ORDER

1. The appellant was employed as a Supervisor with the first respondent, Jhabua Cooperative Central Bank Ltd., Jhabua Pradesh. With effect from 1-4-1976, he was also put in charge of supervising the affairs of Adimjati Sewa Sahakari Sanstha Maryadit, Kalyanpura, as he was posted as a Supervisor in Kalyanpura Branch of Respondent 1-Bank from the year 1974. From September 1976, he was relieved of the additional duties of supervising affairs of Adimjati Sewa Sahakari Sanstha Maryadit, Kalyanpura. He however, continued as Supervisor of Kalyanpura Branch of Respondent 1-Bank. In 1976, certain irregularities in distribution of sugar were detected while examining the working of Adimjati Sewa Sahakari Sanstha Maryadit, Kalyanpura. The appellant along with one Meghraj was charge-sheeted in Criminal Case No. 1197 of 1977. The appellant was convicted and sentenced to rigorous imprisonment for one year and a fine of Rs. 1000 for offence under Section 3 read with Section 7 of the Essential Commodities Act. The order of conviction is dated 12-1-1978. The appellant preferred an appeal being Criminal Appeal No. 8 of 1989. The appeal was, however, dismissed. The appellant preferred a revision before the High Court which was allowed by the High Court by its order dated 5-9-1979 on the ground that the prosecution had failed to prove the charge against the appellant.

2. In the meanwhile, on account of conviction of the appellant under the order of 12-1-1978, Respondent 1, by its order dated 4-2-1978, terminated the services of the appellant under Rule 49(i) of the Cooperative Central Bank Employees Rules, 1977. On account of the ultimate acquittal of the appellant by the order of the High Court dated 5-9-1979, the appellant was reinstated in service by the first respondent-Bank under an order dated 17-9-1979. Bank wages were not, however, granted to the appellant. The representation of the appellant for payment of back wages was rejected. The appellant filed a writ petition before the Madhya Pradesh High Court on 6-3-1978 challenging the order of dismissal and also the vires of Rule 49(i). The writ petition has been dismissed by the High Court. Hence the present appeal.

3. Under the Madhya Pradesh Cooperative Societies Act, 1960, Section 55(1) provides as follows :

"55. (1) The Registrar may, from time to time, frame rules governing the terms and conditions of employment in a society or a class of societies and the society or the class of societies to which such terms of employment are applicable shall comply with the order that may be issued by the Registrar in this behalf."

4. Pursuant to the power given to the Registrar under this section, the Registrar has framed Rules relating to the terms of employment and service conditions of employees of Cooperative Central Bank in M.P. Chapter XI of these Rules deals with disciplinary action. Rule 49 which forms a part of this chapter is as follows :

"49(i) If an employee is arrested on any criminal charges the President shall order his suspension from the date of arrest and may allow suspension allowance provided in the rules, during the period of enquiry. After the completion of enquiry his salary and allowance may be determined in accordance with the nature of the case against him and it may also be determined whether to treat him on duty or leave during the period of suspension. If the employee be found not guilty of all charges levelled against him, the Bank may consider whether to pay him for the suspension period full salary and allowance admissible to him or to treat him on duty during that period. If an employee is convicted and sentenced for any offence by jail sentence his services shall be deemed to have been terminated and in such a case it will not be necessary to give him a charge-sheet for the absence from duty.

(ii) When the sentence awarded by a lower court is set aside by a superior court and the employee is honourably acquitted he may be reinstated in the service of the Bank wi