Holding

The Labour Court had jurisdiction over the dispute until the amendment of Section 70 by Act 2 of 2000 (effective 20‑June‑2000), but Dharappa’s application under Section 10(4A) was not maintainable as the claim was stale.

Summary

Dharappa, a daily‑wage labourer, claimed that his termination from the Rural Dairy Centre in 1980 was illegal and sought reinstatement and back wages before the Labour Court under Section 10(4A) of the Industrial Disputes Act (ID Act). The Labour Court awarded reinstatement with 50% back wages, but the employer challenged the award, arguing that Section 70 of the Karnataka Cooperative Societies (KCS) Act barred the Labour Court's jurisdiction and that Dharappa's claim was barred by limitation. The Supreme Court examined whether the KCS Act, as amended in 1976 and 2000, excluded the Labour Court’s jurisdiction and from which date, and also whether Section 10(4A) could be invoked for a termination that occurred in 1978‑1980. The Court held that the Labour Court retained jurisdiction until the 2000 amendment (effective 20‑June‑2000) and that the award was not void, but that Dharappa’s application under Section 10(4A) was not maintainable because the claim was stale and fell outside the six‑month limitation. Consequently, the appeal was dismissed and the High Court’s order setting aside the award was affirmed.

Issues considered

Whether the jurisdiction of the Labour Court under the Industrial Disputes Act was barred by Section 70 of the Karnataka Cooperative Societies (Amendment) Act, 1976/2000, and if so, from what date.
Whether a workman could invoke Section 10(4A) of the Industrial Disputes Act to challenge a termination order that arose in 1978/1980, given the statutory limitation period.

Legislation cited

Constitution of Indias. Article 254
Industrial Disputes Act, 1947s. 10(1), s. 10(4A), s. 10(l)(c), s. 10(l)(d), s. 25F
Karnataka Cooperative Societies Act, 1959s. 70

Subjects

industrial disputecooperative societylabour court jurisdictionSection 70Section 10(4A)limitation periodrepugnancyconcurrent listreinstatementback wages

Judgment

DHARAPPA A
v.
BIJAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LTD.

APRIL 26, 2007

[G.P. MATIIURAND R.V. RA VEENDRAN, JJ.] B

Labour Laws:

Industrial Disputes Act (Karnataka Amendment) Act, 1987: s. 10(4A). C
Industrial disputes-Labour Court and Industrial Tribunal-
Jurisdiction-Industrial disputes between cooperative society and its
workmen-Workman of cooperative society claimed that he was employed as
a dailywage labourer in the Rural Dairy Centre-He had worked continuously
and uninterruptedly till his services were illegally terminated w.e.f 1.3.1980- D
The workman did not challenge his termination-Section 10(4A) was inserted
by amendment in the State to the Industrial Disputes Act wherein it was
provided that any workman might approach the Labour Court within six
months to challenge the order of discharge, dismissal, retrenchment or
termination-Taking advantage of the new provision, on 4.10.1988, the E
workman made an application to the Labour Court seeking a declaration
that his termination from service on 1.3.1980 was null and void and a
direction for reinstatement with full back wages, continuity of service and
other consequential benefits-Labour Court accepted the claim of the
workman and held that he had worked for more than 240 days and termination
of his service without complying with Section 25F of the ID Act amounted F
to illegal retrenchment and directed his reinstatement with 50% back wages
in addition to continuity of service-Cooperative society filed a writ petition-
During the pendency of the writ petition, in another case, Full Bench of the
High Court held that the ID Act was inapplicable to a dispute raised by a
workman of the cooperative society-Following this decision, a Single Judge G
allowed the writ petition-On appeal, a Division Bench held that an employee
of a cooperative society having a claim against the employer had to raise
a dispute under Section 70 of the Karnataka Cooperative Societies
(Amendment) Act, 1976-Correctness of-Held: The jurisdiction to decide an
729 H
730 SUPREME COURT REPORTS [2007] 5 S.C.R.

A industrial dispute vested thus: (i) Exclusively with labour Courts and
industrial Tribunals Ii// 20.1.1976; (ii) Concurrenlly wilh Labour Courts/
Industrial Tribunals under ID Act and with Registrar under section 70 of the
KCS Act between 20.1./976 and 20.6.2000; and (iii) Exclusively with the
Registrar under sec/ion 70 of the KCS Act with effect from 20.6.2000-Hence,
B lhe award of !he Labour Court was no/ without jurisdiction-Industrial
Disputes Act, 1947, S. 10-Karnataka Cooperative Socieities Act, 1959-
Karnataka Cooperative Socieities (Amendment) Act, 1976, S. 70.

Constitution of India, 1950:

C Article 254-laws made by Parliament and laws made by State
legislatures-Inconsistency or repugnancy between-Resolution of-Held:
Repugnancy is said lo arise when: (i) there is a clear and direct inconsistency
between the Central and the State Act; (ii) such inconsistency is
irreconcilable, or brings the Stale Act in direct collision with the Central Act
or brings about a situation where obeying one would lead to disobeying the
D other-In such a case the repugnant provision of the State law would be
void.

Interpretation of Statutes:

limitation-Statutes relating to-Rules of interpretation-Held: The
E legislative intent should be ascertained by keeping in view the position
before the amendment, !he nature of remedy provided, and the need lherefor-
It is also necessary to keep in view the general principles relating to
limitation-Statutes relating to limitation are said to be retrospective in
nature in the sense that they apply to all proceedings brought after they
f .
F come mto force, even for enforcing causes of action which had accrued prior
to the date when such statute came into force-But they are also prospective
in the sense that they do not have the effect of reviving a right of action which
was already barred on the date of its coming into operation.

Words & Phrases:
G
"Repugnancy"-Meaning of-In the context of Article 254 of the
Constitution of India, 1950.

The appellant claimed that he was employed as a daily-wage labourer in
H the Rural Dairy Centre and that he had worked continuously and
DHARAPPA •·. BIJAPUR CO-OP MIL1' PRODUCERS SOCIETIES UNION LTD
731
,. uninterruptedly till his services were illegally terminated with effect from A
1.3.1980. The appellant did not challenge his termination.

Section 10(4A) was inserted by amendment in the State to the Industrial
Disputes Act, 1947 (ID Act) wherein it was provided that the workman might
approach the Labour Court within six months to challenge the order of
discharge, dismissal, retrenchment or termination. Taking advantage of the B
new provision, on 4.10.1988, the appellant made an application to the Labour
Court seeking a declaration that his termination from service on 1.3.1980

:. -1 was null and void and a direction for reinstatement with full bacl• wages,
continuity of service and other consequential benefits. The appellant contended
that his termination amounted to illegal retrenchment, as the respondent failed
to comply with the mandatory requirements of Section 25F of the ID Act.
c
The Labour Court accepted the claim of the appellant and held that he
had .worked for more than 240 days and termination of his service without
complying with Section 25F of the ID Act amounted to illegal retrenchment
and directed his reinstatement with 50% back wages in addition to continuity D
of service.

~
The respondent filed a writ petition challenging the said award before
the High Court. During the pendency of the said writ petition, in another case,
a Division Bench of the High Court held that the jurisdiction of the Labour
j .
Court under the ID Act was barred with regard to a dispute between the E
cooperative societies and its employees. The said order was affirmed by a Full
Bench of the High Court. Following the said decision of the Full Bench, Single
Judge of the High Court allowed the writ petition and held that the ID Act
was inapplicable to a dispute raised by an employee of a cooperative society.
On appeal, a Division Bench held that an employee of a cooperative society
~ F
' having a claim against the employer had to raise a dispute under Section 70
of the Karnataka Cooperative Socieities (Amendment) Act, 1976. Hence the
appeal

The following questions arose before the Court:-

(1) Whether the jurisdiction of the Labour Court under the Industrial
G
~
.}
Disputes Act, 1947 was barred by Section 70 of the Karnataka Cooperative
Societies (Amendment) Act, 1976 with reference to cooperative societies and
if so, from when

(2) Even if Labour Court had jurisdiction, whether the appellant was
H
732 SUPREME COURT REPORTS (2007] 5 S.C.R.

