Co-operative societies are not exempt from labor laws; these laws apply alongside the Kerala Co-operative Societies Act to ensure employee welfare and rights.

The petitioner is a Co-operative Hospital Society registered under the provisions of the Kerala Co-operative Societies Act , 1969. It is stated that the Society has an approved staff strength of 29 and 19 permanent employees are working in the hospital and 44 employees are engaged on contract basis. The Society is providing medical treatment at reasonable rates to patients apart from providing 10% discount on the cost of medicines.

2. The 4th respondent, the Assistant Labour Officer, Ottappalam, conducted an inspection in the Society regarding compliance of the provisions of the Labour legislations including the Kerala WP(C) NO. 32291 OF 2014 : 3 :

Shops and Commercial Establishments Act, 1960, the Minimum Wages Act, 1948, the Maternity Benefit Act, 1961 and the Kerala Industrial Establishments (National and Festival Holidays) Act, 1958, and issued Ext.P2 inspection note. To Ext.P2, the petitioner submitted Ext.P3 reply stating that the employees of the Society are covered under the provisions of the Kerala Co- operative Societies Act and the instructions issued by the Registrar of Co-operative Societies from time to time, and in cases covered by such special enactments, the 4th respondent has no jurisdiction to conduct inspection or issue directions.

However, ignoring Ext.P3 reply, the 4th respondent issued Ext.P4 notice directing the petitioner to produce records maintained under the aforesaid WP(C) NO. 32291 OF 2014 : 4 :

legislations and also to produce documents to show whether the petitioner has been exempted from the purview of the above legislations.

3. The petitioner states that 'Co-operation' falls under entry 32 of List II (State List) of Schedule VII of the Constitution of India, while 'Labour Welfare' is listed under entry 24 of List III (Concurrent List) and therefore, 'Co-operative Society' is a subject in which the State is competent to legislate and since the State has enacted the Kerala Co-operative Societies Act in exercise of such powers, the Co-operative Societies in Kerala are subject to regulation, supervision and control by the Registrar and the Co-operative Department. It is contended that the Kerala Co- operative Societies Act is a complete code by itself WP(C) NO. 32291 OF 2014 : 5 :

and since provisions are made therein for the audit, inspection, enquiry, supersession, surcharge, adjudication of disputes, penalties etc.;

operation of other labour laws applies only where no provision is made in the said Act and Rules.

Accordingly, this writ petition is filed to quash Exts.P2 and P4 and to declare that the petitioner is bound to comply only with the provisions of the Kerala Co-operative Societies Act, Rules, and instructions issued thereunder in respect of its employees, and to direct the 4th respondent not to take any coercive action based on Exts.P2 and P4.

4. The writ petition was admitted by this Court on 02.02.2014 and further proceedings as per Ext.P4 was stayed.

5. A counter affidavit has been filed by the WP(C) NO. 32291 OF 2014 : 6 :

4th respondent contending, inter alia, that the petitioner Society is an establishment coming within the purview of the Kerala Shops and Commercial Establishments Act , 1960, the Minimum Wages Act , 1948, the Maternity Benefit Act , 1961 and the Kerala Industrial Establishments (National and Festival Holidays) Act , 1958, and the provisions thereof are applicable to the employees of the Co-operative Societies and the petitioner Society has not been exempted from the purview of any of the above legislations. It is stated that the petitioner has already taken registration under the , 1960. It is further stated that the petitioner was not maintaining records/ registers as required under the above enactments.

WP(C) NO. 32291 OF 2014 : 7 :

6. Heard the learned counsel for the petitioner and the learned Government Pleader.

7. The contention of the petitioner Society is that they are regulated by the provisions of the Kerala Co-operative Societies Act and the jurisdic