Bombay High Court Dismisses Writ Petition Challenging Industrial Court's Order on Maintainability of ULP Complaint Against Cooperative Society. Section 91 of Maharashtra Cooperative Societies Act, 1960 Bars Industrial Court from Entertaining Disputes Relating to Recovery from Salary by Cooperative Society.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioners, employees of respondent No. 1 cooperative society, challenged a resolution passed by the society on 19/1/1993 to recover amounts from their salaries due to alleged shortages noted in an audit for 1983-84. The society issued an order on 29/4/1993 proposing recovery from June 1993. The petitioners filed a ULP Complaint No. 508/1993 under Section 28 read with items 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU Act) before the Industrial Court. The Industrial Court dismissed the complaint as not maintainable, holding that the dispute fell within the purview of Section 91 of the Maharashtra Cooperative Societies Act, 1960 (MCS Act), which provides for disputes touching the business of a cooperative society to be decided by the Cooperative Court. The petitioners then filed a writ petition in the Bombay High Court challenging the Industrial Court's order. The High Court upheld the Industrial Court's decision, reasoning that the dispute regarding recovery from salary by a cooperative society is a dispute touching the business of the society under Section 91 of the MCS Act, and therefore the Industrial Court lacks jurisdiction. The writ petition was dismissed, affirming that the remedy lies before the Cooperative Court under the MCS Act.

Headnote

A) Industrial Law - Jurisdiction of Industrial Court - Section 91 of Maharashtra Cooperative Societies Act, 1960 - Maintainability of ULP Complaint - The Industrial Court held that a complaint under the MRTU Act challenging recovery from salary by a cooperative society is not maintainable because the dispute falls within the exclusive purview of Section 91 of the MCS Act. The High Court upheld this view, noting that the dispute relates to the business of the society and thus the Industrial Court lacks jurisdiction. (Paras 1-2)

B) Cooperative Law - Dispute touching business of society - Section 91 of Maharashtra Cooperative Societies Act, 1960 - Recovery from salary - The dispute regarding recovery of alleged shortage from employees' salary by a cooperative society is a dispute touching the business of the society under Section 91 of the MCS Act. Therefore, the remedy lies before the Cooperative Court, not the Industrial Court under the MRTU Act. (Paras 1-2)

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Issue of Consideration

Whether the Industrial Court has jurisdiction to entertain a ULP complaint under the MRTU Act, 1971 challenging recovery from salary by a cooperative society, in view of Section 91 of the Maharashtra Cooperative Societies Act, 1960.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's order that the ULP complaint is not maintainable in view of Section 91 of the Maharashtra Cooperative Societies Act, 1960.

Law Points

  • Section 91 of Maharashtra Cooperative Societies Act
  • 1960 ousts jurisdiction of Industrial Court under MRTU Act for disputes relating to recovery of amounts by cooperative society from its employees
  • Section 91 of MCS Act is a complete code for disputes touching business of society
  • Industrial Court cannot entertain complaint under MRTU Act when dispute falls within Section 91 of MCS Act
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Case Details

2006 LawText (BOM) (09) 142

Writ Petition No. 3120 of 1994

2006-09-19

B.P. Dharmadhikari, J.

Shri Anil Kadu for petitioners, Shri A.M. Gordey for respondent No.1

Hariram s/o Tukaramji Ambulkar and Ors.

Bhatkuli Taluka Sahakari Shetki Kharedi Vikri Sanstha Ltd., Amravati & Anr.

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Nature of Litigation

Writ petition challenging order of Industrial Court dismissing ULP complaint as not maintainable due to Section 91 of MCS Act.

Remedy Sought

Petitioners sought to quash the Industrial Court's order and to allow their ULP complaint challenging recovery from salary.

Filing Reason

Petitioners challenged the Industrial Court's decision that the dispute falls under Section 91 of MCS Act and thus the complaint is not maintainable.

Previous Decisions

Industrial Court dismissed ULP Complaint No. 508/1993 as not maintainable.

Issues

Whether the Industrial Court has jurisdiction to entertain a ULP complaint under the MRTU Act when the dispute involves a cooperative society and relates to recovery from salary. Whether Section 91 of the Maharashtra Cooperative Societies Act, 1960 ousts the jurisdiction of the Industrial Court.

Submissions/Arguments

Petitioners argued that the Industrial Court should have entertained the complaint as it involved unfair labour practices under the MRTU Act. Respondent No. 1 contended that the dispute is covered by Section 91 of the MCS Act and thus the Industrial Court lacks jurisdiction.

Ratio Decidendi

A dispute between a cooperative society and its employees regarding recovery from salary is a dispute touching the business of the society under Section 91 of the Maharashtra Cooperative Societies Act, 1960, and therefore the Industrial Court under the MRTU Act has no jurisdiction to entertain a complaint in respect of such dispute.

Judgment Excerpts

The Petitioners before this Court are employees of respondent No 1 Cooperative Society. The said judgment and order of respondent No 2 Industrial Court is questioned in present writ petition.

Procedural History

Petitioners filed ULP Complaint No. 508/1993 before the Industrial Court under MRTU Act. Industrial Court dismissed the complaint as not maintainable due to Section 91 of MCS Act. Petitioners then filed Writ Petition No. 3120 of 1994 in the Bombay High Court challenging that order.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 91
  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Schedule IV items 9 and 10
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