IN THE HIGH COURT OF MADHYA PRADESH
njay Dwivedi, J.
Ajay Asati v. State of M.P.
Writ Petition No. 6922 of 2024 (J); Decided on 21.3.2024*
Co-operative Societies Act, 1960 (M.P.) -- S. 55 -- dispute relating to service conditions of employee -- can be raised before Registrar only -- writ petition in this regard not maintainable -- dismissed. W.P. No. 3838 of 2024 decided on 26.2.2024 relied on. W.P. No. 5055 of 2024 decided on 18.3.2024 per incuriam. [Para 3
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ORDER
1. The petitioner, by the instant petition filed under Article 226 of the Constitution of India, is challenging the validity of order dated 5.3.2024 (Annexure-P/7) passed by the Chief Executive Officer, Zila Shahkari Kendriya Bank Maryadit, Chhatarpur (respondent No.3), whereby he has been placed under suspension.
2. Learned counsel for the petitioner submits that the petitioner was holding the post of Branch Manager at Bijawar Branch. It is submitted that since the officer who has passed the impugned order is not competent to place the petitioner under suspension, therefore, the present petition is maintainable before this Court. In support of his submission, learned counsel for the petitioner has placed reliance upon an order passed by the co-ordinate Bench of this Court in Writ Petition No.5055 of 2024 [Jalam Singh v. The State of Madhya Pradesh and others] on 18.3.2024.
3. Indisputably, the petitioner is an employee of cooperative bank which is a society registered under the provisions of M.P. Co-operative Societies Act, 1960 (in short the 'Act, 1960'). That apart, it is a dispute between employee and employer, in which respondent No.3 has placed the petitioner under suspension. Provision of section 55 of the Act, 1960 very specifically provides that if a dispute relating to service conditions of an employee working in a cooperative society is raised, then that can be raised before the Registrar only. Section 55 of the Act, 1960 is relevant, which reads as under:-
'[55. Registrar's power to determine conditions of employment in societies.-(1) The Registrar may, from time to time, frame rules governing the terms and conditions of employment in a society or class of societies and the society or class of societies to which such terms and conditions of employment are applicable shall comply with the order that may be issued by the Registrar in this behalf:
Provided that in the case of co-operative credit structure, the Registrar may frame rules governing the terms and conditions of employment on the basis of the guidelines specified by the National Bank.
[(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:
Provided that the Registrar or the officer referred to above shall not entertain the dispute unless presented to him within thirty days from the date of order sought to be impugned:
Provided further that in computing the period of limitation under the foregoing proviso, the time requisite for obtaining copy of the order shall be excluded:]
[Provided also that the Registrar or the officer referred to above may admit dispute after the expiry of thirty days, if the applicant satisfy the Registrar or officer referred to above that he had sufficient cause for not referring the dispute within the stipulated time.]'
From the language used in sub-section (2) of section 55 of the Act, 1960, it is clear that 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.
4. This Court in Writ Petition No.3838 of 2024 [Arvind Kumar Vyas v. The State of Madhya Pradesh and others] vide order dated 26.2.2024 has taken the view that the petition relating to service conditions of an employee of co-operative society cannot be entertained by the Court exercising the jurisdiction provided under Article 226 of the Constitution of India. In the said case, the Court has observed as under:-
3.Counsel for the petitioner submits that the challenge is made solely on the ground that the Chief Executive Officer, District Co-operative Central Bank, Maryadit, Chhattarpur is not the competent authority to take actio
Suspension of an employee under the Andhra Pradesh Cooperative Societies Act must adhere to due process and jurisdictional authority, failing which it is deemed illegal.
The Assistant Registrar of Cooperative Societies cannot restore a suspension already lifted by the Committee, as such authority is not vested under the Odisha Cooperative Societies Act.
Disciplinary disputes involving co-operative societies must be resolved through the Co-operative Arbitration Court, and recourse to writ jurisdiction is premature when alternative remedies exist.
The main legal point established in the judgment is the jurisdiction of the Registrar and tribunal to adjudicate the dispute raised by the respondent 1 against the bank.
The Deputy Commissioner had no authority to deal with the orders passed by the governing body, and the respondent had not followed the proper procedure to challenge the termination order before the C....
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