Supreme Court of India
SMT. K. A. ANNAMMAversusTHE SECRETARY, COCHIN CO-OPERATIVE HOSPITAL SOCIETY LTD.
- Citation
- 2018 INSC 26
- Decided
- 12 January 2018
- Disposal
- Appeal(s) allowed
- Bench
- R K AGRAWAL
Holding
Both the Kerala Co‑operative Societies Act, 1969 and the Industrial Disputes Act, 1947 possess concurrent jurisdiction over service disputes between a co‑operative society employee and the society, and the employee may elect either forum subject to the ID Act’s workman/industrial dispute/industry test.
Summary
The employee of a Kerala co‑operative hospital was dismissed and challenged the termination before the Labour Court under the Industrial Disputes Act, 1947 (ID Act). The Labour Court set aside the dismissal, but the employer obtained a writ setting aside the award. The Supreme Court examined whether a service dispute between a co‑operative society employee and the society falls within the jurisdiction of the ID Act, the Kerala Co‑operative Societies Act, 1969 (KCS Act), or both, and whether Section 69 of the KCS Act ousts the Labour Court. Relying on the earlier decision in *Dharappa v. Bijapur Coop. Milk Producers Societies Union Ltd.*, the Court held that the KCS Act and the ID Act enjoy concurrent jurisdiction, and the employee may choose either forum provided he satisfies the ID Act’s test of "workman", "industrial dispute" and "industry". Consequently, the Labour Court was competent to decide the dispute and its award was upheld. The appeal was allowed and the High Court’s order set aside.
Issues considered
- The extent of jurisdiction of the Industrial Disputes Act, 1947 versus the Kerala Co‑operative Societies Act, 1969 over service disputes between a co‑operative society employee and the society.
- Whether Section 69 of the KCS Act expressly excludes the jurisdiction of the Labour Court under the ID Act.
- The effect of amendments to the Karnataka Co‑operative Societies Act and the requirement of presidential assent on the repugnancy analysis under Article 254 of the Constitution.
- Whether the employee must satisfy the ID Act criteria of "workman", "industrial dispute" and "industry" to invoke the Labour Court.
- The legality and correctness of the Labour Court award in the present case.
Legislation cited
- Industrial Disputes Act, 1947s. 10, s. 10(4-A), s. 2(1)(i), s. 25-F
- Karnataka Co-operative Societies Act, 1959s. 70
- Karnataka Co-operative Societies Act Amendment Act, 1976s. 70(d), s. 70(e)
- Karnataka Co-operative Societies Act Amendment Act, 2000s. 70(1), s. 70(2)(d)
- Kerala Co-operative Societies Act, 1969s. 2(i), s. 69, s. 70
Subjects
service disputeco-operative societyindustrial disputeconcurrent jurisdictionlabour courtArticle 254presidential assentworkman definition
Judgment
[2018] 1 S.C.R. 287 287
SMT. K. A. ANNAMMA A
v.
THE SECRETARY, COCHIN CO-OPERATIVE HOSPITAL
SOCIETY LTD.
(Civil Appeal No. 197 of 2018) B
JANUARY 12, 2018
[R. K. AGRAWAL AND ABHAY MANOHAR SAPRE, JJ.]
Industrial Disputes Act, 1947 – Service dispute – Jurisdiction
of the labour court – On facts, service dispute between a
C
co-operative society’s employee and the employer-Co-operative
Society – Jurisdiction of the labour court under the Act – Held: The
KCS Act and the ID Act both possess and enjoy the concurrent
jurisdiction to decide any service dispute arising between the
Co-operative Society’s Employee and his/her employer-Co-operative
Society – It is the choice of the employee concerned to choose any D
one forum out of the two forums available to him/her under the
KCS Act and ID Act, to get his/her service dispute decided – If the
employee desires to invoke the jurisdiction of the labour court under
the ID Act, employee has to satisfying the test laid down under the
ID Act that the employee concerned is a “workman”, the dispute
E
raised by him/her is an “industrial dispute” and the Co-operative
Society-employer is an “Industry” as defined under the ID Act – In
the instant case, labour court was competent to decide the service
dispute raised by the employee under the ID Act – Kerala
Co-operative Societies Act, 1969 – s.69.
F
Allowing the appeal, the Court
HELD: 1. The Kerala Co-operative Societies Act, 1969 and
the Industrial Disputes Act, 1947 both possess and enjoy the
concurrent jurisdiction to decide any service dispute arising
between the Co-operative Society’s Employee and his/her
Employer-Co-operative Society. It is the choice of the Employee G
concerned to choose any one forum out of the two forums available
to him/her under the two Acts-the KCS Act and the I.D. Act, to
get his/her service dispute decided. It is, however, subject to
satisfying the test laid down under the ID Act that the employee
H
287
288 SUPREME COURT REPORTS [2018] 1 S.C.R.
A concerned is a “workman”, the dispute raised by him/her is an
“industrial dispute” and the Co-operative Society-Employer is
an “Industry” as defined under the ID Act. The Labour Court in
the instant case was competent to decide the service dispute
raised by the Employee-appellant under the ID Act. The case is
remanded to the writ court to decide the respondent’s writ petition
B
for examining the legality and correctness of the award of the
Labour Court on merits in accordance with law. [Paras 103, 104
and 106][319-E-G; 320-A]
2. The majority view of three Judges in **Chirayinkeezhu
Services Cooperative Bank Ltd. vs. Santosh 2015 (4) KLT 163 (LB)
C held that the service dispute arising between the Co-operative
Society’s Employee and the Employer (Co-operative Society) is
triable only by the forum prescribed under the KCS Act, 1969
and the jurisdiction of the ID Act is excluded and barred to try
such service dispute. Where as the minority view of two Judges
D concerned, it held that such service dispute is triable under both
the Acts, i.e., the KCS Act and the ID Act. In other words, it held
that both the Acts possess and enjoy concurrent jurisdiction to
decide such service dispute and it is for the aggrieved person to
choose the forum of his/her choice out of the two Acts to get the
service dispute settled subject to proving the ingredients of the
E definition of “Workman”, “Industrial Dispute” and the
cooperative Society to be the “Industry” as defined under the
ID Act, if he/she desires to invoke the jurisdiction of the ID Act
for deciding the service dispute.[Paras 20-21][297-D-F]
3.1 The ratio of *Dharappa’s case is that firstly, Section 70
F of the Karnataka CS Act as it originally stood and amended by
first Amendment Act 19 of 1976 adding therein two clauses (d)
and (e) to Section 70, whether one reads it independently or/and
in juxtaposition with other Sections would find that it did not
provide for express ouster or exclusion of the jurisdiction of the
G Labour Court/Industrial Tribunal under the ID Act. In other
words, it did not create any express bar for the Labour Court/
Industrial Tribunal from deciding the service disputes arising
between a Cooperative Society’s Employee and his/her Employer
(Co-operative Society). [Paras 72-73] [314-E-G]
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 289
HOSPITAL SOC. LTD.
