High Court Of Madhya Pradesh
G. P. SINGH, J. S. VERMA, B. C. VARMA
SEVARAM - Appellant
Versus
BOARD OF REVENUE - Respondents
MISC. PETN. 513 Of 1980
Decided On : 05/04/1983
It is will settled that where a statute authorises either the Government or any other authority to frame rules and the rules are so framed, the rules would have the force of statute. They will be deemed to have been incorporated as part of the statute. The rules framed under section 55 (1) of the Act would, therefore be statutory. 1969 (2) S.C.C. 43 followed. [Para 3]
(2) Co-operative Societies Act, 1960-(M.P.)-S. 55 (2) - authority hearing dispute under-has jurisdiction to order reinstatement if the dismissal or removal is contrary to statutory rules.
The authority appointed under section 55 (1) when seized of a dispute referred to thereunder, a right to declare the action of the employee illegal being in contravention of the statutory rules. The necessary consequence of setting aside the dismissal or removal of an employee in breach of the rules is that to that employee is restored back his status which he had vis a vis his employer (society) before the termination of his services. The authority hearing the dispute under section 55 (2) must, therefore, be held to have that power and jurisdiction to direct the restoration of such status which would only mean that it shall have jurisdiction to direct restatement of the employee the moment it concludes that the action of the employer (Society) in dismissing and or removing its employee is in breach of the statutory rules. [Para 4]
(3) Co-operative Societies Act, 1960 (M.P.)-S. 55 (2)-employees of Co-operative Society-dismissed illegally-are entitled to be reinstated with full back wages alike employees engaged in industries [Para 5]
(4) Co-operative Societies Act, 1960 (M.P.)-S. 55 (2) - Co-operative Bank Employees Service Rules-R. 45-employee dismissed in contravention of rule 45-entitled to be reinstated and continue in service.
The action of removal or dismissal of the employee of a Co-operative Society in contravention of the statutory Rules does entitle the employee to continue in service and the Registrar or his nominee hearing a dispute under section 55 (2) must be held to have jurisdiction to direct reinstatement on a finding that the removal or dismissal is in breach of statutory rules.
In the present case, the termination of petitioner's services was an act of victimisation due to his trade union activities and that the mandatory procedure prescribed in rule 45 of the rules was not followed. It is, therefore, clear that the removal of the petitioner from service of the respondent Bank was in total violation of the rules and therefore illegal. The petitioner, there fore, is entitled to continue in service an thus has a fight to be reinstated. The Board of Revenue was therefore, not right in refusing the petitioner the relief of reinstatement and instead directing payment of certain amount as damage for wrongful termination of service. Contrary observation in 1979 JLJ 689=1979 RN 495 overruled, 1976 JLJ 293 (F.B.), 1978 RN 109 and 1969 (2) S.C.C. 43 relied on. 1975 JLJ 732 referred to. [Para 7 and 8]
( 1 ) THE learned Single Judge, who heard this petition, felt that the decision of this Court in Gwalior District Co-operative Bank Ltd. Gwalior v. Ramesh Chandra Mangal, [1979 M. P. L. J. 631] relating to the rights of the employees of the Co-operative bank to seek relief of reinstatesment on the dismissal/removal being illegal, needed reconsideration by a larger Bench. This is how the matter has been placed before us.
( 2 ) THE facts are that the petitioner was in the employment of the Nimad jila Kendraiya Sahakari Bank Ltd; Khandwa and was a confirmed suprevisor. Service Rules framed under Section 55 of the Madhya Pradesh co-operative Societies Act, 1960 governed his employment. On 6-1-1975 the petitioner's services were terminated without any prior inquiry and without assigning any reasons for the termination. The petitioner approached the deputy Registrar, Co-operative Societies under Section 55 (2) of the Act, his claim was dismissed and it was found that the case was one of retrenchment for which three months' notice alone was sufficient. Against that order, the petitioner preferred an appeal before the Additional Registrar, co-operative Societies, who by order dated 28-12-1978, accepted that appeal and held the order terminating the petitioner's services bad. Relief of reinstatement was granted. The Additional Registrar held that the petitioner was entitled protection guaranteed under Rules 43, 44 and 45 of the Service rules and was entitled to a charge-sheet and an inquiry before his services could be terminated. The Bank preferred an appeal to the Board of Revenue. The Board of Revenue also held by its order dated 25th March, 1980, that the petitioner was engaged in trade union activities for which he was warned and the record showed that the Bank was unhappy with his union activities. It was, therefore, concluded that the petitioner's removal was a result of those activities which resulted in some indiscipline amongst the employees and was not congenial of harmoneous relationship between the employee and the employer. The termination was held an act of victimization on account of petitioner's trade union activities. The Board has ultimately found that a Departmental Enquiry ought to have proceeded against the petitioner before his services were terminated. All the same, feeling bound by the decision is Ramesh Chandra Mangal's case (supra), the Board refused to grant re-instatement and held the petitioner entitled to only damages. A compensation has been awarded to the petitioner in a sum equal to an amount of one month's pay for each completed year of service. The petitioner claims that the Board was wrong in refusing re-instatement which could have been granted to the petitioner on a finding that his removal from service was an act of victimization due to trade union activities and not a termination simpliciter. ( 3 ) SECTION 55 of the Madhya Pradesh Co-operative Societies Act, 1960, before its amendment by Ordinance 22 of 1975, [published in Madhya pradesh Gazette dated 20th November, 1975 and confirmed by Act No. 14 of 1976, was as follows :"55. Registrar's power to determine terms of employment in societies. (I) The Registrar may from time to time frame rules governing the terms of employment and working conditions in a society of a class of societies and the society or the class of societies to which such terms of employment and of working conditions are applicable shall comply with the order that may be issued by the Registrar in this behalf. (2) Where a dispute including a dispute regarding terms of employment, working conditions and disciplinary action taken by a society, arises between a society and its employees, the Registrar or any officer appointed by him, not below the rank of Assistant registrar, shall decide the dispute and his decision shall be binding on the society, and its employees. "by the amendment, vide Act No. 14 of 1976, in sub-section (2) the words "terms of employment, wor
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