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Our Legal Correspondent

Act applicable to panchayats only by notification, says court

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Chennai Feb.16 Application of TN Shops and Establishments Act to local bodies including panchayats could be done only by a notification by Government under Section 1(3)(a)(iii), the Madras High Court has ruled.

Allowing a writ appeal by an officer of a primary agricultural co-operative bank challenging the order of a single judge dismissing his petition against termination of service, the First Bench held that since no notification has been issued by Government extending the Act to the Akkur Panchayat, the order dated May 7, 2001 passed by the Deputy Commissioner of Labour, Tiruchi, holding dismissal was legal, was liable to be set aside.

While the Primary Agricultural Co-op Bank, Akkur, contended that the Act had not been extended to the Society and hence the second respondent (Deputy Commissioner of Labour) had no jurisdiction to entertain the petition by the officer (Mr Gnanasekaran), the single judge held that the law had been made applicable to the co-operatives.

The First Bench, comprising Chief Justice, Mr A.P. Shah, and Mr Justice K. Chandru, said that since the parties had taken diametrically opposite stand, the opinion of the Commissioner of Labour, who was the authority under the Act to decide on applicability of law, had been taken. The Commissioner had said that since notification under Section 1(3)(iii)(b) had not been issued, the provisions of the Act were not applicable to the Akkur Panchayat.

In view of this, the writ appeal should stand allowed and the order passed by DCL, Tiruchi, and confirmed by single judge was set aside, the Bench held. It was open to the officer to work out his remedy in accordance with law by making appropriate petition before appropriate forum.

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