3.2 Second, any Co-operative Society’s Employee satisfying A
the definition of the expression “Workman”, “Industrial Dispute”
and the Co-operative Society to be an “Industry” as defined under
the ID Act has the choice to select one forum out of the two
forums for filing a case in relation to his service dispute, i.e.,
either to file a case under the Karnataka CS Act or to seek an
B
industrial reference under Section 10 of the ID Act or to file an
application under Section 10(4-A) of the ID Act. [Para 74][314-
G-H; 315-A]
3.3 Third, both the Acts, namely, Karnataka CS Act and
the ID Act possessed and enjoyed concurrent jurisdiction over
such service disputes till 20.06.2000. [Para 75][315-B] C
3.4 Fourth, consequent upon the second amendment made
by the State of Karnataka in Section 70 by Amendment Act 2/
2000, which received the Assent of the President on 18.03.2000
and was brought into force on 20.06.2000, the State legislature,
for the first time, provided an express provision for exclusion of D
the jurisdiction of the Civil Court or Labour Court or Industrial
Tribunal to decide any service dispute arising between a Co-
operative Society’s Employee and his/her Employer (Co-operative
Society). The effect of introducing such amended provision was
that the provisions of the ID Act were held no longer applicable E
for deciding such service disputes. In other words, jurisdiction
of the ID Act then stood excluded from deciding such service
disputes from 20.06.2000 onwards. A fortiori, only the authorities
specified under the Karnataka CS Act were held competent and
possessed jurisdiction to try such disputes from 20.06.2000
onwards. [Paras 76-77][315-C-D] F
3.5 Fifth, by way of rule of caution, the question of such
nature should be decided by the Courts primarily keeping in view
the language employed in the concerned State Act. [Para 78][315-
E]
G
3.6 Sixth, Article 254 of the Constitution is attracted when
there is a repugnancy between any provision(s) of the State Act
such as Karnataka CS Act and the provision(s) of any existing
law enacted by the Parliament on the subject falling in concurrent
list such as the ID Act. The inconsistency should be so
irreconcilable that it must come in direct head on collusion with H
290 SUPREME COURT REPORTS [2018] 1 S.C.R.
A any provision of the Central Act in the field thereby creating a
situation that obeying one Act would result in disobeying the other.
[Paras 79- 80][315-F-G]
3.7 Seventh, if such a situation arises in any case, the State
law (Karnataka CS Act) which is reserved for President’s Assent
B and on receiving the President’s Assent, will prevail over the
Central law (ID Act) in that State by virtue of Art 254 (2) of the
Constitution. [Para 81][315-H; 316-A]
4.1 When the question in the instant case is examined in
the light of the ratio of *Dharappa’s case, substantial similarity is
found between the language of Section 69 of the KCS Act as it
C
originally stood and later amended by the Amendment Act 1 of
2000 with that of the language employed in Section 70 of the
Karnataka CS Act as it originally stood along with amended one
by first Amendment Act 19/ 1976. In other words, it is noticed
that the phraseology and language of both unamended and
D amended Section 69 of KCS Act and Section 70 of the Karnataka
CS Act as amended by first amendment by Act 1/2000 are in pari
materia with each other. First, the KCS Act and the Karnataka
CS Act have received the Assent of the President at the time of
their respective enactment. Second, the KCS Act-Amendment
Act 1/2000 received the Assent of the Governor so also
E
Amendment Act 19/76 of Karnataka CS Act received the Assent
of the Governor. Third, Section 69 and Section 70 start with a
non-obstante clause. Fourth, Section 69 and Section 70 end with
the words “such dispute shall be referred to the Registrar and no
court shall have jurisdiction to entertain any suit or other proceeding
F in respect of such dispute”. Fifth, the KCS Act and the Karnataka
CS Act had no provision expressly providing for ouster of the
jurisdiction of Civil Court, Labour Court and the Industrial
Tribunal from deciding service disputes alike the one introduced
by Karnataka State for the first time in Section 70 by the
Amendment Act of 2 of 2000 with effect from 20.06.2000 with the
G
Assent of the President. This indicates that till 20.06.2000, there
was similarity between the KCS Act and Karnataka CS Act.
However, after Section 70 was amended by Act No.2/2000 w.e.f.
20.06.2000 providing therein a specific clause expressly excluding
the jurisdiction of the Civil, Labour and Revenue Court and
H Industrial Tribunal to decide the service disputes, the scheme of
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 291
HOSPITAL SOC. LTD.
the two Acts no longer remained similar. [Paras 83-89][316-A- A
H]
4.2 Similarly, it is found that the identical wording occurring
in the beginning and the end of Section 69 and Section 70 was
interpreted in *Dharappa’s case wherein it was held that such
provisions cannot be construed as providing an express exclusion B
of the jurisdiction of other Courts including that of the Labour
Court and the Industrial Tribunal under the ID Act. On the other
hand, it was held that the Karnataka CS Act possesses concurrent
jurisdiction for deciding the services disputes upto 20.06.2000.
This interpretation of *Dharappa’s case would squarely apply to
the provisions of the KCS Act if Section 69 is also suitably C
amended by the State of Kerala by making Section 69 at par with
amended Section 70 of Karnataka CS Act. As on date, it is not so.
[Paras 90-91][317-A-C]
4.3 Though the KCS Act was amended by Amendment Act
1 of 2000 (w.e.f. 02.01.2003) but it did not bring about any kind of D
inconsistency or repugnancy in the KCS Act qua any provision of
the ID Act, 1947. Had the KCS Act including the amending one
by Act 1/2000 brought about any kind of inconsistency or
repugnancy between the provisions of the KCS Act and the ID
Act such as the one brought about by the second Amendment
E
Act (2/2000) in Section 70 of Karnataka CS Act w.e.f. 20.06.2000
qua the ID Act and had such amended provisions of the KCS Act
received the Assent of the President, the provisions of the KCS
Act too would have prevailed over the ID Act in the State by
virtue of Article 254 (2). Such is not the case here because though
the KCS Act received the Assent of the President at the time of F
its enactment so also the Karnataka CS Act received, this Court
while interpreting Section 70 as amended by Act No.19/1976 of
the Karnataka CS Act with the Assent of the Governor, has held
in *Dharappa’s case that Section 70 did not create any
inconsistency or/and repugnancy with any provisions of the ID
G
Act and possessed concurrent jurisdiction over such service
dispute. This ratio of *Dharappa’s case would apply to Section 69
of the KCS Act because it has been held that Section 69 is in pari
materia with Section 70 of the Karnataka CS Act. That apart, the
amending KCS Act (1 of 2000) having received the Assent of the
Governor did not bring about any inconsistency or repugnancy H
292 SUPREME COURT REPORTS [2018] 1 S.C.R.
A with the provisions of the ID Act. In any event, in the absence of
the Assent of the President to the amending KCS Act 1/2000,
even if any inconsistency or repugnancy exists between the
provisions of the KCS Act and the ID Act, it is the ID Act which
will prevail over the KCS Act by virtue of Article 254 (1) but not
vice-versa. [Paras 92-94][317-D-H; 318-A]
B
4.4 Article 254 of the Constitution is attracted in cases where
the law is enacted by the Parliament and the State Legislature on
the same subject, which falls in List III - Concurrent list. In such
a situation arising in any case, if any inconsistency or/and
repugnancy is noticed between the provisions of the Central and
C the State Act, which has resulted in their direct head on collusion
with each other which made it impossible to reconcile both the
provisions to remain in operation inasmuch as if one provision is
obeyed, the other would be disobeyed, the State Act, if it has
received the Assent of the President will prevail over the Central
D Act in the concerned State by virtue of Article 254 (2). A fortiori,
in such a situation, if the State Act has received the Assent of the
Governor then the Central Act would prevail over the State Act
by virtue of Article 254 (1). It is this principle, which was applied
by this Court in the case of *Dharappa while comparing the
provisions of the Karnataka CS Act including its two amendments
E with that of the provisions of the ID Act. [Paras 95-98][318-B-E]
4.5 The majority Judges proceeded to examine the
questions by attempting to compare the language employed in
the relevant Sections of the two repealed KCS Acts of 1932 and
1951 with that of the language of Section 69 of the KCS Act 1969
F and noticing some departure in the language employed in Section
69, came to a conclusion that the language of Section 69 is
comprehensive enough to exclude the jurisdiction of the Labour
Court under the ID Act. The majority Judges also took note of
some more Sections of the KCS Act and noticing some dis-
similarity in the scheme of the KCS Act and Karnataka CS Act
G
held that Section 69 of the KCS Act overrides the provisions of
the ID Act since inception. The approach of the majority cannot
be concurred with. [Para 99][318-F-G]
4.6 When this Court in *Dharappa’s case interpreted the
language of Section 70 of the Karnataka CS Act, the questions
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 293
HOSPITAL SOC. LTD.
involved herein should have been examined by comparing the A
language employed in Section 69 of the KCS Act with the language
employed in Section 70 of the Karnataka CS Act rather than to
compare with the repealed provisions. In other words, once on
comparing the language of Section 69 and that of Section 70 as
amended by the first amendment, a conclusion is reached that
B
both Sections are akin to each other till 20.06.2000, a fortiori, the
law laid down in *Dharappa’s case insofar as it interprets Section
70 as it originally stood and amended by Amendment Act 19/
1976 would apply to Section 69 of the KCS Act. On the other
hand, the ratio will not apply after 20.06.2000 because from that
date, there was a change in the language of Section 70 which C
provided a clause to exclude the jurisdiction of other Courts in
express terms by Amendment Act of 2/2000. In the light thereof,
the view of majority judges cannot be upheld whereas the view of
the minority judges is accordingly upheld. [Paras 100-102][319-
A-C]
D
*Dharappa v. Bijapur Coop. Milk Producers Societies
Union Ltd. (2007) 9 SCC 109 : [2007] 5 SCR 729 –
relied on.
