Shops Act Appeal Not Maintainable for Co-operative Bank Employees | HC

Case Details: Tamil Nadu Industrial Co-operative Bank Ltd vs. Joint Commissioner of Labour/Appellate Authority - [2026] 184 taxmann.com 655 (HC-Madras)

Judiciary and Counsel Details

• S. M. Subramaniam & K. Surender, JJ.
• Haja Nasirudeen, Addl. Adv. General & P. Hari Babu for the Appellant.
• R. Kumaravel, Addl.Govt.Pleader & P. Chandrasekar for the Respondent.

Facts of the Case

In the instant case, the appellant Co-operative Bank dismissed the respondent-employee for misconduct. The respondent filed an appeal under Section 41 of the Tamil Nadu Shops and Establishments Act, 1947, before the Joint Commissioner of Labour, who set aside the dismissal. The Writ Court upheld that order.

The appellant contended that the appeal under Section 41 of the Tamil Nadu Shops and Establishments Act, 1947, was not maintainable as the bank was governed by the special bye-laws approved by the Registrar under the Tamil Nadu Co-operative Societies Act, 1983, and that proper remedies lay under Sections 153 and 154 of the Tamil Nadu Co-operative Societies Act, 1983.

It was noted that by virtue of Section 4(1)(f) of the Tamil Nadu Shops and Establishments Act, 1947, if a separate law governs any establishment for the time being in force in the State, the Shops Act would not apply.

Further, it was noted that, since the appellant bank was registered under the Tamil Nadu Co-operative Societies Act, 1983, and the competent authority had approved the special bye-laws, the Co-operative Societies Act, as well as the special bye-laws, alone would apply in respect of employees serving in the appellant bank.

The High Court observed that the reference regarding Section 35 of the Tamil Nadu Shops and Establishments Act, 1947, in bye-laws was only for the purpose of imposing a fine by the Registrar, and it did not speak about the applicability of the Shops Act.

High Court Held

The High Court held that, since the appellant bank was governed by the Co-operative Societies Act and its special bye-laws, employees were bound to exhaust their remedies as contemplated under the Co-operative Societies Act, the rules framed thereunder, and the special bye-laws.

Thus, the impugned order, as well as the order passed by the Joint Commissioner of Labour, was to be set aside.

List of Cases Referred to

• C.V. Raman v. Management of Bank of India 1988 taxmann.com 1545 (SC) (para 5)
• Smt. K.A. Annamma v. Secretary, Cochin Cooperative Hospital Society Ltd [2018] 1 taxmann.com 8940 (SC) (para 7)
• P. Eawaramoorthy v. R.J.B. Leoraj (2008) 5 MLJ 238 (para 7).