1997 JTR(SC) 681
1997 AIR(SC) 2652 ; 1997 AIR(SCW) 2615 ; 1997 2 AllCJ 1145 ; 1997 1 CLR 990 ; 1997 2 CTC 34 ; 1997 90 FJR 468 ; 1997 76 FLR 383 ; 1997 5 JT 95 ; 1997 2 LLJ 236 ; 1997 2 LLN 464 ; 1997 3 RSJ 443 ; 1997 3 Scale 741 ; 1997 5 SCC 125 ; 1997 SCC(L&S) 1128 ; 1997 3 SCR 795 ; 1997 2 SCT 793 ; 1997 4 SLR 688 ; 1997 2 KLT(Online) 1119 ; 1997 5 Supreme 196
1997(5) Supreme 196
SUPREME COURT OF INDIA
K. Ramaswamy and D.P. Wadhwa, JJ.
R.C. Tiwari -Petitioner
versus
M.P. State Co-operative Marketing Federation Ltd. & Ors. -Respondents
Special Leave Petition (C) No. 9143 of 1997
(CC-3716 of 1997)
Decided on 9-4-1997
Counsel for the Parties :
For the Petitioner : S.B. Upadhyay and Ashok Kumar Gupta, Advocates.
Act
Referred
:CIVIL PROCEDURE CODE : S.11
INDUSTRIAL DISPUTES ACT : S.10(1)
MADHYA PRADESH CO-OPERATIVE SOCIETIES ACT : S.55, S.64
(A) Section 55 of the M.P. Co-operative Societies Act, 1960 grants the Registrar exclusive power to frame rules governing terms and conditions of employment and to decide disputes arising between a society and its employees regarding employment terms, working conditions, or disciplinary action, provided the dispute is presented within thirty days. Section 64 provides that disputes concerning the constitution, management, business, or liquidation of a society are referable to arbitration, but this does not override the specific disciplinary jurisdiction assigned to the Registrar under Section 55. Section 10(1) of the Industrial Disputes Act, 1947, which allows for reference of disputes to a Labour Court, is thus excluded in matters falling within the Societies Act. Section 11 of the Civil Procedure Code principles apply mutatis mutandis to Tribunal awards under the Societies Act, and findings by the Deputy Registrar operate as res judicata.
(B) The core legal principles are that the Registrar under the Societies Act has exclusive jurisdiction over employment-related disciplinary matters, statutory provisions oust concurrent jurisdiction under industrial dispute laws, and an award of the Deputy Registrar is final and binding, attracting res judicata.
Facts of the case:
The petitioner was dismissed from service for misconduct. A reference under the Societies Act was confirmed and became final. Subsequently, a Labour Court under the Industrial Disputes Act held that the domestic enquiry was vitiated by illegality and set aside the dismissal. The High Court held that the Labour Court lacked jurisdiction under Section 55 of the Societies Act and that the reference was bad, also noting res judicata from the Deputy Registrar's finding.
Findings of Court:
The High Court was correct in law in holding that the Labour Court had no jurisdiction to entertain the dispute once the proceedings were barred under the Societies Act, and the reference was bad. The finding by the Deputy Registrar constitutes res judicata.
Issues:
Whether a reference under Section 10(1) of the Industrial Disputes Act is maintainable when the dispute relates to employment terms and disciplinary action already decided under the M.P. Co-operative Societies Act.
Ratio Decidendi:
Since Section 55 of the Societies Act vests exclusive jurisdiction in the Registrar to decide disputes relating to employment terms, working conditions, and disciplinary action, and provides a special procedure excluding references under Section 10(1) of the Industrial Disputes Act, the Labour Court had no jurisdiction, and the reference is bad. The finding of the Deputy Registrar operates as res judicata.
Result:
The special leave petition is dismissed and the petition is dismissed.
(A) Section 55 of the M.P. Co-operative Societies Act, 1960 grants the Registrar exclusive power to frame rules governing terms and conditions of employment and to decide disputes arising between a society and its employees regarding employment terms, working conditions, or disciplinary action, provided the dispute is presented within thirty days. Section 64 provides that disputes concerning the constitution, management, business, or liquidation of a society are referable to arbitration, but this does not override the specific disciplinary jurisdiction assigned to the Registrar under Section 55. Section 10(1) of the Industrial Disputes Act, 1947, which allows for reference of disputes to a Labour Court, is thus excluded in matters falling within the Societies Act. Section 11 of the Civil Procedure Code principles apply mutatis mutandis to Tribunal awards under the Societies Act, and findings by the Deputy Registrar operate as res judicata.
(B) The core legal principles are that the Registrar under the Societies Act has exclusive jurisdiction over employment-related disciplinary matters, statutory provisions oust concurrent jurisdiction under industrial dispute laws, and an award of the Deputy Registrar is final and binding, attracting res judicata.
Facts of the case:
The petitioner was dismissed from service for misconduct. A reference under the Societies Act was confirmed and became final. Subsequently, a Labour Court under the Industrial Disputes Act held that the domestic enquiry was vitiated by illegality and set aside the dismissal. The High Court held that the Labour Court lacked jurisdiction under Section 55 of the Societies Act and that the reference was bad, also noting res judicata from the Deputy Registrar's finding.
