IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated :- 19.08.2008 Coram : THE HONOURABLE MR.JUSTICE K.RAVIRAJA PANDIAN and THE HONOURABLE MR.JUSTICE P.P.S.JANARTHANA RAJA Writ Appeal No.3684 of 2004, Writ Petitions Nos.8425 of 2003 & 9318 of 2004 and W.A.M.P.No.6968 of 2004 W.A. No.3684 of 2004 Villupuram District Central Co.operative Bank Limited, rep. by its Special Officer 2. Hospital Road Villupuram – 605 602. Appellant/3rd Respondent v. 1.R.Santhanam 2.Deputy Registrar of Co.operative Societies, Office of the Deputy Registrar of Co-operative Societies, Tindivanam. 3.The Cuddalore District Central Co.operate Bank Limited rep.by its Special Officer Cuddalore. Respondents/Petitioner/Respodents 1,2 W.P.No.8425 of 2003: R.Santhanam Petitioner v. 1. Deputy Registrar of Co-operative Societies,Office of the Deputy Registrar of Co-operative Societies, Thindivanam https://hcservices.ecourts.gov.in/hcservices/ 2. The Cuddalore District Central Co-operative Bank Limited rep. by its Special Officer Cuddalore- 607 001 3.Villupuram District Central Co-operative Bank Limited, represented by its Special Officer 35, Trichy Trunk Road Villupuram – 605 602. Respondents W.P.No.9318 of 2004: Villupuram District Central Co-operative Bank Limited, represented by its Special Officer 2, Hospital Road, Villupuram – 605 602. Petitioner v. 1. Deputy Registrar of Co-operative Societies, Office of the Deputy Registrar of Co-operative Societies, Thindivanam. 2. R.Santhanam 3. The Cuddalore District Central Co-operative Bank Limited, represented by its Special Officer, Cuddalore- 1. Respondents Writ Appeal filed in W.A.No.3684 of 2004 under Clause 15 of the Letters Patent against the order of the learned single Judge dated 25.9.2003 in W.P.M.P.No.10792 of 2003 in W.P.No.8425 of 2003. Writ Petition in W.P.No.8425 of 2003 is filed under Article 226 of the Constitution of India seeking for the relief of issuance of writ of certiorarified mandamus calling for the records of the first respondent regarding order dated 14.9.2001 bearing reference number Na.Ka.No.521/2000 Sa Pa and quash the same in so far as it denied monetary benefit for the period prior to bifurcation of the South Arcot District Central Co-operative Bank and consequently direct the respondents 2 and 3 to pay the petitioner monetary benefit pursuant to the rectification of the pay anomaly for the period prior to bifurcation and subsequently with 18% interest per annum jointly and severally. https://hcservices.ecourts.gov.in/hcservices/ Writ Petition in W.P.No.9318 of 2004 is filed under Article 226 of the Constitution of India seeking for the relief of issuance of writ of certiorari calling for the records of the first respondent relating to the order of the first respondent bearing reference No.Na.Ka.No.521/2000 Sa Pa dated 14.9.2001 and quash the same. For Appellant in WA.No.3684/2004for For Petitioner in WP.No.9318/2004 For 3rd Respondent : Mr.R.Arumugam for in WP.No.8425/03. M/s.Aiyar & Dolia For Respondents No.1 in W.A.No.3684/2004, For Respondent No.2 in WP.No.9318/2004 For Petitioners : Mr.N.G.R.Prasad for in WP.No.8425/03 M/s.Row & Reddy For 2nd respondent in WA.3684/04 and for 1st Respondent in WP.8425/03 and 9318/04 : Mr.K.Balasubramaniam Spl.G.P. COMMON JUDGMENT K.RAVIRAJA PANDIAN, J. The Writ Petitions No.8425 of 2003 and 9318 of 2004 are filed against the same order passed by the first respondent, the Deputy Registrar of Co-operative Societies, Tindivanam dated 14.09.2001. Writ Petition No.8425 of 2003 is filed against that portion of the order denying the monetary benefit for the particular period. The Co- operative Society filed the other writ petition in W.P. No.9318 of 2004 challenging the entirety of the order passed by the Deputy Registrar of Co-operative Societies, Tindivanam. In writ petition No.8425 of 2003 pending writ petition an interim order was granted by the Writ Court by order dated 25.09.2003 in WPMP No.10792 of 2003 wherein and whereby an interim direction has been given to the Villupuram District Central Co-operative Bank Ltd., to pay the difference of pay for the period between 01.04.1996 to 31.12.1999 within four weeks from the date of receipt of the order. The correctness of the said interim order is challenged in writ appeal No.3684 of 2004 by the Co-operative Society. The writ petitions and the writ appeal are clubbed together at the request of the parties https://hcservices.ecourts.gov.in/hcservices/ and they are before us for consideration. 2. As already stated, the two writ petitions – one by the erstwhile employee and the other by the Co-operative Society are against the very same order of the Deputy Registrar of Co-operative Societies, Tindivanam dated 14.09.2001. 