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2000 Supreme(Raj) 1181

RAJASTHAN HIGH COURT AT JAIPUR BENCH
Bhagwati Prasad, J.
Railway Shramik Sahakari Bank Ltd. and anr. - Appellant
Versus
Bhagwan Das Swami And Ors - Respondent
S.B. Civil Revision Petition No. 485 of 1997.
Decided On : 03-05-2000

The main legal point established in the judgment is that disputes related to the service conditions of employees of a Cooperative Society, which do not flow from the Industrial Disputes Act but from the bye-laws, fall within the jurisdiction of the civil court and not necessarily the Registrar or the Industrial Tribunal.

Headnote:

JURISDICTION - Cooperative Society - Multi State Cooperative Societies Act, 1984 - Section 24, Section 74, Section 105 - The court discussed the interpretation and application of Section 24, Section 74, and Section 105 of the Multi State Cooperative Societies Act, 1984. It highlighted the legal provisions and their influence on the court's decision regarding the jurisdiction of the civil court and the Registrar in adjudicating disputes related to the service conditions of the petitioner Bank's employees.

Fact of the Case:

The plaintiffs, employees of a Cooperative Society, filed a suit against the petitioner Bank for declaration and injunction regarding a dispute related to their pay and service conditions. The defendants objected to the maintainability of the civil suit, arguing that such disputes should be referred to the Registrar under Section 74 of the Act.

Finding of the Court:

The trial court held that the civil court has jurisdiction to entertain the suit as the dispute related to payment of emoluments did not touch the constitution, management, or business of the Cooperative Society. The court analyzed various decisions and concluded that the rights claimed by the respondents did not flow from the Industrial Disputes Act but from the bye-laws, and therefore, the Industrial Tribunal was not the only forum available to the plaintiffs.

Issues: The main issue was whether the dispute regarding the service conditions of the employees of the Cooperative Society should be adjudicated by the civil court or referred to the Registrar under Section 74 of the Multi State Cooperative Societies Act, 1984.

Ratio Decidendi: The court applied the principles established in various Supreme Court and High Court decisions to determine the jurisdiction of the civil court and the Registrar in adjudicating disputes related to the service conditions of the petitioner Bank's employees. It concluded that the rights claimed by the respondents did not flow from the Industrial Disputes Act but from the bye-laws, and therefore, the Industrial Tribunal was not the only forum available to the plaintiffs.

Final Decision: The revision petition was dismissed, affirming the trial court's decision that the civil court has jurisdiction to entertain the suit regarding the dispute related to the service conditions of the petitioner Bank's employees.

JUDGMENT

1. - The present revision petition arises out the order of the Chief Judicial Magistrate, Bikaner dated 1.5.1997 whereby he has decided a preliminary objection regarding jurisdiction.

2. The petitioner Bank is a Cooperative Society registered under the Multi State Cooperative Societies Act, 1984 (referred to hereinafter as 'the Act'. The plaintiff-non-petitioners filed a suit for declaration and injunction alleging inter alia that they were working as employees of the petitioner Bank on the post of Supervisors and they are its employees. The plaintiffs claimed that the pay, allowances, increments, promotion etc. to the employees are given similar to the Railway employees. It is alleged that as per the IVth Pay Commission's Report which was adopted by the Board of Directors of the Bank, the senior most Upper Division Clerk was entitled to Special Pay of Rs. 70/-. The Board of Directors vide their resolution passed in the Meeting held on 30.7.1996 had ordered that Special Pay, which is being paid to these employees that should be merged with their original pay and accordingly their pay may be fixed and arrears may be paid. The plaintiffs further alleged that though this resolution was duly executed even in January February, 1997 but subsequently on 21.3.1997 On order was issued to keep this decision in abeyance and accordingly the Personnel Department of the Bank was instructed not to execute the order further. It is against this order, the plaintiffs have filed the suit for declaring it invalid and it is prayed that the defendants be restrained from executing the order, dated 21.3.1997. The plaintiffs have also moved an application for interim injunction.

3. The defendants appeared and filed application both in the original suit and the injunction application raising an objection that the civil suit is not maintainable against them in relation to a dispute relating to the service conditions of the petitioner Bank's employee. The trial court considered that the dispute relates to payment of emoluments. Such a dispute cannot be held to be a dispute touching the constitution, management or business of a Multi State Cooperative Society. That being the position, the civil court has jurisdiction to entertain the suit.

4. Learned counsel for the petitioners submitted that the approach of the trial court was incorrect. According to Section 24 of the Act clearly lays down that as and when there that dispute between the employees of the Multi State Cooperative Society and the management of the Cooperative Society relating to constitution, management and business of the society, the matter shall be referred to the Registrar under Section 74(1) of the Act. Learned counsel for the petitioners has placed reliance on the provisions of Section 74 of the Act. Any dispute required to be referred under Section 74 of the Act to the Registrar is not liable to be taken note of by a civil court as no court shall have jurisdiction in respect of such matters as provided under Section 105 of the Act.

5. Learned counsel for the petitioners has supported his argument by various decisions of the Supreme Court and this Court.

6. In R.C. Tiwari v. M.P. State Cooperative Marketing Federation Ltd. and Ors., (1997) 5 SCC 125 , the Hon'ble Supreme Court has held that the language of Section 64 of the M.P. Co-operative Societies Act, 1960 which is para materia to Section 74 of the Act is very wide and the dispute can be referred to the Registrar.

A Division Bench of this Court in Sawai Madhopur Co-operative Marketing Society Ltd. v. Rajasthan State Cooperative Tribunal, Jaipur and Anr. reported in AIR 1991 Rajasthan 121 , has held that the dispute in relation to the validity of the suspension and termination of employee of Co-operative Society is a dispute touching the management of the society and falls within the ambit of Section 75 of the Rajasthan Co-operative Societies Act, 1965, which is para materia to Section 74 of the Act.

7. This Court in Narendra



























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