Teachers Cooperative Bank Ltd vs The State Of Karnataka
2025 Latest Caselaw 6680 Kant

Karnataka High Court

Teachers Cooperative Bank Ltd vs The State Of Karnataka on 25 June, 2025

                                          -1-
                                                      NC: 2025:KHC:22276
                                                  WP No. 20605 of 2023


              HC-KAR




                   IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                        DATED THIS THE 25TH DAY OF JUNE, 2025

                                       BEFORE
                   THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE
                       WRIT PETITION NO. 20605 OF 2023 (L-RES)
              BETWEEN:

              TEACHERS CO-OPERATIVE BANK LTD.,
              HEAD OFFICE, BALIGA TOWERE,
              NEAR BUS STAND, UDUPI - 576101
              REPRESENTED BY ITS GENERAL MANAGER,
              (THE PETITIONER SOCIETY IS REGISTERED
              UNDER KARNATAKA CO-OPERATIVE SOCIETIES
              ACT 1959)
                                                           ...PETITIONER
              (BY SRI DEVI PRASAD SHETTY, ADVOCATE)
              AND:
              1.    THE STATE OF KARNATAKA,
                    DEPARTMENT OF COOPERATION,
                    M S BUILDING, BENGALURU - 560001,
Digitally           REPRESENTED BY ITS PRINCIPAL SECRETARY.
signed by C   2.    THE LABOUR OFFICER AND THE CONTROLLING
HONNUR
SAB                 AUTHORITY UNDER THE PAYMENT OF
                    GRATUITY ACT 1972,
Location:           LABOUR OFFICE, UDUPI SUB DIVISION,
HIGH COURT
                    RAJATHADRI, 1ST FLOOR, A201,
OF
KARNATAKA           MANIPAL, UDUPI - 576104, UDUPI DISTRICT.
              3.    SRI RAJASHEKAR MADHYASTA,
                    S/O U KUPPANAM,
                    AGED ABOUT 67 YEARS,
                    R/O SATYA, MASTI KATTE.
                    MOODABIDRE - 574227,
                    DAKSHINA KANNADA DISTRICT.
                                                       ...RESPONDENTS
              (BY SMT PRATHIBHA R K, AGA FOR R1 AND R2,
               SRI B S SACHIN, ADVOCATE FOR R3)
                                        -2-
                                                         NC: 2025:KHC:22276
                                                   WP No. 20605 of 2023


HC-KAR




     THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
QUASHING THE ORDER PASSED BY THE R-2 DTD 13.04.2022
IN NO.PGA/CR-26/2021 PRODUCED AS ANNX-B.

    THIS PETITION COMING ON FOR ORDERS THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:

CORAM:      HON'BLE MR JUSTICE ANANT RAMANATH HEGDE


                                  ORAL ORDER

This petition is filed against the order dated

13.04.2022. In terms of the said order, the petitioner's

contention that the Controlling Authority has no

jurisdiction to adjudicate the dispute between the

petitioner and respondents is rejected.

2. Aggrieved by the said order, the petitioner is

before this Court.

3. Third respondent who is the employee of the

petitioner approached the Controlling Authority to claim

gratuity from the petitioner. The petitioner is a

Cooperative Bank registered under the Karnataka

Cooperative Societies Act, 1959 (for short 'Act, 1959').

NC: 2025:KHC:22276

HC-KAR

The petitioner raised a contention that since the

respondent is an employee of the bank registered under

the Act, 1959, the dispute between the petitioner and

respondents is covered under Section 70 of Act, 1959.

4. Third respondent who is the petitioner before

the Controlling Authority submits that Payment of Gratuity

Act, 1972 (for short 'Act, 1972') is a self contained Code

and it has jurisdiction to decide on question of Payment of

Gratuity existing under Section 70 of the Act, 1959.

5. Learned counsel for the petitioner would submit

that Section 70 of the Act, 1959 prevails over the

provisions of the Payment of Gratuity Act, 1972 and the

Controlling Authority erred in rejecting the contention

relating to the jurisdiction. It is his further submission

that the petitioner Bank has already raised a dispute under

Section 70 of the Act, 1959 contending that 3rd respondent

employee is not entitled to claim on certain earned leave

and to recover excess amount paid. Thus, he would

NC: 2025:KHC:22276

HC-KAR

contend that the Controlling Authority has no jurisdiction

to decide the question relating to Payment of Gratuity

claimed by 3rd respondent.

6. Learned counsel for respondents on the other

hand would rely upon the judgment of the coordinate

Bench of this Court in The Manager vs. The Deputy

Registrar of Co-Op. Societies, Belgaum1.

7. The coordinate Bench of this Court has taken a

view that dispute relating to gratuity payable to an

employee of a cooperative society registered under the

Act, 1959 is also coming under the purview of Act, 1972.

This being the position, this Court is of the view that the

Controlling Authority is justified in rejecting the

petitioner's contention.

8. As far as the contention raised by the petitioner

that it has raised a dispute relating to excess payment

made on account of erroneous calculation made relating to

2007 1 AIR Kar. 139.

NC: 2025:KHC:22276

HC-KAR

earned leave. It is made clear that said dispute is to be

adjudicated by the Registrar of Cooperative Societies Act

before whom the dispute is pending.

9. Both disputes pending before the Controlling

Authority and before the Assistant Registrar of Cooperative

Society are different and have to be decided by the

respective authorities.

10. Under these circumstances, this writ petition is

dismissed. Both the parties shall cooperate for early

disposal of the application pending before the Controlling

Authority.

Sd/-

(ANANT RAMANATH HEGDE) JUDGE

CHS