A entitled to file an application under Section 10(4A) of the Industrial Disputes
Act, 1947, in respect of a cause of action which occurred in 1978

Dismissing the appeal, the Court

HELD: 1.1. "Co-operative societies" fall under Entry 32 of the State
B List. "Industrial and labour disputes" fall under Entry 22 of the Concurrent
List. Industrial Disputes Act, 1947 (ID Act) is an "existing law" with respect
to a matter enumerated in the Concurrent List, namely, industrial and labour
disputes. A dispute between a co-operative society and its employees in regard r ...
to terms of employment, working conditions and disciplinary action, is an
industrial and labour dispute squarely covered by an existing law (ID Act), if
C the employees are 'workmen' as defined in the ID Act. Clause (1) of Article
254 provides that if any provision of a law made by a State Legislature is
repugnant to any provision of an existing law with respect to one of the matters
enumerated in the Concurrent List, then, subject to the provisions of clause
(2), the existing law shall prenil, and the law made by the Legislature of the
D State shall, to the extent of the repugnancy, be void. Clause (2) of Article 254,
however, provides that where a law made by the Legislature of a State with
respect to one of the matters enumerated in the Concurrent List, contains ..i.

any provision repugnant to an existing law with respect to that matter, then,
the law so made by the Legislature of such State shall, if it has been reserved
for the consideration of the President and has received his assent, prevail in
E at State. (Para 10) (744-F, H; 745-A-Bl

1.2. The question of repugnancy can arise only with reference to a
legislation made by Parliament falling under the Concurrent List or an
existing law with reference to one of the matters enumerated in the Concurrent
F List. If a law made by the State Legislature covered by an Entry in the State 1 ,
List incidentally touches any of the entries in the Concurrent List, Article
254 is not attracted. But where a law covered by an entry in the State List (or
an amendment to a law covered by an entry in the State List) made by the
State Legislature contains a provision, which directly and substantially relates
to a matter enumerated in the Concurrent List and is repugnant to any
G provision of an existing law with respect to that matter in the Concurrent
List then such repugnant provision of the State law will be void. Such a
provision of law made by the State Legislaktre touching upon a matter covered
by the Concurrent List will not be void if it can co-exist and operate without
repugnancy with the provisions of the existing law. (Para 10) (745-A-B)

H 1.3 What is stated above with reference to an existing law is also the
DHARAPPA v, BIJAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LTD.
733
-4
position with reference to a law made by the Parliament. Repugnancy is said A
to arise when: (i) there is a clear and direct inconsistency between the Central
and the State Act; (ii) such inconsistency is irreconcilable, or brings the State
Act in direct collision with the Central Act or brings about a situation where
obeying one would lead to disobeying the other. If the State Legislature, while
making or amending a law relating to co-operative societits, makes a
provision relating to labour disputes falling under the Concurrent List, then B
Article 254 will be attracted if there is any repugnancy between such
-1 provisions of the State Act (KCS Act) with the existing law (ID Act). The issue
" in this case has to be examined keeping the above legal position in mind.
[Para IOI [745-D-F]

2.1. The effect of the amendments to Section 70 of Kamataka Cooperative
c
Societies (Amendment) Act, 1976 (KCS Act) by Act 2 of2000 is that if any
dispute (including any dispute relating to the terms of employment, working
conditions and disciplinary action), arose between a co-operative society and
its employees or past employees or heirs/legal representatives of a deceased
employee, on and from 20.6.2000, such dispute had to be referred to the D
Registrar for decision and no Civil Court or Labour Court or Industrial
... Tribunal would have jurisdiction to entertain any suit or proceeding in respect
of such dispute. (Para 111 (745-F-GJ

2.2. Even prior to 20.6.2000, having regard to the amendment to Section
70 of KCS Act by Act 19of1976 with effect from 20.10.1976, any dispute E
between a co-operative socieiy and its employees or past employees or heirs/
legal representatives of a deceased employee including a dispute regarding
the terms of employment, working conditions and disciplinary action taken
by a co-operative society, was deemed to be a dispute touching the constitution,
'f ) management, or business of a co-operative society which had to be referred F
to the Registrar for adjudication. But prior to 20.6.2000, there was no express
exclusion of the jurisdiction of the Labour Court and Industrial Tribunal. As
a result, if an employee of a Co-operative Society answered the definition of a
'workman' and the dispute between the co-operative society and its employee
fell within the definition of an industrial dispute, then the employee had the
choice of two alternative forums - either to raise a dispute before the Registrar G
under Section 70 of the KCS Act or seek a reference to the Labour Court/
Industrial Tribunal under Section 70(l)(c) of the ID Act (or approach the
Labour Court by an application under Section 10(4A) of ID Act).
[Para 121 [745-H; 746-A-C)
H
734 SUPREME COURT REPORTS [2007] 5 S.C.R.

A 3.1. Though the Karnataka Co-operative Societies Act, 1959 was
reserved for the assent of the President and received his assent on 11.8.1959,
the Amendment Act 19of1976 which added clause (d) to sub-section (2) of
Section 70, (whereby a dispute between a Co-operative Society and its present
or past employee in regard to any disciplinary action or working conditions
was deemed to be a dispute touching the constitution, management, or the
B business of a co-operative society), was neither reserved for, nor received the
assent of the President In the absence of the assent of the President, clause
(d) of Section 70(2) could not be called in aid to contend that Section 70(l)(c)
of the KCS Act would prevail over the provisions of the Industrial Disputes
Act Consequently, even after the 1976 amendment to th'.! KCS Act, the Labour
C Courts and Industrial Tribunal functioning under the ID Act continued to have
jurisdiction in regard to disputes between a Society and it~ workmen ifthe
co-operative society answered the definition of an 'industry' and the dispute
was an 'industrial dispute'. (Para 14] (747-A-C]

Co-operative Central Bank Ltd. v. Additional Industrial Tribunal, A. P.,
D AIR (1970) SC 245, relied on.
R. C. Tiwari v. Madhya Pradesh State Cooperative Marketing
Federation Ltd, (1997] 5 SCC 125 and Sagarmal v. Distict Sahkari Kendriya
Bank Ltd., (1997] 9 SCC 354, held inapplicable.

E Veerashiva Cooperative Bank Ltd. v. Presiding Officer, Labour Court,
(2001) 3 Kar L.J. 519 (Kar) and Management ofHukkeri v. S. R Vastrad, ILR
(2005) Kar 3882, overruled.

Karnataka Sugar Workers' Federation v. State of Karnataka, (2003) 4
Kar L.J. (Kar), partly overruled.
F
3.2. When sub-section (I) of section 70 of KCS Act was further amended
by Act 2 of 2000 by specifically excluding the jurisdiction of Labour Courts
and Industrial Tribunals with the simultaneous addition of the words
"notwithstanding anything contrary contained in the Industrial Disputes Act,
G 1947" in clause (d) of Section 70(2) of KCS Act, the said Amendment Act
(Act 2 of 2000) was reserved for the assent of the President and received
such assent on 18.3.2000. The amended provisions were given effect fronr
20.6.2000. Therefore, only with effect from 20.6.2000, the jurisdiction of
Labour Courts and Industrial Tribunals were excluded in regard to disputes
between a co-operative Society and its employees (or past employees) relating
H to terms of employment, service conditions or disciplinary action. It follows
DHARAPPA "· BllAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LTD.
735
i therefore that in the year 1996, the Labour Court had the jurisdiction to make A
an award in regard to such a dispute. The High Court could not have
interferred with it on the ground that Section 70 of the KCS Act was a bar to
the jurisdiction of the Labour Court to decide the dispute.
[Para 14] [747-C-F]

4.1. The 1976 Amendment to the KCS Act did not bring about any B
inconsistency with the provisions of the ID Act nor did it purport to prevail
over the provisions of the ID Act. Its effect was merely to provide an additional
,-,, i or alternative forum for adjudication of the disputes between co-operative
societies and its employees, relating to employment, working conditions and
disciplinary action. The 1976 Amendment Act, therefore, was valid, even in
the absence of the assent of the President. (Para 15) (747-F-G)
c
4.2. On the other hand, the 2000 Amendment specifically excluded the
jurisdiction of Industrial Tribunals and Labour Courts under the ID Act, and
intended to prevail over the provisions of the ID Act in regard to adjudication
of disputes. The said Amendment required the assent to the President and D
was, in fact, reserved for the assent of the President and obtained his assent.
If the 1976 Amendment was to be read as excluding the jurisdiction of the
; ~ -*
Industrial Tribunals and Labour Courts, then it was necessary to read the
provisions of Section 70, as amended by the 1976 Act, as prevailing over the
provisions of the ID Act. In which event, itwould have required the President's
assent, and in the absence of such assent, the Amendment to the extent it E
purported to prevail over the Central enactment, would have been void.
Therefore, the only way to read the 1976 Amendment is to read it in a literal
> and normal manner, that is, as not excluding the jurisdiction of the Industrial
Tribunals and Labour Courts but as merely conferring a concurrent
jurisdiction on the Registrar under Section 70 of the KCS Act.
F
• )
[Para 15) [747-F-G; 748-A-C)

5. Many a time a principle laid down by this Court with reference to the
provisions of a particular State Act is mechanically followed to interpret
cognate enactments of other States, without first ascertaining whether the
provisions of the two enactments are identical or similar. This frequently
G
happens with reference to the laws relating to rent and accommodation
.J

* control, co-operative societies and land revenue. Before applying the
principles enunciated with reference to another enactment, care should be
takea1 to find out whether the provisions of the Act to which such principles
are sought to be applied, are similar to the provisions of the Act with reference
to which the principles were evolved. (Para 17) [749-A-C) H
736 SUPREME COURT REPORTS (2007) 5 S.C.R.

