WA Nos. 421/2023, 622/2023, 955/2023 and 956/2023, Mukkom Service Co-Operative Bank Ltd. v. P.T. Hussain and connected matters, High Court of Kerala

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN** **& THE HONOURABLE MR. JUSTICE C.PRATHEEP KUMAR** **TUESDAY, THE 21[ST] DAY OF NOVEMBER 2023/30TH KARTHIKA, 1945** **WA NO.421 OF 2023 JUDGMENT IN WP(C) 31454/2022 OF HIGH COURT OF KERALA DATED 16.1.2023** **-----------------** ## **- APPELLANTS/PETITIONERS IN WPC :** 1 THE MUKKOM SERVICE CO-OPERATIVE BANK LTD.NO.F 1241 MUKKOM, KOZHIKODE, PIN – 673 602 REPRESENTED BY ITS SECRETARY 2 THE BOARD OF DIRECTORS OF THE MUKKOM SERVICE CO-OPERATIVE BANK LTD.NO.F 1241 MUKKOM, KOZHIKODE, PIN – 673 602 REPRESENTED BY ITS PRESIDENT 3 THE DISCIPLINARY SUB COMMITTEE OF THE MUKKOM SERVICE CO-OPERATIVE BANK LTD.NO.F 1241 MUKKOM, KOZHIKODE, PIN – 673 602 REPRESENTED BY ITS CHAIRMAN BY ADVS. P.P.JACOB MARIYAM JACOB ## **- RESPONDENTS/RESPONDENTS IN WPC :** 1 P.T.HUSSAIN PAZHAMTHOPPIL HOUSE, KUMARANELLOOR.P.O., MUKKAM, KOZHIKEDE DISTRICT, PIN – 673 602 2 THE CO-OPERATIVE ARBITRATION COURT, KOZHIKODE, NORTHERN ZONE, ERANJIPALAM, KOZHIKODE, PIN – 673 006 BY ADVS. GEORGE POONTHOTTAM (SR.) NISHA GEORGE SRI.B.UNNIKRISHNA KAIMAL, SR.GP THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 21.11.2023 ALONG WITH WA Nos.622/23, 955/23 & 956/23, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA Nos.421, 622, 955 & 956 OF 2023 -: 2 :- # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN** **&** **THE HONOURABLE MR. JUSTICE C.PRATHEEP KUMAR** **TUESDAY, THE 21[ST] DAY OF NOVEMBER 2023/30TH KARTHIKA, 1945** **WA NO.622 OF 2023 JUDGMENT IN WP(C) 29787/2022 OF HIGH COURT OF KERALA DATED 16.1.2023** **-------------------** ## **- APPELLANT/PETITIONER :** HUSSAN P.T, AGED 60 YEARS S/O.IMBICHIKOYA, PAZHAMTHOPPIL HOUSE, KUMARANELLOOR P.O., MUKKAM VIA, KOZHIKKODE DISTRICT, PIN – 673 602. BY ADVS. NISHA GEORGE GEORGE POONTHOTTAM (SR.) ANN MARIA FRANCIS ## **- RESPONDENTS/RESPONDENTS :** 1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), PUTHIYARA, PUTHIYARA P.O., KOZHIKODE, PIN – 673 004. 2 MUKKAM SERVICE CO-OPERATIVE BANK LTD. NO. F-1241, MUKKAM POST, KOZHIKODE DISTRICT - 673 602, REPRESENTED BY ITS SECRETARY 3 THE PRESIDENT, MUKKAM SERVICE CO-OPERATIVE BANK LTD. NO. F-1241, MUKKAM POST, KOZHIKODE DISTRICT, PIN – 673 602 BY SRI.P.P.JACOB BY SRI.B.UNNIKRISHNA KAIMAL, SR.GP THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 21.11.2023 ALONG WITH WA Nos.421/23, 955/23 & 956/23, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA Nos.421, 622, 955 & 956 OF 2023 -: 3 :- # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT** # **THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN** **&** **THE HONOURABLE MR. JUSTICE C.PRATHEEP KUMAR** **TUESDAY, THE 21[ST] DAY OF NOVEMBER 2023/30TH KARTHIKA, 1945** **WA NO.955 OF 2023 JUDGMENT IN WP(C) 35880/2022 OF HIGH COURT OF KERALA DATED 16.1.2023** **-------------------** ## **- APPELLANTS/RESPONDENTS 1 & 3 IN WPC :** 1 THE MUKKOM SERVICE CO-OPERATIVE BANK LTD.NO.F 1241, MUKKOM, KOZHIKODE-673 602, REPRESENTED BY ITS SECRETARY 2 THE PRESIDENT MUKKOM SERVICE CO-OPERATIVE BANK LTD.NO.F 1241, MUKKOM, KOZHIKODE, PIN – 673 602 BY ADV P.P.JACOB ## **- RESPONDENTS/WRIT PETITIONER & 2ND RESPONDENT IN WPC :** 1 P.T.HUSSAIN PAZHAMTHOPPIL HOUSE, KUMARANELLOOR.P.O., MUKKAM, KOZHIKEDE DISTRICT, PIN – 673 602. 