3. We will take up Writ Petition No.8425 of 2003 for narration of facts. The petitioner/employee joined in the South Arcot District Central Co-operate Bank Limited, Cuddalore on 25.07.1960 as a Supervisor. Later on, he was promoted as Manager, Grade II and posted as Agent on 25.07.1971. On 09.06.1988, he was promoted as Manager, Grade-I. The promotion was made just prior to his annual increment, which fell due on 01.07.1988. The petitioner's Junior one S.Thangasamy who joined as Manager Grade II on 25.11.1973 i.e., two years and four months after the petitioner, was promoted as Manager, Grade I on 17.10.1989 immediately after he got his annual increment on 01.10.1989. Because of this, the petitioner was drawing a lower pay than his junior. The petitioner represented to the Society by his letter dated 19.12.1990 pointing out the said anomaly, but of no avail. While so, in the year 1993, South Arcot District was bifurcated into two districts – Cuddalore and Villupuram Districts. The South Arcot Central Co-operate Bank was also bifurcated as Cuddalore District Central Co-operative Bank Limited and Villupuram District Central Co-operativle Bank Limited. The petitioner was posted, at his option, at Villupuram Bank on 01.04.1996. Again he made a representation to the Villupuram Bank, which by its letter dated 25.11.1999 requested the Cuddalore Bank to take steps. However, the Cuddalore Bank rejected the request of the petitioner by stating that his junior's pay was fixed based on the order of Deputy Registrar, Cuddalore. The petitioner, in the meanwhile, retired from service on 31.12.1999. The petitioner, being left with no other remedy, filed a dispute to the Deputy Registrar of Co- operative Societies, Tindivanam, during the year 2000, which is taken on file as Na.Ka. No.521/2000. The Joint Registrar, by the order dated 14.09.2001 impugned in the writ petitions, granted the relief in favour of the petitioner, but restricted the same only for the period the petitioner worked in the Villupuram Bank and the period prior to bifurcation of the bank has not been granted. 4. The Villupuram District Central Co-operative Bank filed writ petition No.9318 of 2004 challenging the order of the Deputy Registrar in entirety, on the ground that the dispute agitated by the petitioner before the Deputy Registrar cannot be regarded as a dispute under section 90 of the Co-operative Societies Act, 1983. The Deputy Registrar has exercised the power not vested in him under the Act. Hence, any order passed by him is without jurisdiction and nullity in law. 5. Mr.N.G.R.Prasad, learned counsel for the employee very https://hcservices.ecourts.gov.in/hcservices/ strenuously contended that the benefit for the period for which the petitioner worked in the South Arcot Co-operative Central bank prior to bifurcation has to be granted to the petitioner on the same line of reasoning based on which the benefit has been granted in respect of the period for which the petitioner worked in the Villupuram bank. He argued elaborately on merits also. However, Mr.Arumugam, learned counsel appearing for the bank contended that the dispute relating to the terms of employment, working condition and disciplinary action would not come within 'any dispute' under section 90 of the Tamilnadu Co-operative Societies Act and any dispute provided for therein is restricted in its scope to a dispute of civil nature, which is capable of being resolved by the Registrar or his nominees and does not take within itself an industrial dispute between the society and its workmen which under the Industrial Disputes Act is triable by the Labour Court or Tribunal. The Industrial Disputes Act is a special law dealing with special subject. The Industrial dispute which in their nature are essentially different from the ordinary civil dispute between the employer and his employee governed by a law of contract. The Industrial Disputes Act provides for special machinery for adjudication of industrial dispute. As against this, the Tamil Nadu Co-operative Societies Act is a general enactment and it must yield to the Industrial disputes act. Further, he contended that the expression "any dispute" touching the business of the society occurring in section 90 of the Co-operative Societies Act is limited to disputes directly relating to actual trading and commercial activity of the society. The expression does not take in the dispute between a society and its employees relating to conditions of employment, such as seniority, revision of scale of pay, revision of dearness allowance, disciplinary action, etc. In order to support his contention he relied on the judgment of the Division Bench of this Court dated 10.06.2008 made in a batch of writ petitions viz., W.P. No.17802 of 1994, etc. 6. We heard the learned counsel on either side and perused the materials available on record. 7. On going through the judgment of the Division Bench above referred to with reference to the dispute involved in these writ petitions, we are of the view that the Division bench judgment squarely covers the issue under consideration in these writ petitions. 