A 6.1. The resultant position can be summarized thus:- !--

(a) Even though clause (d) was added in Section 70(2) with effect from
20.11.976, Section 70(1) did not exclude or take away the jurisdiction of the
Labour Courts and Industrial Tribunals under the I.D. Act to decide an
industrial dispute between a SI) and sub-section (2)(d) of section 70 were
B amended by Act 2 of 2000 and the amendment received the assent of the
President on 18.3.2000 and was brought into effect on 20.6.2000.

(c) The jurisdiction to decide any dispute of the nature mentioned in
section 70(2)(d) of the KCS Act, if it answered the definition of industrial
r -. .
dispute, vested thus:
c
(i) Exclusively with Labour Courts and Industrial Tribunals till
20.1.1976;

(ii) Concurrently with Labour Courts/Industrial Tribunals under ID Act
and with Registrar under section 70 of the KCS Act between 20.10.1976 and
D 20.6.2000; and

(iii) Exclusively with the Registrar under section 70 of the KCS Act ..
with effect from 20.6.2000. [Para 22) (751-G-H; 752-8-E)

6.2. It is, therefore, held that the award of the Labour Court was not
E without jurisdiction. (Para 23) (752-E-F]

7. According to the appellant, the termination was with effect from
1.3.1980. The Labour Court found that the termination was in fact from
19.2.1978. The employee made an application under section 10(4A) of the l.D.
Act on 4.10.1988. But for the insertion of sub-section (4A) in section 10 of
t
-
F
the ID Act on 7.4.1988, the appellant's challenge would not have been
entertained at all as the claim had become stale on account of the same not
"
being agitated for more than 10 years. The Labour Court, however, proceeded
on the assumption that any claim application filed within six months from the
date when sub-section (4A) was introduced is to be considered as in time,
G irrespective of the date of termination or cause of action. Such assumption is
erroneous and would lead to absurd results. [Para 24) (752-G-H; 753-A-B) t .._,

8. Section I 0(4A), no doubt, applied to termination orders passed prior
to 7.4.1988. But the question is whether recourse to section 10(4A) can be
had in regard to any order of termination irrespective of when it was passed
H
DHARAPPA >. BIJAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LTD
737
and without reference to any time limit. Section 10(4A) enables an individual A
workman to challenge a termination order before the Labour Court within
"six months from the date of communication" of such order of termination.
Having thus fixed the time within which such application has to be filed, the
legislature added the words "or the date of commencement of the Industrial
Disputes (Karnataka Amendment) Act, 1987, whichever is later".
[Para 25) (753-8-D) B

9.1. The Legislative intent should be ascertained by keeping in view the
position before the amendment, the nature of remedy provided, and the need
therefor. It is also necessary to keep in view the general principles relating
to limitation. Statutes relating to limitation are said to be retrospective in C
nature in the sense that they apply to all proceedings brought after they come
into force, even for enforcing causes of action which had accrued prior to the
date when such statute came into force. But they are also prospective in the
sense that they do not have the effect of reviving a right of action which was
already barred on the date of its coming into operation. [Para 26) (753-E-G)
D
9.2. In other words, any law relating to limitation though will apply to
cause of actions accruing earlier, will apply only if the cause of action was
'live' as on the date when the new Act came into force and not to claims which
were 'dead' or unenforceable when the new law came into force. This general
Rule is, however, subject to any express statutory provisions to the contrary.
[Para 26) (754-8-Cj E
10.1. This Court while dealing with Section lO(l)(c) and (d) of the ID
Act, has repeatedly held that though the Act does not provide a period of
limitation for raising a dispute under Section lO(l)(c) or (d), if on account of
delay, a dispute has become stale or ceases to exist, the reference should be F
. rejected. It has also held that lapse of time results in losing the remedy and
the right as well. The delay would be fatal if it has resulted in material
evidence relevant to adjudication being lost or rendered unavailable.
(Para 27) [754-C-D)

Nedungadi Bank Ltd. v. K. P. Madhavan Kutty, [2000) 2 SCC 455, Balbir G
Singh v. Punjab Roadways, [2001) 1 SCC 133, Asst. Executive Engineer v.
Shivalinga, (2002) 1 ILJ 457 and S. M. Nilajkar v. Telecom DT Manager,
[2003) 4 sec 27, relied on.

10.2. When belated claims are considered as stale and non-existing for
the purpose of refusing or rejecting a reference under Section lO(l)(c) or H
738 SUPREME COURT REPORTS [2007] 5 S.C.R.

A (d), in spite of no period of limitation being prescribed, it will be illogical to
hold that the amendment to the Act inserting section 10(4A) prescribing a
time limit of six months, should be interpreted as reviving all stale and dead
claims. jPara 271 [754-D-E)

1I. The object of Section 10(4A) is to enable workmen to apply directly
B to the Labour Court for adjudication of disputes relating to termination,
without going through the laborious process of seeking a reference under
Section 10(1) of ID Act. The Legislative intent was not to revive stale or non-
existing claims. Section 10(4A) clearly requires that a workman who wants r ...-
to directly approach the Labour Court, should do so within six months from

c the date of communication of the order. Then came the words "or the date of
commencement of the Industrial Disputes (Kamataka Amendment) Act, 1987,
whichever is later". The reason for these words is obvious. In cases where
the cause of action arose prior to 7.4.1988, some additional time had to be
provided to make the provisions effective. [Para 28] [754-F-GI

D 12. Section 10(4A) does not therefore revive non-existing or stale or
dead claims but only ensures that claims which were live, by applying the six
month rule in Section 10(4A) as on the date when the Section came into effect,
,.. 1
have a minimum of six months time to approach the Labour Court. That is
ensured by adding the words "or the date of commencement of the Industrial
Disputes (Karnataka Amendment) Act, 1987, which is later" to the words
E "within six months from the date of communication to him of the order of
discharge, dismissal, retren<'.hment or termination." In other words, all those
who were commm.icated orders of termination during a period of six months
prior to 7.4.1988 were deemed to have been communicated such orders of
termination as on 7.4.1988 for the purpose of seeking remedy. Therefore,
F the words "within six months from the date of commencement of the Industrial
(
Disputes (Karnataka Amendment) Act, 1987, whichever is later" only enable '
those who had been communicated the order of termination within six months
prior to 7-4-1988, to apply under Section 10(4A). [Para 291 (755-C-F)

13. Section 10(4A) provides.an alternative procedure to seek redress
G in regard to an order of termination by making an application directly to the
Labour Court, within six months from the date of communication of the order
of termination, without the intervention or assistane of an employees union
...
and without having to approach the appropriate Government for making a
reference. Such a provision cannot be interpreted as reviving stale and dead
claims or as enabling a workman to seek remedy beyond six months from the
H
DHARAPPA •·. BIJAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LID. [RA VEENDRAN, l.]
739
date of communication, except to the extent expressly provided for. The true A
and proper interpretation of Section 10(4A) is that an individual workman
can apply to the Labour Court for adjudication of the dispute relating to an
order of discharge/dismissal/retrenchment/termination within six months
from the date of communication to him of such order of termination. Where
such remedy becomes available to a workman as on 7.4.1988 on account of
his having received the communication of termination order within six months B

. ...,
... prior to 7.4.1988, then the six months period stands extended up to 7-10-1988.
[Para 30) [755-F-H; 756-A-B)

14. The intent of section 10(4A) is to give a right to the aggrieved
workman to challenge the termination order within six months from the date
of accrual of cause of action and not to furnish as one time revival in regard
c
to stale and non-existing claims. Therefore, a claim application of the appellant
filed on 4.10.1988 in regard to the alleged termination on 1.3.1980 (on
19.2.1978 as found by the Labour Court) was not maintainable under Section
10(4A) of the ID Act and could not have been entertained by the Labour Court.
[Para 30] [756-E[ D

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2175 of2007.

