Source: Allahabad High Court

Why in News?

Justice Alok Mathur observed that any dispute between an employer and employees of a cooperative society of UP does not fall under the UP Industrial Disputes Act, 1947 but the UP Cooperative Societies Act, 1965.

• Allahabad High Court gave this observation in the case of UP Cooperative Federation Limited through its Managing Director and Another v. Presiding Officer, Industrial Tribunal & Ors.

What is the Background of UP Cooperative Federation Limited v. Presiding Officer, Industrial Tribunal & Ors Case?

• The employee (respondent), initially served on an ad hoc basis for a period of 89 days.
• Subsequently, his employment tenure was consistently extended until 1984, at which point it was terminated.
• The respondent was dissatisfied with this termination and took the matter to the Conciliation Officer, who, in turn, referred it to the UP Industrial Tribunal.
• The UP Cooperative Federation Limited raised a preliminary objection before the Tribunal, questioning the validity of the reference.
• The Tribunal rejected the maintainability ground and dismissed the termination of employee.
• The appeal was then filed before the Allahabad HC which delved into the maintenance of reference to Industrial Tribunal.
• The reference to Industrial Tribunal through application of Section 70 of the UP Cooperative Societies Act, 1965 was also in question.

What were the Court’s Observations?

• Allahabad HC observed that Section 70 of the UP Cooperative Societies Act, 1965 eliminates the application of UP Industrial Disputes Act, 1947 from any disputes between the employer and employee of a cooperative society.

What is the U.P. Cooperative Societies Act, 1965?

• About:
  • The UP Cooperative Societies Act, 1965 governs the functioning and operations of cooperative societies in the state of Uttar Pradesh, India.
  • The Act provides the legal foundation for the establishment, registration, and management of various types of cooperative societies in UP.
• Legal Framework:
  • The Act received the assent of the President on 24th March 1966 and published in UP Gazette, dated 5th April 1966.
  • The Act has 135 Sections segregated into XV Chapters.
• Section 70 of the Act:
  • It covers the disputes which may be referred to arbitration.
  • The disputes under Section 70 are any dispute relating to the constitution, management or the business of a cooperative society other than a dispute regarding disciplinary action taken against a paid servant of a society.
  • The following shall be deemed to be included in disputes relating to the constitution, management or the business of a co-operative society, namely
    • (a) claims for amounts due when a demand for payment is made and is either refused or not complied with whether such claims are admitted or not by the opposite party;
    • (b) a claim by a society 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;
    • (c) a claim by a society for any loss caused to it by a member, officer, agent, or employee including past or deceased member, officer, agent or employee, whether individually or collectively and whether such loss be admitted or not; and
    • (d) all matters relating to the objects of the society mentioned in the byelaws as also those relating to the election of office-bearers.