**Chirayinkeezhu Services Cooperative Bank Ltd. v.
Santosh 2015 (4) KLT 163 (LB) – overruled.
E
K. Balachandran v. The Dy. Registrar, Co-operative
Societies & Ors. AIR 1978 Kerala 126 : 1978 KLT
249; Sherly M.U. v. The President, Parappuram Milk
Producers Co-op. Society Ltd. & Ors. 2007 (1) KLT
809; Board of Directors, Edava Service Co-operative
Bank v. The Co-operative Arbitration Court & Ors. F
2008 (3) KLT 780; Thodupuzha Taluk General
Marketing Co-operative Society vs. Michael Sebastian
2010 (1) KLT 938; Veerashaiva Co-op. Bank Ltd. v.
Presiding Officer, Labour Court (2001) 3 Kar. LJ 519;
Karnataka Sugar Workers Federation v. State of G
Karnataka AIR 2003 Kar HCR 1802 – referred to.
Case Law Reference
AIR 1978 Kerala 126 referred to Para 11
2007(1) KLT 809 referred to Para 11
2008 (3) KLT 780 referred to Para 12 H
294 SUPREME COURT REPORTS [2018] 1 S.C.R.
A 2010 (1) KLT 938 referred to Para 14
(2001) 3 Kar.LJ 519 referred to Para 61
AIR 2003 Kar HCR 1802 referred to Para 62
[2007] 5 SCR 729 relied on Para 91
B 2015 (4) KLT 163 (LB) overruled Para 102
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 197 of
2018.
From the Judgment and Order dated 21.12.2015 of the High Court
of Kerala at Ernakulam in Writ Petition (Civil) No. 18354 of 2010.
C
P. V. Surendranath, Sr. Adv., Ramitha R. Chandran, V. K.
Sidharthan Advs. for the Appellant.
Ramesh Babu M. R., Adv. for the Respondent.
The Judgment of the Court was delivered by
D
ABHAY MANOHAR SAPRE, J. 1. Leave granted.
2. This appeal is directed against the final judgment and order
dated 21.12.2015 passed by the High Court of Kerala at Ernakulam in
W.P.(C) No.18354 of 2010 whereby the High Court allowed the writ
E petition filed by the respondent herein and set aside the award dated
23.09.2009 of the Labour Court, Ernakulam in I.D.No.32 of 2006.
3. In order to appreciate the controversy involved in the appeal,
which is essentially legal in nature, mentioning of few undisputed facts
would suffice.
F Facts in brief
4. The respondent is the Cooperative Society registered under
the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as
“the KCS Act”). The appellant was an employee of the respondent-
Society. By order dated 22.03.2005, the respondent-Society dismissed
G the appellant from service.
5. The appellant, felt aggrieved of her dismissal order, filed a
complaint with the State Government against the respondent-Society
under the Industrial Dispute Act, 1947 (hereinafter referred to as “the
ID Act”). The conciliation having failed, the appropriate Government
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 295
HOSPITAL SOC. LTD. [ABHAY MANOHAR SAPRE, J.]
made an industrial reference to the Labour Court, Ernakulum under A
Section 10 of the ID Act for deciding the legality and correctness of the
appellant’s dismissal and to pass appropriate consequential orders, if
any.
6. The Labour Court, by award dated 23.09.2009 answered the
reference in appellant’s favour. It was held that the dismissal order is B
bad in law and was accordingly set aside. It was held that during the
pendency of the reference, the appellant has attained the age of
superannuation on 31.05.2007, therefore, she was entitled to get all
monetary and other service benefits as are permissible in law.
7. The respondent, felt aggrieved of the award of the Labour C
Court, filed Writ Petition (Civil) No.18354 of 2010 in the High Court of
Kerala and questioned its legality and correctness.
8. At this stage, it is necessary to state as to how the question
involved in the writ petition, which eventually reached to this Court was
decided by the different Benches of the Kerala High Court prior to D
respondent’s filing the writ petition and during its pendency.
9. The question, which frequently came up for consideration before
the different Benches of the High Court of Kerala since 1978, was
“when a service dispute arises between an Employee of any Co-
operative Society and his Employer (Co-operative Society), whether E
such dispute is triable by the forum prescribed under the ID Act or
under the KCS Act or under both the Acts as per the choice of an
aggrieved person to select the forum under any of the two Acts for
deciding such service dispute”.
10. In other words, the question was “whether a service dispute F
arising between the Cooperative Society’s Employee and his
Employer is capable of being tried by the forum prescribed under
the KCS Act or by the machinery provided under the ID Act or it is
capable of being tried under both the Acts leaving the aggrieved
person to select one forum under any of the Acts of his choice out
of the two for getting his/her service dispute decided by such forum.” G
11. The aforesaid question was first decided by two Full Benches
of the Kerala High Court in K. Balachandran vs. The Dy. Registrar,
Co-operative Societies & Ors., AIR 1978 Kerala 126 = 1978 KLT
249 and Sherly M.U. vs. The President, Parappuram Milk
H
296 SUPREME COURT REPORTS [2018] 1 S.C.R.
A Producers Co-op. Society Ltd. & Ors., 2007(1)KLT 809 wherein it
was held on the facts involved in both the cases that the dispute, which
had arisen between the Co-operative Society’s Employee and his/her
Employer, was not capable of being decided under Section 69 of the
KCS Act as it stood then.
B 12. This question again came up for consideration before a Single
Judge of the High Court in Board of Directors, Edava Service Co-
operative Bank vs. The Co-operative Arbitration Court & Ors.,
2008(3) KLT 780 wherein it was held that a service dispute between a
Co-operative Society’s employee and his/her employer is capable of
being tried under both the Acts inasmuch as both the Acts enjoy
C concurrent jurisdiction to try and decide such service dispute.
13. In other words, according to the Single Judge, one Act does
not exclude the other and, therefore, both the Acts possess concurrent
jurisdiction to decide such dispute leaving the aggrieved person to choose
the forum of his/her choice under any Act out of the two Acts.
D
14. This question was again considered by the Division Bench in
Thodupuzha Taluk General Marketing Co-operative Society vs.
Michael Sebastian, 2010 (1) KLT 938 wherein the Division Bench
concurred with the view of the Single Judge taken in Board of Directors,
Edava Service Co-operative Bank (supra). It was accordingly
E reiterated.
15. Lastly, this question was considered by another Single Bench
in W.P.(C) No.30854/2007 entitled Chirayinkeezhu Service Co-
operative Bank Ltd. No.115 vs. K. Santosh & Anr. and then by the
Division Bench in Writ Appeal No.2516/2009, arising out of the said writ
F petition. While hearing the writ appeal, a doubt was raised before the
Division Bench about the correctness of the earlier decision rendered in
the case of Thodupuzha Taluk General Marketing Co-operative
Society(supra) contending that the said decision requires reconsideration
for various reasons.
G 16. Acceding to this prayer, the case was referred to the larger
Bench to reconsider the law laid down in Thodupuzha Taluk General
Marketing Co-operative Society(supra). This is how the case was
placed before the larger Bench comprising of three learned Judges.
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 297
HOSPITAL SOC. LTD. [ABHAY MANOHAR SAPRE, J.]
