2017 Supreme(Mad) 55

THE HIGH COURT OF JUDICATURE AT MADRAS
S. MANIKUMAR, M.GOVINDARAJ, JJ.
B.Janakiram - Appellants
vs.
The State of Tamilnadu, rep. by its Secretary to Government, Cooperation - Respondents
W.A.No.1330 of 2012 and M.P.No.1 of 2012 in W.A.No.1330 of 2012 and Rev. Application Nos.82 & 83 of 2009
Decided On : 04-01-2017

Headnote:

The High Court of Madras held that the Registrar of Co-operative Societies has the authority to issue directions to co-operative societies to ensure proper implementation of co-operative production and other developmental programs and to secure the proper management of the business of any class of registered societies generally. The court also held that individual societies cannot enter into wage settlements with their employees under the provisions of the Industrial Disputes Act, 1947, without the approval of the Registrar of Co-operative Societies.

Fact of the Case:

The appellants, Periyar District Cooperative Land Development Bank Employee's Union, represented by its General Secretary, Erode District, and K. Selvaraj & two others, filed writ petitions challenging G.O. Ms. No. 186 Co-operation Food & Consumer Protection Department dated 16.08.2000 and the consequential orders passed by the Registrar of Co-operative Societies, Chennai, and the Special Officer, Harur Co-operative Primary Agricultural & Rural Development Bank Ltd., Harur, Dharmapuri District. The petitioners contended that the impugned orders were illegal and violated the rights of the employees of the co-operative societies.

Finding of the Court:

The High Court of Madras held that the Registrar of Co-operative Societies has the authority to issue directions to co-operative societies to ensure proper implementation of co-operative production and other developmental programs and to secure the proper management of the business of any class of registered societies generally. The court also held that individual societies cannot enter into wage settlements with their employees under the provisions of the Industrial Disputes Act, 1947, without the approval of the Registrar of Co-operative Societies.

Issues: 1. Whether the Registrar of Co-operative Societies has the authority to issue directions to co-operative societies to ensure proper implementation of co-operative production and other developmental programs and to secure the proper management of the business of any class of registered societies generally? 2. Whether individual societies can enter into wage settlements with their employees under the provisions of the Industrial Disputes Act, 1947, without the approval of the Registrar of Co-operative Societies?

Ratio Decidendi: 1. The court held that the Registrar of Co-operative Societies has the authority to issue directions to co-operative societies to ensure proper implementation of co-operative production and other developmental programs and to secure the proper management of the business of any class of registered societies generally. This authority is derived from Section 181 of the Tamil Nadu Co-operative Societies Act, 1983, which empowers the Registrar to issue such directions if he is satisfied that in public interest or for the purpose of securing proper implementation of co-operative production and other developmental programmes and also to secure the proper management of the business of any class of registered societies generally or for preventing the conduct of any society which would otherwise be detrimental to the interest of its members or depositors or creditors such directions are imminently required. 2. The court held that individual societies cannot enter into wage settlements with their employees under the provisions of the Industrial Disputes Act, 1947, without the approval of the Registrar of Co-operative Societies. This is because Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988, which deals with the conditions of service of paid officers and servants of societies, requires that every society shall, taking into account its nature of business, volume of transaction and financial position, adopt, with the prior approval of the Registrar of Societies, a Special by-law covering every condition of the society.

Final Decision: The High Court of Madras dismissed the writ petitions and upheld the impugned orders. The court also modified the common order made in W.A.Nos.1103 and 1104 of 2009 dated 25.09.2008 by rectifying the inadvertent mistake occurred at paragraph No.10 of the order, ie., the expression "with the prior approval of the State Government", be modified into that of, "with the prior approval of the Registrar of co-operative societies".