Madras High Court
Prathap .B vs The Joint Registrar on 17 July, 2026
Author: M.Dhandapani
Bench: M.Dhandapani
W.P(MD)Nos.15417 and 17442 of 2023
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 17.07.2026
CORAM:
THE HONOURABLE MR.JUSTICE M.DHANDAPANI
W.P(MD)Nos.15417 and 17442 of 2023
and
WMP (MD) No.14618 of 2022
W.P(MD)No.15417 of 2023
B.Prathap ... Petitioner(s)
vs.
1. The Joint Registrar,
O/o the Joint Registrar of Cooperative Societies,
Ground Floor,
Thirupuramkundram Road,
Near Palanganatham Roundana,
Madurai.
2. The Managing Director,
Madurai District Central Cooperative Bank Ltd.,
South Veli Street,
Madurai 625 001. ... Respondent(s)
PRAYER : Writ Petition, filed under Article 226 of the Constitution of India,
praying this court issue a Writ of Mandamus directing the 2nd respondent herein
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to to reinstate the Writ Petition with continuity of service by considering the Writ
Petition representation dated 31.01.2023 in the light of order dated 16.01.2023
passed by Appellate Authority / Assistant Commissioner of Labour Tamilnadu
shops and Establishments Act, Madurai in TNSE No.05/2019, within the time
limit fixed by this Honble Court.
For Petitioner : M/s.AL. Kannan
For R1 : Mr.M.Mahaboob Athiff, Counsel for State
For R2 : Mr.S.Balamurugan
W.P(MD)No.17442 of 2023
The Managing Director,
Madurai District Central Cooperative Bank Ltd.,
North Veli Street,
Madurai 625 001. ... Petitioner(s)
vs.
1. The Appellate Authority,
Tamil Nadu Shops and Establishments Act,
(Joint Commissioner of Labour),
Madurai.
2.B.Prathap ... Respondent(s)
PRAYER : Writ Petition, filed under Article 226 of the Constitution of India,
praying this court to issue a Writ of Certiorari to call for the records relating to
the impugned order passed in T.N.S.E.No. 5/2019 dated 16.01.2023 by the 1st
respondent and quash the same.
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W.P(MD)Nos.15417 and 17442 of 2023
For Petitioner : M/s.S. Balamurugan
For R1 : Mr.M.Mahaboob Athiff, Counsel for State
For R2 : Mr.A.L.Kannan
COMMON ORDER
It is appropriate to commence this order by referring to the Preamble
of the Tamil Nadu Shops and Establishments Act, 1947, which reads thus:
“An Act to provide for the regulation of conditions
of work in shops, commercial establishments, restaurants,
theatres and other establishments, and for certain other
purposes.”
2.The Preamble indicates the legislative intent behind the enactment.
The Act is a welfare legislation intended to regulate the conditions of work of
employees in shops and commercial establishments where such conditions are not
otherwise governed by a special statutory regime. The object of the enactment is
not to create a parallel disciplinary code overriding every other special statute, but
to regulate employment in establishments falling within its ambit.
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3. The brief facts leading to the filing of the writ petitions are as
follows:
3.1. The petitioner Society in W.P.(MD) No.17442 of 2023 is a
District Central Co-operative Bank Limited governed by the provisions of the
Tamil Nadu Co-operative Societies Act, the Rules framed thereunder and its
Special Bye-laws, which regulate the service conditions of its employees.
3.2. The second respondent in W.P.(MD) No.17442 of 2023 is the
petitioner in W.P.(MD) No.15417 of 2023. The second respondent, while serving
as Secretary of the petitioner Bank, he is alleged to have committed several acts
of financial irregularities, thereby causing loss to the Bank. Pursuant thereto, a
detailed domestic enquiry was conducted, in which the second respondent
actively participated. Upon conclusion of the enquiry, the Enquiry Officer found
the charges levelled against the second respondent to have been proved and
submitted the enquiry report recommending initiation of appropriate disciplinary
action. The explanation submitted by the second respondent to the enquiry report
was considered by the disciplinary authority and finding the same to be
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W.P(MD)Nos.15417 and 17442 of 2023unsatisfactory, the disciplinary authority independently concurred with the
findings of the Enquiry Officer and by proceedings dated 04.09.2018, imposed
the punishment of dismissal from service.
3.3. Aggrieved by the order of dismissal, the second respondent
preferred an appeal before the first respondent under the Tamil Nadu Shops and
Establishments Act. The appellate authority allowed the appeal and directed the
petitioner to reinstate the second respondent in service.
3.4. Assailing the said order as being contrary to the provisions of
the Tamil Nadu Cooperative Societies Act and the Special Bylaws governing the
Society, the present writ petitions have been filed.