8. Undisputably, the order impugned in both the writ petitions are one passed by the first respondent, the Deputy Registrar of Co- operative Societies under section 90 of the Tamilnadu Co-operative Societies Act, 1983. As stated in the summation of facts, the grievance of the employee is for fixation of his scale of pay, which according to him, is wrongly fixed lower than the one fixed to his immediate junior. 9. The Division Bench took upon the issue by way of reference https://hcservices.ecourts.gov.in/hcservices/ by a learned single Judge. The learned single Judge framed two questions for consideration by larger Bench. They are : 1.In matters relating to service conditions of employees of Cooperative Societies, whether the Industrial Disputes Act (Special Law) or the Cooperative Societies Act (General Law) is applicable? 2.Whether an employee of a Cooperative Society can invoke the provisions of Section 90 and/or Section 152/153 (Appeal/Revision) for redressal of his service grievances? 10. The reason for reference was on apparent conflict between two decisions rendered by this Court – one in the case of Somasundaram v. Liyakat Ali [1997 (1) CTC 4], and the other in the case of K. Radhakrishnan v. Additional Registrar [2000 (II) CTC 147]. In the case of Somasundaram, the learned single Judge held that the orders regarding inter-se seniority between employees of Co- operative Societies is not an order passed under the Co-operative Societies Act, such seniority cannot be decided and the bar of jurisdiction of Civil Court under Section 156 is not attracted in matters relating to determination of inter-se seniority of employees of Co-operative Societies and no remedy is available under the Industrial Act. As such, Civil Suit is maintainable. In Radhakrishnan's case, another learned single Judge of this Court (P.Sathasivam, J., as he then was) held that the seniority is part of service conditions of employees which may be construed as an action under special bye-laws of the Union and a revision under Section 153 of the Co-operative Societies Act is maintainable and in another judgment in the case of Management of Madras Atomic Power Project Employees' Consumers (Co-operative Stores Limited, Kalpakkam rep. by its Special Officer v. The Deputy Commissioner of Labour (Appeal) Madras, [2000 (III) CTC 738], the learned single Judge (P.Sathasivam, J. as he then was) has held that disciplinary action against paid servant of society is not a dispute under Section 90 or not one "touching business" of the society. 11. While resolving the question referred to in view of the conflict of views, the Division Bench has taken into consideration section 73 of the Tamilnadu Co-operative Societies Act, 1961 (old Act) and section 90 of the New Act, 1983 and also the ratio decidendi of the Full Bench decision of this Court in the case of N.S. Madhava Rao and others v. D.V.K. Surya Rao and others [AIR 1954 Madras 103], South Arcot Co-operative Motor Transport Society Ltd. (for ex- servicemen) Devanam-Pattinam, Cuddalore v. Syed Batcha and others [AIR 1961 Madras 217], and that of the Supreme Court in the cases of Deccan Merchants Coop. Bank Ltd. v. Dalichand Jugraj Jain [1969 (1) SCR 887], Coop. Central Bank Ltd. v. Additional Industrial Tribunal https://hcservices.ecourts.gov.in/hcservices/ [1969 (2) SCC 43], Gujarat State Coop. Land Development Bank v. P.R. Mankad [1979 (3) SCC 123], U.P. Coop. Cane Union Federation Ltd. v. Liladhar [1980 Supp SCC 437], Allahabad District Cooperative Ltd. v. Hanuman Dutt Tewari [1981 (4) SCC 431], R.C. Tiwari v. M.P. State Coop. Marketing Federation Ltd. [1997 (5) SCC 125], Yogendra Prasad v. Additional Registrar, Co-operative Societies, Bihar and others [1992 Supp (1) SCC 720], Shahabad Cooperative Sugar Mills Ltd. v. Special Secretary to Government of Haryana Corporation [2006 (12) SCC 404], Dharappa v. Bijapur Co-operative Milk Producers Societies Union Ltd. [2007 (9) SCC 109], and has summarized its proposition as follows : " 24. In the light of the above legal journey through various decisions of this Court as well as of the Supreme Court, the following propositions will emerge:- (a) Section 90 of the 1983 Act providing for settlement of disputes will not include a dispute between a servant of a Co-operative Society and its Management. Therefore, no dispute can be referred to the Registrar or his nominee under Section 90 and consequently, no appeal will lie to the Tribunal under Section 152. (b) Section 153 of 1983 Act is a departure from Section 97 of the 1961 Act and it is wider in nature. Power has been specifically conferred on the revisional authority under Section 153 to call for and examine the record of any proceeding under the Act or the Rules or the bye-laws of any officer subordinate to the Registrar or of the Board of Director or any officer of a registered society or of the competent authority constituted under Section 75 (3) of the 1983 Act. Therefore, the employees of a Co- operative