Preparation of select list for appointment of officers and servants of Cooperative Societies scheduled under the Kerala Cooperative Societies Act, 1960 is the duty of the Kerala Public Service Commission (hereinafter referred to as "the Commission") with effect from 27.10.1995, the date of commencement of the Kerala Public Service Commission (Additional Functions as respects certain Societies) Act, 1996 (Act V of 1996). Rule 187 of the Kerala Cooperative Societies Rules provides for reservation of 50% of the vacancies in apex societies to the employees of the member societies. The said Rule contemplates reservation to those employees having a minimum regular service of three years in any of the cadre and having the required qualification for the notified post. The Commission stipulates that the experience should be in the same cadre. In the instant case recruitment is to the post of peon/watchman and the Commission insists that the experience of the incumbents who were employees of the member societies should be in the same cadre of peon/watchman and that is the dispute raised in these Original Petitions.

2. The Commission invited application as per Exhibit P2 notification dated 26.10.1999. The facts (OP.No.18324 of 2002) are as follows: The notification consists of two parts. Part 1 is intended for direct recruitment from open market and part 2 is for recruitment from among the employees working in the affiliated societies. It is not in dispute that the recruitment is for all the District Cooperative Banks in the State. Note (1) under item (4) as it originally stood provided that the recruitment is subject to Rules 186 and 187 of the Kerala Cooperative Societies Rules. Rule 186 provides for qualifications, in the instant case 7th Standard. Rule 187 reads as follows:

"187, Vacancies in Apex Society or Central Societies. - Notwithstanding anything contained in rule 186, in appointments to apex societies or central societies, 50% of the vacancies shall be reserved to the employees of the member societies of the respective apex society or Central society as the case may be, having a minimum regular service of 3 years in any of the cadre and having the required qualification for the notified posts in the apex society or central society."

Prior to 2.5.2000 the said rule provided as follows:

"187. Vacancies in Apex Society or Central Societies - Notwithstanding anything contained in R.186 for appointments to the 50% of the vacancies arising in an Apex Society or other Federal type Society having other societies as its members experience in the societies which are members of the respective Apex Society or Federal type Society, as the case may be, shall be a necessary additional qualification."

It may be seen that unamended rule provided only for experience in affiliated societies as additional qualification in respect of 50% of the vacancies whereas after amendment there is a reservation in respect of 50% of the vacancies. The incumbents having a minimum regular service of 3 years in any of the cadre and having the required qualification for the notified post are eligible to be considered. It needs no elaborate discussion to understand the intention behind the rule – to favour the employees of the member societies in respect of 50% of the vacancies in the apex society.

3. Though Exhibit P2 notification contained the Note as stated above regarding the application of Rules 186 and 187 of the Rules and the purport of the rule being what is stated above, while prescribing the qualifications in the notification, under item (7) (c ) it was stipulated that the candidate should have three years experience in the same cadre. Consequently, as per Exhibit P3 the Commission issued erratum notification deleting Note (1) under item (4), the Note regarding the application of Rules 186 and 187 of the Rules. In other words, in view of Exhibit P3 notification dated 29.3.2000, Exhibit P2 notification should be taken to have stipulated that the in