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2017 (1) TMI 1756 - HC - Indian LawsValidity of G.O. Ms. No. 186 Co-operation Food Consumer Protection Department dated 16.08.2000 - review of common order - seeking direction to respondents to allow the salary and other allowances including terminal benefits in terms of the concluded settlement under Section 12(3) of the Industrial Disputes Act 1947 - HELD THAT - Tamil Nadu Co-operative Societies Rules, 1988, have been framed in exercise of powers conferred by sub-section (1)(2) 3 of Section 180 of Tamil Nadu Co-operative Societies Act, 1983 Tamil Nadu Act 30 of 1983 and in supersession of all the Rules made under Tamil Nadu Co-operative Societies Act, 1961 Tamil Nadu Act 53 of 1961) and under the Tamil Nadu Co-operative Land Development Banks, 1934 (Tamil Nadu Act X of 1934). Rule 149 of the Tamil Nadu Co-operative Societies Rules, 1988, sets out the conditions of service etc. of paid officers and servants of societies - While framing Rule 149, Government have dealt with cadre strength, classification of various categories of posts, qualifications required thereof, for each post, method of recruitment, minimum time scale of pay, the authorities competent to impose punishment etc., Bare reading of Rule 149, as it stood in 1988, in our view, does not indicate that the government have conferred any right on the society, to fix time scale of pay to any post, classified in Rule 149. From 1995 onwards, every society was mandated to frame, special bye-laws, with the prior approval of the Registrar of the Co-operative society. Subsequently, Rule 149(1) has been amended by G.O.(Ms). No. 373, Cooperation, Food and Consumer Protection (CJ1) Department, dated 29.10.2002, by which the expression in Rule 149(1) with the prior approval of the Registrar , has been substituted with the expression with the prior approval of the Government - Thereafter, Rule 149(1) of the Tamilnadu Co-operative Societies Rules, 1988, underwent another amendment in G.O.(Ms). No. 251, Co-operation, Food and Consumer Protection (CJ1) Department dated 07.08.2007, restoring the original position that the expression with the prior approval of the Government , would be substituted, with the prior approval of the Registrar . Tamil Nadu Vatta Kooturavu Veetu Vasathi Sangangalin Anaithu Paniyalargal Madya Sangam's case, 2008 (1) TMI 986 - MADRAS HIGH COURT has been decided, considering the objects of the Co-operative Societies Act, 1983, rules made thereunder, directions issued by the Government from time to time, on the aspect of framing of special bye-laws for the purpose of classification of posts, scale of pay, etc., and taking note of the vital factors, nature of business, volume of transaction and financial position of the society - Analysising the judgment of Tamil Nadu Vatta Kooturavu Veetu Vasathi Sangangalin Anaithu Paniyalargal Madya Sangam's case, we are of the considered opinion that Tamil Nadu Vatta Kooturavu Veetu Vasathi Sangangalin Anaithu Paniyalargal Madya Sangam's case, has laid down the law to be followed, as a precedent and the observations made therein, cannot be said to be obiter dicta and therefore, the contention to the contra, are not tenable. Thus, merely because, at paragraph No. 10 of the common order made in W.A. Nos. 1103 and 1104 of 2008 dated 25.09.2008, 2008 (9) TMI 1020 - MADRAS HIGH COURT the Hon'ble Division Bench has used the expression, with prior approval of the State Government and not with the prior approval of the Registrar , that would not give rise to a cause for review and set aside the common order, made in W.A. Nos. 1103 and 1104 of 2008 dated 25.09.2008. Usage of the expression, with the prior approval of the Government could have been made, due to an inadvertent typographical mistake. Typographical mistake, if any made, would not give rise to a cause to contend that the entire judgment has to be reviewed. The appellants have not made out a strong case, to review of the common order - review application disposed off.
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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