1995 Supreme(AP) 825
Andhra Pradesh High Court
Judges : M.N.RAO, S.S.HUSSAINI
D.V.V.Satya Prasad - Appellant
Versus
Government Of A.P., rep.by its Secretary, Food and Agriculture (Co-op.)Department, Hyderabad - Respondent
Decided On : 11-16-95
Headnote:
The Andhra Pradesh High Court held that Rule 73 of the Andhra Pradesh Co-operative Societies Rules, 1964, which concerns the transfer of employees of the erstwhile Primary Agricultural Development Banks (PADBs) to the service of the District Co-operative Central Banks (DCCBs), is valid. The court found that the rule was within the powers of the Registrar of Co-operative Societies under Section 11(2)(d) of the Andhra Pradesh Co-operative Societies (Amendment) Act, 1987, and that it did not violate the fundamental rights of the petitioners under Articles 14 and 16 of the Constitution of India.
Fact of the Case:
The petitioners, who were employees of the erstwhile PADBs, challenged the validity of Rule 73, arguing that it was ultra vires Section 11(2)(d) of the Act and that it violated their fundamental rights under Articles 14 and 16 of the Constitution. The State Government and the respondents, who were employees of the DCCBs, defended the rule.
Finding of the Court:
The court found that the Registrar of Co-operative Societies had the power under Section 11(2)(d) of the Act to transfer the employees of the erstwhile PADBs to the service of the DCCBs. The court also found that the rule did not violate the petitioners' fundamental rights under Articles 14 and 16 of the Constitution, as it was a reasonable and non-discriminatory measure taken in the interests of the employees of both the PADBs and the DCCBs.
Issues: 1. Whether Rule 73 of the Andhra Pradesh Co-operative Societies Rules, 1964, was ultra vires Section 11(2)(d) of the Andhra Pradesh Co-operative Societies (Amendment) Act, 1987? 2. Whether Rule 73 violated the petitioners' fundamental rights under Articles 14 and 16 of the Constitution of India?
Ratio Decidendi: 1. The court held that Rule 73 was within the powers of the Registrar of Co-operative Societies under Section 11(2)(d) of the Act. The court found that the rule was a reasonable and non-discriminatory measure taken in the interests of the employees of both the PADBs and the DCCBs. 2. The court held that Rule 73 did not violate the petitioners' fundamental rights under Articles 14 and 16 of the Constitution. The court found that the rule was a reasonable and non-discriminatory measure taken in the interests of the employees of both the PADBs and the DCCBs.
Final Decision: The court dismissed all the writ petitions, upholding the validity of Rule 73 of the Andhra Pradesh Co-operative Societies Rules, 1964.
( 1 ) AT issue in this batch of writ petitions is the validity of Rule 73 of the Andhra pradesh Co-operative Societies Rules, 1964 issued in G. O. Ms. No. 132, agriculture and Co-operation (Co. op III) Department dated 3-3-1993 as amended by G. O. Ms. No. 212, Agriculture and Co-operation (Co-op III) department dated 7-5-1994, which concerns the transfer of employees of the erstwhile Primary Agricultural Development Banks (for short "padbs) to the service of the District Co-operative Central Banks (for short dccbs ) primarily, Rule 73 incorporates the guidelines for equation of posts and integration of services covering the gamut of cadre strength, notional and future promotions, options to be exercised by the employees, inter se seniority, continuity of service and other related matters. Certain employees of the d. CC. Bs. , have been resisting the absorption of the staff of the erstwhile p. A. D. B. employees on the ground that such absorption would affect, adversely, their service conditions and the statutory rule incorporating the principles for equation of posts and integration of services has travelled beyond the scope of Section 11 (2) (d) of the Co-operative Societies (sic. Laws amendment) Act (for short "the Act"), Act No. 1 of 1987 by which the principal act - the Andhra Pradesh Co-operative Societies Act, 1964 - was amended.
( 2 ) THE controversy in these cases centres around the equation of posts in the cadres of Manager, Accountant and Supervisor prior to 1-4-1987, the following was the staff pattern in the respective organisations: Village
Percentage of women population
Reservation as per notification dt. 7-6-1995
Reservation as per notification dt. 10-6-1995
Nellipaka Mallelamadugu Mondikunta Anandpuram
47-92 49-15 48-03 46-87
Women Scheduled Caste General Scheduled Tribe
General Scheduled Caste Backward Class Scheduled Tribe
( 3 ) EVEN before the Rule 73 was framed, writ petitions were filed in this court challenging the action of the Government in accepting the recommendations of the One Man Commission headed by Sri V. Sunderesan, IAS. , a senior civil servant, which went into the question and submitted its report. As all these cases are inter-linked, involving common questions for adjudication, we are inclined to dispose of the same by mis common judgment.
( 4 ) PRIOR to 1-4-1987, credit facilities were made available to the rural agriculturists by two organisations with different staffing pattern. The short term credit was serviced by a three tier structure: at the village level, the unit was Primary Agricultural Co-operative Society (PACS); at the District level, it was District Co-operative Central Bank (DCCB); and at the apex level, it was designated as the Andhra Pradesh State Co-operative Bank. The long term credit facilities were made available by a two-tier structure: at the taluk level, the organisation was Primary Agricultural Development Bank (PADB) and at the apex level, the organisation was the Andhra Pradesh Co-operative Central agricultural Development Bank Ltd. The Legislature of the State of Andhra pradesh enacted Act No. 1 of 1987 introducing what was commonly called "single Window System" integrating the long term and short term co-operative credit structures in order to revitalise co-operative institutions, as stated in the statement of objects and reasons. To achieve this objective, the statement of objects and reasons says, "it is necessary to reorganise the various co-operative institutions on the new pattern to ensure financial viability and easy access by the members to the co-operative institutions in the interest of better administration of democratic function. In the process, certain classes and levels of societies will be abolished and the functions, funds, assets and liabilities will , be transferred to the newly formed Single Window Institutions. . . . " Sec. 15-A of the principal Act was amended by Section 2 of Act 1 of 1987 conferring power on the Registrar "to a