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PUNJAB & HARYANA HIGH COURT
M.R.Agnihotri, J.
Haryana Apex Co-op Bank Employees Union
Versus
Registrar Co-op Societies
Decided On : DECEMBER 7, 1987
COOPERATIVE SOCIETIES - OVERTIME ALLOWANCE - WITHDRAWAL - COMPETENCY OF REGISTRAR, COOPERATIVE SOCIETIES - HARYANA COOPERATIVE SOCIETIES ACT, 1984 - PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1958 - SECTION 7(1) - INTERPRETATION - WRIT PETITION - QUASHING OF IMPUGNED ORDER - DIRECTIVE TO PAY OVERTIME ALLOWANCE AND ARREARS.
Fact of the Case:
The Haryana Apex Cooperative Bank Employees Union challenged the Registrar, Cooperative Societies, Haryana's order withdrawing the overtime allowance benefit for employees of the Haryana State Cooperative Bank. The Registrar interpreted Section 7(1) of the Punjab Shops and Commercial Establishments Act, 1958, as limiting working hours to 48 hours per week and 9 hours per day, and directed the Bank to comply with this provision.
Finding of the Court:
The Court held that the Registrar's interpretation of Section 7(1) was incorrect and that the Bank was entitled to prescribe working hours less than the maximum permitted by the statute. The Court relied on the Supreme Court's decision in Philips India Ltd. v. Labour Court, Madras, which held that normal working hours are those prescribed by the employer and that anything in excess of those hours constitutes overtime work.
Issues: 1. Whether the Registrar, Cooperative Societies, Haryana, was competent to withdraw the overtime allowance benefit enjoyed by the employees of the Bank. 2. Whether the Registrar's interpretation of Section 7(1) of the Punjab Shops and Commercial Establishments Act, 1958, was correct.
Ratio Decidendi: The Court held that the Registrar's order was contrary to law and quashed it. The Court held that the Registrar had misinterpreted Section 7(1) of the Punjab Shops and Commercial Establishments Act, 1958, and that the Bank was entitled to prescribe working hours less than the maximum permitted by the statute. The Court also held that the Registrar had not afforded the employees an opportunity of being heard before issuing the impugned order, which adversely affected their rights.
Final Decision: The Court allowed the writ petition, quashed the impugned order, and directed the respondents to pay the employees of the Bank the overtime allowance along with the arrears thereof, as admissible to them and at the rates according to which they had been drawing earlier to the passing of the impugned order, within three months from the date of the judgment.
M. R. Agnihotri, J.
1. Haryana Apex Cooperative Bank Employees Union (Regd.) has approached this Court under Articles 226 and 227 of the Constitution of India by filing this writ petition through its President and General Secretary, for quashing the impugned order dated 3rd September, 1986 passed by the Registrar, Cooperative Societies, Haryana, whereby the benefit of overtime allowance has been withdrawn by the Registrar, Cooperative Societies, Haryana and the Haryana State Cooperative Bank Limited, respondents Nos.1 and 2, respectively.
2. The petitioner is a Trade Union registered under the Trade Unions Act, 1926 , and it represents the employees of the Haryana State Cooperative Bank Limited, Sector 17, Chandigarh. The respondent Bank is registered with the Registrar, Cooperative Societies, Haryana, respondent No.1, under the Haryana Co-operative Societies Act, 1984 . The Bank observes its working hours from 10 AM to 5 PM with lunch break for half an hour on all the days of the week except Saturdays, on Which day the timings are from 10 AM to 2 PM, the Bank being a "commercial establishment" within the meaning of Sec.2 (iv) of the Punjab Shops and Commercial Establishment Act, 1958.
3. On 16th/19th September, 1980, the Bank issued an order (Annexure P-1) laying down certain guidelines "in order to streamline the payment of overtime devoted by the employees of the Bank". Another order was issued on 10th October, 1983, by the Registrar, Cooperative Societies, Haryana, and the Bank thereafter started making payments of the overtime allowance to its employees, i. e. the members of the petitioner Union, in accordance therewith. However, on 3rd September, 1986, yet another order was issued by the Registrar, Cooperative Societies, Haryana, directing the Managing Director, the Haryana State Cooperative Bank Ltd. , respondent No.2, that the payment of overtime allowance to the employees working in the Bank should be made in accordance with the provisions of Sec.7 of the Punjab Shops and Commercial Establishments Act, 1958, as applicable to Haryana, and not in accordance with the guidelines issued earlier. It is this order of the Registrar, Cooperative Societies, Haryana, which has been challenged in this writ petition by the petitioner Union, mainly on the ground that the Registrar, Cooperative Societies, Haryana was not competent, in law, to withdraw the benefits already enjoyed by the employees of the Bank, much less without affording an opportunity of being heard as the impugned order adversely affected the rights of the employees of the Bank who are members of the petitioner Union.
4. In reply to the writ petition, written statement has been filed by the respondent-Bank in which it has been pleaded that the Registrar, Cooperative Societies, Haryana, was competent to issue the necessary order and the Bank was competent, in law, to discontinue the benefits already granted to the employees as no opportunity of hearing was required for withdrawing the concessions granted and no right of any individual had been adversely affected.
5. After hearing the learned counsel for the parties and having examined their pleadings and the material on the record, I am of the considered view that the impugned order passed by the Registrar, Cooperative Societies, Haryana, is wholly contrary to law and the same deserves to be quashed by a writ of certiorari.
6. The Registrar, Cooperative Societies, Haryana, respondent No.1, wrongly interpreted Sec.7 (1) while issuing the impugned order dated 3rd September, 1986 (Annexure P-3), relevant extract wherefrom is reproduced below:-
-Section 7 (1) provides that no person shall be employed about the business of an establishment for more than 48 hours in any one week and 9 hours in any one day. The working hours of your institution are from 10 A. M. to 5 P. M. with a lunch break of 1/2 hour, that is to say for 6v2 hours except on Saturday when the working hours are from 10 A. M. to 2 P. M. , that is 4
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