Railway co-operative society staff are not railway servants where the societies retain independent control over appointments and service conditions.

Employees of railway co-operative stores or societies registered under state co-operative law were not railway servants because the societies were autonomous bodies corporate with independent power to staff, regulate service conditions and exercise disciplinary control, subject only to the governing statute, bye-laws and Registrar supervision. The Railway Establishment Code definition of "railway servant" required appointment to a post under the administrative control of the Railway Board, which was absent. Earlier canteen precedents were distinguishable on their different legal setting and degree of control. Welfare support such as subsidy, accommodation, electricity or medical facilities did not by itself create an employment relationship with the Railway Administration, so claims to parity in pay, promotion, increments and other benefits failed.

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Issues: Whether employees appointed by railway co-operative stores or societies registered under the State co-operative law and organised as a welfare measure can be treated as regular railway employees entitled to parity of status and service benefits.

Analysis: The governing co-operative statute and bye-laws showed that the societies were bodies corporate with independent power to appoint staff, regulate service conditions, and exercise disciplinary control, subject to the Act, Rules, bye-laws, and the Registrar's supervision. The Railway Establishment Code definition of "railway servant" required appointment to a post under the administrative control of the Railway Board, which was absent here. The earlier canteen cases were distinguished because those establishments involved a different legal setting and mandatory or closely controlled arrangements, whereas these stores remained autonomous co-operative entities. Welfare assistance, subsidy, accommodation, electricity, or medical facilities did not by themselves create an employment relationship with the Railway Administration.

Conclusion: The employees of the railway co-operative stores or societies were not railway servants and were not entitled to parity of pay, promotion, increments, or other service benefits as claimed.

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