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2017 (1) TMI 1756 - HC - Indian Laws


Issues Involved:
1. Quashing of G.O. Ms. No. 186 Co-operation Food & Consumer Protection Department dated 16.08.2000.
2. Direction to allow salary and other allowances including terminal benefits in terms of the concluded settlement under Section 12(3) and 18(1) of the Industrial Disputes Act, 1947.
3. Validity and application of Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988.
4. Review of the common order made in W.A. Nos. 1103 and 1104 of 2008 dated 25.09.2008.

Detailed Analysis:

1. Quashing of G.O. Ms. No. 186 Co-operation Food & Consumer Protection Department dated 16.08.2000:
The petitioners sought to quash G.O. Ms. No. 186, which revised the scale of pay and other service conditions of employees of cooperative banks with effect from 1.7.1997. The court upheld the validity of the government order, emphasizing that the order was issued to ensure that cooperative societies do not enter into wage settlements without considering their financial viability and the broader public interest.

2. Direction to Allow Salary and Other Allowances Including Terminal Benefits:
The petitioners requested the court to direct the respondents to allow salary and other allowances, including terminal benefits, in terms of the concluded settlement under Sections 12(3) and 18(1) of the Industrial Disputes Act, 1947. The court ruled that cooperative societies cannot enter into any settlement regarding wages of paid employees without the prior approval of the State Government or the Registrar, as mandated by Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988.

3. Validity and Application of Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988:
Rule 149 mandates that every society must frame bye-laws covering service conditions, including the scale of pay and allowances, with the prior approval of the State Government. The court noted that the rule was introduced to prevent individual societies from entering into wage settlements without considering their financial viability. The court held that no cooperative society could make appointments or fix pay scales without following the rules and obtaining necessary approvals.

4. Review of the Common Order Made in W.A. Nos. 1103 and 1104 of 2008:
The appellants sought a review of the common order dated 25.09.2008, arguing that there was an error apparent on the face of the record. The court clarified that the expression "with the prior approval of the State Government" used in the order was a typographical error and should be read as "with the prior approval of the Registrar of co-operative societies." The court found no grounds to interfere with the original order and dismissed the review applications.

Conclusion:
The court upheld the validity of G.O. Ms. No. 186 and confirmed that cooperative societies must follow Rule 149, requiring prior approval for wage settlements. The review applications were dismissed, with a minor correction to the original order regarding the approval authority. The court emphasized the importance of adhering to statutory provisions to ensure the financial viability and proper management of cooperative societies.

 

 

 

 

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