1. By means of the present Writ Petition, the Petitioner-
Management calls in question the legality and propriety of the
Award dated 26.09.2018 passed by the learned Presiding Officer,
Industrial Tribunal, Bhubaneswar in I.D. Case No.19 of 2015,
whereby the learned Tribunal, while answering the reference in
favour of the Opposite Party-Workmen, directed the Petitioner-
Management to reinstate the concerned workmen in its
establishment and further directed payment of 20% of the back
wages to them.
W.P.(C) No.8128 of 2019 Page 1 of 17
2. The background facts, in brief, are that the Berhampur
Cooperative Central Bank Ltd., the Petitioner-Management, is a
registered Central Cooperative Society under the Odisha
Cooperative Societies Act, 1962. In order to augment its deposits,
the Bank introduced a Daily Deposit Scheme pursuant to a
Resolution dated 17.03.1998, and for the purpose of mobilising
deposits engaged certain Commission Agents/Daily Deposit
Agents. In pursuance thereof, 26 Daily Deposit Agents were
engaged in different branches of the Bank, including Opp. Parties-
Workmen, who are the Opposite Parties in the present Writ Petition,
and agreements were executed with them at the time of their
engagement. Subsequently, the Registrar, Cooperative Societies,
Odisha, by communication dated 03.02.2004 bearing Letter
No.1812, directed all Cooperative Banks and Urban Cooperative
Banks not to engage new agents under the Daily Deposit Scheme
and further directed that no new Daily Deposit Accounts be opened,
save and except after verification of the existing accounts and
subject to prior approval of the Registrar. The said direction was
reiterated by the Registrar vide Letter No.2074 dated 05.08.2014,
instructing all Managers and Branch Managers of Cooperative
Banks not to open Daily Deposit Accounts and to implement the
earlier directions issued on 03.02.2004 in their true spirit. The
aforesaid directions were also published in Odia daily newspapers.
In view of the losses allegedly sustained under the Daily Deposit
Scheme, the Managing Committee of the Bank, by Resolution dated
07.11.2014, resolved not to continue the services of the Daily
Deposit Agents and consequently, by Letter No.4696 dated
17.01.2015, the Branch Managers were informed regarding the
closure of the said Scheme.
