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Judges : SREEDHARAN
Kurian - Appellant
Versus
Joint Registrar - Respondent
Case No : O.P. No. 3120 of 1988
Decided On : 02/27/1990
Advocates Appeared :
N. Raghava Kurup; For Petitioner A.N. Rajan Babu; For Respondent
Appointment - Co-operative Bank - Kerala Co-operative Societies Act, Section 66(1), Bye-laws of the Bank, General directions by the Registrar - The court considered the appointment of petitioners in the Kurichi Service Co-operative Bank Limited and the power of the Joint Registrar to interfere with the selection and appointment process. The court discussed the violation of the directions given by the Registrar and the consequences of such violation on the appointment process. The court upheld the orders of the Joint Registrar to cancel the appointments made by the Bank and dismissed the Original Petitions.
Fact of the Case:
The Kurichi Service Co-operative Bank Limited conducted a selection process for the appointment of Junior Clerks and a Peon. The Joint Registrar issued orders directing the Bank not to make any appointments until further orders, and later directed the Bank to cancel the appointments made to the petitioners. The petitioners challenged these orders in the court.
Finding of the Court:
The court found that the Joint Registrar had the power to interfere with the selection and appointment process of the Bank, as the Bank was bound by the general directions given by the Registrar under Section 66(1) of the Kerala Co-operative Societies Act. The court upheld the orders of the Joint Registrar to cancel the appointments made by the Bank.
Issues: The main issue was whether the Joint Registrar was justified in issuing orders to cancel the appointments made by the Bank, and whether the appointment process violated the directions given by the Registrar.
Ratio Decidendi: The court held that the Joint Registrar had the authority to supervise the management of the Bank and to issue orders in case of violation of the directions given by the Registrar. The court also emphasized that the appointment made by a committee other than the board of directors was not valid, as the board of directors had the sole power to make appointments.
Final Decision: The court dismissed the Original Petitions and upheld the orders of the Joint Registrar to cancel the appointments made by the Bank.
Since these Original Petitions relate to same issue, viz., appointment of petitioners in O.P.No.9170/88 in the Kurichi Service Co-operative Bank Limited No.1538, hereinafter referred to as 'the Bank', I consider it advantageous to dispose of them by a common judgment. O.P.No.3120/88isfiledbythe President of the Bank. lam referring to the parties and exhibits as they are arrayed and marked in O.P.No..3120/1988.
2. The Bank came under Class II of Appendix III of the Kerala co-operative Societies Rules. It is ranked as Class II in serial No.II(c). The sanctioned staff strength of petitioner Bank is:
(i) Secretary -1 Post
(ii) Asst.Secretary/ Manager/ Chief Accountant - 2 Posts
(iii) Head Clerk/ Accountant 1 Post
(iv) Cashier/Senior Clerk -3 Posts
(v) Junior Clerks/Typists - 4 Posts
(vi) attender/peon - 3 Posts
The existing strength of the staff was one Secretary, two Junior Clerks and one Attender. The Bank took steps for filling up the vacant posts. Applications were invited by advertising in Malayala Manorama daily dated 4-6-1987 and Deepika daily dated 3-6-1987. As per Ext.P1 resolution the President was authorised to appoint an examiner to set question papers, to conduct examination and to value the answer books. Shri. P. Narayanan Nair, General Manager of the Kottayam District Co-operative Bank, was entrusted with the above duties. The written test was conducted on 25-7-1987 between 10 AM and 12 Nooh. Immediately after the test was over Shri. Narayanan Nair valued the answer books, prepared mark list and entrusted the answer books and the mark list with the President. The same day between 1PM and 5 PM candidates who took the written test were interviewed.
3. By Ext.P2 order dated 24-7-1987 the Joint Registrar directed the bank not to make appointment in pursuance to the written test scheduled to be held on 25-7-1987 and the interview without obtaining specific orders from him. Immediately after the test and interview the President represented to the joint Registrar for permission to make appointment in pursuance to the selection made by the committee. Sanction was not accorded. Hence the President filed O.P.3120/88. Along with O.P.No.3120/88 petitioner moved C.M.P. No.9218/88 praying for stay of operation of Ext.P2 order. On 3-8-1988 this court passed the following order:
"Operation of Ext.P2 order is stayed until further order. However and if any appointments are made to the service of the Kurichi Service Co-operative Bank Ltd., it shall be stated in the order that the appointment is provisional and subject to the result of the Original Petition."
Consequent on this order petitioners in O.P.9170/88 were given orders of appointment on 9-8-1988.
Petitioners 1 to 3 therein appointed as Junior Clerks and 4th petitioner as Peon. They were appointed in pursuance to Resolution No.3 passed by the Sub Committee of the Board of Directors of the Bank. Learned Government Pleader then moved for modification of the order dated 3-8-1988. This court on 9-8-1988 modified the earlier order as:
"Govt Pleader submits that Ext.P2 is only a preliminary order and prays for liberty to pass final order. There is no stay of further proceedings before the Joint Registrar in passing final orders in the matter. The stay order passed by this court is only regarding the operation of Ext.P2 and appointments to be made by the Co-operative Bank in question. The Government Pleader's apprehension that respondent is precluded from passing final orders in the matter has no basis. It is clarified that the respondent will be at liberty to pass final orders in accordance with law after notice to and hearing the interested parties."
There-upon the Joint Registrar issued Ext.P3 notice to the Bank and to petitioners in O.P.9170/88. The President of the Bank and the new recruits filed their written objections. After going through the written objections, Joint Registrar issued Ext.P6 order directing the Bank to cancel the orders of appointment given to the petitioners in
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