Case Note & Summary
The case involves an intra-court appeal by The Tamil Nadu Industrial Cooperative Bank Ltd against a common order of a learned Single Judge dated 03.02.2026 in W.P.No.22999 of 2024. The respondent, Smt. M. Indira Gandhi, was employed as an Assistant in the appellant's cooperative bank. She was dismissed from service following disciplinary proceedings for pledging spurious jewels to sanction loans. She filed an appeal under Section 41(2) of the Tamil Nadu Shops and Establishments Act, 1947, before the Joint Commissioner of Labour, who set aside the dismissal order. The bank challenged this before the writ court, which not only confirmed the appellate authority's order but also granted reinstatement with continuity of service and monetary benefits. Aggrieved, the bank filed the present appeal. The primary legal issue was whether the appeal under Section 41(2) of the Act was maintainable against a cooperative bank. The appellant argued that a cooperative bank is not a 'shop' or 'establishment' under the Act, and thus the Joint Commissioner of Labour lacked jurisdiction. The court agreed, holding that cooperative banks are governed by the Tamil Nadu Cooperative Societies Act and are not covered under the Shops and Establishments Act. Consequently, the appeal was allowed, the order of the writ court was set aside, and the dismissal of the respondent was upheld.
Headnote
A) Industrial Law - Maintainability of Appeal - Section 41(2) Tamil Nadu Shops and Establishments Act, 1947 - Cooperative Bank - The appellant, a cooperative bank, challenged the maintainability of an appeal filed by its dismissed employee before the Joint Commissioner of Labour under Section 41(2) of the Act. The court held that a cooperative bank is not a 'shop' or 'establishment' within the meaning of the Act, and therefore, the appeal before the Joint Commissioner of Labour was not maintainable. The order of the writ court granting reinstatement with back wages was set aside. (Paras 4-13)
Issue of Consideration
Whether an appeal under Section 41(2) of the Tamil Nadu Shops and Establishments Act, 1947, is maintainable against a cooperative bank, and whether the Joint Commissioner of Labour had jurisdiction to set aside the dismissal order.
Final Decision
The appeal is allowed. The common order dated 03.02.2026 in W.P.No.22999 of 2024 is set aside. Consequently, the order of the Joint Commissioner of Labour is also set aside, and the dismissal of the respondent employee is upheld.
Law Points
- Maintainability of appeal under Section 41(2) of Tamil Nadu Shops and Establishments Act
- 1947
- Cooperative Bank not a 'shop' or 'establishment' under the Act
- Jurisdiction of Joint Commissioner of Labour
- Reinstatement with back wages
Case Details
S. M. Subramaniam, K. Surender
Mr.Haja Nazirudeen (Additional Advocate General) assisted by P.Hari Babu for appellant; Mr.R.Kumaravel (Addl.Govt.Pleader) for R1; Mr.P.Chandrasekar for R2
The Tamil Nadu Industrial Co operative Bank Ltd
The Joint Commissioner of Labour/ Appellate Authority, Salem; M. Indria Gandhi
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Nature of Litigation
Intra-court appeal against a common order of a learned Single Judge in a writ petition challenging the order of the Joint Commissioner of Labour setting aside dismissal of an employee.
Remedy Sought
The appellant (cooperative bank) sought to set aside the common order dated 03.02.2026 in W.P.No.22999 of 2024 and allow the writ appeal.
Filing Reason
The appellant challenged the maintainability of the appeal under Section 41(2) of the Tamil Nadu Shops and Establishments Act, 1947, before the Joint Commissioner of Labour, and the subsequent order of the writ court granting reinstatement with back wages.
Previous Decisions
The Joint Commissioner of Labour allowed the appeal of the employee and set aside the dismissal order. The writ court confirmed that order and granted additional relief of reinstatement, continuity of service, and monetary benefits.
Issues
Whether an appeal under Section 41(2) of the Tamil Nadu Shops and Establishments Act, 1947, is maintainable against a cooperative bank.
Whether the Joint Commissioner of Labour had jurisdiction to entertain the appeal and set aside the dismissal order.
Submissions/Arguments
The appellant argued that a cooperative bank is not a 'shop' or 'establishment' under the Tamil Nadu Shops and Establishments Act, 1947, and therefore the appeal under Section 41(2) was not maintainable.
The respondent employee contended that the appeal was maintainable and the writ court correctly granted reinstatement with back wages.
Ratio Decidendi
A cooperative bank is not a 'shop' or 'establishment' within the meaning of the Tamil Nadu Shops and Establishments Act, 1947, and therefore an appeal under Section 41(2) of the Act before the Joint Commissioner of Labour is not maintainable. The writ court erred in granting reinstatement with back wages.
Judgment Excerpts
Under assail is the common order dated 03.02.2026 passed in W.P.No.22999 of 2024 etc. batch.
The learned Additional Advocate General appearing on behalf of the appellant would mainly contend that the appeal under Section 41 of the Tamilnadu Shops and Establishment Act, 1947, before the Joint Commissioner of Labour, is not maintainable.
Procedural History
The respondent employee was dismissed by the appellant bank. She filed an appeal under Section 41(2) of the Tamil Nadu Shops and Establishments Act, 1947, before the Joint Commissioner of Labour, who allowed the appeal. The bank challenged this in a writ petition (W.P.No.22999 of 2024), which was dismissed by a learned Single Judge on 03.02.2026, confirming the appellate order and granting additional relief. The bank then filed the present intra-court appeal (WA No. 707 of 2026).
Acts & Sections
- Tamil Nadu Shops and Establishments Act, 1947: Section 41(2)
