Act, 1959 ( KCS Act for short ). It is alleged that the petitioner is a Federation of Trade Union registered under the Indian Trade Unions Act, 1926 functioning in sugar Factories. The petitioner Federation representing 45,000 workers being recognised as a collective bargaining agent for the purpose of negotiation and settlement of wages and service conditions of workers in the Sugar Factories, has signed settlement with the Managements. It is alleged that Industrial Tribunals appointed by the State Government under the Industrial Disputes Act, 1947 nearly after 50 years of working would adversely affect the workmen and the employees in the Co-operative sugar factories. Thus the amendment to Section 70 of the KCS Act is contrary to law and violative of Articles 14 and 21 of the Constitution and is liable to be quashed. It is prayed that the amendment to Section 70 of the KCS act be quashed and to hold that the entire provisions of Industrial disputes Act and other relevant labour laws would continue to apply to the employees in co-operative societies.

( 3 ) W. P. 39020/99 is filed by the Mysore Paper Mills challenging the award of the Labour Court as without jurisdiction. W. P. No. 6717/ 97 is filed by Hukkeri Taluka Co-operative Rural Electricity Supply ltd. challenging the award of the Labour Court, Hubli. Similarly, in W. P. 2000/97, W. P. 7965/97, W. P. 7933/97, W. P. 6304/ 2000, W. P. 21040/2000, W. P. 3997/2001, W. P. 36407/2000, W. P. 31466/2000, W. P. No. 37914/1999, W. P. No. 33528/2000, W. P. No. 18025/1997, W. P. 13826/2000, W. P. 47510/2001, W. P. 25812/97 and w. P. 28946/2000, the awards of the Labour Court/industrial Tribunal as the case may be, are challenged. W. P. 25857/2000 is filed by one Rangaswamy challenging the letter of the Registrar of Co-operative Societies and the award of the Labour Court.

( 4 ) AFTER W. P. No. 36625/2000 was referred to the Full Bench, the other Writ Petition, which were filed, were directed to be posted to be decided along with the said Writ Petition. The question of ousting the jurisdiction of the Industrial Tribunal by the amendment is involved in all the Writ Petitions, which are similar and identical in nature. As agreed by the parties, the question is decided by this common order.

( 5 ) IT is pertinent to note that the dispute of employees of Cooperative societies was being resolved under the Industrial Disputes act, 1947 (in short ID Act ) till the Division Bench of this Court rendered its decision in Veerashaiva Co-operative Bank s case, wherein the question referred was whether a dispute relating to termination of the services of an employee of a Co-operative Society to which the KCS Act is applicable, is a dispute that can be sought to be adjudicated upon by a labour forum under the provisions of the ID Act is of































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