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1999 DIGILAW 100 (KER)

Railway Employees Consumer Co. Operative Society v. Union of India

1999-02-18

K.S.RADHAKRISHNAN

body1999
JUDGMENT K.S. Radhakrishnan, J. 1. Question that has come up for consideration in this case is whether the Central Government is the appropriate Government under Sec.2(a) of the Industrial Disputes Act, 1947 for referring the dispute between the petitioner society and the third respondent under S.10 of the I.D.Act to the Labour Court, Ernakulam. 2. This writ petition is filed by the Southern Railway Employees Consumer Cooperative Society Ltd. Society is registered under the Kerala Cooperative Societies Act, 1969. The area of operation of the society is between Cochin Harbour Terminus to Vallathol Nagar, Ernakulam Junction to Kottayam, Ernakulam Goods and Ernakulam Junction to Alleppey. The membership of the society shall be open to the railway staff residing within its area of operation. The society is running a consumer store as well as a ration shop. Third respondent was appointed as salesman cum attender of the petitioner society and he joined duty on 30-5-1991. He was drawing a monthly salary of Rs.1460/-. Since ration shop was running at a loss, society decided to surrender the ration shop to the department of civil supplies. Third respondent being the juniormost salesman cum attender, the services of the third respondent were sought to be terminated. Accordingly a notice dated 27-5-1994 was issued to him under Sec.25 of the I.D. Act. Third respondent received the notice on 28-5-1994 and also the retrenchment compensation service of the third respondent was accordingly terminated on 30-6-1994. 3. Third respondent, however, on 16-2-1995 submitted a representation before the second respondent, the Assistant Labour Commissioner (Central), to initiate conciliation proceedings so as to reinstate him in service, without backwages and other benefits. Second respondent, therefore, issued notice to the petitioner to hold a joint discussion under Sec.12 of the I.D. Act. A preliminary objection was raised by the petitioner society before the 2nd respondent stating that second respondent has no jurisdiction to initiate any proceedings under the I.D.Act, since the dispute is between a society registered under the Kerala Cooperative Societies Act and third respondent. Since the dispute between third respondent and petitioner could not be resolved, second respondent sent a failure report to the first respondent. Since the dispute between third respondent and petitioner could not be resolved, second respondent sent a failure report to the first respondent. First respondent then issued an order dated 16-7-1996 in exercise of its powers under clause (d) of sub-section (1) and sub-section (2A) of S.10 of the I.D.Act, referring the following dispute to Labour Court, Ernakulam: "Whether the action of the President, Southern Railway Employees Consumer Cooperative Society Ltd. under Southern Railway in terminating the services of Sh.M.V. Raju is legal and justified? If not, to what relief the workman concerned is entitled? 4. The main contention raised by counsel for the petitioner, Smt.Aysha Youseff, is that respondents 1 and 2 have no jurisdiction to conciliate the dispute or refer the matter to Labour Court, Ernakulam, under S.10 of the I.D.Act. According to her, the appropriate Government to refer the dispute to the Labour Court is not the Central Government, but the State Government, since the petitioner is society registered under the Kerala Cooperative Societies Act. 5. Counsel for the third respondent on the other hand contended that since the petitioner is a society of employees of the Southern Railway, Central Government has got jurisdiction to refer the dispute to Labour Court, Ernakulam under S.10 of the I.D.Act. 6. In order to resolve the controversy, the scope of S.10 of the I.D. Act as well as the nature of petitioner society will have to be examined. It is not disputed that petitioner is a society registered under the Kerala Cooperative Societies Act, 1969. Eventhough members of the society are railway staff, that will not make the society coming under railway administration. Supreme Court has considered a similar question with regard to employees of the Railway Consumer Cooperative Stores at Rajahmundry in Union of India (Railway Board) v. J.V. Subhaiah (1996) 2 SCC 258 . In that case, employees of Railway Consumer Cooperative Stores filed an application before the Central Administrative Tribunal seeking a declaration that they are regular Railway employees in Class III posts. Negativing the said contention, the Supreme Court held as follows: "17. It is seen that service conditions of the employees, officers and servants of the Stores/Societies are not regulated by the Railway Administration. They are governed by the bye laws of the Societies, subject to control and sanction by the Registrar under the State Act or the relevant provisions. Negativing the said contention, the Supreme Court held as follows: "17. It is seen that service conditions of the employees, officers and servants of the Stores/Societies are not regulated by the Railway Administration. They are governed by the bye laws of the Societies, subject to control and sanction by the Registrar under the State Act or the relevant provisions. There is no obligation on the part of the Railway Administration to provide security for those employees. The disciplinary control by the society concerned is subject to other laws and is exclusively domestic in character. The Indian Railway Establishment Code is not applicable to them. Their appointment is subject to bond prescribed by the Registrar. The arrears of funds or misappropriated amounts, etc., are recoverable under the provisions of the State Act, and the Rules made thereunder. The services of the staff are liable to termination in terms of the State Act, Rules and bye-laws." Petitioner-society eventhough consists of staff of the southern railway as members, the staff of the society are not railway employees. The employees of the Cooperative Societies are governed by the provisions of the Cooperative Societies Act, Rules and bye laws and they are not railway employees. Only if they are the employees of the Railway, then only the question of referring the matter by the Central Government will arise, under Sec.10 of the I.D. Act. Only with regard to enumerated categories under S.10, the appropriate government is the Central Government and in all other cases, appropriate government is the State Government. Petitioner is a registered society under the Kerala Cooperative Societies Act. Therefore the appropriate Government is not the Central Government, but the State Government. Therefore I am of the view that the reference made by the Central Government cannot be sustained in the eye of law. Accordingly, Ext.P9 is quashed and O.P. is allowed. However this judgment will not stand in the way of the third respondent agitating his claim before the appropriate authorities.