Case Note & Summary
The petitioner, Amravati Zilla Parishad Shikshan Sahakari Bank Ltd., a cooperative society registered under the Maharashtra Cooperative Societies Act, 1961, challenged the judgment of the Cooperative Appellate Court which awarded damages in lieu of reinstatement to the respondent, Manohar Ramraoji Raut, a former employee. The respondent was appointed as a clerk and later promoted to Branch Manager. A departmental enquiry was conducted against him for financial misappropriation, and after a show cause notice, his services were terminated on 28 April 2000. The respondent filed a dispute under Section 91 of the Act before the Cooperative Court seeking a declaration that the termination was illegal and for reinstatement with back wages. The Cooperative Court dismissed the dispute on 16 June 2001, and the appeal to the Cooperative Appellate Court was also dismissed on 3 May 2002. The respondent then filed a revision before the Maharashtra State Cooperative Appellate Court, which by judgment dated 30 April 2015, set aside the termination as illegal but awarded damages of Rs. 3,00,000 in lieu of reinstatement, considering that the respondent had already retired and the long passage of time. The petitioner bank challenged this award. The High Court examined the legality of the award and held that the Cooperative Appellate Court had correctly exercised its discretion in awarding damages instead of reinstatement, as reinstatement was not feasible due to the respondent's retirement and the time elapsed. The court also found the quantum of damages to be just and proper, based on the salary the respondent would have earned until retirement. The High Court dismissed the writ petition, upholding the award of damages.
Headnote
A) Cooperative Law - Service Dispute - Damages in Lieu of Reinstatement - Section 91 Maharashtra Cooperative Societies Act, 1961 - The respondent employee was terminated after a departmental enquiry for financial misappropriation. The Cooperative Court and Appellate Court found the termination illegal but awarded damages instead of reinstatement. The High Court upheld the award, holding that the courts below had correctly exercised discretion in granting damages in lieu of reinstatement, considering the long lapse of time and the employee's retirement. (Paras 1-15) B) Cooperative Law - Quantum of Damages - Proportionality - Section 91 Maharashtra Cooperative Societies Act, 1961 - The High Court held that the quantum of damages (Rs. 3,00,000) was just and proper, as it was based on the salary the employee would have earned until retirement, and no interference was warranted. (Paras 10-15)
Issue of Consideration
Whether the Cooperative Court and Appellate Court were justified in awarding damages in lieu of reinstatement to the respondent employee, and whether the quantum of damages was appropriate.
Final Decision
The High Court dismissed the writ petition, upholding the judgment of the Maharashtra State Cooperative Appellate Court awarding damages of Rs. 3,00,000 in lieu of reinstatement to the respondent employee.
Law Points
- Damages in lieu of reinstatement
- Section 91 Maharashtra Cooperative Societies Act
- 1961
- Cooperative Court jurisdiction
- proportionality of punishment
- back wages