Society can approach the Registrar or any competent authority under Section 153 to revise any order passed by the Co-operative Society relating to disciplinary action taken against him or denial of promotion or wrong fixation of seniority, etc. (c) There is no implied ouster of the jurisdiction of the power of the Labour Court / Industrial Tribunal to deal with similar matters if disputes are raised before them by workmen or employees covered by those provisions. Both remedies are available. (d) The decision in Somasundaram v. Liyakat Ali [1997 (1) CTC 4 = 1998 (2) LLJ 719] may not be a good law. The employees therein filed a Civil Suit regarding promotion issue. As remedy for the aggrieved parties in that case are available either under Section 153 or by an industrial dispute under Section 2(k) of the Industrial Disputes Act, 1947, they could not have gone before the Civil Court. Therefore, the bar under Section 156 of the Co-operative Societies Act as well as the implied ouster of jurisdiction https://hcservices.ecourts.gov.in/hcservices/ of the Civil Court by the provisions of the I.D. Act will directly apply and the suit is barred. (e) The decision of P. Sathasivam, J. (as he then was) in K. Radhakrishnan v. Additional Registrar [2000 (ii) CTC 147] upholding the right of revision under Section 153 has laid the correct position of law. Likewise, the judgment of P.Sathasivam, J. (as he then was) in The Management of Madras Atomic Power Project Employees' Consumers (Co- operative Stores Limited, Kalpakkam rep. by its Special Officer v. The Deputy Commissioner of Labour (Appeal) Madras [2000 (III) CTC 738 = 2000 (2) LLJ 1451] holding that Section 90 of the 1983 Act is not available for employees of Co-operative Societies against the orders of termination has been correctly decided." 12. The proposition (a) extracted above squarely covers the issue on hand against the employee. 13. The judgments in the cases of A.Jitendernath v. Jubilee Hills Co-op. House Building Society, (2006) 10 SCC 96 and North Arcot District Central Co-operative Bank Ltd., 2007 (1) LLN 369 have been pressed into service. The facts of the case of Jitendranath are as follows : The society was registered under the Andhra Pradesh Cooperative Societies Act, 1964. The father of one 'S' and the mother of the appellant, 'J' were members of the said Society. The mother of 'J' expired on 15.08.1977, but it was not notified to the Society. Subsequently, one plot 'X' was allotted in her favour on a provisional basis by the Society. She was called upon to pay a particular sum within one month from the date of receipt of the notice. The said sum was not paid because in the meantime she had expired. On the other hand, 'S' was admitted as a member of the society on 06.08.1983 in the place of his father. On 16.09.1983 plot 'X' was allotted in his favour. The society admitted 'J' as a member on 28.04.1986 in the place of his deceased mother and he made a claim in respect of the plot 'X', which was allotted to 'S'. Questioning the non allotment of plot in his favour, he filed an application before the Registrar of Co-operative Societies. The Registrar directed the society to allot the said plot to 'J'. 'S' filed a civil suit. During the pendency of the suit, he transferred his right to the second respondent before the Supreme Court and the civil Court granted a decree in favour of the second respondent. As against the decree granted, an appeal was filed by the society which was allowed on the ground that when the Registrar passed an order in favour of 'J', sale deed has not been executed in favour of 'S'. That order, in appeal, has been reversed by the High Court on the ground that the date of registration of document relates back to the date of document. In those facts, the matter has been taken to the supreme Court. The Supreme Court confirmed the order of the High court, however granted certain benefits to 'J' in view of the https://hcservices.ecourts.gov.in/hcservices/ deplorable conduct of the society. In that case, 'J' moved the Registrar and the Registrar passed an order in respect of business of society, which is allotting plots to the members and not relating to a dispute touching upon the service conditions of an employee of the society. Hence, reference to this judgment is not furthering the case of the society. 