The relaxation of qualifications granted by the Registrar of Co-operative Societies was ultra vires Rule 28 (3) of the Andhra Pradesh Co-operative Societies Rules, 1964, and the promotions of respondents 4 and 5 as Assistant General Managers were therefore void.

( 1 ) THE petitioners were appointed as Managers by way of direct recruitment to the respondent No. 2-Bank on 14-12-1979. The respondents 4 and 5 had been promoted from lower posts as managers earlier than the petitioners, respectively on 21-6-1979 and 7-9-1979. The petitioners are Post-Graduates, whereas the respondents 4 and 5 are Matriculates. Since the respondents 4 and 5 were promoted on 27-2-1989 as Assistant General managers only because of their seniority, the present petition has been filed assailing the promotion on the ground of they being not eligible or qualified to be promoted because of lack of qualification prescribed for the post.

( 2 ) THE Registrar of the Co-operative societies has the power under Rule 28 (1) of the Andhra Pradesh Co-operative Societies rules, 1964 to prescribe the qualifications in respect of different categories of services in the Co-operative Societies and has the power under Sub-rule (3) thereof to pass orders, for special reasons, relaxing the rules in respect of any paid officer or servant. Two circulars were issued by the registrar on 15-3-1979 respectively numbered as RC. No. 5199/79-C1 (A) and rc. No. 5199/79-C1 (a ). In the first Circular the qualification for the post of secretary, Assistant Secretary, Development officer, Manager, Executive Officer and Assistant Executive Officer was prescribed as Degree of any recognised university, a course of Co-operative Training in specified institutions and a pass in four tests i. e. , Banking, Co-operatives, auditing and Book-keeping. Similarly for the post of Accountants, Clerks, supervisors and Inspectors the qualification of s. S. L. C/h. S. C. and the same four tests were prescribed, yet notice was taken of the fact that Reserve Bank of India had suggested that direct recruitment may be made to a limited extent as it was expected that in normal course Officers by virtue of experience and qualification would rise to the level of senior level posts. Taking note of the fact that a team of officers had suggested for relaxation of qualifications, the suggestion was accepted and relaxation was made in favour of in-service candidates, so far as the post of Secretary, assistant Secretary, Development Officer, manager, Executive Officer and Assistant executive Officer are concerned, saying that when any vacancy arises in those categories, the persons in the next lower category may be given opportunity of promotion with due regard to their seniority provided they had the minimum service experience in the lower category of five years, two years, or one year respectively for Matriculate, Graduate or Post-Graduates. In the Second circular issued on the same day, the posts of Secretaries referred to in the first circular was directed to be designated as Deputy General Manager in the rank of Category I Officers as per the award. The post of General Manager was recognised as the post above Category No. I and the Category n posts were recognised as the post of Assistant General managers with direction that three posts of assistant General Managers in each of the 26 Central Co-operative Banks i. e. , as relating to Banking, Administration and development were to be created. As regards the procedure to fill-up the posts, the circular provided, except for the posts of general Manager, Deputy General Manager (Administration) and Deputy General manager (Banking), that either direct recruitment or promotion could be adopted. For promotion, the qualifications already laid down in the other circular for the lower posts from which promotions were to be made were acknowledged, i. e. , graduation and higher cooperative training but, noting the views of the Reserve Bank that persons with lesser qualification in the lower category may by virtue of their experience rise to senior level posts and of the opinion of the team of officers, which was the Committee, the relaxation suggested were accepted in the following words:"the above suggestion of the