17. While the larger Bench was hearing the case, it was noticed A
that the earlier two decisions of the Full Bench also need reconsideration
because the Single Judge and the Division Bench, subsequent to the
decisions of the Full Bench, have taken a slightly different view, which
appears to be in conflict with the two Full Bench decisions, resulting in
cleavage of opinions amongst the various Benches of the same High
B
Court on one question. It is for this reason, there arose a need to constitute
a larger Bench comprising of five Judges to examine the question afresh
to settle the controversy.
18. The Bench of three Judges then formulated as many as 9
questions to enable the Bench of five Judges to answer the questions
referred by the Three-Judge Bench. C
19. By order dated 14.09.2015, the Five-Judge Bench answered
the questions referred in the case of Chirayinkeezhu Services
Cooperative Bank Ltd. vs. Santosh, 2015(4) KLT 163(LB). However,
there was a difference of opinion amongst the five Judges (3:2) on the
questions referred. D
20. So far as the majority view of three Judges is concerned, it
held that the service dispute arising between the Co-operative Society’s
Employee and the Employer (Co-operative Society) is triable only by
the forum prescribed under the KCS Act, 1969 and the jurisdiction of
the ID Act is excluded and barred to try such service dispute. E
21. So far as the minority view of two Judges is concerned, it held
that such service dispute is triable under both the Acts, i.e., the KCS Act
and the ID Act. In other words, it held that both the Acts possess and
enjoy concurrent jurisdiction to decide such service dispute and it is for
the aggrieved person to choose the forum of his/her choice out of the F
two Acts to get the service dispute settled subject to proving the ingredients
of the definition of “Workman”, “Industrial Dispute” and the cooperative
Society to be the “Industry” as defined under the ID Act, if he/she desires
to invoke the jurisdiction of the ID Act for deciding the service dispute.
22. Relying upon the majority view, the writ petition filed by the G
respondent(employer) in the case at hand was allowed by the learned
Single Judge, resulting in setting aside of the award of the Labour Court,
giving rise to filing of this appeal by way of special leave before this
Court by the employee.
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298 SUPREME COURT REPORTS [2018] 1 S.C.R.
A 23. Heard Mr. P.V. Surendranath, learned senior counsel for the
appellant and Mr. Ramesh Babu, learned counsel for the respondent.
24. Learned counsel for the appellant (employee) while assailing
the legality, correctness and the reasoning of the majority Judges (3)
contended that the majority view does not appear to be in conformity
B with the law laid down by this Court in Dharappa vs. Bijapur Coop.
Milk Producers Societies Union Ltd. (2007) 9 SCC 109 whereas
the view taken by the minority Judges (2) appears to be in conformity
with the law laid down in the case of Dharappa(supra) and, therefore,
the minority view, according to learned counsel, deserves to be upheld
by this Court.
C
25. Placing strong reliance on the ratio laid down in the case of
Dharappa(supra), learned counsel contended that if the ratio of
Dharappa’s case is applied in its correct perspective to the facts of the
case at hand, the question involved in the appeal has to be answered in
appellant’s favour by upholding the view of the minority Judges which
D rightly held that both the Acts, i.e., the KCS Act and the ID Act, possess
and enjoy concurrent jurisdiction to decide the service disputes arising
between the Co-operative Society’s Employee and his/her Employer-
Cooperative Society.
26. Learned counsel urged that the award of the Labour Court
E impugned in the writ petition by the respondent, therefore, deserves to
be upheld and the case needs to be remanded to the writ court (Single
Judge) for deciding the writ petition on merits.
27. It is this submission, which the learned counsel elaborated by
placing reliance on the decision of Dharappa(supra), the relevant
F provisions of the KCS Act, 1969 and the Karnataka Co-operative
Societies Act, 1959 (hereinafter referred to as “Karnataka CS Act”).
28. In reply, learned counsel for the respondent-Society (Employer)
contended that the view taken by the majority of the Judges (3) being in
accordance with law, it does not call for any interference.
G 29. Learned counsel elaborated his submission by referring to the
ratio of Dharappa’s case, relevant provisions of KCS Act and Karnataka
CS Act in support of his submission.
30. Having heard the learned counsel for the parties and on perusal
of the record of the case, we find force in the submission of learned
counsel for the appellant (Employee).
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 299
HOSPITAL SOC. LTD. [ABHAY MANOHAR SAPRE, J.]
31. In our considered view, we are inclined to uphold the minority A
view for the reasons given infra.
32. At the outset, it is considered necessary to set out the relevant
Sections of the KCS Act, which have bearing over the controversy:
“Section 2(i)
B
2(i) “dispute” means any matter touching the business,
constitution, establishments or management of a society
capable of being the subject of litigation and includes a claim
in respect of any sum payable to or by a society, whether
such claim be admitted or not”.
C
Un-amended Section 69
“69.Disputes to be referred to Registrar-(1)
Notwithstanding anything contained in any law for the time
being in force, if a dispute arises-
(a) among members, past members and persons claiming D
through members, past members and deceased
members; or
(b) between a member, past members or person claiming
through a member, a past member or deceased member
and the society, its committee or any officer, agent or E
employee of the society; or
(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 any deceased officer, F
deceased agent or deceased employee of the society; or
(d) between the society and any other society; or
(e) between a society and the members of a society affiliated
to it; or
G
(f) between the society and a person other than a member
of the society, who has been granted a loan by the society
or with whom the society has or had business
transactions or any person claiming through such a
person; or
H
300 SUPREME COURT REPORTS [2018] 1 S.C.R.
A (g) between the society and a surety of a member, past
member, deceased member or employee or a person
other than a member, who has been granted a loan by
the society whether such a society is or is not a member
of the society; or
B (h) between the society and a creditor of the society, such
dispute, shall be referred to the Registrar for decision,
and no court shall have jurisdiction to entertain any suit
or other proceeding in respect of such dispute.
Explanation:- In this section and in Section 70, the term
C “Registrar” means the Registrar of Co-operative Societies
appointed under sub-section (1) of Section 3 and includes
any person on whom the powers of the Registrar under
this Section and Section 70 are conferred.
(2) For the purposes of sub-section (1), the following shall
D also be deemed to be disputes, namely:-
(a) a claim by the society for any debt or demand due to it
from a member or the nominee, heirs or legal
representatives of a deceased member whether such
debt or demand be admitted or not;
E (b) a claim by a surety against the principal debtor where
the society has recovered from the surety any amount in
respect of any debt or demand due to it from the principal
debtor as a result of the default of the principal debtor,
whether such debt or demand is admitted or not;
F (c) any dispute arising in connection with the election of
the Board of Management or any officer of the society;
Explanation:- A dispute arising at any stage of an election
commencing from the convening of the general body
meeting for the election shall be deemed to be a dispute
G arising in connection with the election.
(3) No dispute arising in connection with the election of
the Board of Management or an officer of the society shall
be entertained by the Registrar unless it is referred to him
within one month from the date of the election.
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HOSPITAL SOC. LTD. [ABHAY MANOHAR SAPRE, J.]
(4) If any, question arises whether a dispute referred to the A
Registrar under the section is a dispute as defined in clause
(i) of Section 2 the decision thereon of the Registrar shall
be final.”
Amended Section 69 by Amending Act 1/2000 w.e.f.
02.01.2003 B
“69. Disputes to be decided by Co-operative Arbitration
Court and Registrar-
(1) Notwithstanding anything contained in any law for the
time being in force, if a dispute arises-
C
(a) Among members, past members and persons claiming
through members, past members and deceased
members; or
(b) Between a member, past member or person claiming
through a member, a past member or deceased member D
and the society, its committee or any officer, agent or
employee of the society; or
(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
E
or legal representatives of any deceased officer,
deceased agent or deceased employee of the society; or
(d) Between the society and any other society; or
(e) Between a society and the members of a society affiliated
to it; or F
(f) Between the society and a person, other than a member
of the society, who has been granted a loan by the society
or with whom the society has or had business
transactions or any person claiming through such a
person; or G
(g) Between the society and a surety of a member, past
member, deceased member or employee or a person,
other than a member, who has been granted a loan by
the society, whether such a surety is or is not a member
of the society; or H
302 SUPREME COURT REPORTS [2018] 1 S.C.R.
A (h) Between the society and a creditor of the society, such
dispute shall be referred to the Co-operative Arbitration
Court constituted under Section 70A in the case of non-
monetary disputes and to the Registrar, in the case of
monetary disputes and the Arbitration Court, or the
Registrar, as the case may be, shall decide such dispute;
B
and no other Court or other authority shall have
jurisdiction to entertain any suit or other proceedings in
respect of such dispute.
