LI Network
Published on: October 3, 2023 at 19:05 IST
The Allahabad High Court has ruled that disputes between employers and employees of a cooperative society fall under the jurisdiction of the U.P Cooperative Societies Act, 1965, and not the U.P. Industrial Disputes Act, 1947, according to a recent judgment.
The Court cited the Supreme Court’s decision in Ghaziabad Zila Sahkari Bank Limited Vs. Additional Labour Commissioner and others, as well as the division bench’s decision in Ramji Lal Tewari Vs. U.P. Co-operative Sugar Federation Ltd. Lko, to support its position that the Labour Court had no authority to hear and decide matters involving a society established under the 1965 Act.
The case arose with the termination of the employment of Ajay Kumar Mishra, an adhoc employee for 89 days, which was subsequently extended until 1984. After his termination, he took his grievance to the Conciliation Officer, who referred it to the UP Industrial Tribunal.
The UP Cooperative Federation Limited, however, objected to the reference’s validity, citing the Supreme Court’s ruling in Ghaziabad Zila Sahkari Bank Limited, which was rejected. The UP Industrial Tribunal in Lucknow revoked the employee’s termination and ordered his reinstatement with 50% back wages.
In response to this decision, the Court examined the issue of the proceedings’ maintainability before the Tribunal.
The Court distinguished the Supreme Court’s decision in K.A. Annamma Vs. Secretary, Cochin Cooperative Hospital Society Limited, as it was related to the Kerala Cooperative Societies Act, where both the Cooperative Society Act and the Industrial Tribunal Act provided concurrent jurisdiction.
The Court also referred to Ghaziabad Zila Sahkari Bank Limited Vs. Additional Labour Commissioner and others, where the jurisdiction of the labour court was specifically excluded from such disputes due to Section 70 of the U.P Cooperative Societies Act.
The Court concluded that Section 70 of the Act specifically excludes the application of the U.P. Industrial Disputes Act, 1947, in disputes between the employer and employee of a cooperative society governed by the U.P Cooperative Societies Act, 1965.
Case Title: U.P. Cooperative Federation Limited through its Managing Director and Another v. Presiding Officer, Industrial Tribunal (2), U. P. Lucknow and two others