LexaceLexace Ask the AI ›
⚖️ Ask the AI about your situation:🚗 Car Accident💼 Work / Job🏠 Housing / Eviction👪 Family / Divorce📋 Contract Dispute💰 Money Owed

UNION OF INDIA (RAILWAY BOARD) AND OTHERS versus J.V. SUBHAIAH AND OTHERS ETC.

Citation: [1995] SUPP. 6 S.C.R. 812 · Decided: 15-12-1995 · Supreme Court of India · Bench: K. RAMASWAMY, FAIZAN UDDIN, B.N. KIRPAL · Disposal: Appeal(s) allowed

cites 3 · see the full citation network in Lexace

Open in Lexace · Ask the AI about this case

Judgment (excerpt)

A 
UNION OF INDIA (RAILWAY BOARD) AND OTHERS 
v. 
J.V. SUBHAIAH AND OTHERS ETC. 
DECEMBER 15, 1995 
B 
[K. RAMASWAMY, FAIZAN UDDIN AND B.N. KIRPAL,JJ.] 
Service Law: Andhra Pradesh Cooperative Societies Act, 1964-
Emp/oyees of Railway Co-operative Stores registered under the Andhra 
Pradesh Co-operative Societies Act, 19M-He/d, not regular Railway 
C employees in Class Ill post. 
The respondents being employed in Railway Employees Consumer 
Cooperative Store registered under Andhra Pradesh Co-operative 
Societies Act' 1964, tiled an application before Central Administrative 
Tribunal seeking declaration for being treated as regular Railway 
D employees in Class-III Posts and for consequential benefits including 
arrears of salary. Tribunal allowed the application based on decision of 
Madras Bench in Application No. 305/88, which was confirmed by this 
court, but the review was pending. 
E 
Aggrieved by the order of the tribunal, the Union of India preferred 
the present appeals. The judgment of this Court in the Madras case was 
also re-examined along with this appeal. 
Allowing the appeal of the Union of India, this Court 
F 
HELD : 1. The officers, employees and servants appointed by the 
Railway Co-operative Stores/Societies cannot be treated on par with Rail-
way Servants under paragraph lO·B of the Railway Establishment Code,· 
nor they can be given parity of status, promotions, scales of pay, incre· 
ments etc. The officers, employees and servants appointed under the 
provisions in the Co-operative Societies Rules of 1964 would clearly indi· 
G cate that registration of the Society, election to the Committee, the term 
thereof, rights and liabilities of the members and office bearers are regn· 
lated under the Act. Power to appoint officers, employees and servants of 
the Society is given to the President or the Committee which is regulated 
by the bye laws, rules and the Act including service conditions with prior 
H approval of the Registrar. The appointments of the staff of the estab· 
812 
-
.. 
U.0.1. v. J.V. SUBHAIAH 
813 
lishment, control and disciplinary actions are regulated under the A 
provisions of the Act, the Rules and the remedies provided under law : 
[826-C-D, 821-F] 
Co-operative Central Bank Ltd. & Ors. Etc. v. Additional Indust1ial 
Tribunal, Andhra Pradesh, Hyderabad, [1970) 1 SCR 205, relied on. 
2. Establishment of institutes or clubs though recognised by the 
railway was only a welfare measure though their formation being nol 
mandatory. The kind of activities conducted depends among other things, 
on the funds available to them. If these employees were recognised as 
railway employees, it will have a snow balling effect on other welfare 
activities carried out by the Railway and other organisations and hence, 
there was no relationship of employer and employee. [822-D-EJ 
All India Railway Institute Employees Associations v. Union of India 
through the Chaimian, [1990) 1 SCR 594, relied on. 
3. Appointment to a post or an office under the state is regulated 
Under statutory rules either by direct recruitment or appointment by 
promotion or appointment by transfer in accordance with the procedure 
prescribed and the qualifications specified. Any appointment otherwise, 
would be vertical transplantation de hors the rules. [825-A] 
4. If the employees of the Societies like Co-operative canteens are 
declared to be railway servants, there would arise dual control over them 
by the Registrar and Railway Administration. [826-C] 
M.M. Khan & Ors. v. Union of India & Ors., [1990) 1 SCR 687, 
distinguished. 
5. The employees covered by the order of the Madras bench may .be 
dealt with by the Railway Administration Appropriately but that could not 
form foundation to plead discrimination violating Article 14 of the Con-
stitution. [826-B) 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 12148 to 
12150 of 1995. 
B 
c 
D 
E 
F 
G 
From the Judgment and order dated 16th November, 1994 28th 
April, 1995 and 16th November, 1994 of the Central Administrative Tbnl. H 
814 
SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R. 
A Hyd. Bench, Hyderabad in O.A. Nos. 749 of 1990, 1546 of 1994 and 141 of 
'4• 
1991 respectively. 
K.T.S. Tulsi, A.S.G., N.N. Goswami, Arvind Kumar Sharma, Wasim 
Qadri and Vikas Pahwa for the Appellant. 
B 
K. Madhava Reddy, Guntur Prabhakar, D. Prakash Reddy and Ms. 
c 
C Ramamurthy for the respondent. 
The Judgment of the Court was delivered by 
RAMASWAMY, J. Leave granted in all the 

Excerpt shown. Read the full judgment & AI analysis in Lexace.