From the Final Judgment and Order dated 15.06.2005 of the High Court
of Karnataka at Bangalore in Writ Appeal No. 2131 of 2005. (L-TER)
E
Urmila Sirur (SCLSC) for the Appellant.

Annam D.N. Rao for the Respondent.

, ) The Judgment of the Court was delivered by
F
RAVE END RAN, J. Leave granted.

I. This appeal is filed against the judgment dated 15.6.2005 passed by
the High Court ofKarnataka in Writ Appeal No.2131/2005.

2. The appellant claims that he was employed as a daily-wage labourer
~ G
in the Rural Dairy Centre, Bijapur, on 13.5.1977. He further alleges that he
worked continuously and uninterruptedly till his services were illegally
terminated with effect from 1.3. 1980. The appellant did not challenge his
termination.

3. Section 10 of the Industrial Disputes Act, 1947 ( 'ID Act' for short) H
740 SUPREME COURT REPORTS [2007] S S.C.R.

A was amended in Kamataka by the Industrial Disputes (Kamataka Amendment)
Act, 1987 [Kamataka Act No.S of 1988] inserting the following as sub-section
(4A) with effect from 7.4.1988:

"(4A) Notwithstanding anything contained in section 9-C and in this
section, in the case of a dispute falling within the scope of section
B 2-A, the individual workman concerned may, within six months from
the dat~ of communication to him of the order of discharge, dismissal,
retrenchment or termination or the date of commencement of the
Industrial Disputes (Kamataka Amendment) Act, 1987, whichever is
~
-
.....
later, apply, in the prescribed manner, to the Labour Court for
adjudication of the dispute and the Labour Court shall dispose of
c such application in the same manner as a dispute referred under sub-
section (I)."

Taking advantage of the new provision, on 4.10.1988, the appellant made an
application to the Labour Court, Hub Ii (KID No. I055/88 subsequently
D transferred and renumbered as KID No. 49711995 on the file of the Labour
Court, Bijapur) seeking a declaration that his tennination from service on
1.3.1980 was null and void and a direction for reinstatement with full back-
wages, continuity of service and other consequential reliefs. The appellant
contended that his tennination amounted to illegal retrenchment, as the
respondent failed to comply with the mandatory requirements of Section 25-
E F of JD Act even though he had worked continuously for more than 240 days
in a year.

4. The respondent (Kamataka Milk Federation, Unit : Bijapur) filed an
objection statement contending that it came into existence and took over the
Rural Dairy Centre, Bijapur, long after the alleged tennination of appellant by (
F Rural Dairy Centre, Bijapur. The respondent denied the claim of the appellant '
that he was a daily wage worker between 13.5.1977 and 1.3.1980 and that his
services were termination in violation of section 25F of the ID Act.

5. The appellant gave evidence and produced a certificate dated 19.2.1978
allegedly issued by the Dairy Supervisor, Rural Dairy Centre, Bijapur, certifying
G that he had worked as a casual labourer from 13.5.1977 to 19.2.1978. None was
,,_ •
examined on behalf of the respondent to deny the said certificate. On
consideration of the material, the Labour Court accepted the said service
certificate, but did not accept his further self-serving statement that he worked
up to J.3.1980 as such claim was not supported by any document. The Labour
H Court made an award dated 15. I0.1996 directing reinstatement, holding that
DHARAPPA v. BUAl'UR CO-OP ~ULK PRODUCERS SOCIETIES UNION LTD. [RA VEENDRAN,J.] 741

Apµellant had worked for more than 240 days in the year preceding tenninatior. A
(13.5.1977 to 19.2.1978), and the tennination of his service, without complying
with section 25F of ID Act, amounted to illegal retrenchment. However, as
there was an inordinate delay of 10 years in filing the claim statement, the
Labour Court awarded only 50% back-wages in addition to continuity of
service and consequential benefits. The respondent challenged the said award
in W.P. No.7227/1997. B

6. During the pendency of the said writ petition, a Division Bench of
-...
"" Karnataka High Court held in Veerashiva Co-operative Bank Ltd. v. Presiding
Officer, Labour Court, (2001) 3 Kar.L.J. 519 that the procedure for adjudication
and the remedy provided under the Kamataka Co-operative Societies Act,
1959 ('KCS Act' for short) being comprehensive, the jurisdiction of Labour
c
Courts under ID Act to deal with such disputes was barred. The decision in
Veerashiva Co-operative Bank was approved and reiterated by a Full Bench
of the Karnataka High Court in Karnataka Sugar Worker's Federation v.
State of Karnataka, (2003) 4 Kar.L.J. 353].
D
7. Following the decision of the Full Bench, a Single Judge of the High
Court, allowed the Respondent-employer's writ petition, by order dated 1.2.2005,
holding that ID Act was inapplicable to a dispute raised by an employee of
a co-operative society. He therefore set aside the award of the Labour Court,
reserving liberty to the appellant to work out his remedy in accordance with
law. The said order of the learned Single Judge was challenged by the E
appellant in a writ appeal. A Division Bench of the High Court, by its
judgment dated 15.6.2005, dismissed the writ appeal, holding that an employee
of a co-operative society having a claim against the employer has to raise a
dispute under Section 70 of the KCS Act. The Division Bench purported to
t ' follow the decision of the Full Bench in Karnataka Sugar Worker's Federation. F
The said decision of the Division Bench is challenged in this appeal by
special leave.

8. The Appellant contends that amended Section 70 of the KCS Act
took away the jurisdiction of Labour Courts and Industrial Tribunals
functioning under the ID Act, only when the amendments to the said section G
.> -f
as per Act 2 of 2000 came into effect on 20.6.2000, and it did not nullify an
award made by the Labour Court prior to that date, that is on 15.10.1996. It
was also contended that the respondent not having raised any objection
about want of jurisdiction before the Labour Court, could not subsequently
be pennitted to raise the plea of want of jurisdiction before the High Court.
H
742 SUPREME COURT REPORTS (2007] 5 S.C.R.

A The Respondent on the other hand, supported the decision of the High Court
and contended that the Labour Court had no jurisdiction having regard to
section 70 of the KCS Act. The respondent also contended that the award
of the Labour Court was otherwise also unsustainable as the claim itself was
hopelessly barred by limitation, delay and !aches. Therefore, the following
two questions arise for our consideration :
B
(i) Whether the jurisdiction of Labour Court under the ID Act, was
barred by section 70 of the KCS Act with reference to co-operative
societies and if so, from when.
...
(ii) Even if Labour Court had jurisdiction, whether the appellant was
C entitled to file an application under Section 10(4A) of ID Act in
respect of a cause of action which occurred in 1978.

Re : Question (i) :

9. It is necessary to refer to the metamorphosis of section 70 of the KCS
D Act, before considering this question. The said section originally stood as
follows :

"70. Disputes which may be referred to Registrar for decision. - (I)
Notwithstanding anything contained in any law for the time being in
force, if any dispute touching the constitution, management, or the
E business of a co-operative society arises-
(a) and (b) xx xx x (omitted as not relevant)
[c] between the society or its committee and any past committee,
any officer, agent or employee, or any past officer, past agent or
past employee or the nominee, heirs, or legal representatives of
F any deceased officer, deceased agent, or deceased employee of
the society, or
(d) xx x (omitted as not relevant)
such dispute shall be referred to the Registrar for decision and no
G Court shall have jurisdiction to entertain any suit or other proceeding
in respect of such dispute.

