IN THE HIGH COURT OF KERALA AT ERNAKULAM
SYAM KUMAR V.M., J.
The Kerala State Co-Operative Bank Ltd., Represented By Its Managing Director – Petitioner
Versus
The Kerala Co-Operative Tribunal Thiruvananthapuram, Represented By Its Secretary and Ors. – Respondents
WP(C) No. 3655 Of 2015, WP(C) No. 3684 Of 2015
Decided On : 02-05-2025
(A) Co-operative Societies Act - Section 2(a) - Writ Petitions challenging orders of the Co-operative Tribunal regarding dismissal and back wages of an employee - The Tribunal set aside the dismissal and remanded the issue of back wages for fresh consideration, which was contested by the Bank. (Paras 2-12)
(B) Jurisdiction of High Court - The High Court does not exercise appellate powers but reviews for jurisdictional errors or manifest injustice. (Paras 7-8)
(C) Delay in filing revision - The Tribunal dismissed the revision petition as time-barred, emphasizing the need for valid reasons for delay. (Paras 10-12)
Facts of the case:
The 3rd respondent was dismissed for financial improprieties, reinstated by the Tribunal, but denied back wages. The Bank challenged the Tribunal's orders in Writ Petitions.
Findings of Court:
The Tribunal's orders were upheld, emphasizing the lack of jurisdictional errors and the need for substantial justice.
Issues: The main issues were the legality of the Tribunal's orders regarding reinstatement and back wages, and the dismissal of the revision petition as time-barred.
Ratio Decidendi: The court affirmed that the High Court's role is supervisory, not appellate, and that the Tribunal's findings were based on a proper appreciation of facts and law.
Result: Writ Petitions dismissed.
JUDGMENT :
(SYAM KUMAR V.M., J.)
Since the parties to these Writ Petitions and the subject matter involved are the same, they are considered and disposed of together.
2. Petitioner is an apex Co-operative Society as defined under Section 2(a) of the Co-operative Societies Act. The 3rd respondent while working as Manager of the Bank at its office at Thrissur was charged of serious financial improprieties and other lapses. Since the reply submitted by him was not found satisfactory, a domestic enquiry was conducted. On the basis of the report submitted therein, the 3rd respondent was dismissed from service by the order dated 17.09.2008. He preferred an appeal before the Board of Directors, which was dismissed by an order dated 19.01.2009. The 3rd respondent then filed ARC No.84 of 2011 (Old No.55 of 2009) before the Co-operative Arbitration Court (Northern), Kozhikode (Ext.P1) inter alia seeking to set aside the domestic enquiry report and to reinstate him in service with full back wages. The Bank filed Ext.P2 written statement in the ARC. The Arbitration Court vide Ext.P3 order dated 06.02.2014 set aside the suspension as well as dismissal of the 3rd respondent and directed him to be reinstated in service if not already superannuated. However, the prayer for back wages was rejected. The 3rd respondent challenged Ext.P3 order to the extent it declined him back wages before the Kerala Co- operative Tribunal, Thiruvananthapuram (hereinafter referred to as 'the Tribunal') by filing Appeal No.37 of 2014. The Tribunal vide Ext.P4 judgment dated 28.10.2014 allowed the appeal and confirmed the order of the Arbitration Court setting aside the domestic enquiry report and order of suspension and dismissal. As regards the question of entitlement of the 3rd respondent to back wages, the Tribunal remanded back the said question to the Arbitration Court for fresh consideration. In the meanwhile, the Bank had preferred a Revision Petition numbered as R.P.No.59 of 2014 before the Tribunal challenging Ext.P3 order dated 06.02.2014 of the Arbitration Court. The said R.P. was dismissed by the Tribunal vide its order on 13.11.2014 terming the same as time barred. The petitioner Bank has preferred both the above Writ Petitions seeking to set aside the above mentioned two orders of the Co-operative Tribunal. While W.P.(C) No.3655 of 2015 is filed by the Bank seeking to quash Ext.P4 judgment dated 28.10.2014 of the Tribunal remanding the question of entitlement to back wages for fresh consideration to the Arbitration Court, the other Writ Petition viz., W.P.(C) No.3684 of 2015 is filed by the Bank seeking to quash Ext.P4 order dated 13.11.2014 of the Tribunal dismissing the Revision Petition filed by the Bank.
3. Heard Sri.Gilbert George Correya, Advocate for the petitioner Bank and Sri.Shaji Thomas, Advocate, for the 3rd respondent.
4. The learned counsel appearing for the petitioner Bank contended that the Tribunal erred in rendering Ext.P4 judgment dated 28.10.2014 in the appeal filed by the 3rd respondent on the erroneous assumption that the petitioner Bank had not challenged Ext.P3 order dated 06.02.2014 rendered by the Arbitration Court by filing an appeal or revision. He contended that the petitioner Bank had indeed challenged Ext.P3 order of the Arbitration Court by filing a revision, namely Revision Petition No.59 of 2014, before the very same Tribunal. It is contended by the learned counsel that on 28.10.2014, when Ext.P4 judgment was rendered by the Tribunal in the appeal preferred by the 3rd respondent, the above said Revision Petition had already been heard by the Tribunal. The Tribunal was aware of the fact that both the appeal and revision were pending before it. Hence both the matters ought to have been heard together. The learned counsel proceed to substantiate this contention by pointing to the order in Revision Petition No.59 of 2014, which has been produced as Ext.P4 in W.P.(C) No.3684 of 2015 which states that the revision petition wa
The High Court's supervisory jurisdiction does not extend to re-evaluating factual findings of the Tribunal unless there is a manifest error or jurisdictional flaw.
An employee whose service is illegally terminated is entitled to full back wages unless the employer proves otherwise.
An employee whose service is illegally terminated is entitled to full back wages unless the employer proves otherwise, and disciplinary proceedings must adhere to principles of natural justice.
Proper adherence to procedural rules is essential in disciplinary actions against employees.
The court determined that the petitioner is entitled to salary payments while revising procedures are pending, upholding justice for employees amidst procedural delays.
It is for them to file third party appeal along with application to secure third party leave from the Kerala Co-operative Tribunal, in terms of Sec.82(1) of the Act.
Court upheld the authority's power to review its decisions, emphasizing adherence to procedural justice in employment termination cases under cooperative statutes.
Employee rights to back wages and compliance with arbitration awards during appeal processes established.
The burden of proof lies on the dismissed employee to demonstrate unemployment to claim backwages, and the Tribunal must consider all relevant evidence before making an award.
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