Labour authorities lack jurisdiction to grant permanent status to co-operative society employees recruited in violation of statutory cadre strength and qualification requirements, as such illegal appointments cannot be regularized under labour statutes.

ORDER

1.The petitioner is a Bee Keeper’s Co-operative Society, registered under the Tamil Nadu Co-operative Societies Act, 1983. The second respondent has preferred an application before the first respondent under Section 3 of the Tamil Nadu Industrial Establishment (Conferment of Permanent Status)Act, 1981 and the same was allowed with a direction to the petitioner/Society to confer the permanent status of the second respondent with effect from 03.01.2013 in the cadre of Packer in the petitioner/Society. Aggrieved by the same, the petitioner/Society has filed this writ petition.

2.The learned counsel appearing for the petitioner/Society by referring to the decision of this Court in L.Justine and another Vs. The Registrar of Cooperative Societies, Chennai and others, which was confirmed by the Hon’ble Supreme Court in A.Umarani vs. Registrar of Cooperative Societies and Others reported in 2004 (7) SCC 112, submits that this issue has already been decided that the first respondent has no jurisdiction to entertain the petition under the provisions of the Tamil Nadu Industrial Establishment (Conferment of Permanent Status)Act, 1981 in the matter related to Co-operative Societies. He further submits that this order is in violation of the Government Order in GO.(Ms)No.44 dated 11.03.2015, Labour and Employment Department and in violation of Rule 149 of the Tamil Nadu Co- operative Societies Rules 1988 and Section 74 of the Tamil Nadu Co-operative Societies Act, 1983.

3.The jurisdiction of the first respondent in deciding the matter of permanent status of the employee of the Co-operative Societies has already been decided by the Division Bench of this Court. Recently, the Division Bench of this Court has also decided the similar issue in W.A.No.1082 of 2014 dated 20.03.2024 as under:-

11.As per Section 74 of Tamil Nadu Co-operative Societies Act, 1983 recruitment Bureaus are constituted for recruiting employees to the Cooperative Societies. These Co- operative Societies are controlled by the Registrar of Co- operative Societies and the Government. When the service conditions of the employees are regulated under the Rules and special bylaws approved by the competent Authority under the Act, the Inspector of Labour cannot grant permanent status merely by conducting a summary proceeding. Such a decision would run counter to the provisions of the Cooperative Societies Act, Rules and by- laws approved by the competent Authority under the Act. All appointments, approval of cadre strength, method of appointments, procedures are regulated with the approval of the Government and the Registrar of the Co-operative Societies. Therefore, any other method of appointment beyond the scope of the provisions of the Co-operative Societies Act and Rules are impermissible.

4.In the similar issue, in a case of L.Justine and another Vs. The Registrar of Cooperative Societies, Chennai and others, the Hon’ble Full Bench of this Court has considered the applicability of the Act and held as under:-

16. Coming to the application of Permanency Act of 1981 or the Industrial Disputes Act, 1947, de hors G.O. Ms. No. 86, the said enactments are not applicable to the appointments made in an illegal manner. There is a lot of difference between irregularity and illegality. The appointments here are not irregular but illegal. Irregular is something which is done in an authorised manner but while doing so, there is some procedural irregularity. Illegality is altogether different. An action is illegal if it is contrary to law. The law in the instant case is so clear that the appointments cannot be beyond the permissible cadre strength. The rule mandates the fixation of the cadre strength. In fact