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2015 Supreme(Online)(Ker) 41273

KERALA HIGH COURT
, J
Pallichal Farmers Service Co - operative Bank Ltd. No. T.677, Thiruvananthapuram – Appellant
Versus
State of Kerala and Others – Respondent
Writ Appeals | WA No. 764 of 2010 | WA No. 2516 of 2009 | WA No. 184 of 2010



Advocates:
For the Appellants/Petitioners:Shri. T. M. Raman Kartha, Advocate, Shri. Bechu Kurian Thomas
For the Respondents: Special Government Pleader Smt. Girija Gopal

Section 69 of the Kerala Co-operative Societies Act excludes Labour Court jurisdiction over employment disputes, designating the Co-operative Arbitration Court as the exclusive forum for resolution.

Headnote:(A) Kerala Co-operative Societies Act, 1969 - Section 69 - Jurisdiction of Labour Court and Co-operative Arbitration Court - The Full Bench considered whether disputes between management of co-operative societies and employees should be adjudicated by Labour Courts or Arbitration Courts under Section 69 of the Act, or if concurrent jurisdiction existed. It was concluded that S.69 provides for exclusive jurisdiction of Arbitration Courts, rebutting the Division Bench's earlier view on concurrent jurisdiction. Amendment Act 1 of 2000 clarifying scope did not obtain Presidential assent, affecting its legislative intent. (Paras 1, 10, 34, 36)

Facts of the case:
The appeals questioned the jurisdiction of Labour Court regarding employment disputes under the Co-operative Societies Act, highlighting conflicting interpretations and precedents. The appellants argued that the correct forum for such disputes is the Arbitration Court as intended by the 1969 Act.

Findings of Court:
The court found that the amendment made in 2000 aimed to clarify jurisdiction but lacked Presidential assent, thus conflicting with higher laws.

Issues: The crux involved interpretations regarding the jurisdictional authority over employment disputes under the Co-operative Societies Act vis-a-vis Industrial Disputes Act, particularly focusing on whether S.69 should exclude Labour Court jurisdiction.

Ratio Decidendi: The court reasoned that legislative intent behind S.69 is to provide an exclusive mechanism for resolving employment disputes through the Co-operative Arbitration Court, reaffirming that without appropriate assent, concurrent jurisdiction claimed by Labour Courts was unfounded.

Result: The court decided to refer the matter to a Larger Bench for clarification due to significant legal precedent implications.

1. The Division Bench hearing these Writ Appeals expressed doubt on the correctness of the earlier Division Bench judgment of this Court in Thodupuzha Taluk General Marketing Co - operative Society v. Michael Sebastian , 2010 KHC 282 : 2010 (1) KLT 938 . By the following reference order dated 08/12/2010, the Division Bench made a reference for consideration by a Full Bench:
“The question raised in the connected writ appeals is whether industrial dispute between the management of a society and an employee should be settled before the Labour Court or Industrial Tribunal to which it is referred by Government or whether it should be decided by the Arbitration Court under S.69(2)(d) of the Co - operative Societies Act. A Division Bench of this Court in the decision in Thodupuzha Taluk General Marketing Co - op. Society v. Michael Sebastian reported in held that both the Industrial Tribunal and Co - operative Arbitration Court have concurrent jurisdiction for settling industrial disputes between management and workers of a society. This position is also supported by a earlier single Bench decision of this Court reported in Board of Directors, Edava Service Co - operative Bank v. The Co - operative Arbitration Court and Others, 2008 (3) KLJ 267 . It is seen from the judgments that the Government Pleader conceded before the Division Bench that the amendment introduced in the year 2000 under S.69(2)(d) of the Co - operative Societies Act was not assented to by the President. However, before us, counsel appearing for the society and the Government Pleader submitted that amendment may be only clarificatory and even the original provision of S.69(1)(c) takes in industrial disputes between societies and employees and with these provisions of the Act got the assent of the President. S.69(1)(c) of the Act will prevail over the provisions of the Industrial Disputes Act by virtue of the operation of Art.254(2) of the Constitution of India. We find force in the contention of the counsel because, if the amendment made in 2000 is only clarificatory in nature, then the original provision in the statue takes in all industrial disputes which have to be settled exclusively by Arbitration Courts constituted under the Co - operative Societies Act. Prima facie, we are not able to concur with the view expressed by the Division Bench that the Arbitration Court, Industrial Tribunal and Labour Courts have concurrent jurisdiction in the matter. In our view, if the provision of the Co - operative Societies Act is valid, then the Industrial Tribunal and Labour Court will not have jurisdiction in the matter and the jurisdiction of the Co - operative Arbitration Court will be exclusive by virtue of the operation of Art.254(2) of the Constitution. We, therefore, refer these cases for consideration by a Full Bench. Since counsel for the respondents pointed out that disputes are pending in various Forums, including Labour Court and the proceedings are stayed by this Court, we feel there is an urgent need to dispose of these cases by a Full Bench. The Registry will, therefore, take orders from the Honourable Chief Justice for decision of the issue by a Full Bench”.

2. All the three Writ Appeals have been filed by the Registered Co - operative Banks which are registered under the Kerala Co - operative Societies Act, 1969 (hereinafter referred to as “the 1969 Act”). Appellants are Co - operative Banks, i.e., Central Co - operative Societies within the meaning of the 1969 Act. All the Writ Appeals having raised same issue, it shall suffice to refer to the facts of Writ Appeal No. 764 of 2010 in detail to decide all the Writ Appeals.

3. Writ appeal No. 764 (Pallichal Farmers Service Co - operative Bank Ltd. No. T.677, Thiruvananthapuram v. State of Kerala and Others) has been filed against the judgment / order of the learned Single Judge dated 20/04/2010 by which order Writ Petition No. 1249 of 2010 (The Pallichal Farmes Service Co - operative Bank Ltd. No. T - 677, Th












































































































































































































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