Authority: Madras High Court, Madurai Bench

Order Date: 15 July 2026

Case Overview

  • Petitioners: Varusanadu Primary Agriculture Cooperative Credit Society (M.P. 92), filing W.P(MD)Nos. 25324 and 10857 of 2022 under Article 226 of the Constitution.
  • Respondents: Joint Commissioner of Labour / Appellate Authority, Tamil Nadu Shops and Establishments Act, Dindigul, and second respondents A. Ramakrishnan (W.P 25324) and P. Parthasarathy (W.P 10857).
  • Background: The second respondents, while serving as Secretary‑in‑Charge/Cashier‑in‑Charge, were found to have committed financial irregularities. An enquiry under Section 81 of the Tamil Nadu Co‑operative Societies Act led to disciplinary action, suspension, and eventual dismissal after a domestic enquiry.
  • The dismissed employees appealed to the appellate authority under the Tamil Nadu Shops and Establishments Act. The appellate authority allowed the appeal, directing reinstatement with continuity of service and back wages (orders dated 12‑09‑2022 and 18‑04‑2022).
  • The Society contended that because its service conditions are governed by the Tamil Nadu Co‑operative Societies Act, its Rules, and approved Special Bye‑laws, the Shops and Establishments Act is inapplicable under Section 4(1)(f). It relied on the Division Bench judgment in W.A. No. 707 of 2026.
  • Respondents argued that the Supreme Court decision in K.A. Annamma v. Secretary, Cochin Cooperative Hospital Society Ltd. (2018) permits the appellate authority to entertain such appeals and cited a 1990 circular from the Registrar of Cooperative Societies.
  • The Court examined both submissions, noting that the Division Bench had already resolved the issue, emphasizing that the exemption in Section 4(1)(f) creates a complete code for cooperative societies, rendering the Shops Act and its appellate remedy inapplicable.

Final Outcome

  • The orders dated 12 September 2022 and 18 April 2022 passed by the Joint Commissioner of Labour/Appellate Authority are set aside.
  • Both writ petitions are allowed.
  • The second respondents are granted liberty to pursue appropriate remedy before the authority under Section 153 of the Tamil Nadu Co‑operative Societies Act.
  • The period during which the proceedings remained pending before this Court is excluded for limitation‑computing purposes.
  • No costs are awarded.
  • All connected miscellaneous petitions are closed.

Topics: Labour Law, Co‑operative Societies, Appellate Jurisdiction