HARYANA STATE COOPERATIVE LAND DEVELOPMENT BANK LIMITED Vs. HARYANA STATE COOPERATIVE LAND DEVELOPMENT BANKS EMPLOYEES UNION

JUDGEMENT

(1.) Delay condoned.

(2.) Leave granted.

(3.) The pivotal issue involved in this appeal relates the question as whether the employees working with Primary Agricultural Cooperative Banks (in short Primary Bank) are entitled bonus at the same rate at which it was paid employees working in the Apex Bank (also described as State Bank) i.e. The Haryana State Cooperative Land Development Bank Limited. The Apex Bank is governed by the Haryana Cooperative Society Act, 1984 (in short the Act). The appellant transacts its business mainly through Primary Banks which are its members. The members of the Apex Bank belonging the area of operation of the particular Primary Bank aumatically become members of the concerned Primary Bank from the date of registration. Staff of the Primary Banks except class IV employees are drawn from the Apex Bank out of the cadre maintained by it in terms of Clause 70 of the model by-laws applicable the Primary Banks. The respondent No. 1-union raised a demand stating that it is entitled bonus at the rate applicable employees of the Apex Bank. The claim was resisted by the Primary Banks on the ground that they are separate entities with separate Balance Sheet and Profit and Loss accounts and have a distinct cooperative and corporate identity under the Act and, therefore, is not required pay bonus at the same rate as the employees of the Apex Bank in terms of Payment of Bonus Act, 1965 (in short the Act). Accepting the writ petition field by respondent No. 1-union, learned Single Judge of the Punjab and Haryana High Court directed payment of bonus at the rate payable the staff working with the Apex Bank, which is also described as the State Bank in the rules framed by the Registrar of Cooperative Societies under37(2) of the Act. The view was confirmed by a Division Bench in Letters Patent appeal by the impugned judgment.