GHAZIABAD ZILA SAHAKARI BANK LTD. versus ADDL. LABOUR COMMISSIONER& ORS.

Citation: [2007] 1 S.C.R. 1007 · Decided: 17-01-2007 · Supreme Court of India · Bench: AR. LAKSHMANAN · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · cites 1 · see the full citation network in Lexace

Judgment (excerpt)

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GHAZIABAD ZILA SAHAKARI BANK LTD. 
A 
v. 
ADDL. LABOUR COMMISSIONER& ORS. 
JANUARY 17, 2007 
[DR. AR. LAKSHMANAN AND TARUN CHATTERJEE, JJ.] 
B 
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U.P. Co-operative Societies Act, 1965-Sections 128, 135, 70, 71 and 
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102-U.P. Co-operative Societies Employees Service Regulations, 1975-
Regulation 42-:-U.P. Co-operative Societies Rules-Rules 130 and 131- c 
U.P. Industrial Disputes Act, 1947-Section 6H-Employees of Co-operative 
Bank-Ex gratia payment-Entitlement-Board of Directors passing 
resolution for grant-Registrar annulling the resolutions-Additional 
Labour Commissioner holding Registrar's annulling order proper and 
directing payment of ex-gratia amount-Correctness of-Held: Additional 
Labour Commissioner not competent to declare statutory order of the 
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Registrar as improper-Since Co-operative Societies Law provides for 
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complete machinery, Industrial Law not applicable thus, ALC's Jurisdiction 
wrongly invoked and the order null and void-Ex-gratia payment being an 
incentive for good work, thus governed by Regulation 42 which requires 
prior approval of Registrar and the same was not sought-Also settlement 
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between the bank and its employees being private one since not arrived 
at before the conciliation officer not legally enforceable-Thus, employee 
of Bank not entitled to ex-gratia payment-However payment already 
made to employees not to recovered. 
Interpretation of Statutes-Legal principle-General Act should lead 
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to the special Act-Thus, U.P. Co-operative Societie~ Act, a special enactment 
applicable with regard to employees of co-operative societies would 
prevail over all other Labour Laws_.:.UP. Cooperative Societies Act, 1965. 
Appellant-Bank is a Cooperative Society registered under the U.P. 
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Cooperative Societies Act, 1965 and the Rules. The services of the employees 
of the Bank are governed by the provisions of the U.P. Cooperative S'ocieties 
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Employees Service Regulation, 1975 framed by the U.P. Cooperative 
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Institutional Service Board. State Government issued a circular which 
prohibited ex-gratia payment (over and above pay) by Cooperative Societies. 
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1007 
1008 
SUPREME COURT REPORTS 
[2007] 1 S.C.R. 
A 
The Registrar of the Cooperative Societies issued a similar circular and 
ex-gratia payments to employees were suspended. However, the Board of 
Directors passed a resolution for grant of ex-gratia to the employees. The 
Chairman of the Union and the Bank entered into an agreement for 
ex-gratia payment for 1999-2000 without Registrar's permission under 
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Regulation 42 of the U.P. Cooperative Societies Employees Service 
Regulations, 1975. Board of Directors ratified the said agreement and also 
resolved that Registrar's concurrence was not required. Thereafter, the 
Secretary wrote to the Chairman to refer to the Board of Directors 
resolutions to the Registrar, but the Chairman failed. Secretary then 
himself referred the matter to the Registrar. Board of Directors noted the 
ban on ex-gratia and still decided to pay the same for 1999-2000 onwards. 
The Registrar acting under Section 128(1) referred to Secretary's letters 
to the Chairman under Rule 130 and granted time to the Bank to 
reconsider its resolutions. In the meantime, employees of the Union filed 
an application under section 6H(l) of the U.P. Industrial Disputes Act, 1947 
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on the basis of rights under the Agreement. Addi.tional Labour 
Commissioner allowed the ~pplication and issued recovery certificate. 
Board of Directors approved ex-gratia payments again. Secretary again 
referred the resolution and the Registrar annulled all Bciard of Directors 
resolutions in exercise of.powers under s. 128 of the 1965 Act No appeal 
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was filed against the Registrar's Order. Bank filed Writ Petition which. 
was allowed and the matter was remanded to ALC. ALC held that the 
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Registrar's annulment order was not proper and directed payment of ex-
gratia amount as per the BOD's resolutions. Bank again filed Writ 
Petition which was dismissed. High Court upheld the order passed by Addi. 
Labour Commissioner. Hence the present appeal. 
Allowing the appeals, the Court 
HELD: 1. The Labour Court and Industrial Laws are not applicable 
where complete machinery has been provided under the provisions of the 
U.P. Cooperative Societies Act. The Additional Labour Commissioner has 
no jurisdiction to pass orders in the nature it has been passed. Thus, the 
order of High Court is set as

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