Findings of Court:
The High Court was correct in law in holding that the Labour Court had no jurisdiction to entertain the dispute once the proceedings were barred under the Societies Act, and the reference was bad. The finding by the Deputy Registrar constitutes res judicata.
Issues:
Whether a reference under Section 10(1) of the Industrial Disputes Act is maintainable when the dispute relates to employment terms and disciplinary action already decided under the M.P. Co-operative Societies Act.
Ratio Decidendi:
Since Section 55 of the Societies Act vests exclusive jurisdiction in the Registrar to decide disputes relating to employment terms, working conditions, and disciplinary action, and provides a special procedure excluding references under Section 10(1) of the Industrial Disputes Act, the Labour Court had no jurisdiction, and the reference is bad. The finding of the Deputy Registrar operates as res judicata.
Result:
The special leave petition is dismissed and the petition is dismissed.
ORDER
Delay condoned.
2. The only question in this case is: whether the reference under Section 10(1) of the Industrial Disputes Act, 1947 (for short, the "Act") is maintainable in view the provisions contained in the M.P. Co-operative Societies Act, 1960 (for short, the Societies Act )? Admittedly, the petitioner was dismissed from service for his misconduct. Thereafter, he sought a reference under the Societies Act which was confirmed and became final. On a reference made under the Act, the Labour Court in case No. 48/85 held that domestic enquiry was vitiated by illegality and accordingly it set aside the order of dismissal. In Writ Petition No. 2077/92 by judgment dated July 8, 1996, the High Court has held that in view of the provisions contained in Section 55 of the Societies Act, the Labour Court had no jurisdiction and, therefore, the reference is bad. It is also held that since the finding was recorded by the Deputy Registrar, Co-op. Societies against the petitioner in the award, it operates as res judicata. The question is whether the view taken by the High Court is correct in law. Section 55 of the Societies Act postulates thus :
"55. Registrar s power to determine conditions of the employment in societies.-(1) The Registrar may, from time to time frame rules governing the terms and conditions of employment in a society or class of societies and the society or class of societies to which such terms and conditions of employment are applicable shall comply with the order that may be issued by the Registrar in this behalf.
(2) Where a dispute including a dispute regarding terms of employment working conditions and disciplinary action taken by a society, arises between a society and its employees, the Registrar or any officer appointed by him not below the rank of Assistant Registrar shall decide the dispute and his decision shall be binding on the society and its employees.
Provided that the Registrar or the officer referred to above shall not entertain the dispute unless presented to him within thirty days from the date of the order sought to be impugned.
Provided further that in computing the period of limitation under the foregoing proviso the time requisite for obtaining copy of the order shall be excluded."
3. Learned counsel for the petitioner seeks to place reliance on Section 64 of the Act dealing with disputes referable to the arbitration and contends that the dispute of dismissal from service of the employee of the society being not one of the disputes referable to the arbitration under the Societies Act, the award of the Dy. Registrar is without jurisdiction. He relied on the decision of this Court in Co-operative Central Bank Ltd. & Ors. etc. v. Additional Industrial Tribunal, Andhra Pradesh, Hyderabad & Ors. etc.1. He also places reliance on Section 93 of the Societies Act which states that nothing contained in the Madhya Pradesh Shops and Establishments Act 1958, the M.P. Industrial Workmen (Standing Orders) Act, 1959 and the M.P. Industrial Relations Act, 1960 shall apply to a Society registered under this Act. By necessary implication, application of the Act has not been excluded and that, therefore, the Labour Court has jurisdiction to decided the matter. We find no force in the contention. Section 55 of the Societies Act gives power to the Registrar to deal with disciplinary matters relating to the employees in the Society or a class of Societies including the terms and conditions of employment of the employees. Where a dispute relates to the terms of employment, working conditions, disciplinary action taken by a Society, or arises between a Society and its employees, the Registrar or an officer appointed by him, not below the rank of Assistant Registrar, shall decided the dispute and his decision shall be binding on the society and its employees. As regards power under Section 64, the language is very wide, viz., "Notwithstanding anything contained in any other law for the time being in force any dispute touching the constitution, a management or business of a Society or the liquidation of a Society shall be referred to the Registry by any of the parties to the dispute." Therefore, the dispute relating to the management or business of the Society is very comprehensive as repeatedly held by this Court. As a consequence, special procedure has been provided under this Act. Necessarily, reference under Section 10 of the Societies Act stands excluded. The judgment of this Court arising under Andhra Pradesh Act has no application to the facts for the reason that under that Act the dispute did not cover the dismissal of the servants of the society which the Act therein was amended.
4. Admittedly, there is a finding recorded by the Dy. Registrar upholding the misconduct of the petitioner. That constitutes res judicata. No doubt, Section 11 CPC does not in terms apply because it is not a Court, but a Tribunal, constituted under the Societies Act is given special jurisdiction. So, the principle laid down thereunder mutatis mutandis squarely applies to the procedure provided under the Act. It operates as res judicata. Thus, we find that the High Court is well justified in holding that the Labour Court has no jurisdiction to decide the dispute once over and the reference itself is bad in law.
5. The special leave petition is accordingly dismissed.
Petition dismissed.
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