Special Co-operative Societies Act and bye-laws exclude Shops Act jurisdiction for employee disciplinary appeals in co-operative banks.

Judgment :

S.M.Subramaniam, J.

Under assail is the common order dated 03.02.2026 passed in W.P.No.23363 of 2024 etc. batch.

2. The Tamil Nadu Industrial Cooperative Bank Limited is the appellant in the intra-court appeal. The 2^nd respondent N.Mahalakshmi was holding the post of Sub-Accountant in the appellant's Cooperative Bank. Departmental disciplinary proceedings were initiated on the allegations of pledging spurious jewels for sanctioning of loan and the 2^nd respondent was dismissed from service, on the basis of the enquiry report of the Enquiry Officer, holding that the charges are held proved.

3. The 2^nd respondent filed an application before the competent authority /Joint Commissioner of Labour, under the Tamil Nadu Shops and Establishments Act, 1947. The said appeal was filed under Section 41(2) of the Tamil Nadu Shops and Establishments Act. The Joint Commissioner of Labour/competent authority, allowed the appeal by setting aside the order of dismissal. Challenging the said order, the appellant preferred a writ petition. The writ court granted the additional relief of reinstatement, continuity of service along with the monetary benefits, by confirming the order passed by the competent authority under the Tamil Nadu Shops and Establishments Act. Having aggrieved, the Industrial Co-operative Bank preferred the present appeal.

4. Mr.Haja Nasiruddin, the learned Additional Advocate General appearing on behalf of the appellant would mainly contend that the appeal under Section 41 of the Tamilnadu Shops and Establishment Act, 1947, before the Joint Commissioner of Labour, is not maintainable. Therefore, the said preliminary issue has to be decided in the present appeal. To substantiate the issue regarding maintainability, the learned Additional Advocate General would contend that the appellant Cooperative Bank is registered under the provisions of the Tamil Nadu Co-operative Societies Act, 1983. Under the scheme of the Tamil Nadu Cooperative Society Act, the service conditions, as approved by the Registrar of Cooperative Societies, would apply to the employees of the Co-operative Bank and under the bye law, the Managing Director of the Co-operative Bank is the disciplinary authority. The Registrar is the revisional authority. In the present case, the Managing Director/Disciplinary Authority imposed penalty of dismissal from service. Therefore, the appeal would lie under the bye-laws before the Industrial Commissioner/Registrar of Cooperative Societies under Section 153 of the Tamil Nadu Cooperative Societies Act. Thereafter, a review is contemplated under Section 154 of the Tamil Nadu Cooperative Societies Act and any person aggrieved thereafter from and out of those orders may prefer a writ petition under Article 226 of the Constitution of India. This being the scheme under the Act, the special enactment will prevail over the general law. When Tamil Nadu Co-operative Societies Act being a special enactment, application filed before the competent authority under the Tamil Nadu Shops and Establishment Act, is not maintainable.

5. In support of the above contentions, the learned Additional Advocate General would rely on the judgment of the Hon'ble Supreme Court in the case of C.V.Raman vs. Management of Bank of India and another reported in (1998)3 SCC 105 wherein the issue relating to the Tamil Nadu Shops and Establishments Act has been considered by the Hon'ble Supreme Court and paragraph Nos.16, 17 & 18 of the said judgment are extracted as follows:

16. As regards the first reason referred to above we have already pointed out