Case Note & Summary
The dispute arose between a cooperative bank and its employee regarding the termination of the employee's services. The appellant, Gwalior District Cooperative Central Bank Ltd., had its Board of Directors superseded by the Registrar of Cooperative Societies, which vested powers in the Madhya Pradesh State Cooperative Bank, designated as the Apex Bank. The employee, Ramesh Chandra Mangal, was dismissed by S.P. Jain, appointed as Chief Executive Officer by the Apex Bank, for overstaying his leave. The dismissal was contested, leading to a series of appeals. The Deputy Registrar reinstated the employee, but the Additional Registrar reversed this decision, stating the employee could only claim damages. The Board of Revenue later ruled that S.P. Jain lacked the authority to terminate the employee, which was upheld by the High Court. The appellant's appeal to the Supreme Court was dismissed, affirming that the Apex Bank could not delegate its powers and that the termination was void. The court modified the High Court's order, granting the employee fifty percent of back wages from the date of termination until a specified date, while reinstating him in service from October 1, 1984. The court emphasized the lack of misconduct in the employee's actions and advised against further proceedings (Paras 857-859).
Headnote
A) Administrative Law - Delegation of Power - Authority of Apex Bank - Madhya Pradesh Cooperative Societies Act, 1960, Section 53(4) - The Apex Bank lacked the authority to delegate its powers to S.P. Jain for terminating the respondent's services, as it was an appointee of the Registrar and could not divest itself of the powers conferred by the Registrar. The court held that the termination order was void in law (Paras 857-858).
Issue of Consideration
Whether the Apex Bank had the authority to appoint S.P. Jain and terminate the services of the respondent.
Final Decision
The Supreme Court dismissed the appeal of the appellant bank, affirming the High Court's decision to reinstate the employee and modifying the order to grant fifty percent of back wages from the date of termination until a specified date.
Law Points
- Administrative Law
- Delegation of Power
- Authority of Apex Bank
- Cooperative Societies Act
- Reinstatement of Employee
