BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
S. SRIMATHY, J.
The Management, 0.1616 Palayamkottai Milk Producers Co-operative Society Ltd., Thirunelveli - Appellant
Versus
The Deputy Commissioner of Labour & Another - Respondent
W.P.(MD)Nos. 5567 of 2013 & 8295 of 2012 & W.M.P.(MD)No. 11992 of 2018 & M.P.(MD)Nos. 1 of 2012 & 1 of 2013
Decided On : 02-06-2022
Minimum Wages Act - Co-operative Society - G.O.Ms.No.44 dated 13.07.2000, G.O.Ms.No.5 dated 22.05.2005 - Section 20(2) of the Minimum Wages Act, 1948 - Tamil Nadu Co-operative Societies Act, 1983 - Tamil Nadu Shop and Establishment Act, 1947 - Wages fixed based on 12(3) Settlement and Government Orders - Financial viability of the Society - Limitation - W.P.(MD)No.5567 of 2013, W.P.(MD)No.8295 of 2012 - Set aside impugned order in W.P.(MD)No.5567 of 2013 - Confirm Labour Court Order in W.P.(MD)No.8295 of 2012
Fact of the Case:
The petitioners, a Co-operative Society, and an individual employee filed writ petitions challenging orders related to minimum wages and other benefits. The Society argued financial strain and non-applicability of the Minimum Wages Act, while the employee sought various unpaid benefits.
Finding of the Court:
The court set aside the impugned order in the Society's petition due to financial strain and limitation, and confirmed the Labour Court order in the employee's petition as the Society had become defunct.
Issues: Applicability of Minimum Wages Act to Co-operative Society, Financial viability of the Society, Claim for unpaid benefits by the employee, Limitation period for claiming wages.
Ratio Decidendi: The court considered the financial viability of the Society, applicability of the Minimum Wages Act, and the limitation period for claiming wages in reaching its decision.
Final Decision: Writ Petition W.P.(MD)No.5567 of 2013 is allowed and W.P.(MD)No.8295 of 2012 is dismissed. No costs. Consequently, connected miscellaneous petitions are closed.
JUDGMENT
(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorari, to call for the records relating to the impugned order dated 18.09.2012 passed by the first respondent in M.W.98 of 2009 and quash the same as illegal.
Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, to call for the order made in claim petition No.29/2010 dated 12-03-2012 on the file of the second respondent and quash the same in relation to disallowing the claim made under various heads such as Deepavali, Pongal Bonus, Leave Salary, Salary for the Government declared holidays, allowance for cycle usages by the employee, employers contribution on the provident fund, payable to the employee and other benefits and consequently direct the first respondent to pay the total claim of Rs.4,05,401/- within a time frame as specified by this Honourable Court to the Petitioner forthwith.)
Order
1. This Writ Petition in W.P.(MD)No.5567 of 2013 is filed by the Management, to quash the impugned order dated 18.09.2012 passed by the first respondent in M.W.98 of 2009 and quash the same as illegal.
2. The brief facts of the case in W.P.(MD)No.5567 of 2013 are that the petitioner is a Co-operative Society governed under the Tamil Nadu Co-operative Societies Act, 1983. Earlier the Society was producing milk of its own by maintaining dairy farm and distributing the same. Thereafter, the petitioner has closed its diary activities and started distributing the milk sachets procured from Tirunelveli Aavin on commission basis. The Society has become financially weak and unviable. The respondents 2 to 5 were employed as Secretary, Cashier, Salesman and Clerk and has filed the petition alleging and claiming difference in wages for the period from 01.04.2002 to 31.07.2009 before the first respondent Society. The respondents 2 to 5 have already retired from service and alleged their salary were lesser than the wages prescribed under the Minimum Wages Act, 1948. The respondents relied on G.O.Ms.No.44 dated 13.07.2000 and G.O.Ms.No.5 dated 22.05.2005. The contention of the petitioner is that the said two Government Orders relates to Shops and Establishments coming under the Tamil Nadu Shops and Establishments Act,1947 and they do not cover the employees of the Co-operative Society. As per Section 20(2) of the Minimum Wages Act, 1948 any such claim has to be made within a period of six months and hence they are not entitled to claim any amount for the period prior to six months and in any event they cannot claim from 2002 onwards. The respondents have not filed any separate application for condoning the delay and has not filed any affidavit explaining the reason for such huge delay. The first respondent has held the petitioner Society is an establishment coming under the Tamil Nadu Shop and Establishment Act, 1947 and has allowed the claim of the respondents 2 to 5 and directed the petitioner to deposit the said amount within a period of 30 days and if the amount is not deposited so, further compensation equivalent to 100% should be deposited together with the awarded amount.
3. The contention of the petitioner is that the direction of the 1st respondent is without jurisdiction. The Co-operative Society is governed under the Tamil Nadu Co-operative Societies Act 1983, which is a self-contained special enactment. The petitioner society cannot be termed as a Shop or an Establishment falling under the Tamil Nadu Shop and Establishment Act, 1947. The petitioner will come under the exemption clause given under Section 4 of the Tamil Nadu Shop and Establishment Act, 1947. The petitioner Society is under financial crunch and it would be further saddled with financial strain, if it is directed to pay Rs.4,34,948/-. Already the petitioner Society is having a debt burden of Rs. 4,00,0
The financial viability of a Co-operative Society and the applicability of the Minimum Wages Act to such societies were central to the judgment.
The test laid down in Marappan's case continues to govern the maintainability of writ petitions against Co-operative Societies.
The main legal point established in the judgment is that the provisions of Section 77 of the Tamil Nadu Co-operative Societies Act, 1983 govern the removal and reinstatement of employees based on cri....
The main legal point established in the judgment is that the members of a co-operative society cannot be construed as employees, and the absence of an employer-employee relationship is crucial in det....
Section 70 of Act deals with a dispute which are to be referred to Registrar for a decision which includes in terms of Section 70(1)(c) of Act, dispute between Society, any officer, agent or employee....
Illegal appointments made without following statutory recruitment rules and approved by-laws of co-operative societies cannot be regularised under the Permanent Status Act.
Suspension of an employee under the Andhra Pradesh Cooperative Societies Act must adhere to due process and jurisdictional authority, failing which it is deemed illegal.
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