Authority: Madurai Bench of Madras High Court (Justice M. Dhandapani)

Order Date: 15 July 2026

Case Overview

  • Petitioner: Management D.D164 Southern Railway Employees Consumer Cooperative Stores Ltd., Natham Road, Dindigul (a cooperative society governed by the Tamil Nadu Co‑operative Societies Act, its Rules and Special Bye‑laws).
  • Respondents: 1) The Appellate Authority under Section 41 of the Tamil Nadu Shops and Establishments Act (Joint Commissioner of Labour), Collectorate Campus, Dindigul; 2) M. Baskaran (second respondent, former Secretary‑in‑charge of the Society).
  • Petition: Writ Petition (W.P. MD No. 5247 of 2023 and WMP MD No. 4937 of 2023) filed under Article 226 of the Constitution seeking a writ of certiorari to call for records of the first respondent relating to TNSE Appeal No. 01/2021 and to quash the order dated 13 December 2022 passed by that authority.
  • Background: The second respondent was found by a Section 81 enquiry under the Tamil Nadu Cooperative Societies Act to have committed financial irregularities and misappropriation. After an enquiry, a charge memo, and a domestic enquiry, he was dismissed on 09 October 2019. He appealed to the Appellate Authority under the Shops and Establishments Act, which reinstated him with back wages. The petitioner contended that the appeal was not maintainable because the Society’s service conditions are governed exclusively by the Cooperative Societies Act and its Special Bye‑laws, invoking the exemption under Section 4(1)(f) of the Shops and Establishments Act.
  • Legal Submissions:
  • Petitioner's counsel argued that the Shops and Establishments Act is inapplicable to the Society, citing the Division Bench judgment in W.A. No. 707 of 2026 (dated 18 March 2026) which held that establishments governed by a separate law are exempt under Section 4(1)(f).
  • Respondent's counsel relied on the Supreme Court decision in K.A. Annamma v. Secretary, Cochin Cooperative Hospital Society Ltd. (2018 2 SCC 729) to claim appellate jurisdiction.
  • The court distinguished Annamma as applicable only to industrial disputes and affirmed the earlier Division Bench ruling.

Final Outcome

  • The Court held that the appellate authority under the Tamil Nadu Shops and Establishments Act lacked jurisdiction because the Society’s service conditions are fully governed by the Tamil Nadu Co‑operative Societies Act, its Rules, and approved Special Bye‑laws.
  • Consequently, the impugned order dated 13 December 2022 passed by the first respondent is set aside.
  • The writ petition is allowed.
  • The second respondent is granted liberty to pursue the appropriate remedy before the authority designated under Section 153 of the Tamil Nadu Cooperative Societies Act.
  • The period during which the proceedings remained pending before this Court is excluded for the purpose of computing limitation.
  • No costs are awarded.
  • The connected miscellaneous petition is closed.

Topics: Labor Law, Co-operative Societies