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 1/12 https://www.mhc.tn.gov.in/judis W.P(MD)Nos.15417 and 17442 of 2023 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. 2/12 https://www.mhc.tn.gov.in/judis 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. 3/12 https://www.mhc.tn.gov.in/judis W.P(MD)Nos.15417 and 17442 of 2023 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 4/12 https://www.mhc.tn.gov.in/judis W.P(MD)Nos.15417 and 17442 of 2023 unsatisfactory, 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 5/12 https://www.mhc.tn.gov.in/judis W.P(MD)Nos.15417 and 17442 of 2023 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- 6/12 https://www.mhc.tn.gov.in/judis W.P(MD)Nos.15417 and 17442 of 2023 laws 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 7/12 https://www.mhc.tn.gov.in/judis 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. 8/12 https://www.mhc.tn.gov.in/judis 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 9/12 https://www.mhc.tn.gov.in/judis 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 10/12 https://www.mhc.tn.gov.in/judis 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. 11/12 https://www.mhc.tn.gov.in/judis 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 12/12 https://www.mhc.tn.gov.in/judis