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When a co-operative society has been wound up, question of reinstatement of an employee would not arise, the Madras High Court has held.
It was clear, the court ruled, that the liquidator for the society was a party to the proceedings, and if any monetary benefit was due to the employee, he should make an appropriate application before the liquidator.
Writ petitioner, TANCOF (TN Co-op Oilseeds Growers Federation Ltd), was the liquidator. They had challenged award dated 24-3-2007 passed by Labour Court, Cuddalore. By impugned award, Labour Court (Respondent 2) set aside termination of respondent 1 (Mr David Karunakaran), employee of TANCOF, and directing his reinstatement with backwages.
According to R-1, he was working as assistant in TANCOF from year 1990. By order dated 1-8-2001, he was terminated from service. He raised an industrial dispute. Following failure of conciliation, R-1 filed claim statement before R-2. The Labour Court directed reinstatement of R-1 with back wages. But it was not brought to notice of R-2 that petitioner society was wound up and proceedings were issued u/s 137(1) of TN Co-operative Societies Act.
The Commissioner of Agriculture/Registrar of Oilseeds Co-operative Societies on 22-12-2000 recommended dissolution of Society as it could not be run profitably. Subsequently, an official liquidator was appointed. The fact of appointment of liquidator was also published in Govt gazette. Therefore, when the Labour Court proceeded to hear case on 24-3-2007, TANCOF was not in existence. Mr Justice K. Chandru, who heard petition, held that writ petition was allowed and award of the Labour Court stood set aside. He made it clear that liquidator was a party to proceedings, and if any monetary benefit was due to R-1, he should make an appropriate application before liquidator.
> subramanian.v@thehindu.co.in
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