High Court Of Madhya Pradesh
P.V. Dixit, C.J. and K.L. Pandey, J.
RAMCHARAN BILLE
Versus
MADHYA PRADESH STATE TAD-GUD CO-OPERATIVE
Decided On : Feb 23,1965
It is obvious from the provisions contained in section 55 that if the Registrar has framed any rules governing the terms of employment and working conditions in a co-operative society, then the employees of the Society would be governed by those rules. If no such rules have been framed, then the general law governing master and servant will apply to the employees.
Sub-section (2) of section 55, when it speaks of a dispute, including a dispute regarding terms of employment, working conditions, and disciplinary action taken by a society, arising between a society and its employees being determined by the Registrar or any officer appointed 'by him, does not restrict its operation only to disputes arising under the rules framed by the Registrar' in the exercise of his powers under section 55 (1). That sub-section, as it is worded, means that any dispute between a society and its employees, whether arising under the rules framed under section 55 (1) or otherwise, shall be determined by the Registrar or any officer appointed by; him. [Para 4]
(2) Co-operative Societies Act, 1960 (M.P.) - Ss. 77 (1) & 55 (2) - decision of Registrar made binding on the parties - effect of - appeal under section 77 (1) not barred.
The me of the expression "decision shall be binding on the society and its employees" means no more than this that the decision shall be binding on the society and its' employees so that in any subsequent proceedings, as for example proceedings for recovery of salary, it would not be open to the society or the employees concerned to agitate again any matter determined by the competent officer in a dispute under section 55 and which was actually within his power to decide. It does not mean that the decision shall be final in the sense of not being open to appeal. [Para 6]
This expression cannot be treated as an "otherwise provision" prohibiting an appeal under section 77 (1) against a decision of the Registrar, or any officer appointed by him, deciding the dispute under that provision. [Para 7]
(3) Co-operative Societies Act, 1960 (M.P.) - S. 55 (2) – expression 'decision shall be binding on the society and its employees' - import of.
The express 'decision shall be binding' only denotes that the decision shall affect the society and the employee concerned in constraining or compulsory manner. The necessity for providing that the decision of the Registrar or any officer appointed by him in a dispute under section 55 (2) shall be binding arises because of the fact that section 55 (2) does not confer any judicial power upon the Registrar or any officer, appointed by him, and the function these officers discharge while determining a dispute are not judicial but are arbitral.
A determination of a Court or an award of an arbitrator shall be binding and authoritative is not the same thing as saying that the decision shall be final and conclusive and not open to any appeal. A decision may be made binding and authoritative by a statutory provision, and yet may it or may not be subject to any appeal according to the provision contained in the statute dealing with appeals against that decision. [Para 6]
( 1. ) BY this application under Articles 226 and 227 of the Constitution, the petitioner seeks a writ of certiorari for quashing an order passed by respondent 1, the Madhya Pradesh State Tad-Gud Co-operative Federation, Ltd. , Ujjain, on 25 March 1963 terminating his services with effect from 10 May 1962.
( 2. ) THE petitioner was employed by the federation in a temporary capacity as Tad-Gud guide. He was posted at Kareli. On 25 March 1963, the federation passed an order terminating the petitioners services as from 10 May 1962.
The order stated that on a previous occasion the petitioner had attended a conference In the Mysore State without permission and without obtaining any leave, that for this unauthorized absence and attendance at the conference he was warned that In the event of repetition of such a conduct, his service would be discharged, and that despite this warning the applicant was again found to be visiting Ujjain and other places without intimating the federation and obtaining Its permission for the visits. The applicant then moved the Registrar of the Co-operative Societies under Section 55 (2) of the Madhya Pradesh Co-operative Societies Act, 1960, complaining that the federation had illegally terminated his services. The Joint Registrar of the Co-operative Societies, who heard the petitioners complaint after giving notice to the parties, came to the conclusion that the applicants services were properly terminated, and accordingly dismissed the complaint made to him by the petitioner. The applicant then filed an appeal before the State Government against the decision of the Joint Registrar, The appeal was under Section 77 (1) of the Act, That appeal was dismissed by the Government taking the view that under Section 55 (2) the decision of the Registrar of the Co-operative Societies was final and no appeal lay against that decision.
( 3. ) THE petitioner contends that the order terminating his services was Illegal inasmuch as it was passed by the federation without framing any charges or holding any enquiry and without giving him an opportunity of defending himself against the charges, and that the action of the federation In terminating his services from a date anterior to the passing of the Impugned order was wholly illegal. His further contention Is that In discharging his functions under Section 55 (2), the Registrar has to function as a quasi-judicial authority and, therefore, when he approached the Registrar under Section 56 (2) an inquiry should have been held by the Registrar into the charges on the basis of which the federation dispensed with his services; that he should have been given an opportunity to show cause against those charges; that in deciding his complaint about the illegal termination of his services, the Joint Registrar should have acted in accordance with the principles of natural justice, and that the appeal, which he had preferred under Section 77 (1) of the Act to the State Government, was competent and it was wrongly rejected by the State Government on the ground that the decision of the Registrar under Section 55 (2) was final and no appeal lay against it.
( 4. ) IT will be proper to deal first with the petitioners contention that the appeal, which he had filed before the State Government against the decision of the Joint Registrar, was competent and the State Government should have decided it on merits. If this contention is upheld, then it would not be necessary for us to express any opinion on other contentions raised by the applicant. The material provisions to consider are Sections 55 and 77 (1) (b ). They are as follows:
55. (1) the Registrar may from time to time frame rules governing the terms of employment and working conditions In a society or 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
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