The main legal point established in the judgment is that Rule 200 of the Kerala Co-operative Societies Rules was intended to protect the right to promotion to higher posts for existing employees, not just their emoluments, and should be interpreted liberally in light of its wording and underlying objective.

1. Rule 200 of the Kerala Co-operative Societies Rules (hereinafter referred to, for convenience of reference, as the 'Rules') framed under S.80 of the Kerala Co-operative Societies Act (hereinafter referred to as the 'Act')comes up for interpretation in these writ petitions. The Rules had been earlier considered by our learned Brother, Justice Chandrasekhara Menon in OP 549 of 1975. The writ petition concerned the claim of an employee of Society to continue in service in accordance with the provisions of an agreement which fixed for retirement on superannuation a higher age

than those provided under the Rules which came into force later. The views of the learned judge were expressed thus:

"The only contention that was argued before me by the learned Counsel for the petitioner was that in the nature of the saving provision in R.200 of the Kerala Co-op. Societies Rules, the petitioner is entitled to continue in service till 19-5-1971 in accordance with the agreement between him and the society. I think this argument is far fetched. R.200 only states that nothing in the Kerala Co-op. Societies 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 of service or agreement or conditions of service subsisting between such person and a Co-op. Society and the date on which the rules came into force. What is saved is only the right or privilege of emoluments. Other conditions of service are not protected. Any other interpretation of R.200 will render otiose the other rules."

2. The correctness of the above view was doubted by one of us (Kochu Thommen, J.). The order of reference brings out the difference of view in sharp focus. The following extract from the order "of reference is therefore apposite:

"One important question which arises for consideration in this petition is the construction of R.200 of the Kerala Co-operative Societies Rules, 1969 ('the Rules'). This rule does not admit of easy construction, particularly because of the language employed which in my view appears to be far from clear Before I read R.200 I shall read R.185:

185 Promotions. (1) 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 these rules on the basis of seniority in the feeder category. The feeder category for this purpose shall be prescribed by the society by framing suitable subsidiary regulations with the approval of the Registrar.

(2) It shall be competent for the committee of a society to relax the qualifications of an employee for the purpose of promotion in deserving cases with the prior approval of the Registrar and for reasons to be recorded in writing."

Under clause (1) the Society has the power to make subsidiary regulation with the approval of the Registrar prescribing the feeder category for the purpose of promotion. Under clause (2) the Committee of the Society has the power to relax the qualifications for the purpose of promotion. The qualifications are stated under R.186. R.185 refers to employees in general. The qualifications mentioned under R.186 can be, in appropriate cases, relaxed. R.200 on the other hand refers to the existing employees of the Society, meaning, persons who were employees of the Society on the date on which the Rules came into force. They are protected from the restrictive effect of the Rules in regard to certain matters. R.200 reads:

"200. Savings. 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 disqua