The Maharashtra State ... vs Prabhakar Sitaram Bhadange

The appellant, Maharashtra State Cooperative Housing Finance Corporation Limited (hereinafter referred to as the ‘Corporation’), is a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960 (hereinafter referred to as the ‘Act’). The respondent had joined the services in the appellant Corporation in the year 1975 as an Inspector. He was promoted to the post of Branch Manager (Class-I) in the year 2000. For certain acts of misconduct allegedly committed by the respondent, he was put under suspension vide orders dated July 11, 2003. Thereafter, a charge-sheet was served upon him and the departmental inquiry conducted, which resulted in dismissal order dated April 28, 2006 passed by the Corporation, dismissing the respondent from service. His departmental appeal having dismissed, the respondent approached the Cooperative Court at Aurangabad, which is set up under the Act, on April 19, 2007 challenging the orders of dismissal from service as well as the order rejecting the departmental appeal by filing Dispute No. 61 of 2007. On receiving the notice in the said dispute petition, the Corporation filed an application for rejection of the petition of the respondent on the ground that the Cooperative Court set up under the Act did not have the jurisdiction to entertain and decide the service dispute between the employer and the employee, inasmuch as the dispute in question did not touch upon the business of the society and was not covered by the provisions of Section 91 of the Act. The Cooperative Court dismissed the said application holding that it had the requisite jurisdiction to decide the dispute. Order of the Cooperative Court was challenged by the appellant before the Cooperative Appellate Court in the form of an appeal. This appeal was dismissed confirming the orders of the Cooperative Court. Further challenge was laid by the appellant by filing a writ petition before the High Court of Judicature at Bombay, Aurangabad Bench. This writ petition has also been dismissed vide judgment dated January 21, 2014. Present appeal assails the said judgment of the High Court.

Before the High Court it was argued by the counsel for the respondent that the respondent was not claiming reinstatement as he had attained the age of superannuation when the dispute was filed. Therefore, while challenging the resolution of the respondent dismissing his services, the respondent was seeking compensation for wrongful dismissal. It was, thus, argued that since reinstatement was not claimed, the award of compensation was within the jurisdiction of the Cooperative Court. This contention of the respondent is accepted by the High Court relying upon its earlier Division Bench judgment in the case of Pralhad Vithalrao Pawar v. Managing Director, Kannaded Sahakari Sakhar Karkhana Ltd. & Anr.[1] The rationale behind this view taken in the aforesaid judgment by the High Court was that the remedy under Section 91(1) of the Act is a substitute for the remedy which could have been available before the Civil Court as the forum created under Section 91 is a substitute for the Civil Court and created under a special legislation. Since the Civil Court has the jurisdiction to award damages, the Cooperative Court would be vested with same powers as its substitute. The High Court also held that the respondent herein was working as the Manager with the appellant Corporation and, therefore, was not ‘workman’ within the meaning of Section 2(s) of the Industrial Disputes Act, 1947. The submission of the learned counsel for the appellant was that, no doubt the Cooperative Court was the substitute of the Civil Court, but, at the same time, it was the creature of the statute and only limited powers were conferred upon the Cooperative Court and not all the powers of the Civil Court. These powers pertained to the nature of disputes which were categorically delineated under Section 91 of the Act. According to the learned counsel, the Cooperative Court was vested with the jurisdiction to decide only those disputes which touch upon the business of the society and since it was not a dispute pertaining to the business of the society or the election of committee or its officers, and was an employer-employee dispute, Section 91 did not give any power to the Cooperative Court to decide such disputes which arise between the employer and the employee.

As a result, this appeal is allowed, the order of the High Court is set aside and the Division Bench judgment, on which reliance is placed by the High Court in the impugned judgment, is overruled. As a consequence, it is held that the petition filed by the respondent before the Cooperative Court is not maintainable. It would, however, be open to the respondent to file a civil suit. Needless to mention, in such a civil suit filed by the respondent, he would be at liberty to file application under Section 14 of the Limitation Act, 1963 in order to save the limitation.

No costs.

MARCH 30, 2017.