On 14th August, 1998 a Division Bench of the Honourable High Court of Karnataka ruled that Payment of Gratuity Act, 1972 is not applicable to the co-operative societies functioning in the State. The learned Judges, while dealing with the case of Malleshwaram Co-op Societies Ltd. v. Senior Labour Inspector, II Circle, Bangalore and others; [1999 (81) FLR 326]; combinedly disposed of writ petition Nos. 42029 of 1995, 2468 of 1997 and 2203 of 1998. The Division Bench has held that proviso of Payment of Gratuity Act, 1972 is not applicable to the employees of co­operative societies. Interestingly, no case-laws pertaining to Payment of Gratuity Act, 1972 has been relied upon while disposing of the case/s. The Learned Division Bench has relied upon the provisions of Mysore Shops and Establishments Act, 1948 (repealed), Karnataka Shops and Commercial Establishments Act, 1961 (re-enacted in the year 1961), Karnataka General Clauses Act 1899 and Karnataka Co-operative Societies Act and R ....