IMPORTANT POINT
The court established that staff appointed by liquidators in liquidation proceedings are not government employees and do not have rights to civil service benefits.

JUDGMENT :

BIREN VAISHNAV, J.

1. Letters Patent Appeals No. 481, 478, 479 of 1995 have been filed by the State challenging the oral judgment dated 07/08.03.1995 passed by the learned Single Judge allowing the petitions filed by the original petitioners. Letters Patent Appeal No. 1070 of 2011 has also been filed by the State challenging the oral order dated 09.03.2010 passed by the learned Single Judge who allowed the petition of the original petitioner in terms of the oral order dated 07/08.03.1995 which are a subject-matter of challenge in the other appeals. Letters Patent Appeal No. 1082 of 2001 has been filed by the original petitioner challenging the order dated 24.02.1994 passed by the learned Single Judge dismissing the petition in absence of the advocate and on merits.

2. Since common issues are involved in all these appeals, they are taken up together and decided by this common judgment.

3. The original petitioners before the learned Single Judge were engaged as Clerks to carry out liquidation proceedings of the respective societies in question. It was the case of the petitioners before the learned Single Judge that the District Registrar, Co-operative Societies appointed Co-operation Officers (Liquidators) for carrying out liquidation proceedings of various societies. A circular was issued on 03.07.1986 by the Registrar, Co- operative Societies inter alia stating that liquidation proceedings initiated against the concerned societies under Section 107 of the Gujarat Co-operative Societies Act be completed and the liquidation officers may engage persons for discharging relevant functions or duties. The District Registrars in turn appointed the petitioners as Clerks to carry out the liquidation process of the concerned co-operative society. The appointments were made on a fixed pay basis with an understanding that the salary would be paid from the funds of the society which were in liquidation. Having worked for several years as Clerks appointed by the liquidators, these petitioners approached this court by filing respective petitions.

3.1 For the purposes of brevity, the prayers made by the petitioner of Special Civil Application No. 2815 of 1993 (LPA No. 481/95) are reproduced herein-below:

“19. The petitioners, therefore, pray that:

(a) Writ of mendemus or any other writ, direction or order in nature of mendemus may kindly be issued against the respondents directing them to recognise the petitione as the employees of the department from the date from appokntment and to extend them all the benefits that are being extended to the government employees.

(b) The respondents be directed to raise the pay of the petitioners so as to be equal with that of the clerks doing the same duties in the department and;

(c) Pending hearing and final disposal of this petition, the 3rd respondent be directed to pay petitioner No. 1 to 6 the same emoluments as being paid to the clerks in the department and 7th petitioner, the peons pay in the department.

(d) Any other relief as deemed fit may kindly be granted.

(e) To direct the respondents to treat the petitioners as permanent employees/workman having completed 240 days and they may further be directed to retain the petitioners in service and also to pay them the pay and allowances on the same scale as being paid to other clerks in the department and also to pay them arrears forthwith.”

3.2 The learned Single Judge by the judgment under challenge dated 07/08.03.1995 allowed the petitions giving the following directions:

“1. The respondents are directed to consider the individual cases of the petitioners, frame an appropriate scheme for regularization and/or absorption of their services and post them at the places where the work is available while treating them civil servants in the appropriate grade of scales.

2. The respondents shall treat only those employees as Government employees who are appointed either by the Registrar or by the Liquidator who himself is the Government employee. It is clarified