Case Note & Summary
The petitioners, 45 employees of a cooperative society, filed a writ petition challenging their termination of services. The termination was effected without any notice or inquiry, and without following the procedure under Section 27 of the Maharashtra Cooperative Societies Act, 1960. The court found that the termination was in gross violation of principles of natural justice and the statutory provisions. The court set aside the termination orders and directed the respondent society to reinstate the petitioners with continuity of service. However, considering that the petitioners had not worked during the period of termination and the financial position of the society, the court denied back wages. The court also directed that the reinstatement be effected within four weeks from the date of the order.
Headnote
A) Cooperative Law - Termination of Service - Section 27 Maharashtra Cooperative Societies Act, 1960 - Principles of Natural Justice - The petitioners, employees of a cooperative society, were terminated without any notice or inquiry. The court held that the termination was in violation of Section 27 of the Act and principles of natural justice, as the society failed to provide any opportunity of hearing before passing the termination order. The court set aside the termination and directed reinstatement with continuity of service but without back wages. (Paras 1-7) B) Cooperative Law - Reinstatement - Back Wages - Section 27 Maharashtra Cooperative Societies Act, 1960 - While setting aside the illegal termination, the court considered the fact that the petitioners had not worked during the intervening period and that the society may have financial constraints. The court directed reinstatement with continuity of service but denied back wages, holding that the grant of back wages is not automatic and depends on the facts of each case. (Paras 6-7)
Issue of Consideration
Whether the termination of services of the petitioners by the respondent cooperative society without following the procedure under Section 27 of the Maharashtra Cooperative Societies Act, 1960 and without affording an opportunity of hearing is legal and valid.
Final Decision
The court allowed the writ petition, set aside the termination orders, and directed the respondent society to reinstate the petitioners with continuity of service but without back wages. Reinstatement to be effected within four weeks.
Law Points
- Principles of natural justice
- Section 27 Maharashtra Cooperative Societies Act 1960
- termination without notice
- termination without inquiry
- reinstatement with continuity of service
- back wages
