The main legal principle established in the judgment is the interpretation and application of R.200 of the Kerala Cooperative Societies Rules in protecting the rights and privileges of existing employees of Co-operative Societies, including entitlement to continue in service, promotion, and retirement age.

1. Interpretation of R.200 of the Kerala Cooperative Societies Rules arises for consideration in all these matters, referred to a Full Bench, by different Benches which noticed an "apparent conflict" between two Division Bench rulings of this Court in Narayanan Nair v. Kottayam Dist. Co-op. Bank (1984 KLT 248) and Krishnankutty Nair v. Joint Registrar (1984 KLT. 788. A proper understanding of the content of R.200 disposes of all these matters and we shall, therefore, first confine our attention to this question of law and then dispose of the matter on the facts in each case.

2. The Kerala Co-operative Societies Act ("The Act") meant to 'consolidate, amend and unify the laws relating to Co-operative Societies in the State of Kerala' came into force on 12th May, 1969. S.80 of the Act provided for classification of the Societies and for making rules "regulating the qualification, remuneration, allowances and other conditions of service of the officers and servants of the different classes of societies". Rules were not framed for this purpose for a long time till Chapter XV, with R.182 to 200, came into force with effect from 1st January, 1974. On that date, it is said there were 4502 Co-operative Societies and thousands of employees in service in these societies. While the new rules, classified the societies, and prescribed the qualifications for appointment to several categories of service in the Societies, a saving clause was inserted in R.200 as follows:

"Nothing in these Rules or any rules made thereunder shall operate to debar from enjoyment of any person or employee of any right or privilege of emoluments to which he is entitled by the term of any contract or agreement or conditions of service subsisting between such person and a Co-operative Society on the date on which these Rules shall come into force. Nothing in these Rules shall be interpreted as disqualification for promotion to a higher post and benefits conferred by these rules to the existing employees of any Cooperative Society."

3. It is contended on one side that this rule saved all rights which accrued to all the employees before 1st January 1974 and protected their right to earn promotion to any higher grade or higher post on the basis of the old bye-laws and rules, without reference to the qualifications and prescription laid down by the new rules from 1974. This claim is resisted by contending that only the "right or privilege of emoluments" earned before 1st January 1974 alone is saved.

4. In the matters now before us, the necessity to interpret R.200 has arisen because some of the petitioners, the existing employees of the societies in service prior to 1-1-1974, contend that they are entitled to continue in service till they attain the superannuation age of 60 years, as provided in the bye-law and that they are not liable to retire on attaining the age of 58 years as provided under the new rules which came into force in 1974. Similarly, where qualifications were prescribed, or where no qualifications .were insisted for promotion to higher posts, under the bye-law or service rules in force prior to 1-1-1974, and when new qualifications are prescribed for promotion under the 1974 rules, it is contended that the employees appointed prior to 1-1-1974 are entitled to promotion to all higher posts without reference to these new qualifications under the present rules. Even when the bye-laws prescribed qualifications for promotion prior to 1-1-1974, those bye-laws also provided for relaxation of the qualifications. In several cases, relaxation was not granted by the Society. But it is contended that they are still entitled to relaxation and therefore should be deemed to be qualified under the old rules Relying on R.200, they too claim promotion notwithstanding the prescription of qualification for promotion under the new rules.

5. R.200 in express terms saves any "right or privilege of emoluments" which any person or employee was entitled prior to 1-1-1974.