The final authority of the society vests in the general body of its members and the committee constituted by the general body for the management of its affairs. The staff pattern is fixed by the rule itself and does not require prior approval of the Department for appointments.

Headnote:
Co-operative Society - Appointment of Officers and Servants - Kerala Co-operative Societies Act 1969 - S.28, R.182, R.188, Appendix III - The court quashed the condition imposed by the Joint Registrar requiring prior approval for appointments in the upgraded credit society and also quashed the order interdicting appointments until further orders. The court held that the staff pattern is fixed by the rule itself and does not require prior approval of the Department for appointments. The court also emphasized that the final authority of the society vests in the general body of its members and the committee constituted by the general body for the management of its affairs. The court found that the Board of Directors had the power to appoint a Secretary and other officers and employees of the society without the prior approval of the Joint Registrar.
Fact of the Case:

The Shertallai Urban Co-operative Bank Ltd. (the Society) was managed by a committee elected in accordance with S.28 of the Kerala Co-operative Societies Act 1969. The Joint Registrar upgraded the Society as a Class II credit society and directed that appointments could only be made with his prior approval. The Society challenged this condition and the order prohibiting appointments to various posts until further orders.
Finding of the Court:

The court found that the condition imposed by the Joint Registrar and the order interdicting appointments were invalid. It emphasized that the staff pattern is fixed by the rule itself and does not require prior approval for appointments. The court also affirmed the authority of the society's general body and its committee to appoint officers and employees without the prior approval of the Joint Registrar.
Issues: Validity of the condition imposed by the Joint Registrar requiring prior approval for appointments in the upgraded credit society and the validity of the order interdicting appointments until further orders.
Ratio Decidendi: The court held that the staff pattern is fixed by the rule itself and does not require prior approval of the Department for appointments. It emphasized the final authority of the society's general body and its committee to appoint officers and employees without the prior approval of the Joint Registrar.
Final Decision: The court quashed the condition imposed by the Joint Registrar and the order interdicting appointments. The OP was allowed to the extent of the quashing of the condition and the order.

Judgment :-

1. OP. No. 9745 of 1983-P.

This OP. is by the Shertallai Urban Co-operative Bank Ltd. (hereinafter referred to as the Society) represented by its President. The society is being managed by a committee constituted as per its bye-laws and in accordance with S.28 of the Kerala Co-operative Societies Act 1969 (hereinafter referred to as the Act). The present committee was elected to office on 1-7-1982 at a time when the society was a Class III credit society. The 2nd respondent, the Joint Registrar of Co-operative Societies, Alleppey as per his proceeding Ext. P1 dated 13-1-1983 upgraded the Society as a Class II credit society with effect from 1-7-1982. The concluding portion of Ext. P1 directs that appointments to be effected on account of the classification of the society as a class II credit society can only be with the prior approval of the joint Registrar. This part of Ext. P1 order is sought to be quashed in this writ petition. The society had even earlier requested the Joint Registrar to conduct a written test for the purpose of selection and appointment of a Secretary for the society. The Joint Registrar had on 11-10-1982 informed the Society that a written test of candidates for selection to the post of secretary will be conducted by him on 7-11-1982. After holding the test on 7-11-1982 the Joint Registrar forwarded to the society a list of candidates who had passed the test. By the time the list was received by the society it had been upgraded as a class II credit society, with retrospective effect from 1-7-1983. The Committee of the society on 410-1983 interviewed the candidates included in the list sent up by the Joint Registrar for the purpose of selection to the post of Secretary of the society. The Committee after interview found that none among the candidates in the list forwarded by the Joint Registrar was suitable for the post. Accordingly the Committee as per its resolution No. 97 dated 4-10-1983 requested the Joint Registrar to make the services of a Senior Inspector available to work as Secretary on deputation from the Department.

2. The Committee had by resolutions dated 30-4-1983 and 4-10-1983 called for applications for the posts of Junior Clerks, Typists and Peons to be appointed in the society on account of its upgradation as a class II credit society. It was at that stage that the Joint Registrar passed Ext. P2 order dated 25-10-1983 prohibiting appointment to the posts of Junior Clerks, Typists, Peons, Secretary and Assistant Secretary until further orders of the Department. The reason mentioned in Ext. P2 is that Ext. P1 order itself had required prior sanction of the Joint Registrar to make appointments to the posts required to be filled up on account of the upgradation of the society into a class II credit society.

3. The only question urged before me is relating to the validity of the condition imposed in Ext. P1 by the Joint Registrar that appointments in the upgraded credit society should be with his prior approval and also of the validity of Ext. P2 as per which the Joint Registrar had interdicted appointments to the various posts mentioned therein until further orders by him. There is no dispute before me that the power of appointment of employees of the society is vested in the society itself administered by its Committee. As per sub-section (1) of S.80 the Government is required to classify the societies in the State according to their type and financial position. As per sub-section (2) the Government is also required to fix or alter the number and designation of the officers and servants of the different classes of societies specified in sub-section (1). Sub-section (3) requires the Government to make rules regulating the qualification, remuneration, allowances and other conditions of service of the officers and servants of the different classes of societies specified in sub-section (I). R.182 of the Kerala Co-operative Societies Rules, 1969 (hereinafter referred to as 'the Rules')

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