Case: Ghaziabad Zila Sahkari Bank Ltd Vs. Addl. Labour Commnr.

The U.P. Cooperative Societies Employees Service Regulations, 1975 were framed by the U.P. Cooperative Institutional Service Board constituted by the State Government. The Government issued a circular prohibiting ex-gratia payment (over and above pay) by Cooperative Societies. In September, 1989, the Registrar, Cooperative Societies issued circulars prohibiting payment of ex-gratia amounts on 11.09.1987, 10.05.1995, 29.10.1997 and 17.02.2000 since the same was contrary to Rules. Accordingly, ex-gratia payments to employees were suspended. However, on 13.01.2001, the Board of Directors passed a resolution for grant of ex-gratia to employees on 13.01.2001. Agreement for ex-gratia payment for 1999-2000 was entered by the Chairman of the Union without Registrars permission under Regulation 42.Agreement reads thus:"AGREEMENTKeeping in view, the position likely to ensue on resorting to total strike, talks were held, as per programme fixed prior to 24.01.2001, in the interest of bank, between Sarvashri Mukesh Gaud, Nirdosh Singh, Ghandharva, Satyendra Singh, and K.P. Singh, on behalf of the Cooperative Bank Employees Union Ghaziabad as well as Sarvashri S.S. Bhatia, Rakesh Sharma, Vinod Kumar and Narendra Prasad Sharma on behalf of the Cooperative Bank Staff Association Union, Ghaziabad both being the organization of Bank employees on one side, and Shri Krishna Veer Singh Sirohi, the Chairman of the Bank on behalf of the District Cooperative Bank Ltd. Ghaziabad (The Soil Sahkari Bank Ltd. Ghaziabad) on the other side, on the subject of the Joint Notice No. C-1 dated 26.12.2000.After the talks, a consensus was arrived at to the effect that the following two demands will be met by the Chairman by the 20th of February, 2001.1. The payment of the ex-gratia amounts pertaining to the year 1999-2000 to the Bank employees on basis of their character rolls.2. Payment of one special increment to employees on completion, by them of ten years, continuous service in accordance with the circular letter of the Registrar.On the above-mentioned assurance, both the organizations, keeping in view the interest of the bank, decided that the resorting to the total strike proposed prior to 24.1.2001 in accordance with the programme fixed after sending the notice No. C-I dated 26.12.2000 by both the organizations is deferred to 20.02.2001. This consensus also was arrived at that if on account of any circumstances, the demands are not met satisfactorily within the said fixed period, the programme proposed on 24.01.2001 under the Notice referred to above, will be commenced with effect from 21.2.2001, to the legality whereof the Chairman agreed.Both the sides, after going through this agreement and after having agreed to the agreement, signed the same this 23rd day of January, 2001 at 5.00 p.m. at the Bank Head Quarters R-2/100, Raj Nagar,s sideOn behalf of Cooperative BankEmployees Union, Ghaziabad,Sd/- IllegibleSd/- Illegible1. Mukesh Gaud -do-(Krishna Veer Singh2. Nirdosh Singh -do-Sirohi) Chairman,Distt. Cooperative3. Satyendra Singh -do-Bank Ltd.4. K.P. Singh -do-Ghaziabad.Cooperative Banks StaffAssociation Unit, Ghaziabad.1. S.A. BhatiSd/- Illegible2. Rakesh Sharma-do-3. Vinod Kumar-do-4. Narendra Prasad Sharma-do-Dated 23.1.2001Place :to the Bank, this agreement is not a settlement under Section 2(t) of the U.P. Industrial Disputes Act, 1947 read with Rule 5(1) and 2 of the U.P. Industrial Dispute Rules, 1967. On 03.02.2001, the Board of Directors ratified the said agreement and also resolved that Registrars concurrence was not required:RESOLUTION No. 1 passed on the meeting of the Board of Directors of Bank held on 3.2.2001.ResolutionDecisionConsideration of the proceedings of last meeting.The Secretary, Bank read over the proceedings of the last meeting, which are confirmed unanimously with this decision that the norms prescribed towards the fulfilment of 40 per cent target of deposit enhancement in respect of the payment of the ex gratia amountsvide Resolution No. 14 passed on 13.1.2001 and condition of obtainingconcurrence thereto are not confirmed. Accordingly, the payment of ex gratia amounts be made to the Bank

Court's reasoning:
The general legal principle in interpretation of statutes is that the general Act should lead to the special Act. Upon this general principle of law, the intention of the U.P legislature is clear, thatthe special enactment UP Co-operative Societies Act, 1965 alone should apply in the matter of employment of Co-operative Societies to the exclusion of all other LabourIt is a complete code in itself as regards employment in co-operative societies and its machinery and provisions. The general Act the UPID Act, 1947 as a whole has and can have no applicability and stands excluded after the enforcement of the UPCS Act. This is also clear from necessary implication that the legislature could not have intended head-on-conflict and collision between authorities under different Acts.