Madras High Court· 30 July 2026

Whether an employee of a Co-operative Society governed by the Tamil Nadu Co-operative Societies Act can invoke the appellate remedy under Section 41 of the Tamil Nadu Shops and Establishments Act?

The Management/President, Southern Railway Employees' Consumer Co-operative Stores Limited v. The Appellate Authority under Section 41 of the Tamil Nadu Shops and Establishments Act

W.P(MD)No.2081 of 2024 · W.P(MD)No.2081 of 2024
Coram: Justice M.Dhandapani

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Answer

No. Section 4(1)(f) exempts an establishment whose service conditions are governed by a separate law in force. The Co-operative Societies Act, the Rules framed thereunder and the approved Special Bye-laws constitute a complete code governing the service conditions of a society's employees, so the Shops and Establishments Act, including the appellate remedy under Section 41, is inapplicable and the Appellate Authority lacked jurisdiction.

Headnote

Tamil Nadu Shops and Establishments Act, 1947 — s.4(1)(f) — s.41 — Tamil Nadu Co-operative Societies Act — s.153 — Exemption where a separate law governs — Jurisdiction of the Appellate Authority — Tamil Nadu Shops and Establishments Act, 1947 — s.4(1)(f) — Scope of a general welfare legislation — Held: The Act is welfare legislation regulating conditions of work, and s.4 consciously excludes establishments whose service conditions are governed by a separate law in force. It creates no parallel disciplinary code overriding a special statute. (¶2, 10) Tamil Nadu Co-operative Societies Act — Special Bye-laws — A complete code for service conditions — Held further: The Co-operative Societies Act, its Rules and the approved Special Bye-laws constitute a complete code governing a society's service conditions. The s.4(1)(f) exemption applies and the s.41 appellate remedy is inapplicable. (¶10) Tamil Nadu Shops and Establishments Act, 1947 — s.41 — Appellate Authority without jurisdiction — Held further: The Appellate Authority accordingly lacked jurisdiction to entertain a dismissed society employee's appeal, and reliance on K.A.Annamma is misconceived, that decision having arisen in a different statutory context. Writ petition allowed. (¶10, 11)

In the Court's own words

Paragraph 9The short question that arises for consideration is whether an employee of a Co-operative Society, 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.

Paragraph 10This 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 4(1)(f). Accordingly, the impugned orders are liable to be set aside.

Acts & Sections

s.4(1)(f) Tamil Nadu Shops and Establishments Act, 1947s.41 Tamil Nadu Shops and Establishments Act, 1947s.153 Tamil Nadu Co-operative Societies Act

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Also decided in this judgment

Does the Tamil Nadu Shops and Establishments Act create a disciplinary code overriding a special statute?Does K.A.Annamma permit a Shops and Establishments Act appeal by a co-operative society employee?

Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections