A co-operative banking society registered under the Co-Operative Societies Act is an industry to which the Bombay Industrial Relations Act, 1947 applies.

Headnote:
CO-OPERATIVE SOCIETIES ACT - BOMBAY INDUSTRIAL RELATIONS ACT - SECTION 2(3) - NOTIFICATION DATED 26TH FEBRUARY 1947 - INTERPRETATION - CO-OPERATIVE BANKING SOCIETY - WHETHER AN INDUSTRY - JURISDICTION OF LABOUR COURT.
Fact of the Case:

The petitioners, a co-operative society carrying on banking business, were registered under the Co-Operative Societies Act. The second respondent, an employee of the petitioners, was dismissed from service. He applied to the Labour Court for reinstatement and compensation. The petitioners contended that the Labour Court had no jurisdiction to entertain the petition. The Labour Court held against the petitioners. The petitioners went in appeal to the Industrial Court, which held that no appeal lay from that decision. The petitioners then filed a petition under Article 227 of the Constitution.
Finding of the Court:

The court held that the petitioners were doing business of banking and were registered under an enactment relating to companies, which was the Co-operative Societies Act. The court further held that the learned Judge was right in taking the view that he had jurisdiction to deal with the matter.
Issues: Whether the activity carried on by the petitioners was an industry to which the Bombay Industrial Relations Act, 1947 applied.
Ratio Decidendi: The court interpreted the notification dated 26th February 1947, issued under section 2(3) of the Bombay Industrial Relations Act, 1947, to include co-operative banking societies registered under the Co-Operative Societies Act. The court held that the petitioners were a company within the meaning of the notification, as they were a body corporate with perpetual succession and a common seal. The court also held that there was no reason or principle why a co-operative banking society should be put on a different footing with regard to industrial law from other companies doing identical business.
Final Decision: The petition was dismissed with costs.

Judgment -

1. An interesting and important question under the Co-Operative Societies Act arises on this petition, which has been fully argued both by counsel for the petitioners counsel for the second respondent. The petitioners are a Co-operative Society cluing banking business and are registered under the Co-Operative Societies Act. The second respondent was an employee of petitioners and he came to be dismissed, under circumstances which are not relevant, by the petitioners on 11th November 1953, The second respondent applied to the first Respondent, who is the Judge of the Labour Court at Ahmedabad for re-in-statement of the petitioners and compensation. The Petitioners contended that the first respondent had no jurisdiction to entertain that petition. The learned Judge held against the petitioners. The petitioners went in appeal to the Industrial Court. The Industrial Court held that no appeal lay from that decision and the petitioners have now come before us under Article 227.

2. The question that we have to consider is whether the activity carried on by the petitioners is an activity, which is an industry, to which the Bombay Industrial Relations Act, (Act XI of 1947) applies. Section 2(3) of that Act provides that in the areas in which the Bombay Industrial Disputes Act 1938, was in force immediately before the commencement of Act XI of 1947, the latter Act shall apply to the industries to which the said Act of 1938 applied. In section 2(3) of the earlier Act of 1938 there was a provision that the Slate Government may, by notification direct that all or any of the provisions of that Act shall apply to all or any other industries, whether generally or in any local area, as may be specified in the notification. Pursuant to the power conferred in that sub-section a notification was issued by the State Government on 26th February 1947, bearing No. 396/ 46/1 and the notification was in the following terms:

"In exercise of the powers conferred by Sub-section (3) of section 2 of the Bombay Industrial Disputes Act (Bombay Act XXV of 1938) and in supersession of Government Notification in the Political and Services Department No. 396/46/1 dated 26th February 1916, the Government of Bombay is pleased to direct that all the provisions of the said Act shall apply to the business of banking companies registered under any of the enactments relating to companies for the time being in force in any part of His Majestys Dominions of elsewhere or incorporated by an Act of Parliament or by an Indian law or by Royal Charters or by Letters Patent".

The very narrow question that we have, to consider is whether the petitioners carry on the business of a banking company which is registered under any of the enactments relating to companies for the time being in force or is incorporated by Indian law. Now the definition of Industry" in the Act is very wide and it means any business, trade, manufacture or under-talcing or calling of employers. But ideas of social justice take time before they are universally accepted and, therefore, the intention was not to apply this Act to all industries but to selected industries in the first instance, giving power to the State Government to extend the application of the Act to other industries in time, but for the notification the Act would not have applied to the business of banking companies at all because the business of banking companies was not an industry to which the Act had been made applicable. Now what is contended by the Petitioners is that inasmuch as the petitioners are a society incorporated under the Co-Operative Societies Act they are not a banking company registered as contemplated by the notification and that any dispute between its employee and itself can only be litigated in the manner provided by the Co-Operative Societies Act. It is pointed out that the only societies which fall within the ambit of the Co-Operative Societies Act are the societies which have as their object the promotion of

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