(2) For the purposes of sub-section (I), the following shall be deemed
to be disputes touching the constitution, management or the business
of a co-operative society, namely. -
H
DHARAPPA v. BUAPURCO-OP. MILK PRODUCERS SOCIETIES UNION LTD. [RAVEENDRAN,J.] 743

(a) a claim by the society for any debt or demand due to it from A
a member or the nominee, heirs or legal representatives of a
deceased member, whether such debt or demand be admitted or
not;
(b) a claim a surety against the principal debtor where the society
has recovered from the surety any amount in respect of any debt B
or demand due to it from the principle debtor, as a result of the
default of the principal debtor whether such debt or demand is
1
admitted or not;
(c) any dispute arising in connection with the election of a

- President, Vice-President, Chainnan, Vice-Chainnan, Secretary,
Treasurer or Member of Committee of the society.
(3) xx x (omitted as not relevant).

Section 70 was amended by Karnataka Co-operative Societies (Amendment)
c

Act, 1976 (Karnataka Act 19 of 1976). The Amendment Act received the
assent of the Governor on 7.3.1976. It was brought into effect from 20.1.1976. D
The Amendment Act added the following as clauses (d) and (e) in sub-
section (2) of section 70 :

(d) any dispute between a co-operative society and its employees or
past employees or heirs or legal representatives of a deceased
employee, including a dispute regarding the tenns of employment, E
working conditions and disciplinary action taken by a co-operative
society;

(e) a claim by a co-operative society for any deficiency caused in the
assets of the co-operative society by a member, past member, deceased
t
' member or deceased officer, past agent or deceased agent or by any
F
servant, past servant or deceased servant or by its committee, past
or present whether such loss be admitted or not."

Section 70 was again amended by Karnataka Co-operative Societies (Second
Amendment) Act, 1997 (Karnataka Act No.2/2000) in the following manner: G

(i) In sub-section (I), for the words "no court", the words "no civil
or Labour or Revenue court or Industrial Tribunal" were
substituted.
(ii) At the end of clause (d) of sub-section (2), the words
H
744 SUPREME COURT REPORTS [2007] 5 S.C.R.

A "notwithstanding anything contrary contained in the Industrial
·Disputes Act, 1947 (Central Act 14of1947)" were inserted.

The said Amendment Act (Act 2 of 2000) received the assent of the President
on 18.3.2000 and was brought into force on 20.6.2000. After the said
amendments in 1996 and 2000, Section 70 ofKCS Act (relevant portion) reads
B thus:

"Notwithstanding anything contained in any law for the time being in
force, if any dispute touching the constitution, management, or the
business of a Co-operative Society arises - ... between the Society or
its committee and ... any officer, agent or employee, or any past
c
-
officer, past agent or past employee ... of the Society, _.. such dispute
shall be referred to the Registrar for decision and no Civil or Labour
or Revenue Court or Industrial Tribunal shall have jurisdiction to
entertain any suit or other proceeding in respect of such dispute.

For the purposes of sub-section ( 1), the following shall be deemed to
D be disputes touching the constitution, management or the business
of a Co-operative Society, namely ....... (d) any dispute !Jetween a Co-
operative Society and its employees or past employees or heirs or
legal representatives of a deceased employee, including a dispute
regarding the terms of employment, working conditions, and
disciplinary action taken by a Co-operative Society notwithstanding
E
anything contrary contained in the Industrial Disputes Act,
J947(Central Act 14 of 1947)."

I0. "Co-operative societies" fall under Entry 32 of the State List.
"Industrial and labour disputes" fall under Entry 22 of the Concurrent List.
p Industrial Disputes Act, 194 7 is an "existing law" with respect to a matter
enumerated in the Concurrent List, namely, industrial and labour disputes. A
dispute between a co-operative society and its employees in regard to terms
of employment, working conditions and disciplinary action, is an industrial
and labour dispute squarely covered by an existing law (ID Act), if the
employees are 'workmen' as defined in the ID Act. Clause ( 1) of Article 254
G provides that if any provision of a law made by a State Legislature is repugnant
to any provision of an existing law with respect to one of the matters
enumerated in the Concurrent List, then, subject to the provisions of clause
(2), the existing law shall prevail, and the law made by the Legislature of the
State shall, to the extent of the repugnancy, be void. Clause (2) of Article 254,
H however, provides that where a law made by the Legislature of a State with
DHARAPPA "· BIJAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LTD. [RAVEENDRAN, I) 745

respect to one of the matters enumerated in the Concurrent List, contains any A
provision repugnant to an existing law with respect to that matter, then, the
law so made by the Legislature of such State shall, if it has been reserved
/
for the consideration of the President and has received his assent, prevail in
that State. The question of repugnancy can arise only with reference to a
legislation made by Parliament falling under the Concurrent List or an existing
law with reference to one of the matters enumerated in the Concurrent List. B
If a law made by the State Legislature covered by an Entry in the State List

- -1 incidentally touches any of the entries in the Concurrent List, Article 254 is
not attracted. But where a law covered by an entry in the State List (or an
amendment to a law covered by an entry in the State List) made by the State
c
-
Legislature contains a provision, which directly and substantially relates to
a matter enumerated in the Concurrent List and is repugnant to any provision
of an existing law with respect to that matter in the Concurrent List then such
repugnant provision of the State law will be void. Such a provision of law
made by the State Legislature touching upon a matter covered by the
Concurrent List, will not be void if it can co-exist and operate without
repugnancy with the provisions of the existing law. What is stated above with
D
~
reference to an existing law, is also the position with reference to a law made
by the Parliament. Repugnancy is said to arise when : (i) there is clear and
direct inconsistency between the Central and the State Act; (ii) such
inconsistency is irreconciliable, or brings the State Act in direct collision with
the Central Act or brings about a situation where obeying one would lead to E
disobeying the other. If the State Legislature, while making or amending a law
relating to co-operative societies, makes a provision relating to labour disputes
falling under the Concurrent List, then Article 254 will be attracted if there is
any repugnancy between such provision of the State Act (MCS Act) with the
existing law (ID Act). We will have to examine the issue in this case keeping
F
(
' the abovdegal position in mind.

11. The effect of the amendments to Section 70 of KCS Act, by Act 2
of 2000 is that if any dispute (including any dispute relating to the terms of
employment, working conditions and disciplinary action), arose between a co-
operative society and its employees or past employees or heirs/legal G
4' representatives of a deceased employee, on and from 20.6.2000, such dispute
had to be referred to the Registrar for decision and no Civil Court or Lab/our
Court or Industrial Tribunal would have jurisdiction to entertain any suit or
proceeding in respect of such dispute.

12. Even prior to 20.6.2000, having regard to the amendment to Section H
746 SUPREME COURT REPORTS [2007] 5 S.C.R.

· A 70 of KCS Act by Act 19 of 1976 with effect from 20.1.1976, any dispute
between a co-operative society and its employees or past employees or heirs/
legal representatives of a deceased employee including a dispute regarding
the terms of employment, working conditions and disciplinary action taken by
a co-operative society, was deemed to be a dispute touching the constitution,
management, or business of a co-operative society which had to be referred
B to the Registrar for adjudication. But prior to 20.6.2000, there was no express
exclusion of the jurisdiction of the Labour Court and Industrial Tribunal. As
a result, if an employee of a Co-operative Society answered the definition of
'workman' and the dispute between the co-operative society and its employee
fell within the definition of an 'industrial dispute', then the employee had the
C choice of two alternative forums - either to raise a dispute before the Registrar
under Section 70 of the KCS Act or seek a reference to the Labour Court/
Industrial Tribunal under Section IO(l)(c) of the ID Act (or approach the
Labour Court by an application under Section 10(4A) of ID Act).
-
13. In Co-operative Central Bank Ltd v. Additional Industrial Tribunal,
D A.P., AIR (1970) SC 245, this Court considered Section 61 of the Andhra
Pradesh Co-operative Societies Act, I964, which dealt with disputes which
could be referred to the Registrar. The said section was in pari materia with
Section 70 of KCS Act, as it originally stood, before the amendments under
Act I 9 of 1976 and Act 2 of 2000. This Court held that where a State Co-
E operative Societies Act had received the assent of the President, if any
provision of such State Act was repugnant to any provision of the ID Act,
the provisions of the State Act will prevail over the provisions of the ID Act.
This Court accepted the general proposition that the jurisdiction of the
Industrial Tribunal/Labour Court under the Industrial Disputes Act will be
barred if the disputes can be competently decided by the R<:gistrar under
F section 61 of the Andhra Pradesh Act, in view of the fact that the Andhra
Pradesh Act had received the assent of the President. This Court then
proceeded to examine whether disputes relating to service conditions of
workmen could be referred to the Registrar for decision under Section 61 of
the State Act and held that the disputes could only be decided by an
G Industrial Tribunal dealing with an industrial dispute. This Court held that the
Registrar under the Co-operative Societies Act, could not grant the relief in
respect of such disputes because of the limitations placed on his powers
under the Act itself, and having regard to the expression "touching the
business of the society" in Section 61 which did not include a dispute in
H regard to conditions of service of workmen.
DHARAPPA "· BIJAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LTD [RA VEENDRAN,J.] 747

