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1990 Supreme(Cal) 349

High Court Of Calcutta
G. N. RAY, S. K. HAZARI
ARJED ALI GAZI - Appellant
Versus
STATE OF WEST BENGAL - Respondent
C. O.  9523 (W)  Of  1989
Decided On : 08/27/1990

Advocates Appeared:
DHRUBA MUKHERJI

For breach of obligation under statutory rules, a writ petition for appropriate writs and/or directions are maintainable.

Headnote:

CO-OPERATIVE SOCIETY - MAINTAINABILITY OF WRIT PETITION - CONDITIONS OF SERVICE - STATUTORY RULES - BREACH OF OBLIGATION - WRIT MAINTAINABLE - WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 1984 - WEST BENGAL CO-OPERATIVE SOCIETIES RULES, 1987, RULE 108.

Fact of the Case:

The writ petition challenged the order of dismissal from service passed by the Secretary of the Dakshin Barasat Service Co-operative Society against the petitioner, an employee of the society, on the ground of misappropriation of cement.

Finding of the Court:

1. A Co-operative Society is not a statutory body or an instrumentality of the State. It is a private body formed by the private initiations of its members. 2. Ordinarily, a writ does not lie against a private body. However, if such private body is vested with statutory duties and functions, for inaction relating to such statutory duties or improper action contrary to the statutory provisions, such private body becomes amenable to the writ jurisdiction. 3. In the instant case, the conditions of service of the petitioner as an employee of the Society were controlled by the statutory rules, namely Rule 108 of the West Bengal Co-operative Societies Rules, 1987. Therefore, the Society had an obligation to comply with the said statutory rule in the matter of discipline relating to the employment of the petitioner. 4. When a duty flows from the statutory rule in the matter of employment, although such employment may be at the inception a product of private contract between the parties, in the matter of regulation of the condition of service of such employment a duty of a public nature comes into operation. Accordingly, for breach of such obligation under statutory rules, a writ petition for appropriate writs and/or directions are maintainable.

Issues: 1. Whether a writ petition is maintainable against a Co-operative Society. 2. Whether the conditions of service of an employee of a Co-operative Society are controlled by statutory rules or terms of contract.

Ratio Decidendi: 1. The maintainability of a writ petition against a Co-operative Society depends on whether it is vested with statutory duties and functions. If it is, then for inaction relating to such statutory duties or improper action contrary to the statutory provisions, the Co-operative Society becomes amenable to the writ jurisdiction. 2. The conditions of service of an employee of a Co-operative Society may be controlled by statutory rules or terms of contract. If the conditions of service are controlled by statutory rules, then the Co-operative Society has an obligation to comply with the said statutory rule in the matter of discipline relating to the employment of the employee. When a duty flows from the statutory rule in the matter of employment, a duty of a public nature comes into operation. Accordingly, for breach of such obligation under statutory rules, a writ petition for appropriate writs and/or directions are maintainable.

Final Decision: The writ petition was allowed, the impugned order of dismissal was quashed, and the petitioner was deemed to be in service and continue in such service in terms of the resolution of the Governing Body of the Society held in the meeting dated 17.4.1988. He was also directed to be paid all arrear salaries and emoluments as may be admissible to him as an employee of the Society if the order of dismissal had not been passed against him.

G. N. RAY, J.

( 1 ) THIS writ petition is directed against an order of the Secretary, Dakshin Barasat Service Co-operative Society (hereinafter referred to as the Society) dismissing the service of the writ petitioner, Sri Arjed Ali Gazi, who was an employee of the Society. Mr. Justice Monoranjan Mallick has noted that there are convicting decisions of Single Bench of ibis Court on the question of maintainability of a writ petition against a Cooperative Society. As the said question is important and is often involved in other writ petitions, the learned Judge felt that the matter should be considered by a Division Bench. In view of such observation by the Single Bench, this matter has been assigned to this Division Bench by the Hon'ble the Chief Justice. The short facts relating to the order of dismissal may be stated hereunder. Sri Arjed Ali Gazi was an employee of the Society, which is a primary Co-operative Society governed by the West Bengal Co-operative Societies Act. It was alleged against Sri Gazi that he had not accounted for six bags of cement which were sold by him on behalf of the Society. On an enquiry made, it was revealed that there was shortage of fifty bags of cement. It was tentatively proposed to dismiss him from service. Sri Gazi made a representation in writing to the Governing Body of the Society not to impose the extreme penalty of dismissal from service so that he would not starve with the members of his family in those hard days. He had admitted that out of want, he had misappropriated the sale proceeds of six bags of cement. Although different persons had dealt with cement from time to time and he was not accountable for the total loss of 5d bags of cement, he had agreed to deposit the price of 50 bags of cement with the Society by installments. It is an admitted position that the Governing Body had considered the said representation and had adopted a resolution on 17. 4. 19'88 that extreme penalty of dismissal from service should not be passed for lapses for the first time. He was directed to deposit the price of the said fifty bags of cement and was demoted as a Sub-staff from the clerical post. According to Sri Gazi, such decision was implemented and he had to accept the position of a Sub-staff of the Society. Inspite of the said resolution of the Governing Body, a fresh enquiry was made by the Society and the enquiry committee consisted of three members of the Society which held that charge of misappropriation of six bags of cement was established and the Secretary passed the impugned order of dismissal from service on the basis of such ex parte enquiry without giving Sri Gazi any hearing. Against such order of dismissal from service, the writ petition has been moved by Sri Gazi challenging the legality and validity of the order of dismissal. It has been contended, inter alia, that the Governing Body of the Society had already resolved that for the loss of cement, no order of dismissal should be passed against Sri Gazi but he would compensate the loss and suffer the said punishment of demotion and such decision of the Governing Body having been implemented, there was no further scope to cause any enquiry about his complicity in the matter of dealing with cement and/or take any action pursuant to such ex parte enquiry. It has been alleged, inter alia, that under clause 15 of Rule 108 of the West Bengal Co-operative Societies Rules, 1987, the Governing Body of the Society was the appropriate punishing authority and the General Body of the Society was the appellate authority. The appropriate punishing authority having imposed the said penalty of reversion and fine and no appeal having been preferred against such penalty before the Governing Body, the said penalty had become final and any further enquiry and consequential penalty as purported to have been passed against Sri Gazi were wholly illegal and without jurisdiction. In any event, the said enquiry having been held ex parte behind the back of Sr







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