The main legal point established in the judgment is the limitation of the Registrar's power to grant relaxation from the qualifications specified under the Rules and the protection of acquired rights under the bye laws.

Dr.T. Kochu Thommen, Ag.C.J.

1. This appeal arises from the judgment in O. P. No. 5803 of 1981. The appellants are respondents 4 and 5 in the Original Petition. The learned Judge held that the impugned order Ext P4 was invalid. By that order the Government upheld the approval granted by the Registrar for relaxation of the qualifications granted by the Committee of the second respondent - Society in favour of the appellants - respondents 4 and 5 in purported exercise of the power under R.185(2) of the Kerala Cooperative Societies Rules, 1969 (the "Rules"). The learned Judge held that the Registrar had no power under that rule to approve relaxation of the basic academic qualification.

2. The appellants are admittedly not matriculates or persons holding equivalent qualification. R.185 says:

"185. Promotions. -- (1) .....................

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

The qualifications are those prescribed under R.186 which says:

"186. Qualifications. -- (1) No person shall be eligible for appointment in any post unless he possesses the qualifications prescribed for the post as shown below:

Admittedly the appellants do not have the qualifications prescribed under R.186 for the post in question. The first appellant is temporarily holding the post of Secretary and the second appellant is temporarily holding the post of Accountant. It is in these posts that the appellants are sought to be regularised by the Society by relaxing the minimum qualifications.

3. Although the appellants are not qualified in terms of R.186 they are entitled to be regularised provided they have the requisite qualifications in terms of the bye laws which were in force prior to 1-1-1974 when Chap.15 of the Kerala Cooperative Societies Rules came into force. This is clear from note (1) to R.186 as well as R.200. Note (1) to R.186 says:

"Note: -- 1. Nothing in this rule shall apply to the present incumbents for the present post they hold."

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 Cooperative 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."

These provisions have been considered by this Court in two decisions. In Narayanan Nair v. Kottayam Dist. Coop, Bank, 1984 KLT 248, a Division Bench of this Court held:

"......... On a combined reading of R.185, 186 and 200, it has to be held that the right to promotion to the higher posts of those already in service but not possessing the higher qualifications introduced under the Rules, is preserved and protected; the protection is not confined to the emoluments of the posts they held at the time of the coming into force of the Rules. We do not find any reason to restrict the right of such promotion to the immediately higher posts. The safeguard intended was for the incumbents in office and in respect of promotions A liberal interpretation is warranted having regard to the wording of the Rule and the subject underlying it."

The protection thus secured for the existing employees by virtue of these provisions was again recognised by this Court in Krishnankutty Nair v. Joint Registrar, Coop. Societies, 1984 KLT 788. It is no longer disputed that the appellants are entitled to be promoted to higher posts provided they were qualified in terms of the bye laws which existed prior to the corning into force of these Rules.

4. The Special Bye laws relating to service conditions o