The dispute regarding retrenchment compensation of a workman of a cooperative society is not covered by S. 51 of the Madras Co-operative Societies Act and the Labour Court has jurisdiction to adjudicate the dispute.

ORDER :- This petition is filed by the Kasturbanagar Co-operative House Construction Society Ltd. for the issue of a writ of certiorari quashing the order of the Labour Court, Madras, in C.P. No. 246 of 1964.

2. The first respondent filed a claim petition before the Labour Court under S. 33-C(2) of the Industrial Disputes Act, for computation of the benefits of the notice pay, retrenchment compensation, gratuity and leave salary. The first respondent was employed as a peon in the Madras Co-operative House Construction Society from 3-12-1948. This Society was divided into eight societies from 10-8-1962, by virtue of the provisions of S. 13 of the Madras Co-operative Societies Act, Act VI of 1932. The assets and liabilities of the parent Society were divided among the eight societies. The services of the first respondent were placed at the disposal of the Kasturbanagar Co-operative Society which was one of the eight societies. The first respondent was drawing a salary of Rs. 85 till 8-3-1963, when he was dismissed from service, on the ground that the resources of the Society were slender. On representation made by the first respondent to the Registrar of Co-operative Societies, he directed the petitioner society to pay retrenchment compensation according to scale prescribed in the Industrial Disputes Act. The petitioner-Society failed to comply with the direction. Thereupon, after issuing a notice to the Society, the first respondent as mentioned earlier preferred a claim petition before the Labour Court under Sec. 33-C(2) of the Industrial Disputes Act. The petitioner-Society opposed the claim petition on several grounds. It was contended that the first respondent was transferred to the petitioner-Society by the Special Officer without the concurrence of the Society and therefore the transfer was illegal and did not confer any benefit on the transferee (first respondent) under S. 25-FF of the Industrial Disputes Act. It was also contended that if there was any dispute it could only be proceeded with under S. 51 of the Madras Co-operative Societies Act, 1932, and not under the Industrial Disputes Act. But the Labour Court overruled these objections and allowed the first respondent' s claim in regard to notice pay, retrenchment compensation and leave salary. The Kasturbanagar Co-operative House Construction Society, Ltd., has filed this writ petition to quash the order of the Labour Court.

3. It is first contended that the petitioner is not a transferee-Society liable to pay retrenchment compensation on the entire service of the first respondent from 1948. Under Ex. P-3 dated 14-8-1962, the Special Officer directed that, consequent on the division of the Madras Co-operative House Construction Society, Ltd., into eight new societies with effect from 10-8-1962, the existing staff of the former parent Society stood allotted to the new societies on the then existing terms and conditions of service. The first respondent was allotted as a peon to the petitioner-Society. The proceedings of the Special Officer also provided that the members of the staff would continue to be paid the same pay in the time-scale of pay, as they were then getting and they would be entitled to the same privileges in the matter of pay, allowance, leave, etc., as they were eligible while serving the former Madras Co-operative House Construction Society. It is contended that while the same privileges in the matter of pay, allowance, leave, etc., were secured, there was no provision regarding retrenchment compensation. This contention cannot bear scrutiny, as what is secured is the same privilege in respect of pay, allowances, leave, etc., which would include all the privileges to which a workman would be entitled. This contention has to be rejected.

4. It is next contended that the dispute, it any, would fall under S. 51 of the Madras Co-operative Societies Act, 1932, and can, therefore, be dealt with only by the Registrar of Co-operative Societies. Sec. 51 of the

Click Here to Read the rest of this document