Case Note & Summary
The dispute arose concerning the designation of the appropriate government for Bharat Co-operative Bank (Mumbai) Ltd., a multi-state co-operative bank, under the Industrial Disputes Act, 1946. The Bank was initially registered under the Maharashtra State Co-operative Societies Act, 1960, and later under the Multi-State Co-operative Societies Act, 1984. The Co-operative Bank Employees Union, representing the Bank's employees, filed a complaint alleging victimization due to the transfer of employees. The Bank contended that as a banking company, the Central Government should be the appropriate government under the ID Act. The Industrial Court agreed with the Bank's objection, but the High Court reversed this decision, asserting that the Bank did not qualify as a 'Company' under the Companies Act, 1956. The Division Bench upheld the High Court's ruling, stating that the appropriate government was the State Government. The Supreme Court, upon hearing arguments from both sides, analyzed the legislative intent behind the ID Act and the Banking Regulation Act, 1949. It concluded that the definition of 'Banking Company' in the ID Act was incorporated by reference and not merely referenced, thus the amendments to the Banking Regulation Act did not affect the ID Act's definition. The court affirmed that the appropriate government for the multi-state co-operative bank was the State Government, dismissing the appeal and ordering the Bank to bear the costs of the respondent.
Headnote
A) Industrial Law - Appropriate Government - Definition of 'Banking Company' - Industrial Disputes Act, 1946, Section 2(bb) - The court held that the definition of 'Banking Company' in the ID Act is an instance of legislation by incorporation, thus the appropriate government for a multi-state co-operative bank is the State Government, not the Central Government (Paras 21-29).
Issue of Consideration
Determination of the appropriate government for a multi-state co-operative bank under the Industrial Disputes Act, 1946
Final Decision
The Supreme Court dismissed the appeal, affirming that the appropriate government for the multi-state co-operative bank was the State Government, and ordered the Bank to pay costs to the respondent.
Law Points
- Appropriate Government
- Multi-State Co-operative Bank
- Industrial Disputes Act
- 1946
- Banking Regulation Act
- 1949
- Jurisdiction
- Legislative Incorporation
