Writ petition by a co-operative bank challenging an Appellate Tribunal order directing the bank to honor a higher statutory retirement age. Court held statutory rules override bylaws and dismissed the petition.
Writ petition dismissed; no stay granted; impugned order of Appellate Tribunal upheld.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF OCTOBER, 2023
BEFORE
THE HON' BLE MR. JUSTICE R. DEVDAS
WRIT PETITION NO.4453 OF 2021 (CS-RES)
BETWEEN
THE AMANATH CO-OPERATIVE BANK LTD NO.43, HOSPITAL ROAD SHIVAJINAGAR BENGALURU-560 001 REPRESENTED BY ITS CHIEF GENERAL MANAGER SRI VENUGOPAL D H AGED ABOUT 58 YEARS, S/O D H RAO
... PETITIONER
(BY SRI. ABHINAV RAMANAND, ADVOCATE)
AND
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BOTH RESIDING AT HANIFF MANSION NO.34, BHOVI COLONY BYRASANDRA JAYANAGAR IST BLOCK (EAST) BENGALURU-560 011
3 . JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES ARBITRATION CELL KARNATAKA STATE CO OPERATIVE URBAN BANK FEDERATION LTD BENGALURU NO.132 2ND FLOOR K H ROAD, BENGALURU-560 027
... RESPONDENTS
(BY SRI. OMRAN KHAN, ADVOCATE FOR R1 & R2 SMT. A.R. SHARADAMBA, AGA FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE KAT IN APPEAL NO.583/2012 DTD. 31.7.2019 AT ANNEXURE-N BY ALLOWING THE PRESENT W.P. AND GRANT AN INTERIM ORDER TO STAY OPERATION EXECUTION AND EFFECT OF THE AWARD DTD.31.7.2017 PASSED BY THE KAT IN APPEAL NO.583/2012 AT ANNEXURE-N TO THE W.P.
THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED ON 07.08.2023 AND COMING ON FOR PRONOUNCEMENT OF ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:
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ORDER
The petitioner/Co-operative Bank is aggrieved of the impugned order dated 31.07.2017 passed by the Karnataka Appellate Tribunal in Appeal No.583/2012.
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Bank to continue her in service till she attains the age of 60 years. However, since the writ petitioner had an alternative and efficacious remedy, the writ petition was dismissed by order dated 18.01.2010. Thereafter, Smt.Badar Jahan raised a dispute under Section 70 of the Karnataka State Co-operative Societies Act, 1959 (hereinafter referred to as ‘the Act’, for short), before the third respondent-Joint Registrar of Co-operative Societies. The third respondentJoint Registrar of Co-operative Societies (for short ‘JRCS’) dismissed the appeal on 14.06.2012. In the meanwhile, Smt.Badar Jahan passed away on 02.06.2011. The respondents herein, being the legal representatives of Smt.Badar Jahan approached the Karnataka Appellate Tribunal, seeking directions that Smt.Badar Jahan was entitled to continue in service till the age of 60 years; that she should be treated as in-service for the entire period;
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that she is entitled for arrears of salary and retirement benefits to be re-determined accordingly; that the second respondent herein is entitled for appointment on compassionate grounds, etc. The Tribunal allowed the appeal and directed the petitioner-Bank to treat the deceased employee as in-service between 30.05.2009 to 30.05.2011; to pay arrears of salary and all retirement benefits.
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which time, Smt.Badar Jahan had attained the age of superannuation on 30.05.2009. Learned Counsel submits that there was some delay on the part of the petitionerBank in filing the writ petition, however, the reasons are explained while stating that the Reserve Bank of India has suspended the banking licence of the petitioner-Bank by order dated 01.04.2013. The banking operations were resumed only on 03.01.2020. At that point of time, COVID19 pandemic broke out and for the next one year there was disruption in the activities of the bank and therefore, there was a delay in filing this writ petition.
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the Co-operative Societies registered under the Act will have to be in accordance with the statute and the rules framed thereunder. It was held that Section 129 of the Act empowered the State to frame rules and consequently, the then Rule 18(2) of the Rules, which provided for conditions of service were amended and the age of retirement of the employees of the Co-operative Societies were re-fixed by the said rules. It was held that the bye-laws of the society shall concur with the amended rules. It was also argued that the final authority with regard to the bye-laws of the Co-operative Societies vested with the General Body of the society, in terms of Section 26 of the Act and therefore, it was not open for the Registrar or the State Government to dictate terms to the society to modify the age of retirement of the employees of the Co-operative Societies. This argument was also rejected by this Court while holding that Section 26 of the Act, no doubt vests the final authority in the General Body of the society, but the same would be
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subject to the provisions of the Act and the rules framed thereunder.
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in particular, and without prejudice to the generality of the powers of the State Government, the rules may provide for all or any of the matters enumerated therein. Clause (c) of sub-section (2) is in respect of matters of which a cooperative society shall or may make bye-laws. Sub-section (4) of Section 129 clearly provides that every rule made under the Act shall have effect as if enacted in the Act.
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give effect to the amended provisions from the date when which it was brought into force by publication in the official gazette.
stands dismissed .
Sd/JUDGE
DL
3 issues framed by the court
Whether cooperative societies must adhere to enhanced retirement age under statutory rules even before amendment in bylaws.
Whether the impugned order by the Karnataka Appellate Tribunal allowing continuation in service is legally sustainable.
Whether State Government rules under Section 129 of the Karnataka State Co-operative Societies Act override bylaws regarding age of superannuation.
Colour shows how this judgement treated each authority
Karnataka District Central Co-operative Bank Ltd., Vs. The Registrar of Co-operative Societies and Another, W.P.No.60819/2009 dated 11.02.2009 at Dharwad BenchRelied on¶33
3 provisions across 2 enactments
The Amanath Co-operative Bank Ltd.
Mohammed Sharfuddin
Sri Haneef Mohammed Ameen
Joint Registrar of Co-operative Societies Arbitration Cell Karnataka State Co Operative Urban Bank Federation Ltd.
R. Devdas
As recorded by the court registry
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