2 THE CO-OPERATIVE ARBITRATION COURT, KOZHIKODE, NORTHERN ZONE, ERANJIPALAM, KOZHIKODE – 673 006 BY ADV NISHA GEORGE BY SRI.B.UNNIKRISHNA KAIMAL, SR.GP THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 21.11.2023 ALONG WITH WA Nos.421/23, 622/23 AND 956/23, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA Nos.421, 622, 955 & 956 OF 2023 -: 4 :- # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT** # **THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN** **&** **THE HONOURABLE MR. JUSTICE C.PRATHEEP KUMAR** **TUESDAY, THE 21[ST] DAY OF NOVEMBER 2023 / 30TH KARTHIKA, 1945** **WA NO.956 OF 2023 JUDGMENT IN WP(C) 29787/2022 OF HIGH COURT OF KERALA DATED 16.1.2023** **-------------------** ## **- APPELLANTS/RESPONDENTS 2 & 3 IN WPC :** 1 THE MUKKOM SERVICE CO-OPERATIVE BANK LTD.NO.F 1241 MUKKOM, KOZHIKODE – 673 602 REPRESENTED BY ITS SECRETARY 2 THE PRESIDENT MUKKOM SERVICE CO-OPERATIVE BANK LTD.NO.F 1241, MUKKOM, KOZHIKODE – 673 602. BY ADV P.P.JACOB ## **- RESPONDENTS/WRIT PETITIONER & 1ST RESPONDENT IN WPC :** 1 P.T.HUSSAIN PAZHAMTHOPPIL HOUSE, KUMARANELLOOR.P.O., MUKKAM, KOZHIKODE DISTRICT, PIN – 673 602 2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G) KOZHIKODE, OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, PUTHIYARA, KOZHIKODE, PIN – 673 004 BY ADV NISHA GEORGE BY SRI.B.UNNIKRISHNA KAIMAL, SR.GP THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 21.11.2023 ALONG WITH WA Nos.421/23, 622/23 & 955/23, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA Nos.421, 622, 955 & 956 OF 2023 -: 5 :- ## **JUDGMENT** ## **W.A.Nos.421, 622, 955 & 956 of 2023 Dated this the 21st day of November, 2023** ## **Anu Sivaraman, J.** These writ appeals are preferred by an employee and the employer Bank respectively in respect of an award passed by the Co-operative Arbitration Court in a dispute with regard to disciplinary proceedings initiated by the Bank against the employee. 2. The employee had preferred W.P.(C) No.35880/2022 impugning the order of the Arbitration Court to the extent it granted permission to the Bank to initiate fresh disciplinary action, after setting aside the disciplinary proceedings initiated and completed against him. W.P.(C) No.29787/2022 was also filed by the employee challenging a memo of charges issued after his retirement from service. 3. W.P.(C) No.31454/2022 was filed by the Bank challenging the order of the Arbitration Court setting aside the disciplinary proceedings already initiated and completed against the employee on the ground that the charge memo was issued by the Disciplinary Sub-Committee. Reliance has been placed on a WA Nos.421, 622, 955 & 956 OF 2023 -: 6 :- decision of a Division Bench of this Court in **Kodanchery Service Co-operative Bank Ltd. and others** v. **Joshy Varghese and others** [2020 (4) KLT 129 (DB)]. 4. The learned counsel appearing for the appellants in W.A. Nos.421/2023, 955/2023 and 956/2023 contends that after the judgment of the Full Bench in **Mattanur Co-operative Rural Bank Ltd.** v. **The Co-operative Arbitration Court and another (F.B.)** [2023 (3) ILR (Ker.) 863], wherein it has been clearly held that the decision of the Division Bench in **Kodanchery Service Co-operative Bank Ltd.'s case,** more particularly in para 5 thereof, to the effect that the Managing Committee is the sole and exclusive authority to issue memo of charges to employees covered by Rule 198 of the KCS Rules and that the Disciplinary Sub-Committee has no jurisdictional competence at all in that regard does not reflect the correct legal position. It is, therefore, contended that since the disciplinary proceedings initiated against the employee and the punishment imposed had been set aside by the Arbitration Court only relying on the decision of the Division Bench in **Kodanchery Service Co-operative Bank Ltd.'s case,** the matter requires a remand WA Nos.421, 622, 955 & 956 OF 2023 -: 7 :- to the Co-operative Arbitration Court to consider afresh in the light of the law laid down by the Full Bench. 