The main legal point established in the judgment is that the decision to rescind a resolution must be taken after affording an opportunity of being heard to the affected parties, and appointments made through fraudulent means should not be protected.

SreedhArAn, Ag. C. J.

These Original Petitions have come before us on a reference made by a learned single judge of this Court. The issue referred is whether the Joint Registrar of Cooperative Societies while rescinding resolution of the society appointing members in it staff should afford hearing to those members who will be sent out of employment.

2. Before dealing with the facts of the case, it is worthwhile, to note that all persons who got appointment to the various posts in the Kasaragod District Co-operative Bank Ltd and who are now thrown out on account of the Joint Registrar's decision to rescind the resolution are before this court either as respondents in O.P. 17823/94 or as petitioners in the other O.Ps.

3. The facts necessary for the disposal of these Original Petitions, which as agreed to by learned counsel appearing on either side in these matters, can be disposed of by a common judgment, are as follows:-Kasaragod District Co-operative Bank is the Central Bank for Kasaragod District, hereinafter referred to as the Bank. The Managing Committee of the Bank resolved to appoint additional staff for carrying on its business. Pursuant to the decision, they approached the Registrar of Co-operative Societies for sanction to the creation of additional posts. By order No. CB (3) 381147 94 dt. 24.11,94. Registrar of Co-operative Societies accorded sanction for the creation of 95 additional posts over and above the existing staff strength. Even before above sanction was accorded by the Registrar, the Bank issued Notification dt. 10.10.94 inviting applications for various posts. Number of vacancies in each category was not specified in the Notification. Nor was there any stipulation as to the number of vacancies reserved for each sector. A large number of candidates applied for various posts. Various circulars issued by the Registrar of Co-operative Societies contained detailed procedure to be followed in the recruitment and selection of candidates to the various posts in the Co-operative societies. It is alleged that the Bank did not comply with the provisions of those circulars. One retired Joint Registrar of Co-operative Societies was appointed as outside agency for setting the question papers to conduct the examination and to value the answer scripts. The said Joint Registrar Sri. V. C. Gangadharan Nambiar was formerly the Administrator of the Bank prior to the election of the present Managing Committee. He was assisted by Sri. Narayanan Nambiar, a retired Assistant Registrar of Co-op. Societies who was the Enquiry Officer of the Bank in disciplinary proceedings against its employees. Therefore, it is urged that Sri. V. C. Gangadharan Nambiar and Sri. Narayanan Nambiar are not independent agencies to be entrusted with the responsibility of selection of candidates as they are persons having substantial interest in the Bank. Written test for selecting the candidates who applied in pursuance of the Notification was held on 18.12.94. It is averred that the question papers for the test was set by Sri. Pavithran the Superintendent of the Bank. As per the averments in O. P. 17823/94, no secrecy was maintained in setting the question papers conducting the written examination and valuing the answer scripts. It is specifically averred that huge amounts upto Rs. 2 lakhs changed hands as gratification for appointment to the post of Clerks. To facilitate the appointment to such candidates, question papers were supplied earlier, the answer books were allowed to be substituted and all types of malpractices were alleged to have been conducted in preparing the select list.

4. Prior to the decision to appoint additional staff in the Bank, it had a staff strength of 131 members. Registrar accorded sanction for creation of 95 additional posts at the request of the Bank. The Bank did not take any step to get that order of the Registrar varied for increasing the number of the staff to be appointed. But the Bank appointed 108 Clerks/ C