Sunday, November 24, 2013


Railway society comes under state control: Madras HC



CHENNAI: The Madras high court has brought a railway society, with several thousand railway employees as members, under the control of the state government, saying state bylaws alone would apply to it.

A division bench of Justice N Paul Vasanthakumar and Justice K Ravichandrabaabu, dismissing an appeal filed by the Railway Employees' Cooperative Credit Society Limited recently, said that though entities such as banks and societies could be operating in different states, they would not come under the jurisdiction of the central government. Instead, they would be governed by the laws of the state where they operate, it said.

The railway society said it was answerable only to the central government and the state had no control over it. After a single judge dismissed its petition in 2010, the society filed an appeal.

Dismissing the appeal, the bench pointed to the society's own case in 2001, wherein it had stated that neither the central government nor the state government could control its affairs. The judges pointed out that the society wanted to exist without any control when it said its board of directors elected by its general body alone had competence to control it.

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