5. The learned counsel appearing for the appellant in W.A. No.622/2023, that is, the aggrieved employee, contends that the Bank had accepted the findings of the Co-operative Arbitration Court and had proceeded to issue a fresh charge memo to the employee and that the said charge memo had been issued after the date of retirement of the employee. It is contended that the said charge memo would not be maintainable in view of the fact that the employer-employee relationship has been terminated by the retirement of the employee. It is further contended that since the charge memo had been issued by the Bank accepting the decision of the Co-operative Arbitration Court, they can no longer rely on the earlier charge memos or the disciplinary proceedings initiated. Reliance is sought to be placed on a judgment of a Division Bench of this Court in W.A. No.1473/2022 dated 25.10.2022. 6. Having considered the contentions advanced, we notice that the Co-operative Arbitration Court had proceeded to consider the legality of the proceedings against the employee in the light of the judgment of the Division Bench in **Kodanchery** WA Nos.421, 622, 955 & 956 OF 2023 -: 8 :- **Service Co-operative Bank Ltd.'s case.** It was found that since the charge memo had been issued by the Disciplinary SubCommittee and in view of the law laid down by the Division Bench, the disciplinary proceedings were incompetent. However, the Full Bench, by its judgment dated 3.8.2023 has clearly held that the view of the Division Bench in **Kodanchery Service Cooperative Bank Ltd.'s case** does not lay down the correct position. 7. In the above view of the matter, we are of the opinion that the matter requires to be reconsidered by the Arbitration Court, taking note of the law laid down by the Full Bench, without reference to the decision in **Kodanchery Service Cooperative Bank Ltd.'s case,** especially in para 5 thereof. 8. The learned counsel appearing for the employee would then submit that the matter has to be reconsidered in the light of the judgment of the learned Single Judge. We cannot agree, in view of the fact that such a proposition would be doing violence to the judgment of the Full Bench of this Court. The judgment in W.A. No.1473/2022, which is relied on by the employee, was one rendered before the position of law stood clarified by the Full Bench and the matter has to be reconsidered in the light of the WA Nos.421, 622, 955 & 956 OF 2023 -: 9 :- judgment of the Full Bench. Since the Co-operative Arbitration Court had proceeded only on the basis of the judgment of the Division Bench in **Kodanchery Service Co-operative Bank Ltd.'s case,** we are of the opinion that the matter requires a reconsideration by the Co-operative Arbitration Court, taking note of the judgment of the Full Bench. Since the legality of the earlier disciplinary proceedings are under challenge before the Arbitration Court, the issue shall be considered afresh by the Arbitration Court confining the consideration to the legality of the first disciplinary proceedings. The second disciplinary proceedings initiated being after the retirement of the employee, we find no reason to interfere with the directions of the learned Single Judge setting aside Ext.P5 charge memo in W.P.(C) No.29787/2022. The matter shall be considered on the basis of the disciplinary proceedings initiated and completed against the employee while he was in service. In the above view of the matter, the judgment of the learned Single Judge is set aside. ARC No.63/2016 is remanded to the Co-operative Arbitration Court (Northern), Kozhikode to reconsider on its merits, taking note of the judgment of the Full Bench as well. Appropriate steps shall be taken to see that the WA Nos.421, 622, 955 & 956 OF 2023 -: 10 :- proceedings are completed without undue delay and at any rate, within a period of six months from the date of receipt of a copy of this judgment. These writ appeals are ordered accordingly. **Sd/ANU SIVARAMAN** **JUDGE** **Sd/C. PRATHEEP KUMAR JUDGE** Jvt/23.11.2023