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IN THE HIGH COURT OF BOMBAY
D.G. Karnik, A.P. Shah, JJ.
CO-OPERATIVE BANK EMPLOYEES' UNION AND OTHERS - Appellant
Vs.
STATE OF MAHARASHTRA AND OTHERS - Respondent
C.A.S.W.P. No. 1431 of 1999
Decided On : 22-09-2003
Employee-Director Eligibility - Bombay Industrial Relations Act, 1946 - Maharashtra Co-operative Societies Act, 1960 - Section 73-BB
Fact of the Case:
The petitioners, employees of a cooperative bank, were nominated as employee Directors but the bank refused to accept their nomination, citing their job positions and wages. The petitioners filed a complaint of unfair labor practice, which was rejected by the Industrial Court. The petition challenges this order.
Finding of the Court:
The court quashed and set aside the Industrial Court's order, stating that the plain language of Section 73-BB does not warrant an interpretation limiting employee nomination to those defined by the BIR Act. The court emphasized that the section covers all permanent salaried employees and that accepting the bank's submission would amount to rewriting the section.
Issues: Eligibility of employees for nomination as employee Directors under Section 73-BB of the Maharashtra Co-operative Societies Act, 1960.
Ratio Decidendi: The court held that the plain language of Section 73-BB does not restrict employee nomination to those defined by the BIR Act, and accepting such an interpretation would amount to rewriting the section.
Final Decision: The court quashed and set aside the Industrial Court's order, allowing the petitioners to nominate any of its employees from amongst the permanent salaried employees of the Bank as nominated directors.
ORDER :
1. Whether an employee as defined u/s 3(13) of the Bombay Industrial Relations Act, 1946 (for short BIR Act) alone would be eligible to be selected and nominated as employee-Director under the provisions of Section 73-BB of the Maharashtra Co-operative Societies Act, 1960 (for short 'the Act') is the short question which falls for determination in this petition under Articles 226 and 227 of the Constitution.
2. The first petitioner is a registered trade union. The petitioner Nos. 2 and 3 are employees of respondent No. 4 Sindhudurg District Central Co-operative Bank Ltd. The elections to the Board of Directors of the 4th respondent were held in December 1997 and the newly elected Directors assumed office from January 1, 1998. The petitioner Union nominated petitioner Nos. 2 and 3 as employee Directors on the Board of Directors of the Respondent No. 4 Bank in accordance with the provisions of Section 73-BB of the Act and communicated their names to the Election Officer as well as the Bank. The Bank, however, refused to accept the nomination made by the petitioner Union on the ground that petitioner Nos. 2 and 3 are working in the grade of Junior Officer and they are not employees within the meaning of BIR Act. The petitioners, therefore, filed a complaint of unfair labour practice being Complaint (ULP) No. 40 of 1998 before the Industrial Court, Kolhapur u/s 28 read with Items 5, 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (for short M.R.T.U & P.U.L.P. Act). In the said complaint the Union preferred an application for interim relief which was opposed by respondent No. 4 Bank. The respondent No. 4 Bank, inter alia, contended that petitioner Nos. 2 and 3 are working as branch managers in supervisory and managerial capacity and their basic wages exceed Rs. 1,000/- p.m. Therefore, they are not the employees within the meaning of Section 3(13) of BIR Act and as such they are not entitled to represent the employees on the Board of Directors. The application for interim relief was rejected by the Industrial Court. It is this order which is challenged in this petition.
3. Section 73 has been introduced in the statute book to implement the mandate of the Constitution under Article 43-A which lays down that the legislature shall take steps by suitable legislation or in other ways to have participation of the workers in the management of the undertaking, establishments or other organisations. Section 73-BB of the Act reads as follows:
(1) On the Committee of such society or class of societies as the State Government may by general or special order, direct where the number of permanent salaried employees of the society is 25 or more-
(a) if the number of members of the committee thereof is 11 or less - one seat; and
(b) if the number of such members is 12 or more one additional seat for every 10 members over and above the first 11 members.
shall be reserved for such employees. The seats so reserved shall be filled by selection made by the recognised union or unions and where there is no union at all or where there is a dispute in relation to such issues including whether a union is recognised or not, then the seats so reserved shall be filled by an election by such employees from amongst themselves in the prescribed manner. Any person selected or elected as a member of the committee to any reserved seat shall not be entitled to be elected as an officer of such society or to vote at any election of officers.
(2) No employee who is under suspension shall be eligible for being selected or elected or for being committed as a member under Sub-section (1).
(3) Subject to the provisions of Sub-section (2) the term of a member representing the employees shall be co-terminus with the term of the committee as provided under bye-laws of the society and after every fresh election of the members of
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