1. In these cases, the validity of two circulars issued by the Registrar of Co-operative Societies prohibiting appointments to all posts and promotions from posts lower to that of Junior Clerk in primary credit societies is under challenge. Therefore, they are being heard and disposed of by a common judgment.

2. For convenience, O.P. No. 26973/02 is treated as the main case and the exhibits in that Original Petition are referred to in this judgment. Ext. P5 dated 3.5.2002 is the first circular issued by the Registrar. The English translation of the said circular reads as follows:

"Circular No. 18.2002

Sub: Regarding prohibition of all appointments in primary credit co-operative societies and promotions from posts below that of Junior Clerk.

Ref: Government Note No.1446/M(C)/2002 dated 3.5.2002. ..............

Majority of the primary credit societies in the State are running at loss. Direct recruitments to the posts of Junior Clerk and above in these societies are done by the Co-operative Service Examination Board under S.80B of the Kerala Co-operative Societies Act, 1969. The power to make appointments to posts below that of Junior Clerk is with the managing committee of the respective societies. It is seen that using this facility, the legal provision regarding appointments through Co-operative Service Examination Board is bypassed by appointing persons with higher educational qualifications in posts below that of Junior Clerk and giving them promotions to the vacancies of Junior Clerk arising as a result of promotion or change of classification. It is convinced that this tendency has to be stopped as the same is not good for the proper functioning of the societies.

In the above circumstances, it is decided to stop all appointments (to all posts) and promotions from posts below that of Junior Clerk in all primary credit co-operative societies other than urban co-operative banks under the control of the Reserve Bank and newly registered co-operative banks/ societies, temporarily for a period of 6 months.

(Sd/-)

James Varghese, I.A.S.,

Registrar of Co-operative Societies"

The said circular has been issued on the basis of the directions contained in a note issued by the Minister for Co-operation. The said note which has been referred to in the above circular and available in the file, on translation, reads as follows:

"Majority of the primary credit co-operative societies in the State are running on loss. The appointments to the posts of Clerk and above in the societies are done through the Examination Board. The respective managing committees have the power to make appointments to the posts below them. It is seen that the law that all appointments should be made through the Examination Board is bypassed by appointing persons with higher qualifications to the posts below that of junior Clerk and promoting them to the vacancies of Junior Clerk arising as a result of change of classification or promotion. This tendency has to be stopped. Therefore, the Government have decided to stop all appointments (to all posts) and promotions from the posts below that of junior Clerk in all primary credit co-operative societies except in urban co-operative banks under the control of the Reserve Bank and newly registered co-operative banks/ societies, temporarily for a period of 6 months. Therefore, as per the direction of the Honourable Minister for Co-operation, it is informed that the Registrar of Co-operative Societies shall issue a circular in this regard explaining the above said matters today itself." (Emphasis supplied)

3. The validity of the above said circular issued on the basis of the direction of the Government expired on 2.11.2002. Therefore, the Registrar issued another circular dated 2.11.2002 (Ext. P6) extending the period of ban on appointments/ promotions for a further period of 6 months. It is stated in the second circular that since the object for which the first circular was issued has not been achieved, the second circu