ALLAHABAD HIGH COURT
B. Amit Sthalekar, J.
Ranpal Singh Rathi - Appellant
Versus
State of U.P. - Respondent
Civil Misc. Writ No. 4574 (S/S) of 2014
Decided On : 01-09-2014
Departmental Proceedings - Retirement - Uttar Pradesh Cooperative Sugar Factories Federation Employees Service Regulation, 1988 - Section 70 of the U.P. Cooperative Societies Act, 1965 - [Section 70 of Act, 1965] - The judgment discusses the absence of provisions in the Regulation, 1988 for initiating or continuing departmental proceedings against retired employees and the inapplicability of Section 70 of the Act, 1965 to disciplinary actions against paid servants of a society. It also highlights the Supreme Court's decision in Dev Prakash Tiwari v. U.P. Co-operative Institutional Service Board, Lucknow and Others, emphasizing the lack of authority to continue disciplinary proceedings after an employee's retirement.
Fact of the Case:
The petitioner, a Cane Development Inspector, sought to quash departmental proceedings and chargesheet against him after his retirement, and claimed arrears of salary. The respondent argued that the petitioner could approach the Arbitrator under Section 70 of the U.P. Cooperative Societies Act, 1965.
Finding of the Court:
The court found that the Regulation, 1988 had no provision for continuing departmental proceedings against retired employees and that Section 70 of the Act, 1965 did not apply to disciplinary actions against paid servants of a society. The court relied on the Supreme Court's decision in Dev Prakash Tiwari v. U.P. Co-operative Institutional Service Board, Lucknow and Others, which emphasized the lack of authority to continue disciplinary proceedings after an employee's retirement.
Issues: The issues involved the absence of provisions in the Regulation, 1988 for continuing departmental proceedings against retired employees and the applicability of Section 70 of the Act, 1965 to disciplinary actions against paid servants of a society.
Ratio Decidendi: The absence of provisions in the Regulation, 1988 for continuing departmental proceedings against retired employees and the inapplicability of Section 70 of the Act, 1965 to disciplinary actions against paid servants of a society formed the ratio decidendi.
Final Decision: The court allowed the writ petition, quashed the chargesheet, and granted the petitioner arrears of salary and all retiral benefits.
B. Amit Sthalekar, J.
1. Heard Sri Anurag Kumar Singh, learned Counsel for the petitioner and Sri Ram Pratap Singh Chauhan, learned Counsel for the respondents. The petitioner in this writ petition is seeking quashing of the departmental proceedings continuing against the petitioner as well as the chargesheet dated 24.5.2014 and is also praying for arrears of salary from 12.12.2013 to 31.1.2014.
2. The petitioner was working as Cane Development Inspector in the Uttar Pradesh, Cooperative Sugar Factories Federation Ltd. and had retired from service on 31.1.2014 on attaining the age of superannuation. He was placed under suspension by an order dated 12.12.2013 which was challenged in the Writ Petition No. 7866 (S/S) of 2013 and the Court had been pleased to stay the order of suspension. In the meantime the petitioner has retired from service on 31.1.2014. Admittedly, a chargesheet was issued to the petitioner on 24.5.2014, copy of which has been filed as Annexure-6 at 36 of the writ petition.
3. It has been submitted by the learned Counsel for the petitioner that there is no provision in the Uttar Pradesh, Cooperative Sugar Factories Federation Employees Service Regulation, 1988 (hereinafter referred to as the Regulation, 1988) equivalent to or pari materia to Article 351A of the Civil Service Regulations, for initiating or continuing departmental proceedings against the employees after their attaining the age of superannuation.
4. A short counter affidavit has been filed by Sri Ram Pratap Singh Chauhan, learned Counsel for the respondent No. 2, wherein, it has been stated that the writ petition is not maintainable as the petitioner has the remedy of approaching the Arbitrator under Section 70 of the U.P. Cooperative Societies Act, 1965 (hereinafter referred to as the Act, 1965). In support of his submission he has placed reliance upon the decision of the Supreme Court reported in (2007) 11 SCC 756 , Ghaziabad Sahkari Bank Ltd. v. Additional Labour Commissioner and Others. From a bare reading of the provisions of Section 70 of Act, 1965 it would be seen that only disputes relating to the constitution, management or the business of a co-operative society would be referable to arbitration proceedings and the same would not include any dispute regarding disciplinary action taken against a paid servant of a society. Section 70 Sub-section-1 of the Act, 1965 reads as follows:
"70. Disputes which may be referred to arbitration.--(1) Notwithstanding anything contained in any law for the time being in force, if any dispute relating to the constitution, management or the business of a co-operative society other than a dispute regarding disciplinary action taken against a paid servant of a society arises--
(a) among members, past members and person claiming through members, past members and deceased members; or
(b) between a member, past member or any person claiming through a member, past member or deceased member, and the society, its committee of management or any officer, agent or employee of the society, including any past officer, agent or employee; or
(c) between the society or its committee and any past committee, any officer, agent or employee or any past officer, past agent or past employee or the nominee, heir or legal representative of any deceased officer, deceased agent, or deceased employee of the society; or
(d) between a co-operative society and any other co-operative society or societies;
Such dispute shall be referred to the Registrar for action in accordance with the provisions of this Act and the Rules and no Court shall have jurisdiction to entertain any suit or other proceeding in respect of any such dispute.
[Provided that a dispute relating to an election under the provisions of this Act or Rules made thereunder shall not be referred to the Registrar until after the declaration of the result of such election.]"
5. It is thus clear from the statutory provisions of the Act, 1965 that Section 70 has no application to an
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