(2) For the purposes of sub-section (1), the following shall
also be deemed to be disputes, namely:-
C
(a) a claim by the society for any debt or demand due to it
from a member or the nominee, heirs or legal
representatives of a deceased member, whether such
debt or demand be admitted or not;
D (b) a claim by a surety against the principal debtor, where
the society has recovered from the surety any amount in
respect of any debt or demand due to it from the principal
debtor, as a result of the default of the principal debtor,
whether such debt or demand is admitted or not;
E (c) any dispute arising in connection with the election of
the Board of Management or any officer of the society;
Explanation- A dispute arising at any stage of an election
commencing from the convening of the general body
meeting for the election, shall be deemed to be a dispute
F arising in connection with the election;
(d) Any dispute arising in connection with employment of
officers and servants of the different classes of societies
specified in sub-section(1) of S.80, including their
promotion and inter se seniority.
G (3) No dispute arising in connection with the election of the
Board of Management or an officer of the society shall be
entertained by the Co-operative Arbitration Court unless
it is referred to it within one month from the date of the
election.”
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 303
HOSPITAL SOC. LTD. [ABHAY MANOHAR SAPRE, J.]
Unamended Section 70 A
70. Decision and award on disputes:-
(1) The Registrar may, on receipt of the reference of a
dispute under Section 69:-
(a) elect to decide the dispute himself; or B
(b) transfer it for disposal to any person who has been
invested by the Government with powers in that behalf; or
(c) refer it for disposal to an arbitrator appointed by the
Registrar.
C
Provided that a transfer under clause (b) or a
reference under clause (c) shall not be made to a person
equal or superior to him in rank.
(2) The Registrar may withdraw any reference transferred
under clause (b) of sub-section (1) or referred under clause
D
(c) of that sub-section and he may elect to decide the dispute
himself or transfer it to any other person under clause (b)
of sub-section (1) or refer it to any other arbitrator under
clause (c) of that sub-section.
(3) The Registrar or such person shall decide the dispute,
or the arbitrator shall pass an award, in accordance with E
the provisions of this Act and the rules and the bye-laws
and such decision or award shall, subject to the provisions
of S.82, be final. Pending decision or award, the Registrar,
such person or arbitrator as the case may be, may make
such interlocutory orders as he may deem necessary in the F
interest of justice.
(a) the nature of the allegations showing that the elections
were vitiated.
(b) the existence of prima facie case which means whether
respondents have a chance of success and G
(c) whether the interest of justice require that an
interlocutory order must be made.
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304 SUPREME COURT REPORTS [2018] 1 S.C.R.
A Amended Section 70 by Amending Act 1/2000
70. Award on disputes:- (1) the Co-operative Arbitration
Court, on receipt of reference of a dispute under sub-section
(1) of Sec. 69, shall pass an award within one year in
accordance with the provisions of this Act and the rules
B and the bye-laws made thereunder and such award shall,
subject to the provisions of Sec. 82, be final.
(2) The Co-operative Arbitration Court may, pending award
of a dispute referred to it under Section 69, make such
interlocutory orders as it may deem necessary in the
C interests of justice.
(3) The Co-operative Arbitration Court shall have the same
powers as are vested in a civil court under the Code of
Civil Procedure, 1908 (Central Act 5 of 1908), while trying
a suit in respect of the following matters, namely:-
D (i) the summoning and enforcing the attendance of any
defendant or witness and examining the witness on
oath;
(ii) the discovery and production of any document or other
material object producible as evidence;
E
(iii) the reception of evidence on affidavits;
(iv) issuing of any commission for the examination of any
witness; and
(v) any other matter which may be prescribed.
F (4) The Registrar may, on receipt of the reference of a
dispute under sub-section(1) of Sec. 69-
(a) elect to decide the dispute himself; or
(b) transfer it for disposal to any person who has been
G invested by the Government with powers in that
behalf; or
(c) refer it for disposal to an arbitrator appointed by the
Registrar:
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 305
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
Provided that a transfer under clause (b) or a reference A
under clause (c) shall not be made to a person equal or
superior to him in rank.
(5) The Registrar may withdraw any reference transferred
under clause (b) of sub-section (4) or referred under clause
(c) of that sub-section and he may elect to decide the dispute B
himself or transfer it to any other person under clause (b)
of sub-section (4) or refer it to any other arbitrator under
clause (c) of that sub-section.
(6) The Registrar or the person invested with powers in
this behalf shall, decide the dispute or the arbitrator shall
pass an award in accordance with the provisions of this Act C
and the rules and the bye-laws and such decision or award
shall, subject to the provisions of Sec. 82, be final. Pending
decision or award, the Registrar, such person or the
Arbitrator, as the case may be, may make such interlocutory
orders as he may deem necessary in the interests of justice. D
100. Bar of jurisdiction of courts:- No civil or revenue court
shall have any jurisdiction in respect of any matter for which
provision is made in this Act.”
(Emphasis supplied)
33. Before we examine the question, it is apposite to take note of E
the findings of the majority as well as minority Judges on the question.
34. We find that both majority and minority Judges examined the
questions largely in the light of the ratio laid down by this Court in
Dharappa’s case (supra). Indeed, the learned counsel, in their
submissions before us, did not make any attempt to contend that the law
F
laid down in the case of Dharappa (supra) needs reconsideration on
any issue. On the other hand, both sides proceeded to make their
submissions that, firstly, Dharappa’s case has laid down the correct
principle of law on facts involved therein and secondly, what needs to be
examined is whether its ratio applies to the facts of this case and, if so,
how and to what extent. G
35. In our opinion also, it may not be necessary to examine the
issue involved in this case in the light of any other decision except
confining its examination to the ratio laid down in Dharappa’s case
because Dharappa’s case has discussed all earlier decisions of this
Court on the subject in extenso.
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306 SUPREME COURT REPORTS [2018] 1 S.C.R.
A 36. So far as the view of majority (3) Judges, one concurring with
two, is concerned, though they discussed several issues in detail in their
concurring opinion but in substance, in our view, their findings on material
issues are as under:
37. First, the language of Section 69 of the KCS Act as it originally
B stood is materially different from the language used in its counter part
Sections of two earlier repealed Kerala Co-operative Societies Acts of
1932 and 1951. This departure made in the language employed in Section
69 of the KCS Act qua language of earlier two repealed Acts is significant
and has a material bearing while answering the questions. (Para 17/18)
C 38. Second, since the KCS Act, 1969 has received the Assent of
the President on 11.04.1969, it was not necessary for the State to have
obtained another Assent of the President for enacting Amending Act (1/
2000) by which some provisions of the KCS Act, 1969 were amended
w.e.f. 02.01.2003.
D 39. In other words, once the KCS Act of 1969 has received the
Assent of the President, it is not necessary for the State to obtain another
Assent of the President for passing the Amendment Act 1/2000. It is
more so when it has received the Assent of the Governor (Para 45).
40. Third, on interpreting the relevant provisions of the KCS Act,
E whether independently or/and in juxtaposition, it is clear that the KCS
Act, 1969 as originally stood and as amended by Act (1/2000) overrides
any other law for the time being in force including the ID Act, 1947
insofar as it deals with the service disputes arising between the Co-
operative Society’s Employee and his/her Employer.
F 41. In other words, the KCS Act, 1969 has an overriding effect
on the ID Act 1947 since its inception insofar as it deals with the service
disputes arising between a Co-operative Society’s Employee and his/
her Employer and thus excludes the applicability of the ID Act.
