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1974 Supreme(Pat) 220

PATNA HIGH COURT
B.D.Singh and S.Ali Ahmad JJ.
B.S.Co-op.Bank
Versus
Registrar, Co Operative Societies
Civil Writ Jurisdiction Case No. 1584 of 1973 ;
Decided On : NOVEMBER 22, 1974

Headnote:Bihar & Orissa Co-operative Societies Act 1935, Sec. 48 & Regulation 37-Dispute regarding seniority of an employee-Board of Directors deciding the claims-Dispute whether touching the businees of the society- Regulation 37- No reference made to Registrar by the chairman-Registrar when can exercise jurisdiction-Regulation 37 whether has statutory force.

       Dispute regarding seniority of the employee was decided by the Board. Under Regulation 37 no reference was made to the Registrar by the chairman. The aggrieved employee made an application to the Registrar u/s 48. The jurisdiction of the Registrar was challenged on the ground that sec. 48 is not attracted and since there was no reference to the Registrar by the chairman under Regulation 37 the Registrar can not exercise jurisdiction and the order passed by the Registrar is without jurisdiction, Held, that the dispute is not covered under sec. 48. The Registrar could not have exercised jurisdiction under Regulation 37. Regulation 37 has no statutory force. The principle that if statue gave power to a Government or other authority to make rules, the rules so framed had the force of a statute and will be deemed to be incorporated as a part of the statute, did not apply to bye-law of a co-operative society. The bye-law that were contemplated by the Act could be merely those which governed the internal management, business or administration of a society. They might be binding between persons affected by them, but they did not have the force of a statute. (Para 7)

       Regulation 37 has limited scope. Respondent 1 (Registrar) can entertain reference only if the Chairman was satisfied that it was necessary to obtain a ruling. Respondent no.1, therefore, could not have entertained even under Regulation 37, an application direct at the instance of Respondent No 2. No doubt it is a lacuna in the regulation. Some remedy ought to have been provided therein to meet the situation as to what would happen if the Chairman was not satisfied that it was necessary to detain a ruling. In my opinion it is beyond our jurisdiction to fill up that lacuna. It is for the rule making authority to make note of and provide remedy to meet such a situation. (Para 9)

       

Judgment

B.D.SINGH, J.

1. This application under Articles 226 and 227 of the Constitution of India filed by the Bihar State Co-operative Bank Limited (hereinafter to be referred to as the Bank) through its Secretary, Shri J. Charan, is directed against the order dated the 28th February, 1973, (Annexure 2) passed by the Registrar, Co-operative Societies, Bihar, (Respondent No. 1) staying the operation of the decision of the Board of Directors of the Bank dated the 9th January, 1973, (Annexure 1) with regard to item No. 1 concerning the seniority of Brahmadeo Prasad (Respondent No. 2) vis-a-vis Shyama Charan Sinha and Nareshwar Prasad.

2. In order to appreciate the point involved in this application it will be necessary to state briefly the facts. The petitioner is a Society registered under the Bihar and Orissa Co-operative Societies Act, 1935, (hereinafter to be referred to as the Act). Shyama Charan Sinha. an Inspecting Officer of the Bank, filed a representation to the petitioner to decide his seniority on the basis of Rule 12 of the Staff Regulations (hereinafter to be referred to as the Regulations). On 9-1-1973 the Board of Directors of the Bank in its meeting decided seniority of Shyama Charan Sinha and Nareshwar Prasad vis-s-vis Brahmadeo Prasad in the

1.Shayama Charan Sinha

2.Nareshwar Prasad.

3.Brahmadeo Prasad.

In the said meeting, the Registrar of the Co-operative Societies (Respondent No. 1) was also present as one of the Directors of the Bank. A copy of the proceeding is marked as Annexure 1 to the application. Being aggrieved by the aforesaid decision Brahmadeo Prasad (Respondent No. 2) filed Misc. Award Case No. 1 of 1973 before Respondent No. 1 on 28-2-1973 under Sec. 48 of the Act and Regulation of of the Regulations whereupon respondent No. 1 passed the impugned order on the same day the relevant portion of which reads as :

"Perused the application and heard the petitioner. Admit under Sec. 48 (1) (c) of the Act. The operation of the decision of the Board of Directors of the Bank dated 9-1-93, item No. 1, which concerns the seniority of the petitioner vis-a-vis Shri Shyama Charan Sinha and Sri Nareshwar Prasad is stayed.

Notice the Bank to file all papers concerning the seniority of these officers together with their own show cause by the 17.03.1973, to which date this case is adjourned. Send a copy of the petition to the Bank."

On receipt of the notice the petitioner appeared through its lawyer on 14-3-73 before respondent No. 1 and raised a preliminary objection regarding the maintainability of the application filed by respondent No. 2 before him, A copy of the objection petition filed by the petitioner is marked as Annexure 3 to this Application. Respondent No. 1 heard both parties, namely, the petitioner and respondent No. 2, on 17-3-73 and thereafter the case was adjourned from time to time without deciding the preliminary objection raised by the petitioner. In that state of facts the petitioner obtained a rule of this Court on 13-12-73 when it was also ordered that till disposal of the application operation of the impugned order would remain stayed.

3. On receipt of notice respondent No. 2 filed a counter-affidavit on 17-5-74. Thereafter on 8-11-74 a rejoinder to the counteraffidavit filed by respondent No. 2 was filed by the petitioner. On the same date respondent No. 2 filed supplementary counteraffidavit in reply to the rejoinder during the course of hearten of this application. No counter-affidavit has been filed on behalf of respondent No. 1.

4. Mr. Kailash Roy, learned counsel appearing on behalf of the petitioner, has assailed the impugned order and has raised the following points for consideration, before us :-

(i) Respondent No. 1, according to learned counsel, had no jurisdiction to entertain the application filed by respondent No. 2 under Sec. 48 of the Act.

(ii) Even under Regulation 37 of the Regulations respondent No. 1 had no jurisdiction to entertain the application on the facts and circu




















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