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Issues involved: Challenge to G.O.Ms.No.186 dated 16.8.2000 by Union of Periyar District Co-operative Land Development Bank and its employees regarding fixation of scale of pay by State Government without prior approval.
Summary: 1. The appellants challenged G.O.Ms.No.186 dated 16.8.2000, seeking direction for salary and benefits as per settlements u/s 12(3) or 18(1) of the Industrial Disputes Act, 1947. 2. State Government fixed scale of pay in the Bank through G.O.Ms.No.186 dated 16.8.2000, leading to the writ petition dismissal based on a Division Bench decision. 3. Appellants argued State Government lacked jurisdiction to fix service conditions, as power lies with Board of Directors u/s 73 of the Tamil Nadu Co-operative Societies Act, 1983. 4. State contended Board of Directors needs prior approval for fixing scale of pay as per Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988. 5. Rule 149 was amended in 2002, replacing approval from Registrar with approval from the Government, as per appellants' counsel. 6. Division Bench decision highlighted the purpose of Rule 149 to prevent societies from making wage settlements without considering viability. 7. Rule 149 mandates societies to frame byelaws for service conditions with prior Government approval, including cadre strength, recruitment methods, pay scales, and disciplinary procedures. 8. Section 73 of the Act empowers societies to appoint officers subject to Rules like Rule 149, prohibiting settlements without Government approval. 9. Co-operative Societies, including the Bank, cannot make wage settlements without State Government's prior approval as per Act and Rules. 10. Respondent Bank did not frame a bylaw under Rule 149, allowing State Government to set minimum pay scales for employees. 11. High Court found no illegality in the Government Orders, upholding the dismissal of the writ petition without costs.
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