PATNA HIGH COURT
N.P.Singh and N.Pandey JJ.
Satish Kumar
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 694 of 1987 ; 769 of 1987 ; 771 of 1987 ; 962 of 1987 ; 963 of 1987 ;
Decided On : APRIL 10, 1989
N.P.Singh, J.
1. These writ applications have been filed on behalf of the petitioners for quashing an order dated 9-2-1987 issued by the Administrator, Magadh Central Co-operative Bank Ltd. Gaya, (hereinafter referred to as the said Bank) terminating the services of the petitioners on the ground that their appointments, were in contravention of the procedure prescribed by the Registrar, Co-operative Societies, Bihar, The appointments of the petitioners had been made on temporary basis.
2. The Co-operative Bank is governed by the provisions of the Bihar and Orissa Co operative Societies Act, 1935 (hereinafter referred to as the Act) the primary function being to finance Co-operative Societies. The petitioners were appointed on temporary basis between 24-2-1985 and 7-7-1985 by the Honorary Secretary of the Bank, when the Managing Committee thereof was functioning. The Registrar, Co-operative Societies issued a letter dated 26-12-1985 directing the Board of Directors and the Executive Officer of the said Bank to terminate the services of the petitioners with effect from 31-12-1985. Pursuant to that direction the Executive Officer of the said Bank terminated the services of the petitioners and others by letter dated 31-12-1985 after paying the salary upto 31-12-1985. Being aggrieved by the orders of termination the petitioners filed writ applications (C.W.J.C. No. 1250 of 1986, C.W.J.C. No. 5529 of 1985 and C.W.J.C. No. 2239 of 1986). Those writ applications were allowed on 28-11-1986 and the order dated 31-12-1985 terminating the services of the petitioners was quashed on the ground that when the Managing Committee of the Co-operative Bank in question had not been superseded, then the Registrar had no authority under the provisions of the Act or the Rules to direct the Executive Officer of such Bank to terminate the services of the employees of the Bank.
3. By a notification dated 2-1-1987 the State Government dissolved the Managing Committee of the Bank and appointed an Administrator to manage the affairs of the Bank. The Administrator so appointed, issued the impugned order dated 9-2-1987 cancelling the appointments of the petitioners and others on the ground that such appointments had been made in contravention of the procedure prescribed by the Registrar, Cooperative Societies, and circulated by communications dated 9-2-1980 and 12-10-1980.
4. Counter affidavits have been filed on behalf of the respondents. It has been said that as the affairs of the Co-operative Bank were being grossly mis-managed, the State Government dissolved the Managing Committee in exercise of the powers conferred on the State Government by Sec. 41(6) of the Act and appointed the Administrators to manage the affairs of the said Co-operative Bank. It has been stated that as the appointments of the petitioners had been made in an illegal manner by the then Honorary Secretary without following the procedure prescribed for making appointments after the dissolution of the Managing Committee by the State Government, the Administrator, terminated the services of the petitioners. It has also been pointed out that no advertisement was made inviting applications for appointment to the posts against which the petitioners were appointed. Regarding the claim of the petitioners that such advertisement was published in Magadh Dharti it has been stated that it could not be ascertained whether this Magadh Dharti is a daily, weekly or a monthly magazine and from where it is published. It has also been said on behalf of the Administrator that the petitioners had been appointed on buff-sheets issued by the then Honorary Secretary ignoring all procedures prescribed for appointments. It has been stated that when the Bank was running a heavy loss at the relevant time, to the tune of Rs. 7 to 15 lacs each year, the Honorary Secretary put an additional burden to the tune of Rs. 5 lacs annually by appointing 34 persons including the petitioners. In respect of the earlie
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