Andhra Pradesh High Court
Judges : GODA RAGHURAM, S.B.SINHA, V.V.S.RAO
SUM.Prasad - Appellant
Versus
A.P. State Federation of co-operative Spinning Mills Ltd. - Respondent
Decided On : 10-12-01
Employment And Service - Andhra Pradesh Co-operative societies Act, 1964 - Section 116-C - Constitution of India,1950 - Articles 14, 16 and 311 - A. P. State Federation of co-operative Spinning Mills Ltd – Contrary - Quash - No witness was examined during departmental proceedings and thus principles of natural justice had been infringed - Division Benches of this Court single Judge referred present writ petition to a Division Bench petitioner was appointed as a Mill Manager - He was posted as Managing director of Rajahmundry Co-operative spinning Mills Ltd - On ground of commission of misconduct a departmental proceeding was initiated against him – However although a charge- sheet was issued and petitioner submitted a reply allegedly no witness was examined during departmental proceedings and thus principles of natural justice had been infringed - By an order was dismissed from service where against preferred an appeal before Board of directors which has not been disposed of Aggrieved by said order of punishment petitioner filed a writ petition in this court praying that this Honble Court may be pleased to issue a writ order or direction particularly one in nature of writ of certiorari after calling for records in proceeding – Held, Apex Court held that U. P. State Cooperative Land Development Bank is instrumentality of State as it is controlled by State Government and service conditions of its employees are statutory in nature - Yet again in Apex court after referring to case of observed conclusion is irresistible that defendant Bank is undoubtedly an instrumentality of State - Once it is held that defendant is a statutory body and is a State and in matter of passing an order of dismissal of an employee it did not follow mandatory provisions of rules and regulations and order was passed in gross violation of principles of natural justice then third exception to general principle that contract of personal service cannot ordinarily be specifically enforced – Petition dismissed (Para 21)
( 1 ) THE question which arises for consideration in this Writ Petition is as to whether the A. P. State Federation of co-operative Spinning Mills Ltd. (hereinafter referred to as the Federation ), is a State within the meaning of Article 12 of the Constitution of India. REASON FOR REFERENCE:
( 2 ) A Division Bench of this Court in baroda Cotton Company v. A. P. State federation of Co-op Spinning Mills Limited held that Nellore Co-operative Spinning mills Ltd. , is not State or statutory authority. However, in Writ Appeal No. 1071 of 1993, dated 21-4-1997 a contrary view has been taken. FACTS:
( 3 ) NOTICING the contrary views of two division Benches of this Court, a learned single Judge referred the present writ petition to a Division Bench. The petitioner was appointed as a Mill Manager on 28-8-1987. He was posted as Managing director of Rajahmundry Co-operative spinning Mills Ltd. , Rajahmundry. On the ground of commission of misconduct a departmental proceeding was initiated against him. However, although a charge- sheet was issued and the petitioner submitted a reply, allegedly, no witness was examined during the departmental proceedings and thus the principles of natural justice had been infringed. By an order dated 30-8-1990 he was dismissed from service whereagainst he preferred an appeal before the Board of directors which has not been disposed of. Aggrieved by the said order of punishment the petitioner filed a writ petition in this court praying: that this Hon ble Court may be pleased to issue a writ, order or direction particularly one in the nature of writ of certiorari after calling for the records in proceedings Ref. No. 863/90-A dated 30-8-1990 of the a. P. State Federation of Co-operative spinning Mills Limited, Hyderabad and quash the proceedings as being illegal, arbitrary and violative of the principles of natural justice apart from being violative of Articles 14, 16 and 311 of the Constitution of India and pass such other order or orders as may deem fit.
( 4 ) ALTHOUGH in the writ petition no plea had not been taken that a flagrant violation of Section 116-C of the A. P. Co-operative societies Act, 1964 (for short the Act ) was committed, such a plea has been taken by raising additional grounds.
( 5 ) THE State, in exercise of its power conferred upon it under sub-section (1) of section 130 of the Act made the A. P. Cooperative Societies Rules, 1964 (for short the Rules ). Rules 70-AA and 71 of the rules read thus: 70-AA. Notwithstanding anything in the bye-laws, no appointment or removal of a Chief Executive by whatever name called, shall be made without the approval of the Registrar of co-operative Societies in respect of the following classes of Societies: (1) All Apex Institutions. (2) Sugar Factors. (3) Spinning Mills. (4) District Backward Class and scheduled Caste Societies. (5) Rural Electric Co-operative societies. (6) The Andhra Pradesh State Cooperative Union. 71. Service Conditions of Common cadre Employees under Sec. 116-A: the service conditions of Common cadre Employee under Section 116-A, shall be governed by the existing regulations till they are modified by the rule made in this behalf by the government.
( 6 ) MR. M. Panduranga Rao, the learned counsel appearing on behalf of the petitioner, would submit that the society is a state within the meaning of Article 12 of the constitution. He would contend that having regard to the aforementioned provisions, as the right of the petitioner is protected under a statute, a writ petition will be maintainable.
( 7 ) SECTION 116-A of the Act was substituted by Act 21 of 1985. It provides for an enabling provision.
( 8 ) IF a common cadre has been constituted under the provisions of the Act, the services of the concerned officials would be protected thereunder. Before us, however, no common cadre regulations had been produced to show as to whether any qualifications, method of recruitment, conditions of service, pay and allowances
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