14. Though the Karnataka Co-operative Societies Act, 1959 was reserved A
for the assent of the President and received his assent on 11.8.1959, the
Amendment Act 19 of 1976 which added clause (d) to sub-section (2) of
Section 70, (whereby a dispute between a Co-operative Society and its present
or past employee/s in regard to any disciplinary action or working conditions
was deemed to be a dispute touching the constitution, management, or the
business of a co-operative society), was neither reserved for, nor received the B
assent of the President. In the absence of the assent of the President, clause
(d) of Section 70(2) could not be called in aid to contend that section 70(1)(c)
of the KCS Act would prevail over the provisions of the Industrial Disputes
Act. Consequently, even after the 1976 amendment to the KCS Act, the
Labour Courts and Industrial Tribunals functioning under the ID Act continued C
to have jurisdiction in regard to disputes between a Society and its workmen
if the co-operative society answered the definition of an 'industry' and the
dispute was an 'industrial dispute'. But when sub-section (I) of section 70
of KCS Act was further amended by Act 2 of 2000 by specifically excluding
the jurisdiction of Labour Courts and Industrial Tribunals with the simultaneous
addition of the words "notwithstanding anything contrary contained in the D
Industrial Disputes Act, 194 7" in clause ( d) of Section 70(2) of KCS Act, the
said Amendment Act (Act 2 of 2000) was reserved for the assent of the
President and received such assent on 18.3.2000. The amended provisions
were given effect from 20.6.2000. Therefore, only with effect from 20.6.2000,
the jurisdiction of Labour Courts and Industrial Tribunals were excluded in E
regard to disputes between a co-operative Society and its employees (or past
employees) relating to terms of employment, service conditions or disciplinary
action. It follows therefore that in the year 1996, the Labour Court had the
jurisdiction to make an award in regard to such a dispute. The High Court
could_ not have interfered with it on the ground that Section 70 of the KCS
Act was a bar to the jurisdiction of the Labour Court to decide the dispute. F
•
15. The 1976 Amendment to the KCS Act did not bring about any
inconsistency with the provisions of the ID Act nor did it purport to prevail
over the provisions of the ID Act. Its effect was merely to provide an
additional or alternative forum for adjudication of the disputes between co- G
operative societies and its employees, relating to employment, working
---' conditions and disciplinary action. The 1976 Amendment Act, therefore, was
valid, even in the absence of the assent of the President. On the other hand,
the 2000 Amendment specifically excluded the jurisdiction of Industrial
Tribunals and Labour Courts under the ID Act, and intended to prevail over
the provisions of the ID Act in regard to adjudication of disputes. The said H
748 SUPREME COURT REPORTS [2007) 5 S.C.R.

A Amendment required the assent of the President and was, in fact, reserved
for the assent of the President and obtained his assent. If the 1976 Amendment
was to be read as excluding the jurisdiction of the Industrial Tribunals and
Labour Courts, then it was necessary to read the provisions of Section 70,
as amended by the 1976 Act, as prevailing over the provisions of the ID Act.
In which event, it would have required the President's assent, and in the
B absence of such assent, the Amendment to the extent it purported to prevail
ovet, the Central enactment, would have been void. Therefore, the only way
to read the 1976 Amendment is to read it in a literal and normal manner, that
is, as not excluding the jurisdiction of the Industrial Tribunals and Labour
Courts but as merely conferring a concurrent jurisdiction on the Registrar
C under Section 70 of the KCS Act.
16. This aspect has been completely overlooked by the Division Bench
of the Kamataka High Court in Veerashaiva Co-operative Bank. It misled itself
to an erroneous assumption that two decisions of this Court in R. C. Tiwari
v. Madhya Pradesh State Co-operative Marketing Federation Ltd., [1997) 5
D SCC 125 and Sagarmal v. District Sahkari Kendriya Bank Ltd., Mandsaur
and Anr., [ 1997] 9 SCC 354 laid down the proposition that once a specific
procedure and effective remedy is provided under a Co-operative Societies
Act, it ipso facto excluded the settlement of disputes under section I0 of the
Industrial Disputes Act. On that assumption, the High Court held that Section
E 70 of the KCS Act, excluded the jurisdiction of Labour Courts/ Industrial
Tribunals in regard to references under Section I 0 of the ID Act stood
excluded. The High Court held so in view of clause (d) of sub-section (2) of
Section 70 which provided that any dispute between a co-operative society
and its employees (past or present) in regard to terms of employment, working
conditions and disciplinary action will be deemed to be a dispute to be
F decided by the Registrar under sub-section (I) of Section 70, overlooking the
fact that Amendment Act 19 of 1976 by which clause (d) was inserted in
Section 70(2), had not received the assent of the President and therefore the
jurisdiction of the Registrar under Section 70(1) of the KCS Act as expanded
by section 70(2)(d), could not prevail over the provisions of the ID Act. If
the amendment to section 70(2) by Act 19 of 1976 should be read or construed
G as havipg the effect of enabling section 70( I) of KCS Act to prevail over the
provisions of ID Act, then the said amendment Act (Act 19 of 1976) would
have required the assent of the President under Article 254(2). But there was
no such assent.

17. As the Division Bench had relied on two decisions of this Court in
H
DHARAPPA '· BIJAPUR CO-OP. MILK PRODUCERS SOCIETIES UNION LTD. [RA VEENDRAN. J.] 749

R.C. Tiwari (supra) and Sagarmal (supra), it is necessary to refer to them. A
But before doing so, we have to note that many a time, a principle laid down
by this Court with reference to the provisions of a particular State Act is
mechanically followed to interpret cognate enactments of other States, without
first ascertaining whether the provisions of the two enactments are identical
or similar. This frequently happens with reference to the laws relating to rent
and accommodation control, co-op~rative societies and land revenue. Before B
applying the principles enunciated with reference to another enactment, care
should be taken to find out whether the provisions of the Act to which such
principles are sought to be applied, are similar to the provisions of the Act
with reference to which the principles were evolved. Failure to do so has led
to a wrong interpretatio'l of section 70 of the KCS Act, in Veerashiva Co- C
operative Bank and Karnataka Sugar Worker's Federation.

18. R.C. Tiwari (supra) related to Madhya Pradesh, where ID Act itself
was inapplicable (except to the extent indicated in M.P. Industrial Relations
Act, 1960). In that case, an employee of a co-operative society who had been
dismissed from service for mis-conduct, raised a dispute under the Madhya D
Pradesh Co-operative Societies Act, 1960. The concerned Deputy Registrar
held that the dismissal was proper and rejected the reference. Thereafter the
employee sought a reference under section 10(1) of the ID Act. The Labour
Court held that the domestic inquiry was vitiated and set aside the order of
dismissal. The said order was challenged by the employer-Society before the E
Madhya Pradesh High Court. The High Court held that in view of the provisions
of Section 55 of the Madhya Pradesh Co-operative Societies Act, 1960, the
Labour Court had no jurisdiction and therefore the reference to the Labour
Court was bad. It also held that the findings recorded by the Deputy Registrar,
Co-operative Societies against the employee in the award made under Section
55 of the Madhya Pradesh Co-operative Societies Act, would operate as res F
' judicata. This Court upheld the said decision of the High Court and dismissed
the special leave petition. The decision was rendered with reference the
special provisions of the M.P. Co-operative Societies Act, 1960 and the M.P.
Industrial Relations Act, 1960. Hav_ing regard to Section 110 of the M.P.
Industrial Relations Act, the provisions of the Central Act - Industrial Disputes G
Act, 1947 (except Chapters V-A, V-B and V-C relating to lay off and
retrenchment, special provisions relating to lay off, retrenchment and· closure
in certain establishments and W!fair labour practices), did not apply to any
industry to which the said M.P. Industrial Relations Act applied. ID Act did
not apply in the State of Madhya Pradesh for adjudication of disputes between
the employer and employees, not because of any bar in the MP Co-operative H
750 SUPREME COURT REPORTS [2007) 5 S.C.R.