42. Any service dispute arising between a Co-operative Society’s
Employee and his/her Employer (Co-operative Society) is, therefore,
G
triable only by the authorities and the forum specified under the KCS
Act 1969, whether prior to or after the amendments made by the
Amendment Act No.1 of 2000 and not by any authority/Court/Tribunal
under any law for the time being in force.
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 307
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
43. A fortiori, the jurisdiction of the Labour Court and Industrial A
Tribunal under the ID Act is, excluded and barred to decide any such
service dispute.
44. Fourth, the language of Section 69 of the KCS Act, 1969 as it
originally stood including the amended one and that of Section 70 of the
Karnataka CS Act which fell for interpretation in Dharappa’s case is B
not in pari meteria with each other and not being identical, the ratio of
Dharappa’s case may not apply to that extent while interpreting Section
69 of the KCS Act.
45. Fifth, the Amendment Act (1 of 2000), which amended Section
69(2)(d) of the KCS Act, is only by way of an abundant caution and it C
has no effect on Section 69 of the KCS Act.
46. So far as the view of minority Judges (2) is concerned, in
substance, it held:
47. First, the question involved in the case is squarely covered by
the ratio laid down in Dharappa’s case. D
48. Second, Section 69 of the KCS Act and Section 70 as it
originally stood and as amended by first Amendment Act (19 of 1976) of
the Karnataka CS Act, are identically worded and, therefore, the ratio
of Dharappa’s case would apply while interpreting Section 69 of the
KCS Act. E
49. Third, the Assent of the President was required for passing
the Amendment Act No.1 of 2000 of the KCS Act.
50. Fourth, since no Assent of the President was obtained, the
Amendment Act (1 of 2000) did not make any effect on the exclusion of
F
the jurisdiction of the forum under the ID Act. That apart, Section 69 or
Section 100 of the KCS Act also does not have a clause akin to Section
70 of the Karnataka CS Act as amended by Amendment Act (2 of
2000) providing therein a clause for express exclusion of the jurisdiction
of the Civil Court, the Labour Court and the Industrial Tribunal from
deciding the service dispute. G
51. Fifth, the jurisdiction of Section 69 under the KCS Act before
and after the amendment of the KCS Act by Amendment Act (1 of
2000) remains intact.
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308 SUPREME COURT REPORTS [2018] 1 S.C.R.
A 52. Sixth, the jurisdiction of both the Acts, i.e., the KCS Act and
the ID Act is concurrent.
53. A fortiori, any service dispute arising between a Co-operative
Society’s Employee and his/her Employer (Co-operative Society) is triable
under both the Acts and it is for the aggrieved person to select one
B forum of his/her choice out of the two to get his/her dispute settled
subject to proving that he/she is a workman, the dispute is an industrial
dispute and the Cooperative Society is an industry as defined in the ID
Act.
54. Seventh, notwithstanding the amendment brought about in
C Section 69 of the KCS Act by Amendment Act (1 of 2000), the jurisdiction
of the Labour Court under the ID Act is not excluded and thus not
barred.
55. And lastly, in the light of these findings, all decided cases taking
this view are held correctly decided and, therefore, do not need any
D reconsideration.
56. In our opinion, the fate of this appeal depends upon the question
as to what extent the ratio of Dharappa’s case applies to the issues
involved in the case at hand.
57. It is, therefore, necessary to first examine the facts and the
E ratio of Dharappa’s case.
58. Dharappa was a daily wager working in the Karnataka Milk
Federation Unit Bijapur (hereinafter referred to as “the Federation”),
which is a Co-operative Society registered under the Karnataka CS
Act. The Federation on 01.03.1980 terminated Dharappa’s services.
F
59. Dharappa felt aggrieved of his termination, filed an application
to the Labour Court, Hubli under the ID Act. The application was later
transferred to the Labour Court, Bijapur. According to Dharappa, his
termination order was bad and illegal inasmuch as the Federation failed
to ensure compliance of mandatory requirements of Section 25-F of the
G ID Act prior to passing his termination order. According to Dharappa, he
had continuously worked for more than 240 days in one calendar year,
hence he was entitled to enjoy the protection available to a workman
under the ID Act before terminating his services.
60. The respondent-Federation denied Dharappa’s claim. Parties
H adduced their evidence. The Labour Court, by award dated 15.10.1996,
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 309
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
allowed Dharappa’s application and set aside the termination order. The A
Labour Court held that the termination order was bad because Dharappa
had worked for more than 240 days continuously in one calendar year
and yet the Federation prior to his termination did not pay him any
retrenchment compensation as provided in the ID Act. The Labour Court,
however, awarded 50% back wages to Dharappa because it was noticed
B
that he approached the Labour Court almost after 10 years from the
date of his termination.
61. The Federation, felt aggrieved of the award of the Labour
Court, filed a writ petition in the Karnataka High Court questioning therein
the legality and correctness of the award. During the pendency of the
writ petition, the Division Bench of the same High Court in another case C
(Veerashaiva Co-op. Bank Ltd. vs. Presiding Officer, Labour
Court, (2001) 3 Kar.LJ 519) held that since the remedy and the
procedure prescribed under the Karnataka CS Act was comprehensive,
the service disputes arising between a Co-operative Society’s Employee
and his Employer (Co-operative Society) has to be tried under the D
Karnataka CS Act and the jurisdiction of the Labour Court under the ID
Act to decide such disputes is barred.
62. The Full Bench of the same High Court in another case in
Karnataka Sugar Workers Federation vs. State of Karnataka, (AIR
2003 Kar HCR 1802) later approved this view of the Division Bench. E
63. Relying upon the aforesaid view of the Division Bench and
the Full Bench, the learned Single Judge allowed the Federation’s writ
petition and quashed the award of the Labour Court. It was held that
the provisions of the ID Act are not applicable to a service dispute raised
by an Employee of a Co-operative Society against his Employer. A F
liberty was granted to Dharappa to take recourse to the appropriate
remedy under the Karnataka CS Act to challenge his termination order.
64. Dharappa felt aggrieved and filed a writ appeal before the
Division Bench. The Appellate Court placing reliance on the view of
the Full Bench in Karnataka Sugar Workers Federation’s case G
(supra) dismissed the appeal. It was inter alia held that the appropriate
remedy of Dharappa lies in invoking Section 70 of the Karnataka CS
Act by filing a dispute before the specified authority for its adjudication.
It is against this decision, Dharappa felt aggrieved and filed appeal by
special leave in this Court.
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310 SUPREME COURT REPORTS [2018] 1 S.C.R.
A 65. Before this Court, Dharappa raised two points, out of which
we are concerned only with one point, viz., whether jurisdiction of the
Labour Court under the ID Act for deciding the service dispute arising
between a Co-operative Society’s Employee and his Employer is barred
by virtue of Section 70 of the Karnataka CS Act and, if so, from which
date.
B
66. It is this question, which was examined by this Court extensively
in the light of the relevant provisions including Section 70 of the Karnataka
CS Act as it stood originally and later amended twice coupled with a
question as to what is the effect of the grant of the Assent of the President
given to the second amendment of Section 70 made in the Karnataka
C CS Act by Amendment Act (2/2000) and the previous case law on the
subject.
67. It was noticed that the Karnataka CS Act was enacted by the
State of Karnataka after obtaining the Assent of the President on
11.08.1959. Section 70 of the Act as it originally stood deals with the
D disputes arising between the parties named therein and provides a forum
for the adjudication of such disputes, which also includes service disputes.
68. Section 70 was first amended by the State of Karnataka by
the Amendment Act (19/1976). It received the Assent of the Governor
on 07.03.1976. The Amending Act came into force on 21.01.1976. By
E this Amending Act, two clauses, namely, clauses (d) and (e) were added
to Section 70.
69. Section 70 was then amended second time by the State in
1997 by Amendment Act (2 of 2000). This Amending Act, however,
received the Assent of the President on 18.03.2000 and was thereafter
F brought in force with effect from 20.06.2000. This Amending Act
specifically provided therein for the first time “no Civil or Labour or
Revenue Court or Industrial Tribunal shall have jurisdiction to
entertain any suit or other proceedings in respect of any dispute
specified in Section 70”.
