FARKHUNDALI NANNHAY Vs. V B POTDAR

JUDGEMENT

(1.) THE petitioner was employed by the second respondent, which is a co-operative society registered under the Bombay Co-operative Societies Act, 1925. The petitioner made four applications to the Payment of Wages Authority for recovery of wages, retrenchment compensation and leave wags from the second respondent. It was contended by the second respondent before the Authority that it had no jurisdiction to entertain and try the applications made by the petitioner and that the only tribunal which was competent to try and decide the matters in dispute was the Registrar under S. 54 of the Co-operative Societies Act. This contention was accepted by the Payment of Wages Authority, which accordingly dismissed the four applications made by the petitioner. The petitioner the filed a special civil application before this Court, in which he contended that the view taken by the Authority was erroneous. The Division Bench, before which the application came up for hearing, has referred the matter to us for decision.

(2.) SECTION 54 of the Bombay Co-operative Societies Act provides that when a dispute touching the business of a socity arises between members or past members of the society or between members or past members and any officer, agent or servant of the society or between the society or its committee, and any officer, agent, member or servant of the society, it shall be referred to the Registar for decision by himself or his nominee. It has been held in several cases that the jurisdiction conferred by this section is exclusive and that disputes of the kind referred to therein can only be decided by the Registrar or his nominee. The second respondent therefore contends that as the dispute is between a co-operative under S. 54 of the Co-operative Societies Act. The petitioner, on the other hand, relied on S. 15 (2) of the Payment of Wages Act, which has been made applicable to co-operative socities by a notification issued by the State Government under S. 38 of the Bombay Shops and Establishments Act. Section 15 (2) of the Payment of Wages Act provides as follows:

(3.) MR. Singhvi, who appears for the petitioner, has raised three main points. He has first urged that a claim in regard to wages made by a servant of a co-operative society cannot be said to touch the business of the society and that consequently such a claim cannot be referred to the Registrar under S. 54 of the Co-operative Societies Act. Section 22 of the Payment of Wages Act provided: