The main legal principle established in the judgment is that the Registrar of Co-operative Societies does not have the power to effect regular appointment in a co-operative society, and the power for appointment lies with the general body of the society.

K.S. Radhakrishnan, J.

Question that has come up for consideration in these cases is whether the Administrator or Administrative Committee appointed by the Registrar of Co-operative Societies under S.32 or 33 of the Kerala Co-operative Societies Act has get power to effect appointment in a co-operative society.

2. The Kerala Co-operative Societies Act, 1969 was enacted to provide for the orderly development of the co-operative movement in the State of Kerala in accordance with the relevant directive principles of State policy enunciated in the Constitution of India. Various provisions of the Act disclose that the object and purpose of the Act is to permit a society registered under the Act to function as a body corporate having perpetual succession. Co-operative Societies functioning under the Act and Rules are not bodies created by the Act or under the Rules. They are bodies which owe their origin to their members, and that they are functioning only in accordance with the provisions of the Act, Rules and bye-laws framed. Full Bench of this Court in P. Bhaskaran v. Additional Secretary, 1987 (2) KLT 903 (FB) stated those bodies have got legal existence de hors the Act and Rules. Eventhough Act and Rules have given certain powers to the Registrar of Co-operative Societies to regulate the affairs of the societies, the control is not deep and pervasive. The managing committee of a society is not functioning under the Registrar or Government or the representatives appointed by them. The management of a society is under the effective control of a committee elected by the members of a society, and members in turn constitute a general body.

3. The registration of a society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted. Under S.27 of the Act, the final authority of a society shall vest in the general body of its members, subject to the provisions of the Act, Rules and bye-laws. The general body of a society shall constitute a committee in accordance with the bye-laws and entrust the management of the affairs of the society to such committee. S.80 of the Act enables the Government to classify societies in the State according to their type and financial position. Government can also regulate qualification, remuneration, allowances and other conditions of service of the officers and servants of different classes of societies. In exercise of the powers conferred under S.80(1) of the Act, Government can classify the societies under R.182 of the Rules as per Appendix III. In the matter of appointment, age limit has been fixed under R.183. R.185 deals with promotions, which says that appointments to higher categories of service in a society shall ordinarily be made by promotion from among members eligible for appointment to such category in accordance with Rules on the basis of seniority in the feeder category. Qualifications have been laid down in R.186 of the Rules and staff pattern has been provided under R.188. Service benefits such as employment assistance to dependents, remuneration and allowances, leave rules, etc., have also been prescribed under the Rules. Provisions for initiating disciplinary action against the employees of the societies have also been dealt with under the Rules. As per R.198 of the Rules, the authority who imposes punishment in certain categories of employment is the President/ Chairman, and certain punishment could be imposed by the Sub-Committee/Executive Committee. With regard to certain employees, penalties also could be imposed by the secretary/ manager or other Chief Executive Officer, or President. Appeals have also been provided under the Rules to the managing committee or Board of Management, and in certain cases to the President. R.198(6