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

2016 Supreme(Bom) 1013

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT NAGPUR
A.S. CHANDURKAR, J.
The Amravati Zilla Parishad Shikshan Sahakari Bank Ltd. - Appellant
Vs.
Manohar - Respondent
WRIT PETITION NO.6718 OF 2015
Decided on : 19-08-2016

Advocates Appeared:
For the Appellant :Shri A. M. Ghare, Advocate
For the Respondent:Mrs. S.S. Wandile, Advocate

Headnote:Maharashtra Co-Operative Societies Act, 1960 - Section 91-Constitution of India, Article 227-Termination of service.-Where High Court, while setting aside termination, not granted relief of reinstatement with backwages therefore grant of compensation by Co-operative Court in form of full backwages unjustified and illegal.

       Award passed by the Co-operative Court in dispute No. 576/2000 dated 11.8.2014 and confirmed by the Co-operative Appellate Court in Appeal No. 43/2014 dated 30.9.2015 is partly modified. The respondent is held entitled to receive compensation equivalent to five years salary including allowances drawn by him. This amount would be determined on the basis of his last drawn salary.

       The respondent would also be entitled to the amount of provident fund and other retirement benefits as per his service conditions that would be computed on the basis of the payments that would be made to him as per clause (1).

       The respondent has been permitted to withdraw an amount of Rs. 5,00,000/- deposited in the Court as per order dated 23.3.2016. Time of three months is granted to the petitioner to make the balance payment in terms of this order. The petitioner would be at liberty to withdraw the amount of Rs. 5,00,000/- along with interest accrued to enable it to make necessary payments to the respondent.

JUDGMENT :

1. Rule. Heard finally with the consent of learned Counsel for the parties.

2. The petitioner is aggrieved by the adjudication of the claim for damages in lieu of reinstatement awarded to the respondent in the dispute filed by the respondent under Section 91 of the Maharashtra Cooperative Societies Act, 1961 [hereinafter referred to as the “said Act”].

3. The respondent was appointed on the post of clerk at the petitioner – Bank which is duly registered under the provisions of the said Act. The respondent was thereafter promoted to the post of Branch Manager. During his course of service, a departmental enquiry was conducted against him on charges of financial misappropriation. After issuing a show cause notice on 27-3-2000 and pursuant to the report submitted by the Enquiry Officer, the Bank terminated the services of the respondent on 28-4-2000. The respondent being aggrieved filed a dispute under Section 91 of the said Act before the Cooperative Court seeking a declaration that the resolution resulting in termination of his services was illegal. The relief seeking declaration that the respondent continued in service with benefits of continuity and full back wages was also sought. This dispute was contested by the Bank and the reliefs sought by the respondent were opposed.

4. The Cooperative Court by judgment dated 16-6-2001 dismissed the dispute. The respondent filed an appeal before the Cooperative Appellate Court. This appeal was also dismissed on 3-5-2002. Being aggrieved the respondent filed Writ Petition No.3819/2002 challenging the aforesaid adjudication. This Court by judgment dated 23-7-2013 came to the conclusion that the chargesheet issued to the respondent was without legal authority, as the same was issued by a person who was not competent to do so. On that basis, the order of termination dated 28-4-2000 based on the resolution passed by the Board of Directors dated 23-4-2000 was set aside. This Court further held that the respondent not being a “workman” was not entitled for relief of reinstatement with back wages. It was found that the respondent had superannuated during pendency of the writ petition on 30-4-2013. Liberty was granted to the respondent to seek damages for wrongful termination and in lieu of reinstatement. For that purpose, the dispute filed by the respondent was restored and he was permitted to apply for amendment of the dispute with a further liberty to the parties to lead evidence in support of their respective stands.

5. Pursuant to the aforesaid order, the respondent amended the dispute claiming damages in view of reinstatement. According to the respondent, he was getting salary of Rs.13,850/per month when his services were terminated. If the respondent would have retired on reaching the age of superannuation, he would have got salary of Rs.34,660/per month. According to him, the total amount of salary which he would have earned was Rs.52,02,000/. By seeking damages of Rs.10,00,000/on account of mental pain and agony, the respondent claimed a total amount of Rs.62,02,000/as damages. This claim was opposed by the Bank. The respondent examined himself and justified the amount of damages claimed by him. The Cooperative Court held that the respondent was entitled to receive damages equivalent to the salary which he would have got if his services had not been terminated. By the order dated 11-8-2014, the respondent was held entitled to an amount of Rs.36,75,153/with interest at 12% per annum. This amount was determined on the basis of his monthly salary of Rs.34,660/.

The petitioner being aggrieved by the aforesaid award approached the Cooperative Appellate Court. By judgment dated 30-9-2015, the Cooperative Appellate dismissed the appeal preferred by the Bank and confirmed the award passed by the Cooperative Court. Being aggrieved the petitioner has filed the present writ petition.

6. Shri A. M. Ghare, the learned Counsel for the Bank stated that both the Courts misdirected themselves by gr




















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