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

1961 Supreme(Bom) 34

IN THE HIGH COURT OF BOMBAY
Chainani, C.J., Mody N.A. and Tarkunde V.M. , JJ.
Appellants: Farkhundali Nannhay
Vs.
Respondent: V.B. Potdar and Anr.
Special Civil Appln. No. 1504 of 1959 Decided On: 18.08.1961
Counsels:
For Appellant/Petitioner/Plaintiff: K.K. Singhvi, Adv.
For Respondents/Defendant: A.M. Salik, Adv.
For State: Govt. Pleader

JUDGMENT - Chainani, C.J.

(1) The petitioner was employed by the second respondent, which is a co-operative society registered under the Bombay Co-operative Societies Act, 1925. The petitioner made four applications to the Payment of Wages Authority for recovery of wages, retrenchment compensation and leave wags from the second respondent. It was contended by the second respondent before the Authority that it had no jurisdiction to entertain and try the applications made by the petitioner and that the only tribunal which was competent to try and decide the matters in dispute was the Registrar under S. 54 of the Co-operative Societies Act. This contention was accepted by the Payment of Wages Authority, which accordingly dismissed the four applications made by the petitioner. The petitioner the filed a special civil application before this Court, in which he contended that the view taken by the Authority was erroneous. The Division Bench, before which the application came up for hearing, has referred the matter to us for decision.

(2) Section 54 of the Bombay Co-operative Societies Act provides that when a dispute touching the business of a socity arises between members or past members of the society or between members or past members and any officer, agent or servant of the society or between the society or its committee, and any officer, agent, member or servant of the society, it shall be referred to the Registar for decision by himself or his nominee. It has been held in several cases that the jurisdiction conferred by this section is exclusive and that disputes of the kind referred to therein can only be decided by the Registrar or his nominee. The second respondent therefore contends that as the dispute is between a co-operative under S. 54 of the Co-operative Societies Act. The petitioner, on the other hand, relied on S. 15(2) of the Payment of Wages Act, which has been made applicable to co-operative socities by a notification issued by the State Government under S. 38 of the Bombay Shops and Establishments Act. Section 15(2) of the Payment of Wages Act provides as follows:

"Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official or a registered trade union authorised in writing to act on his behalf, or a representative union registered as such under the Bombay Industrial Relations Act, 1946, or any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1), may apply to such authority for a direction under sub-section (30 and in case of death of the employed person, it shall be lawful for his legal representative to make an application for such direction".

It is conceded that but for S. 54 of Co-operative Societies Act, the applications made by the petitioner would be maintainable before the Payment of Wages Authority. The question which consequently arises for our decision, is whether a claim made by a servant of a co-operative society for wages against the society must be referred to the Registrar under S. 54 of the Co-operative Societies Act, or whether an application in respect of such claim can lie to the Authority under the Payment of Wages Act under S. 15(2) of this Act.

(3) Mr. Singhvi, who appears for the petitioner, has raised three main points. He has first urged that a claim in regard to wages made by a servant of a co-operative society cannot be said to touch the business of the society and that consequently such a claim cannot be referred to the Registrar under S. 54 of the Co-operative Societies Act. Section 22 of the Payment of Wages Act provided:

"No court shall entertain any suit for the recovery of wages or of any deduction from wages in so far as the sum so claimed-

. . . . . . . . . . . . . .

(d) could have been recovered by an application under S. 15"

Mr. Singhvi has argued that the juri



















Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
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