14. The other judgment is in the case of North Arcot District Central Co-operative Bank Ltd., 2007 (1) LLN 369 in which the second respondent who was working as the Secretary of Co-operative bank was charged with 16 misconduct and on that basis he was dismissed from service. He filed an appeal before the Joint Registrar and revision before the Government, in vain. On a review filed by the petitioner to the Government, the Government referred the matter to the Labour Court for adjudication as to the non employment of the second respondent. The labour Court found that the order of dismissal was illegal and consequently passed an award of reinstatement. Questioning the said award, the society filed a writ petition. The learned single Judge, while partly allowing the writ petition confirmed the award of reinstatement, but restricted the backwages only at 50%. The said order was carried on appeal before the Division Bench. A new point which has not been raised either before the authorities or before the lower Court has been raised by contending that the second respondent was working as a Secretary and he was not a workman and the award passed by the Labour Court cannot be legally sustained. The Division Bench refused to go into the question on the premise that the Labour Court has adjudicated the dispute only on a reference made by the State Government. The appellant has not questioned the reference so far and has submitted itself to the adjudication. Further, the said contention was not at all raised before the Labour Court and there was no adjudication on that issue even before the learned single Judge no ground has been raised. Even in the grounds of appeal before the Division Bench this point has not been raised, only by way of arguments at the time of final disposal the point has been raised. As the society submitted its jurisdiction to the Labour Court, it cannot wriggle out and contend otherwise before the Division Bench. We are of the view that the issue in the case on hand is different. In this case, by way of filing writ petition, the Society has questioned the jurisdiction of the Deputy Registrar to resolve a dispute, which is touching upon the service conditions of the employee. Hence, this judgment also does not further the case of the employee. 15. When a Division Bench decides a case on a specific question of law, that decision is binding on the other Division Bench. There is no Constitutional or statutory prescription in this issue and the point is governed entirely by practice in the Indian Courts sanctified by repeated affirmation over a century of time. It is, in order to guard against the possibility of inconsistent decisions on points of law by different Division Benches that the rule has been https://hcservices.ecourts.gov.in/hcservices/ evolved, in order to promote consistency and certainty in the development of the law and its contemporary status, that the statement of the law by a Division Bench is considered binding on a Division Bench of the same or lesser number of Judges. This principle has been followed by several generations of Judges. Hence, a pronouncement of law by a Division Bench of this Court is binding on a Division Bench of the same or a smaller number of Judges. (See : Kamalajammanniavaru v. Special Land Acquisition Officer, (1985) 1 SCC 582; Bhag Singh v. U.T. Of Chandigarh, (1985) 3 SCC 737 and Union of India v. Raghubir Singh, AIR 1989 SC 1933.) The Supreme Court, in the case of Chandra Prakash (Dr) v. State of U.P., (2002) 10 SCC 710, has held that upsetting of the principles laid down and introducing uncertainty in an already chaotic situation, particularly in a matter relating to the service conditions of Government employees improper. In a case pertaining to co-operative society also maintainability of a writ petition before a Court was in a chaotic situation for more than two decades. Judicial discipline demands that one Division Bench of a High Court should, ordinarily, follow the judgment of another Division Bench of that High Court. (See also : CIT v. Devaki Ammal, 1995 Supp (2) SCC 39.) 16. For the foregoing reasons and in the light of the Division Bench judgment cited supra, we are of the view that the Deputy Registrar would not have entertained the dispute raised by the petitioner which is outside the purview of section 90 of the Act. Writ petition No.8425 of 2003 is dismissed. Writ petition No.9318 of 2004 is allowed. In view of the dismissal of the writ petition No.8425 of 2003, the interim order passed in that writ petition, which is the subject matter of writ appeal No.3684 of 2004 merges with the order of dismissal. Hence, the writ appeal is dismissed. No costs. The connected miscellaneous petition is dismissed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar usk/mf https://hcservices.ecourts.gov.in/hcservices/ To 1.The Deputy Registrar of Co-operative Societies Office of the Deputy Registrar of Co.operative Societies, Tindivanam 2. The Special Officer, Cuddalore District Central Co-operative Bank Limited Cuddalore. 3. The Special Officer, Villupuram District Central Co-operative Bank Limited, Hospital Road, Villupuram – 605 602. 4. The Special Officer, Villupuram Dsitrict Central Corportion Bank Ltd. 2,Hospital Road, Villupuram-605 602. 1 CC To M/s.Row & Reddy, Advocate, SR NO.45859 1 CC To Mr.R.Arumugam, Advocate, SR NO.45985 1 CC to the Government Pleader, SR NO.46139 W.A.No.3684 of 2004 W.P.Nos.8425 of 2003 and 9318 of 2004 gv(co) pmk/29.8.2008. https://hcservices.ecourts.gov.in/hcservices/