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2026 Supreme(Mad) 1665

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. M. SUBRAMANIAM, K. SURENDER, JJ.
The Tamil Nadu Industrial Co operative Bank Ltd. - Appellant
Versus
The Joint Commissioner of Labour/ Appellate Authority Salem - Respondent
WA No. 707 of 2026, CMP No. 7065 of 2026
Decided On : 18-03-2026

Advocates Appeared:
For the Appellant :Mr.Haja Nazirudeen, Additional Advocate General assisted by P.Hari Babu
For the Respondent: Mr.R.Kumaravel, Addl.Govt.Pleader, Mr.P.Chandrasekar

The Tamil Nadu Shops and Establishments Act is not applicable to cooperative bank employees governed by the Tamil Nadu Cooperative Societies Act, establishing the primacy of special laws over general legislation.

Headnote:(A) Tamil Nadu Shops and Establishments Act, 1947 - Section 41(2) - Tamil Nadu Cooperative Societies Act, 1983 - Applicability of the Shops Act to employees of cooperative banks - Court held the appeal under the Shops Act is not maintainable as the Tamil Nadu Cooperative Societies Act being a special enactment accordingly governs the service terms. The disciplinary authority of the bank is the Managing Director; thus, appeals on dismissals must follow procedures set under cooperative laws, reaffirming the principle of special law prevailing over general law. (Paras 4, 6, 12, 17)

(B) Establishment definitions - The court discussed the definitions and applicability of the Tamil Nadu Shops and Establishments Act, affirming that cooperative banks are exempt where specific laws exist. (Paras 9, 10)

(C) Preliminary issues in legal proceedings - The court emphasized maintaining processes under specific laws and appealing must be confined to those statutes. (Paras 15, 16)

Facts of the case:
The appellant bank dismissed the 2nd respondent following disciplinary action over allegations of misconduct. The dismissal was challenged, leading to initial reinstatement by the Joint Commissioner of Labour, which was dismissed in the current appeal.

Findings of Court:
The order of the Joint Commissioner was found to be outside its jurisdiction, necessitating the dismissal of reinstatement and directing adherence to proper appeals under cooperative bylaws.

Issues: Whether the appeal under the Shops Act is maintainable given the appellant is governed by the Tamil Nadu Cooperative Societies Act.

Ratio Decidendi: The Court reinforced that special enactments govern over general provisions, confirming the disciplinary authority's autonomy and the superior application of cooperative society regulations.

Result: Writ Appeal allowed, previous orders set aside.

Table of Content
1. background of the case and disciplinary proceedings. (Para 1 , 2 , 3)
2. appellant's arguments regarding maintainability. (Para 4 , 5 , 7)
3. court's observations on applicability of statutes. (Para 6 , 12 , 14 , 16)
4. interpretation of sections in relevant acts. (Para 9 , 10)
5. court's final decision and directions issued. (Para 15 , 18 , 19)

JUDGMENT :

S.M.Subramaniam J.

Under assail is the common order dated 03.02.2026 passed in W.P.No.22999 of 2024 etc. batch.

2. The Tamil Nadu Industrial Cooperative Bank Limited is the appellant in the intra-court appeal. The 2nd respondent Smt.M.Indira Gandhi was holding the post of Assistant in the appellant's Cooperative Bank. Departmental disciplinary proceedings were initiated on the allegations of pledging spurious jewels for sanctioning of loan and the 2nd respondent was dismissed from service, on the basis of the enquiry report of the Enquiry Officer, holding that the charges are held proved.

3. The 2nd respondent filed an application before the competent authority /Joint Commissioner of Labour, under the Tamil Nadu Shops and Establishments Act, 1947. The said appeal was filed under Section 41(2) of the Tamil Nadu Shops and Establishments Act. The Joint Commissioner of Labour/competent authority, allowed the appeal by setting aside the order of dismissal. Challenging the said order, the appellant preferred a writ petition. The writ court granted the additional relief of reinstatement, continuity of service along with the monetary benefits, by confirming the order passed by the competent authority under the Tamil Nadu Shops and Establishments Act. Having aggrieved, the Industrial Co-operative Bank preferred the present appeal.

4. Mr.Haja Nasiruddin, the learned Additional Advocate General appearing on behalf of the appellant would mainly contend that the appeal under Section 41 of the Tamilnadu Shops and Establishment Act, 1947, before the Joint Commissioner of Labour, is not maintainable. Therefore, the said preliminary issue has to be decided in the present appeal. To substantiate the issue regarding maintainability, the learned Additional Advocate General would contend that the appellant Cooperative Bank is registered under the provisions of the Tamil Nadu Co-operative Societies Act, 1983. Under the scheme of the Tamil Nadu Cooperative Society Act, the service conditions, as approved by the Registrar of Cooperative Societies, would apply to the employees of the Co-operative Bank and under the bye law, the Managing Director of the Co-operative Bank is the disciplinary authority. The Registrar is the revisional authority. In the present case, the Managing Director/Disciplinary Authority imposed penalty of dismissal from service. Therefore, the appeal would lie under the bye-laws before the Industrial Commissioner/Registrar of Cooperative Societies under Section 153 of the Tamil Nadu Cooperative Societies Act. Thereafter, a review is contemplated under Section 154 of the Tamil Nadu Cooperative Societies Act and any person aggrieved thereafter from and out of those orders may prefer a writ petition under Article 226 of the Constitution of India. This being the scheme under the Act, the special enactment will prevail over the general law. When Tamil Nadu Co-operative Societies Act being a special enactment, application filed before the competent authority under the Tamil Nadu Shops and Establishment Act, is not maintainable.

5. In support of the above contentions, the learned Additional Advocate General would rely on the judgment of the Hon'ble Supreme Court in the case of C.V.Raman vs. Management of Bank of India and another reported in (1998)3 SCC 105, (1998)3 SCC 105 wherein the issue relating to the Tamil Nadu Shops and Establishments Act has been considered by the Hon'ble Supreme Court and paragraph Nos.16, 17 & 18 of the said judgment are extracted as follows:

16. As regards the first reason referred to above we have already pointed out that even if the decisions deali

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