4. According to the learned counsel for the petitioner, once the
service conditions of the employees are governed by the provisions of the Co-
operative Societies Act, the Rules and the Special Bye-laws, an appeal under
Section 41 of the Shops and Establishments Act is not maintainable. The
petitioner further contended that the Society is exempted under Section 4(1)(f) of
the Tamil Nadu Shops and Establishments Act. The issue is no longer res integra
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and stands concluded by the judgment of the Division Bench of this Court in
W.A.No.707 of 2026 dated 18.03.2026. The relevant portions of the judgment
read as follows:
“12. In view of Section 4(1)(f), if any establishment is governed by
a separate law for the time being in force in the State, the Tamil Nadu
Shops and Establishments Act would not apply. In the present case,
admittedly, the appellant Co-operative Bank is registered under the
provisions of the Tamil Nadu Co-operative Societies Act and the Tamil
Nadu Cooperative Societies Act is a comprehensive Act, which provides
provisions regulating the service conditions of the employees of the Co-
operative Societies/ Co-operative Banks. Under the provisions of the
Tamil Nadu Cooperative Societies Act, the special bylaw of each Co-
operative Bank has been approved by Registrar/ competent authority
under the Act. Thus, the Tamil Nadu Cooperative Societies Act as well as
the Special bye laws as approved by the competent authority alone would
apply in respect of the employees serving in the Cooperative Bank. Once
such instance under the Co-operative Societies Act is that, the application
of Gratuity Act and Provident Fund Act are excluded, specifically under
Sections 78 and 79 of the Act if such schemes are provided under the bye-
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W.P(MD)Nos.15417 and 17442 of 2023laws of the Society. Similarly, the procedures for departmental
disciplinary proceedings are approved in the Special bye law and the said
special bye law alone would apply in respect of the disciplinary
proceedings initiated against the employees of the Co-operative Bank
registered under the Cooperative Societies Act.”
5. In the aforesaid judgment, this Court has categorically held that, in
view of the exemption under Section 4(1)(f), the provisions of the Tamil Nadu
Shops and Establishments Act would not apply to Co-operative Societies whose
service conditions are regulated under the Tamil Nadu Co-operative Societies Act
and the Special Bye-laws framed thereunder. Accordingly, the petitioner prayed
for allowing the writ petition.
6. Per contra, learned counsel appearing for the second respondent
submitted that, notwithstanding the existence of service regulations under the Co-
operative Societies Act, the Appellate Authority under the Shops and
Establishments Act has jurisdiction to entertain the appeal. Reliance was placed
upon the judgment of the Hon’ble Supreme Court in K.A.Annamma v. Secretary,
Cochin Cooperative Hospital Society Limited reported in (2018) 2 SCC 729, to
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W.P(MD)Nos.15417 and 17442 of 2023
contend that the Appellate Authority was competent to entertain the appeal.
7. In reply, learned counsel for the petitioner submitted that the
decision in K.A.Annamma‘s case is distinguishable and applies only in the
context of industrial disputes. The very same judgment was considered by the
Division Bench of this Court, which, after an elaborate discussion, held that the
Appellate Authority under the Tamil Nadu Shops and Establishments Act has no
jurisdiction in matters concerning employees of Co-operative Societies whose
service conditions are governed by the Tamil Nadu Co-operative Societies Act,
the Rules and the Special Bye-laws.
8. This Court has carefully considered the rival submissions and
perused the materials available on record.
9. The short question that arises for consideration is whether an
employee of a Co-operative Bank, whose service conditions are admittedly
governed by the Tamil Nadu Co-operative Societies Act, the Rules framed
thereunder and the approved Special Bye-laws, can invoke the appellate remedy
under Section 41 of the Tamil Nadu Shops and Establishments Act.
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W.P(MD)Nos.15417 and 17442 of 2023
10. This Court is of the considered view that the impugned order
cannot be sustained. The Preamble to the Tamil Nadu Shops and Establishments
Act makes it clear that the enactment is a general welfare legislation intended to
regulate the conditions of work in shops and commercial establishments.
Simultaneously, the Legislature, by incorporating Section 4, has consciously
excluded certain establishments from the purview of the Act. In particular,
Section 4(1)(f) exempts establishments whose service conditions are governed by
a separate law in force. The Division Bench of this Court in W.A. No.707 of 2026
has categorically held that the Tamil Nadu Co-operative Societies Act, the Rules
framed thereunder and the approved Special Bye-laws constitute a complete code
governing the service conditions of employees of Co-operative Societies and
therefore, the provisions of the Tamil Nadu Shops and Establishments Act,
including the appellate remedy under Section 41, are inapplicable. Admittedly, the
petitioner Society is governed by the said statutory framework. Hence, the
Appellate Authority lacked jurisdiction to entertain the appeals. The reliance
placed on K.A.Annamma is misconceived, as the said decision arose in a
different statutory context and does not dilute the exemption contained in Section
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W.P(MD)Nos.15417 and 17442 of 2023
4(1)(f). Accordingly, the impugned order is liable to be set aside.
11. In view of the above, the impugned order dated 16.01.2023
passed by the first respondent is hereby set aside and the writ petition in W.P.
(MD) No.17442 of 2023 is allowed. Consequently, the writ petition in W.P.(MD)
No.15417 of 2023 stands disposed of granting liberty to the second respondent to
work out the remedy before the appropriate authority under Section 153 of the
Tamil Nadu Co-operative Societies Act. The period during which the proceedings
remained pending before this Court shall stand excluded for the purpose of
computing limitation. No costs. Consequently, the connected miscellaneous
petition is closed.
17.07.2026
NCC : Yes / No
Index : Yes / No
Internet : Yes
PKN
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W.P(MD)Nos.15417 and 17442 of 2023
To
1. The Joint Registrar,
O/o the Joint Registrar of Cooperative Societies,
Ground Floor,
Thirupuramkundram Road,
Near Palanganatham Roundana,
Madurai.
2. The Managing Director,
Madurai District Central Cooperative Bank Ltd.,
South Veli Street,
Madurai 625 001.
3.The Appellate Authority,
Tamil Nadu Shops and Establishments Act,
(Joint Commissioner of Labour),
Madurai.
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W.P(MD)Nos.15417 and 17442 of 2023
M.DHANDAPANI,J.
PKN
ORDER MADE IN
W.P(MD)Nos.15417 and 17442 of 2023
DATED : 17.07.2026
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