TMI Blog1980 (8) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety Ltd. (now designated as Zila Sahkari Ganna Vikas Samiti Ltd.,) Budayun, a federating unit of the first appellant and was incharge of manure godown. He was suspended from service with effect from October 18, 1958. A prosecution was launched against him for embezzlement of funds of the second appellant in that he failed to account for 293 1/2 bags of ammonium sulphate entrusted to him as keeper of manure godown. The case ultimately resulted in the acquittal of the first respondent by the High Court. Disciplinary proceedings were commenced against him on the same charge and ultimately he was dismissed from service on April 4, 1964. First respondent filed a suit being O.S. No. 30/64 in the Court of Civil Judge, Budayun, inter alia, for a declaration that the order dismissing him from service was invalid and void and for a further declaration that he continued to be in service and for arrears of pay till the date of the suit. In the written statement filed on behalf of defendants (present appellants) number of contentions were raised but only one may be noticed for the present appeal. The contention was that the dispute involved in the suit was between an employee of a Co-operativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry proceeding held by a Cane Growers' Cooperative Society, governed both by 1912 Act and 1953 Act against its employee or such dispute falls exclusively within the jurisdiction of the Registrar under the Co-operative Societies Act to be resolved by arbitration alone. A brief survey of the relevant provisions is necessary for the effective disposal of this contention. When the suit was filed in the year 1964 the Co- operative Societies Act, 1912, as adopted and applied by U.P. State was in force in U.P. State. The expression 'officer' has been defined in s. 2(d) of the Act as under: 2. Definitions-In this Act, unless there is anything repugnant in the subject or context,- (d) 'officer' includes a chairman, secretary, treasurer, member of committee, or other person empowered under the rules or the bye-laws to give directions in regard to the business of the society . Section 43 conferred power on the Local Government to make rules to carry out the purposes of the Act for the whole or any part of the province, on various topics enumerated in various sub-clauses of the section. Clause (1) of s. 43(2) is relevant. It reads as under: 43. Rules-(1) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue court and shall in all respects be final and conclusive . There is another Act which has a bearing on the topic under discussion styled as U.P. Sugarcane (Regulation of Supply and Purchases) Act. 1953. It is an Act enacted to regulate the supply and Purchase of Sugarcane required for use in sugar factories and gur, rab or khandsari sugar manufacturing units and matters incidental or ancillary thereto. It contemplates setting up of a sugarcane Board and provides for its functions and duties and the methods of filling up vacancies and regulating its finances. Section 20 confers power on the Governor to impose by a notification a cess not exceeding the amount prescribed in the section on the entry of sugarcane into an area specified in such notification for consumption, use or sale there. Section 28 confers power on the State Government to make rules for the purpose of carrying into effect the provisions of the Act. Clause 2(n) in this behalf is relevant. It reads as under: 28. Power to make rule-(1) The State Government may make rules for the purpose of carrying into effect the provisions of this Act. (2) Without prejudice to the generality of foregoing power, such ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Budayun, that Court had jurisdiction to entertain the suit or not. First appellant is a federation of Cane-Growers' Co-operative Societies and second appellant is a federating unit or first appellant. At the relevant time first and second appellants were governed by the 1912 Act as well as by the 1953 Act. Each as a Co- operative Society would be governed by the 1912 Act and each as a Cane-growers' Co-operative Society and its federation, for the purpose of regulation of supply and purchase of sugarcane, would be governed by the 1953 Act. The question is whether the Civil Court would have jurisdiction to entertain a suit in 1964 filed by an employee of a co-operative society against the Co-operative Society for a declaration that the order dismissing him from service is void and for a declaration that he continued to be in service with an alternative prayer for damages ? This contention may be examined first, inter alia, under the provisions of 1912 Act and the rules framed thereunder and subsequently whether the application of the 1953 Act will have any impact on the conclusion. We have extracted above the definition of the expression 'officer' in 1912 Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion 'officer' its ordinary etymological meaning, would be comprehended therein. It may be noticed that the legislature never intended to include every employee or servant of the society within the expression 'officer'. There is some element of a right to command in the word 'officer' with someone whose duty it would be to obey. If there is an officer ordinarily there will be someone subordinate to him, the officer enjoying the power to command and give directions and subordinate to obey or carry out directions. It may be that even one who is to carry out directions may be an officer in relation