A Societies Act, but because of the State having made a law relating to industrial
disputes, namely the M.P. Industrial Relations Act, 1960 which had received
the assent of the President. The M.P. Co-operative Societies Act, 1960, vide
section 55, specifically provided that where a dispute including a dispute
relating to terms of employment, working conditions and disciplinary action
by a Society arises between a Society and its employees, the Registrar or any
B officer appointed by him shall decide the dispute and his decision shall be
binding on the Society and its employees; and Section 93 of the M.P. Co-
operative Societies Act provided that nothing contained in the M.P. Industrial
Relations Act, 1960 shall apply to a Society registered under that Act (M.P.
Co-operative Societies Act). It is in those circumstances that in R. C. Tiwari,
C this Court held that the I.D. Act did not apply to a dispute between a Society
and its employees in regard to any disciplinary action. In that case, the
question of any repugnancy between a State Act (Madhya Pradesh State Co-
operative Societies Act) and the Central Act (the Industrial Disputes Act,
1947) did not arise. The State of Kamataka does not have a State Act
governing industrial disputes as in Madhya Pradesh and therefore, the
D question of Kamataka Co-operative Societies Act excluding the applicability
of a State law relating to industrial disputes did not arise. The decision in
R. C. Tiwari was not, therefore, relevant or applicable. The Division Bench of
Kamataka High Court committed an error in following the decision in R.C.
Tiwari to hold that the jurisdiction of Labour Court under the ID Act was
E barred, in view of section 70 as amended by the Amendment Act 19 of 1976,
even prior to the amendment of Section 70( 1) and (2) by Act 2 of 2000.

19. The decision of this Court in Sagarmal (supra) also related to
Madhya Pradesh. In that case, the appellant was an employee of a Co-
operative Bank and he was removed from service after a disciplinary inquiry.
F The employee challenged his removal by seeking a reference to the Labour
Court under section 10 of the Industrial Disputes Act, 1947. A reference was
made and the Labour Court granted him relief of reinstatement with back-
wages. The employer Bank challenged the award in a writ petition and the
High Court quashed the award on the ground that it was a nullity, having
G been made in an incompetent reference. While affirming the decision of the
High Court, this Court held that the provisions of the ID Act, did not apply
to the respondent co-operative bank, and the only question was about the
availability of remedy either under the Madhya Pradesh Co-operative Societies .
Act, 1960 or under the Madhya Pradesh Industrial Relations Act, 1960. This
Court observed that if such a question had arisen, section 93 of the Madhya
H Pradesh Co-operative Societies Act would have come into effect, but no
DHARAPPA '· BIJAPUR CO-OP. MlLK PRODUCERS SOCIETIES UNION LTD [RA VEENDRAN, J] 75 J

occasion arose for consideration of such question inasmuch as the employee A
did not resort to the remedy either under the Madhya Pradesh Co-operative
Societies Act, 1960 or under the Madhya Pradesh Industrial Relations Act,
1960, but chose the remedy of a reference under Section I0 of the ID Act,
which was inapplicable in the State of Madhya Pradesh. This Court reiterated
that as the only question before the High Court was the competence of a
reference under Section 10 of the Industrial Disputes Act, 1947, and not the B
availability of the remedy under the Madhya Pradesh Co-operative Societies
1 Act, 1960 or the Madhya Pradesh Industrial Relations Act, 1960, the view
,-.
' taken by the High Court that the reference under Section I0 of the ID Act
was incompetent, and the award made therein a nullity, did not suffer from
any infirmity. In short, Section I0 of the ID Act was held inapplicable not c
because the Madhya Pradesh Co-operative Societies Act, 1960 prevailed over
the provisions of the Industrial Disputes Act, 194 7 but because in Madhya
Pradesh, the provisions of the ID Act, 1947 (except certain specified provisions
relating to lay off etc.) did not apply in view of the provisions of the Madhya
Pradesh Industrial Relations Act, 1960. Therefore, the decision in Sagarmal
was also of no assistance. Therefore the decision in Veerashiva Co-operative D

,, .. Bank was erroneous.

- 20. The Full Bench of the Kamataka High Court in Karnataka Sugar
Worker's Federation, decided two issues. Firstly, it upheld the constitutional
validity of.amendment of Section 70 of the KCS Act, by Act 2 of 2000. That
question does not arise for our consideration and the decision thereon does
not require to be disturbed. Secondly, it upholds and reiterates the decision
E

in Veerashaiva Co-operative Bank (supra). To that extent, it is not good law.

21. In Management of Hukkeri v. S.R Vastrad, !LR (2005) Kamataka
,. 3882, a learned Single Judge of the Kamataka High Court held that even F

~
' before the amendment of Section 70 by Act 2 of 2000, the legal position was
that Labour Courts and Industrial Tribunals under ID Act did not have
jurisdiction in regard to disputes between society and its employees because
of insertion of clause (d) in Section 70(2) of KCS Act introduced with effect
from 20.1.1976, relying on Veerashiva Co-operative Bank and Karnataka
_.. Sugar Workers Federation. The said decision also, therefore, stands overruled. G

22. The resultant position can be summarized thus :

(a) Even though clause (d) was added in Section 70(2) with effect from
20.1.1976, section 70(1) did not exclude or take away the jurisdiction
H
752 SUPREME COURT REPORTS [2007) 5 S.C.R.

A of the Labour Courts and Industrial Tribunals under the I.D. Act to
decide an industrial dispute between a Society and its employees.
Consequently, even after insertion of clause (d) in Section 70(2) with
effect from 20.1.1976, the Labour Courts and Industrial Tribunals under
the I.D. Act, continued to have jurisdiction to decide disputes between
societies and their employees.
B
(b) The jurisdiction of Labour Courts and Industrial Tribunals to
decide the disputes between co-operative societies and their employees
was taken away only when sub-section (I) and sub-section (2)(d) of
section 70 were amended by Act 2 of2000 and the amendment received
the assent of the President on 18.3 .2000 and was brought into effect
c on 20.6.2000.

(c) The jurisdiction to decide any dispute of the nature mentioned in
section 70(2)( d) of the KCS Act, if it answered the definition of
industrial dispute, vested thus :

D (i) exclusively with Labour Courts and Industrial Tribunals till
20.1.1976;

-
(ii) concurrently with Labour Courts/Industrial Tribunals under
ID Act and with Registrar under section 70 of the KCS Act
between 20.1.1976 and 20.6.2000; and
E (iii) exclusively with the Registrar under section 70 of the KCS
Act with effect from 20.6.2000.

2:. We therefore hold that the award of the Labour Court was not
without jurisdiction. We, however, make it clear that this decision shall not
F be applied to re-open matters decided relying on Veerashiva Co-operative 1
Bank and Karnataka Sugar Workers Federation, which have attained finality.