G 70. The learned Judge Raveendran, J. speaking for the two Judge
Bench succinctly dealt with the issue in question in Paras 13, 14, 16 and
17 and held as under:
“13. The effect of the amendments to Section 70 of the
KCS Act, by Act 2 of 2000 is that if any dispute (including
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 311
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
any dispute relating to the terms of employment, working A
conditions and disciplinary action), arose between a
cooperative 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
Registrar for decision and no civil court or Labour Court
B
or Industrial Tribunal would have jurisdiction to entertain
any suit or proceeding in respect of such dispute.
14. Even prior to 20-6-2000, having regard to the
amendment to Section 70 of the KCS Act by Act 19 of 1976
with effect from 20-1-1976, any dispute between a
cooperative society and its employees or past employees C
or heirs/legal representatives of a deceased employee
including a dispute regarding the terms of employment,
working conditions and disciplinary action taken by a
cooperative society, was deemed to be a dispute touching
the constitution, management, or business of a cooperative D
society which had to be referred 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
cooperative society answered the definition of “workman”
and the dispute between the cooperative society and its E
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 under
Section 70 of the KCS Act or seek a reference to the Labour
Court/Industrial Tribunal under Section 10(1)(c) of the ID F
Act [or approach the Labour Court by an application under
Section 10(4-A) of the ID Act].
16. Though the Karnataka Cooperative Societies Act, 1959
was reserved for the assent of the President and received
his assent on 11-8-1959, the Amendment Act 19 of 1976 G
which added Clause (d) to sub-section (2) of Section 70
(whereby a dispute between a cooperative 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
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312 SUPREME COURT REPORTS [2018] 1 S.C.R.
A a cooperative 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(1)(c) of the
KCS Act would prevail over the provisions of the Industrial
Disputes Act. Consequently, even after the 1976
B
Amendment to the KCS Act, the Labour Courts and
Industrial Tribunals functioning under the ID Act continued
to have jurisdiction in regard to disputes between a society
and its workmen if the cooperative society answered the
definition of an “industry” and the dispute was an “industrial
C dispute”. But when sub-section (1) of Section 70 of the 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, 1947” in Clause (d) of Section 70(2)
D
of the 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, was the jurisdiction of Labour Courts and
E Industrial Tribunals excluded in regard to disputes between
a cooperative 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
F
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.
17. The 1976 Amendment to the KCS Act did not bring
about any inconsistency with the provisions of the ID Act
G 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
cooperative societies and its employees, relating to
employment, working conditions and disciplinary action.
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 313
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
The 1976 Amendment Act, therefore, was valid, even in A
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
B
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 C
over the provisions of the ID Act. In which event, it would
have required the President’s assent, and in the absence
of such assent, the amendment to the extent it purported
to prevail over the Central enactment, would have been
void. Therefore, the only way to read the 1976 Amendment
D
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.”
71. The learned Judge then in concluding Paras 24 and 25 held as E
under :
“24. The resultant position can be summarised 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 F
away the jurisdiction of the Labour Courts and Industrial
Tribunals under the ID Act to decide an industrial dispute
between the 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 ID Act, continued to have jurisdiction to decide G
disputes between societies and their employees.
(b) The jurisdiction of Labour Courts and Industrial
Tribunals to decide the disputes between cooperative
societies and their employees was taken away only when
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314 SUPREME COURT REPORTS [2018] 1 S.C.R.
A sub-section (1) and sub-section (2)(d) of Section 70 were
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
B mentioned in Section 70(2)(d) of the KCS Act, if it answered
the definition of industrial dispute, vested thus:
(i) exclusively with Labour Courts and Industrial Tribunals
till 20-1-1976;
(ii) concurrently with Labour Courts/Industrial Tribunals
C under the ID Act and with Registrar under Section 70 of
the KCS Act between 20-1-1976 and 20-6-2000; and
(iii) exclusively with the Registrar under Section 70 of the
KCS Act with effect from 20-6-2000.
D 25. We therefore hold that the award of the Labour Court
was not without jurisdiction. We, however, make it clear
that this decision shall not be applied to reopen matters
decided relying on Veerashaiva Coop. Bank1 and Karnataka
Sugar Workers Federation2 which have attained finality.”
72. In our considered opinion, the ratio of Dharappa’s case is
E
that firstly, Section 70 of the Karnataka CS Act as it originally stood and
amended by first Amendment Act 19 of 1976 adding therein two clauses
(d) and (e) to Section 70, whether one reads it independently or/and in
juxtaposition with other Sections would find that it did not provide for
express ouster or exclusion of the jurisdiction of the Labour Court/
F Industrial Tribunal under the ID Act.
73. In other words, it did not create any express bar for the Labour
Court/Industrial Tribunal from deciding the service disputes arising
between a Cooperative Society’s Employee and his/her Employer
(Co-operative Society).
G 74. Second, any Co-operative Society’s Employee satisfying the
definition of the expression “Workman”, “Industrial Dispute” and the
Co-operative Society to be an “Industry” as defined under the ID Act
has the choice to select one forum out of the two forums for filing a case
in relation to his service dispute, i.e., either to file a case under the
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 315
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
Karnataka CS Act or to seek an industrial reference under Section 10 of A
the ID Act or to file an application under Section 10(4-A) of the ID
Act.(Para 14).
75. Third, both the Acts, namely, Karnataka CS Act and the ID
Act possessed and enjoyed concurrent jurisdiction over such service
disputes till 20.06.2000. B
76. Fourth, consequent upon the second amendment made by the
State of Karnataka in Section 70 by Amendment Act 2/2000, which
received the Assent of the President on 18.03.2000 and was brought
into force on 20.06.2000, the State legislature, for the first time, provided
an express provision for exclusion of the jurisdiction of the Civil Court or C
Labour Court or Industrial Tribunal to decide any service dispute arising
between a Co-operative Society’s Employee and his/her Employer
(Co-operative Society).
77. The effect of introducing such amended provision was that
the provisions of the ID Act were held no longer applicable for deciding D
such service disputes. In other words, jurisdiction of the ID Act then
stood excluded from deciding such service disputes from 20.06.2000
onwards. A fortiori, only the authorities specified under the Karnataka
CS Act were held competent and possessed jurisdiction to try such
disputes from 20.06.2000 onwards.
E
78. Fifth, by way of rule of caution, the question of such nature
should be decided by the Courts primarily keeping in view the language
employed in the concerned State Act.
79. Sixth, Article 254 of the Constitution is attracted when there is
a repugnancy between any provision(s) of the State Act such as F
Karnataka CS Act and the provision(s) of any existing law enacted by
the Parliament on the subject falling in concurrent list such as the ID
Act.
80. The inconsistency should be so irreconcilable that it must come
in direct head on collusion with any provision of the Central Act in the
G
field thereby creating a situation that obeying one Act would result in
disobeying the other.
81. Seventh, if such a situation arises in any case, the State law
(Karnataka CS Act) which is reserved for President’s Assent and on
receiving the President’s Assent, will prevail over the Central law (ID
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316 SUPREME COURT REPORTS [2018] 1 S.C.R.
A Act) in that State by virtue of Article 254 (2) of the Constitution.
82. Now coming to the facts of the case at hand, when we examine
the question in the light of the ratio of Dharappa’s case, culled out
above, on comparison, we find substantial similarity between the language
of Section 69 of the KCS Act as it originally stood and later amended by
B the Amendment Act 1 of 2000 with that of the language employed in
Section 70 of the Karnataka CS Act as it originally stood along with
amended one by first Amendment Act 19/ 1976.
83. In other words, we notice that the phraseology and language
of both unamended and amended Section 69 of KCS Act and Section 70
C of the Karnataka CS Act as amended by first amendment by Act 1/2000
are in pari materia with each other.
84. First, the KCS Act and the Karnataka CS Act have received
the Assent of the President at the time of their respective enactment.
85. Second, the KCS Act-Amendment Act 1/2000 received the
D Assent of the Governor so also Amendment Act 19/76 of Karnataka CS
Act received the Assent of the Governor.
