SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1990 Supreme(Online)(AP) 8

ANDHRA PRADESH HIGH COURT
Kuppuswami J., Jeevan Reddy, Syed Shah Mohammed Quardi, M. Jagannadha Rao J., M. N. Rao J., JJ
S. K. C. C. Bank Ltd. v. Seetharama Raja
W. A. No. 69 of 1986 etc.



Writ jurisdiction does not extend to enforcing cooperative society bye laws, which lack the force of law and are treated as private contractual obligations.

Headnote:(A) Constitution of India - Articles 12 and 226 - Writ jurisdiction against cooperative societies - The court held that a writ petition does not lie against a cooperative society unless it can be deemed as 'State' under Art.12. Bye laws of a cooperative society do not possess legal force of law and are akin to contracts of service. (Paras 32 and 60)

(B) Fundamental Rights - The court emphasized that service conditions established under bye laws lack the force of law and cannot be enforced through writ jurisdiction since they are purely contractual matters. (Paras 32, 46, and 60)

(C) Jurisdiction of Writ Courts - The court clarified that extraordinary jurisdiction under Art.226 is limited to enforcing public duties of public authorities and does not extend to enforcing private law rights. (Paras 1, 46, and 48)

Facts of the case:
The writ petitioner, an employee of a cooperative bank, challenged his termination claiming wrongful interference with his service conditions as per the bye laws of the society. The single judge quashed the termination based on these bye laws; however, the appeal questioned the enforceability of bye laws through writ jurisdiction.

Findings of Court:
The court found that a cooperative society's bye laws do not hold the force of law, and thus enforcement of terms through a writ petition is unwarranted. The court also established that the society could not be classified as 'State' under Art.12.

Issues: The main issues were whether a cooperative society could be characterized as 'State' under Art.12, and whether its bye laws had the force of law sufficient to allow for writ jurisdiction.

Ratio Decidendi: The court determined that a cooperative society's bye laws, although binding between the society and its members, do not equate to law. They are considered contractual obligations, and thus, enforcing them through a writ petition is impermissible.

Result: Writ petition dismissed, affirming that bye laws do not have legal force.

1 The issue before the Full Bench is whether a writ petition lies against a cooperative society, and if it does, in what circumstances ? The context is the enforcement of bye laws governing service condition of employees.

2 In P. S. Naidu v. Chittoor District Cooperative Central Bank [1977] 2 APLJ 282 , a Division Bench of this court held that an order of punishment made by a society against its employees cannot be questioned by the latter by way of a writ petition. The Bench pointed out "as far as this court is concerned, it has uniformly taken the view that a writ petition does not led against a cooperative society especially when it relates to matters concerning the society and its employees. In C. V. Narasimha Naidu v. Chittoor District Cooperative Bank Ltd. [1971] 2 APLJ (SN) 16, "W.P.No. 3788 of 1970 dated 7th June, 1971)" one of us (Kuppuswami J.) (sic) following the decision of a Division Bench of this (Madras) court in C. Lakshmiah v. Sri Perumbadur Taluk Cooperative Marketing Society Ltd., AIR 1962 Mad. 169, held that an order under Art .226 of the Constitution cannot be issued to quash the proceedings of a cooperative society....." The Bench noted that there appears to be a difference f opinion between the various High Court in the country on that question, and observed" we would, however, prefer to rest our decision on the ground that what the petitioner is seeking to ensure is a purely contractual right, and in substance his case is that there has been a wrongful inference with the conditions of his service by the stoppage of three increments. As the Supreme Court pointed out in Kulchhinder Singh Brar , AIR 1976 SC 2216 , where a petitioner is seeking to enforce a contract, he cannot invoke the jurisdiction under Art .226 bypassing the normal channels of civil litigation. Even in W.P. No. 3711 of 1970 dated June 7, 1971, another ground for dismissing the writ petition was that in terminating the services of its own employees, the cooperative society cannot be said to be acting in the discharge of a public duty. in considering whether a p Art icular body is an institution amenable to jurisdiction under Art .226, it was observed that it is to be ascertained whether the p Art icular act complained of is one which was done in discharge of a public duty. A statutory body entrusted generally with the performance of a public duty may still performed several acts which cannot be considered to be public functions like entering into a contract for the purchase of goods to other property. While doing so, it is not discharging a public function. Similarly, is was held that termination of services is one connected only with the contract of employment. A fortiori in this case, the stoppage of increments cannot be regarded as a public function, but is only one connected with the contract...." A similar view was taken by a learned single judge in Ranga Reddy v. Cooperative Electricity Supply Society Ltd. [1977] ALT 172.

3 In V. Narasinga Rao v. Prudential Cooperative Urban Bank Ltd. [1989] 1 ALT 300 ; [1990] 77 FJR 361, a Division Bench comprising two of us (Jeevan Reddy and Syed Shah Mohammed Quardi JJ.) examined this question. That was a case where an employee of the Prudential Cooperative Urban Bank was dismissed by the bank in pursuance of a disciplinary enquiry, which order was challenged by way of a writ petition. The writ petition was referred to a Division Bench by a learned single judge in view of the Bench decision in P. S. Naidu v. Chittor District Cooperative Central bank [1977] 2 APLJ 282 , and the decision in Ranga Reddy v. Co- operative Electricity Supply Society Ltd. [19977] ALT 172. It would be appropriate to notice the propositions flowing from the decision in Narasinga Rao ; [1990] 77 FJR 361. They are :
(i) The question whether a writ petition lies against a co- operative society or not, has to be examined in the light of the language employed in Art .226, which empowers this court "to issue to any person o

































































































































































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top