A Cooperative Land Development Bank is not a 'banking company' as defined in section 5 of the Banking Companies Act, 1949 or a co-operative bank to which the Banking Regulation Act, 1949 applies. Therefore, such a bank is not exempted from the operation of the Bombay Industrial Relations Act, 1946 by the Government Notification dated 23rd May, 1968.

Headnote:
INDUSTRIAL RELATIONS - BOMBAY INDUSTRIAL RELATIONS ACT, 1946 - APPLICABILITY - COOPERATIVE LAND DEVELOPMENT BANK - EXEMPTION - NOTIFICATION - INTERPRETATION - BANKING REGULATION ACT, 1949 - APPLICABILITY - CO-OPERATIVE SOCIETIES ACT, 1960 - APPLICABILITY - JURISDICTION OF LABOUR COURT.
Fact of the Case:

The petitioner, a Branch Manager with the Buldhana District Primary Land Development Bank Ltd., was dismissed from service without an enquiry. He filed an application under Section 78-D read with Section 79 of the Bombay Industrial Relations Act, 1946 for reinstatement with other incidental reliefs in the Labour Court at Akola. The Labour Court rejected the Bank's preliminary objection that it was not governed by the Bombay Industrial Relations Act, 1946. However, the Industrial Court upheld the Bank's contention and dismissed the petitioner's application. The petitioner challenged this order in the High Court.
Finding of the Court:

The High Court held that the petitioner's application was rightly dismissed by the Industrial Court. The Court found that the Bank was not a 'banking company' as defined in section 5 of the Banking Companies Act, 1949 or a co-operative bank to which the Banking Regulation Act, 1949 applied. Therefore, the Bank was not exempted from the operation of the Bombay Industrial Relations Act, 1946 by the Government Notification dated 23rd May, 1968. However, the Court directed that the petitioner's prayer for making a reference to the Labour Court under section 10 of the Industrial Disputes Act, 1947 shall not be refused merely on the ground of delay.
Issues: 1. Whether the provisions of the Bombay Industrial Relations Act, 1946 are applicable to the Cooperative Land Development Bank? 2. Whether the Bank was exempted from the operation of the Bombay Industrial Relations Act, 1946 by the Government Notification dated 23rd May, 1968?
Ratio Decidendi: 1. The Court held that the Bank was not a 'banking company' as defined in section 5 of the Banking Companies Act, 1949 or a co-operative bank to which the Banking Regulation Act, 1949 applied. Therefore, the Bank was not exempted from the operation of the Bombay Industrial Relations Act, 1946 by the Government Notification dated 23rd May, 1968. 2. The Court directed that the petitioner's prayer for making a reference to the Labour Court under section 10 of the Industrial Disputes Act, 1947 shall not be refused merely on the ground of delay.
Final Decision: The petition was dismissed. However, the Court directed that the petitioner's prayer for making a reference to the Labour Court under section 10 of the Industrial Disputes Act, 1947 shall not be refused merely on the ground of delay.

JUDGMENT - Jamdar M.S., J. :- The only question that arises for consideration in this petition is whether the provisions of the Bombay Industrial Relations Act, 1946 are applicable to the Cooperative Land Development Bank.

2. The petitioner, who was working as a Branch Manager with the Buldhana District Primary Land Development Bank Ltd., Buldhana (herein-after referred to as the Bank), was dismissed from service by an order dated 10-2-1971 (copy of Annexure-I) by the Head Manager on the basis of resolution No.8 (e) passed by the Board of Directors of the Bank in the meeting held on 29-1-1971: No enquiry, as contemplated by rule XXIV of service Rule find Rules 40 of the Model Rules, was held against the petitioner in respect of the charges levelled against him and a copy of the charge-sheet was supplied to the petitioner alongwith the order dated 10-2-1971. It appears that the action was taken under Rule X (ii) of the service Rules read with 16(7) of the Model Rules. Being aggrieved by the order of dismissal, the petitioner filed an application under Section 78-D read with Section 79 of the Bombay Industrial Relations Act, 1946 for reinstatement with other incidental reliefs in the Labour Court at Akola. Another employee, who was similarly dismissed, also filed a similar application. In both these matters, respondent No.2 bank raised a preliminary objection to the maintainability of the application on the ground that the Bank was not governed by the Bombay Industrial Relations Act, 1946, being exempted from the operation of the said enactment, by Govt. Notification dated 2.5-5-1968. The Labour court rejected this contention. But in the appeal preferred by the Bank against the said common order, the Industrial Court upheld the contention and dismissed the applications filed by the petitioner and the other employee. It is this order, which the petitioner seeks to quash in this petition.

3. The petitioner was initially appointed as an Accountant since 1-10-1962 in the Co-operative Land Mortgage Bank, Mehkar. This Bank was later on amalgamated with respondent No.2 Buldana District Co-operative Primary Land Development Bank Ltd., on 1-6-1963. It is an admitted position that respondent No.2 bank has branches only in the Buldhana District of Maharashtra State. It is not now disputed that the said bank transacts business of 'Banking' as contemplated by clause (b) of section 5 of the 'Banking' Regulation Act, 1949. It is also an admitted position that respondent No.2 Bank is registered under the Maharashtra Co-operative Societies Act, 1960 and is functioning as a Land Development Bank under chapter XI of the said Act and is thus included in the definition of 'Co-operative Bank' given in section 2([0) of the said Act. The said definition reads as follows :

“'Co-operative Bank' means a society which is doing the business of Banking as defined in clause (b) of sub-section (1) of section 5 of the Banking Companies Act, 1949 and includes any society which is functioning or is to function as a Land Development Bank under chapter XI.”

3 (A). In will also be seen from the bye-laws of the Bank that the main object of the bank is to promote the economic interests of its members and more particularly to advance long term loans to its members on the security of mortgage of immovable or movable property for various purposes and the bank is authorised to raise funds by various methods such as issuing shares, raising loans, recovering fees and receiving donations etc. The Bank is therefore, 'Commercial Establishment' within the meaning of section 2 (4) of the Bombay Shops and Establishments Act, 1948. The said provision defines 'Commercial Establishments' as meaning an establishment; which carries on any business, trade or profession or any work in connection with, or incidental or ancillary to, any business, trade or profession and includes an establishment of any legal practitioner, medical practitioner, architect, engineer accountant, tax-consultan

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