86. Third, Section 69 and Section 70 start with a non-obstante
clause, viz., “Notwithstanding anything contained in any law for the
time being in force, if a dispute arises …………….”
E
87. Fourth, Section 69 and Section 70 end with the words “such
dispute shall be referred to the Registrar and no court shall have
jurisdiction to entertain any suit or other proceeding in respect of
such dispute”.
88. Fifth, (the KCS Act and the Karnataka CS Act) had no
F
provision expressly providing for ouster of the jurisdiction of Civil Court,
Labour Court and the Industrial Tribunal from deciding service disputes
alike the one introduced by Karnataka State for the first time in Section
70 by the Amendment Act of 2 of 2000 with effect from 20.06.2000
with the Assent of the President.
G 89. This, in our view, indicates that till 20.06.2000, there was
similarity between the KCS Act and Karnataka CS Act. However, after
Section 70 was amended by Act No.2/2000 w.e.f. 20.06.2000 providing
therein a specific clause expressly excluding the jurisdiction of the Civil,
Labour and Revenue Court and Industrial Tribunal to decide the service
H disputes, the scheme of the two Acts no longer remained similar.
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 317
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
90. Similarly, we find that the identical wording occurring in the A
beginning and the end of Section 69 and Section 70 was interpreted in
Dharappa’s case wherein it was held that such provisions cannot be
construed as providing an express exclusion of the jurisdiction of other
Courts including that of the Labour Court and the Industrial Tribunal
under the ID Act. On the other hand, it was held that the Karnataka CS
B
Act possesses concurrent jurisdiction for deciding the services disputes
upto 20.06.2000. (see para 14/16 of Dharappa)
91. This interpretation of Dharappa’s case, in our view, would
squarely apply to the provisions of the KCS Act if Section 69 is also
suitably amended by the State of Kerala by making Section 69 at par
C
with amended Section 70 of Karnataka CS Act. As on date, it is not so.
92. Though the KCS Act was amended by Amendment Act 1 of
2000 (w.e.f. 02.01.2003) but it did not bring about any kind of inconsistency
or repugnancy in the KCS Act qua any provision of the ID Act, 1947.
Had the KCS Act including the amending one by Act 1/2000 brought D
about any kind of inconsistency or repugnancy between the provisions
of the KCS Act and the ID Act such as the one brought about by the
second Amendment Act (2/2000) in Section 70 of Karnataka CS Act
w.e.f. 20.06.2000 qua the ID Act and had such amended provisions of
the KCS Act received the Assent of the President, the provisions of the
KCS Act too would have prevailed over the ID Act in the State by virtue E
of Article 254 (2) of the Constitution.
93. Such is not the case here because though the KCS Act received
the Assent of the President at the time of its enactment so also the
Karnataka CS Act received, this Court while interpreting Section 70 as
amended by Act No.19/1976 of the Karnataka CS Act with the Assent F
of the Governor, has held in Dharappa’s case that Section 70 did not
create any inconsistency or/and repugnancy with any provisions of the
ID Act and possessed concurrent jurisdiction over such service dispute.
This ratio of Dharappa’s case would apply to Section 69 of the KCS
Act because we have held that Section 69 is in pari materia with Section G
70 of the Karnataka CS Act.
94. That apart, the amending KCS Act (1 of 2000) having received
the Assent of the Governor did not bring about any inconsistency or
repugnancy with the provisions of the ID Act. In any event, in the
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318 SUPREME COURT REPORTS [2018] 1 S.C.R.
A absence of the Assent of the President to the amending KCS Act 1/
2000, even if any inconsistency or repugnancy exists between the
provisions of the KCS Act and the ID Act, it is the ID Act which will
prevail over the KCS Act by virtue of Article 254 (1) of the Constitution
but not vice-a-versa.
B 95. The law in relation to Article 254 of the Constitution and how
it is applied in a particular case is fairly well settled by the series of
decisions of this Court. This Article is attracted in cases where the law
is enacted by the Parliament and the State Legislature on the same
subject, which falls in List III - Concurrent list.
C 96. In such a situation arising in any case, if any inconsistency or/
and repugnancy is noticed between the provisions of the Central and the
State Act, which has resulted in their direct head on collusion with each
other which made it impossible to reconcile both the provisions to remain
in operation inasmuch as if one provision is obeyed, the other would be
disobeyed, the State Act, if it has received the Assent of the President
D will prevail over the Central Act in the concerned State by virtue of
Article 254 (2) of the Constitution.
97. A fortiori, in such a situation, if the State Act has received the
Assent of the Governor then the Central Act would prevail over the
State Act by virtue of Article 254 (1) of the Constitution.
E
98. It is this principle, which was applied by this Court in the case
of Dharappa while comparing the provisions of the Karnataka CS Act
including its two amendments with that of the provisions of the ID Act.
99. This takes us to examine another question. The majority Judges,
F as we find, proceeded to examine the questions by attempting to compare
the language employed in the relevant Sections of the two repealed KCS
Acts of 1932 and 1951 with that of the language of Section 69 of the
KCS Act 1969 and noticing some departure in the language employed in
Section 69, came to a conclusion that the language of Section 69 is
comprehensive enough to exclude the jurisdiction of the Labour Court
G under the ID Act. The majority Judges also took note of some more
Sections of the KCS Act and noticing some dis-similarity in the scheme
of the KCS Act and Karnataka CS Act held that Section 69 of the KCS
Act overrides the provisions of the ID Act since inception. We find
ourselves unable to agree with the approach of the majority.
H
SMT. K. A. ANNAMMA v. SECY., COCHIN CO-OPERATIVE 319
HOSPITAL SOC. LTD.[ABHAY MANOHAR SAPRE, J.]
100. In our view, when this Court in Dharappa’s case has A
interpreted the language of Section 70 of the Karnataka CS Act, the
questions involved herein should have been examined by comparing the
language employed in Section 69 of the KCS Act with the language
employed in Section 70 of the Karnataka CS Act rather than to compare
with the repealed provisions.
B
101. In other words, once on comparing the language of Section
69 and that of Section 70 as amended by the first amendment, a conclusion
is reached that both Sections are akin to each other till 20.06.2000, a
fortiori, the law laid down in Dharappa’s case insofar as it interprets
Section 70 as it originally stood and amended by Amendment Act 19/
1976 would apply to Section 69 of the KCS Act. On the other hand, the C
ratio will not apply after 20.06.2000 because from that date, there was a
change in the language of Section 70 which provided a clause to exclude
the Jurisdiction of other Courts in express terms by Amendment Act of
2/2000.
102. In the light of foregoing discussion, we are of the considered D
opinion that the view of majority Judges cannot be upheld whereas the
view of the minority Judges deserves to be upheld and is accordingly
upheld.
103. We accordingly hold that the KCS Act and the ID Act both
possess and enjoy the concurrent jurisdiction to decide any service dispute E
arising between the Co-operative Society’s Employee and his/her
Employer (Co-operative Society).
104. We also hold that it is the choice of the Employee concerned
to choose any one forum out of the two forums available to him/her
under the two Acts (the KCS Act and the I.D. Act) to get his/her service F
dispute decided. It is, however, subject to satisfying the test laid down
under the ID Act that the employee concerned is a “workman”, the
dispute raised by him/her is an “industrial dispute” and the Co-operative
Society (Employer) is an “Industry” as defined under the ID Act.
105. In the light of the aforesaid finding, all those cases, which G
have taken contrary view, stand overruled.
106. As a result of our conclusion, in our view, the Labour Court
in this case was competent to decide the service dispute raised by the
Employee (appellant herein) under the ID Act. The case is accordingly
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320 SUPREME COURT REPORTS [2018] 1 S.C.R.
A remanded to the writ Court to decide the respondent’s writ petition for
examining the legality and correctness of the award of the Labour Court
on merits in accordance with law.
107. In view of foregoing discussion, the appeal succeeds and is,
accordingly, allowed. The impugned judgment is set aside.
B
Nidhi Jain Appeal allowed.
C
D
E
F
G
H
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