to his subordinates. Thus, what is implicit in the expression 'officer' is made explicit by the latter part of definition which provides that such other person would also be an officer who is empowered under the rules and bye-laws to give directions with regard to the business of the society. If it is contended that a particular person is an officer because he is empowered to give directions with regard to the business of the society, it would be a question of fact in each case whether a particular person is an officer or a servant or an employee. Unless the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which it was specifically held that rule 115 of the Rules framed under the Co-operative Societies Act, 1912, is not ultra vires. On a conspectus of these decisions and the definition of the expression 'officer' both expansive definition and its etymological sense, first respondent a supervisor working as a godown keeper could not be styled as an 'officer' of the Co-operative Society. The next limb of the argument is whether rule 115 enacted in exercise of power conferred by clause (1) of sub- s. (2) of s. 43 of the 1912 Act would be attracted. Clause (1) of s. 43(2) confers power to make rules providing for resolution of disputes envisaged by the clause between the parties contemplated by the clause by the Registrar by arbitration. In exercise of this power rules 115 and 134 have been enacted. When rules 115 and 134 are read in juxtaposition it becomes clear that if the dispute is one contemplated by rule 115 and arises between the parties therein envisaged it shall have to be resolved by referring the same to the Registrar who will have to get it resolved by arbitration either by himself or by arbitrator or arbitrators appointed by him. Rule 134 provides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utes touching the business of a society, the Court held as under: It is clear that the word 'business' in this context does not mean affairs of a society because election of office-bearers, conduct of general meetings and management of a society would be treated as affairs of a society. In this sub-section the word 'business' has been used in a narrower sense and it means the actual trading or commercial or other similar business activity of the society which the society is authorised to enter into under the Act and the Rules and its bye- laws . Proceeding from this angle the Court held that the dispute between a tenant of a member of the bank in a building which has subsequently been acquired by the Bank cannot be said to be a dispute touching the business of the Bank. In reaching this conclusion, this Court disapproved the view in Kisanlal Ors. v. Co- operative Central Bank Ltd.(1), which has relied upon before us. Confirming the view in the Deccan Merchants Co-operative Bank(2), this Court in Co-operative Central Bank Ltd. Ors. v. Additional Industrial Tribunal, Andhra Pradesh Ors.,(3) posed a question to itself whether the dispute between the co-ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds as under: 70. Disputes which may be referred to arbitration-(1) Notwithstanding anything contained in any law for the time being in force, if any dispute relating to the constitution, management or the business of a co-operative society other than a dispute regarding disciplinary action taken against a paid servant of a society arises-....... . It will be crystal clear that while making a statutory provision for resolution of disputes involving co-operative societies by arbitration by the Registrar, the legislature in terms excluded a dispute relating to disciplinary action taken by the society against paid servants of the society from the purview of the compulsory arbitration. It is legislative exposition of the topic under discussion. It must, however, be made distinctly clear that at the relevant time 1912 Act was in force and the contention has to be answered with reference to 1912 Act and the rules framed thereunder. It is, however, difficult to believe that the 1965 Act which repealed and replaced the 1912 Act excluded from the field of operation that which was already included under the repealed Act. On the contrary it would appear that what was implicit in the 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e society' has been defined in s. 2(f) to mean a society registered under the Co-operative Societies Act, 1912, one of the objects of which is to sell cane grown by its members and includes the federation of such societies registered under s. 8 of the said Act. The appellant is thus a co- operative society and it being a federation of such co- operative societies it is also included in the expression cane growers' co-operative society . Section 28(2)(n) of the Act was relied upon to show that the State Government has power to frame rules amongst others, for the control of the staff and finances. In exercise of this power rules 54 and 55 have been enacted. Rule 54 provides that the power to appoint, grant leave of absence, to punish, dismiss, transfer and control secretaries, assistant secretaries and accountants of Cane Growers' Co-operative Societies whether permanent or temporary shall be exercised by the federation, subject to the general control of the Cane Commissioner who may rescind or modify any order of the Federation. There is a proviso which is not relevant for the present purpose. Rule 55 confers powers similar to those enumerated in rule 54 to be exercised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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