Supreme Court has agreed to decide the substantial question as to whether National Cooperative Society is 'State' within the meaning of Article 12 of the Constitution of India so as to attach the liability of payment of salaries and subsistence allowance of employees to the government.
In a petition filed by the NCCF (National Cooperative Consumers' Federation of India Ltd.) Employees Union pleaded for a declaration that the national cooperative society, is "State" under Article 12, and for a direction to the Centre to pay the salaries and subsistence allowances of employees.
The petition is being heard by the bench of Justices U. U. Lalit and Vineet Saran.
Two employees of the Federation were dismissed by the President of the organisation on the charge of defalcation of money. The Patna HC had set aside the orders of dismissal and remitted the matter back to the disciplinary authority.
The High Court had directed that the employees be paid subsistence allowance with all arrears till the final order is passed. The appeal before the Supreme Court by the Federation's President was dismissed as withdrawn.
The Bench observed,
"The Patna High Court has held NCCF as 'State'. The appeal challenging the High Court judgment was dismissed as withdrawn. The matter requires consideration by this court".