Re : Question (ii)

24. As we have held that the Labour Court had jurisdiction, the next
G question that arises for consideration is the validity of the award. As noticed
above, according to the appellant, the termination was with effect from 1.3.1980.
The Labour Court found that the termination was in fact from 19.2.1978. The
employee made an application under section 10(4A) of the I.D. Act on
4.10.1988. But for the insertion of sub-section (4A) in section 10 of the ID Act
on 7.4.1988, the appellant's challenge would not have been entertained at all
H
DHARAPPA ''· BUAPURCO-OP. ~fiLK PRODUCERS SOCIETIES UNION LTD. [RAVEENDRAN, J] 753

as the claim had become stale on account of the same not being agitated for A
more than 10 years. The Labour Court, however, proceeded on the assumption
that any claim application filed within six months from the date when sub-
section (4A) was introduced, is to be considered as in time, irrespective the
date of termination or cause of action. Such assumption is erroneous and
would lead to absurd results.
B
25. Section 10(4A), no doubt, applied to termination orders passed prior
to 7-4-1988. But the question is whether recourse to section 10(4A) can be
•.., had in regard to any order of termination irrespective of when it was passed,
and without reference to any time limit. Section 10(4A) enables an individual
workman to challenge a termination order before the Labour Court, within "six C
months from the date of communication" of such order of termination. Having
thus fixed the time within which such application has to be filed, the legislature
added the words "or the date of commencement of the Industrial Disputes
(Karnataka Amendment) Act, 1987, whichever is later". What is the Legislative
intent behind the said addition? Is it intended to provide a one time revival
to all claims, including stale, dead, non-existing claims relating to orders of D
termination passed years or decades ago? Or does it extend the time only to
•• those who were entitled to seek the benefit of Section 10(4A) as on 7-4-1988
on account of communication of termination orders within six months before
that date by giving them a uniform time limit of six months from 7-4-1988, to
approach the Labour Court?
E
26. The Legislative intent should be ascertained by keeping in view the
position before the amendment, the nature of remedy provided, and the need
therefor. It is also necessary to keep in view the general principles relating
to limitation. Statutes relating to limitation are said to be retrospective in
nature in the sense that that apply to all proceedings brought after they come p
into force, even for enforcing causes of action which had accrued prior to the
date when such statute came into force. But they are also prospective in the
sense that they do not have the effect of reviving a right of action which was
already barred on the date of its coming into operation. Therefore, where the
right to file an action had come to an end on expiry of period of limitation
prescribed under a law relating to limitation and thus becomes barred by G
limitation, the right is not revived by a later limitation Act, even if it provides
a longer period of limitation. Let us illustrate with reference to an action for
which the period of limitation was one year under the Limitation Act, 1908 and
three years under the new Limitation Act, 1963 which come into force on
1.1.1964. The Limitation Act, 1963 will apply to all suits filed after 1.1.1964, H
754 SUPREME COURT REPORTS (2007] 5 S.C.R.

A though the cause of action might have accrued before that date. But if cause
action had accrued on 1.1.1962, and therefore, the right to file a suit came to
an end on 1.1.1963 under the old Act, a suit cannot obviously filed on
1.4.1964, on the ground that the suit is within time as per the new law of
limitation. In other words, any law relating to limitation, though will apply to
cause of actions accruing earlier, will apply only if the cause of action was
B 'live' as on the date when the new Act came into force and not to claims
which were 'dead' or unenforceable when the new law came into force. This
general Rule is however subject to any express statutory provisions to the
contrary.

C 27. 111is Court while dealing with Section IO(IXc) and (d) of the ID Act,
has repeatedly held that :hough the Act does not provide a period of limitation
for raising a dispute under Section IO(J)(c) or (d), if on account of delay, a
dispute has become stale or ceases to exist, the reference should be rejected.
It has also held that lapse of time results in losing the remedy and the right
as well. The delay would be fatal if it has resulted in material evidence relevant
D to adjudication being lost or rendered unavailable [vide - Nedungadi Bank
Ltd. v. K. P. Madhavan Kutty. [2000] 2 SCC 455; Balbir Singh v. Punjab
Roadways, [2001] l SCC 133; Asst. Executive Engineer v. Shivalinga, (2002) ,i.

1 LLJ 457; and S.M Nilajkar v. Telecom DT. Manager, (2003] 4 SCC 27]. When
belated claims are considered as stale and non-existing for the purpose of
E refusing or rejecting a reference under Section IO(l)(c) or (d), in spite of no
period of limitation being prescribed, it will be illogical to hold that the
amendment to the Act inserting section 10(4A) prescribing a time limit of six
months, should be interpreted as reviving all stale and dead claims.

28. The object of Section I0(4A) is to enable workmen to apply directly
p to the Labour Court for adjudication of disputes relating to termination, (
without going through the laborious process of seeking a reference under
section 10( 1) of ID Act. The Legislative int~t was not to revive stale or non-
existing claims. Section 10(4A) clearly requires that a workman who wants to
directly approach the Labour Court, should do so within six months from the
date of communication of the order. Then come the words "or the date of
G commencement of the Industrial Disputes (Karnataka Amendment) Act, 1987,
whichever is later". The reason for these words is obvious. In cases where
the cause of action arose prior to 7.4.1988, some additional time had to be
provided to make the provisions effective. Let us take the example of a
workman who had received the termination order on 10-10-1987. If section
H 10(4A), which come into effect on 7.4.1988, had merely stated that the
DHARAPPA ,., BUAPURCO-OP. MILK PRODUCERS SOCIETIES UNION LTD. [RAVEENDRAN, JJ 755
·.I
application had to be filed within six months from the date of communication, A
he had to file the application before J0-4-1988, that is hardly three days from
"the date when the amendment came into effect. The Legislature thought that
workmen should be given some reasonable time to know about the new
provision and take steps to approach the Labour Court. Therefore, all workmen
who were communicated orders of termination within six months prior to 7-
4-1988 were given the benefit of uniform six months time from 7-4-1988, B
irrespective of the date of expiry of six months. When a new remedy or relief
-+ is provided by a statute, such a transitional provision is made to ensure that
persons who are given a special right, do not lose it for want of adequate time
to enforce it, though they have a cause of action or right as on the date when
the new remedy or relief comes into effect. c
29. Section 10(4A) does not therefore revive non-existing or stale or
<lead claims but only ensures that claims which were live, by applying the six
month rule in Section 10(4A) as on the date when the Section came into effect,
have a minimum of six months time to approach the Labour Court. That is
ensured by adding the words "or the date of commencement of the Industrial D
Disputes (Kamataka Amendment) Act, 1987, which is later" to the words
}<
"within six months from, the date of communication to him of the order of
discharge, dismissil, retrenchment or termination." In other words all those
who were communicated orders of termination during a period of six months
prior to 7-4-1988 were deemed to have been communicated such orders of
termination as on 7-4-1988 for the purpose of seeking remedy. Therefore, the
E
words "within six months from the date of commencement of the Industrial
Disputes (Kamataka Amendment) Act, 1987, whichever is later" only enables
those who had been communicated order of termination within six months
prior to 7-4-1988, to apply under Section 10(4A).
.. ~
F
30. Section 10(4A) provides an alternative procedure to seek redressal
in regard to an order of termination, by making an application directly to the
Labour Court, within six months from the date of communication of the order
of termination, without the intervention or assistance of an employees union
and without having to approach the appropriate Government for making a
reference. Such a provision cannot be interpreted as reviving stale and dead G
-'I
claims nor as enabling a workman to seek remedy beyond six months from the
date of communication, except to the extent expressly provided for. The true
and proper interpretation of Section I 0(4A) is that an individual workman can
apply to the Labour Court for adjudication of the dispute relating to an order
of discharge/dismissal/retrenchment/termination within six months from the
H
756 SUPREME COURT REPORTS (2007] 5 S.C.R.

A date of communication to him, of such order of tennination. Where such
remedy becomes available to a workman as on 7-4-1988 on account of his
having received the communication of tennination order within six months
prior to 7-4-1988, then the six months period stands extended upto 7-10-1988.
To summarize :

B co In regard to tennination orders communication on or after 7-4-
1988, the outer limit for making an application under Section
10(4A) is six months from the date of communication of the order.

c
OD In regard to tennination orders communicated during a period of
six months prior to 7-4-1988, the period of limitation would be up
to 7-10-1988 even though the six months period from the date of
t
--
communication may actually expire between 7-4-1988 to 7-10-
1988.
(iii) In regard to tennination orders communicated prior to 7-10-1987,
no claim application under Section I0(4A), could be filed, as there
D is no provision for such applications. The remedy under section
10(1) (c) and (d) will continue to be available, subject, however,
to the rule that stale and dead claims will not be referred. ,. ,
'
The intent of Section 10(4A) is to give a right to the aggrieved workman to
challenge the tennination order within six months from the date of accrual of .
E cause of action and not to furnish an one time revival in regard to stale and
non-existing claims. Therefore, a claim application of the petitioner filed on
4.10.1988 in regard to alleged tennination on 1.3.1980 (or 19.2.1978 as found
by the Labour Court) was not maintainable under Section 10(4A) of ID Act
and could not have been entertained by the Labour Court.

F 31. We, therefore, find no reason to interfere with the final order in the t
judgment of the High Court setting aside the award, though for different
reasons. The appellant is not entitled to any relief. The appeal is, therefore,
dismissed. Parties bear respective costs.

v.s.s. Appeal dismissed.
G

-