The main legal point established in the judgment is that the order of compulsory retirement was valid based on the findings of the Pillai Commission and the petitioner's track record of embezzlement and misappropriation. The court also found that the order recalling the petitioner's retirement was illegal and manipulated by the petitioner.

This shall dispose of SWP No. 329/2004 and SWP No. 904/2004. In SWP No. 329/2004 challenge is to order dated 12.12.2003, whereby petitioner Ashok Kumar Jain, Deputy General Manager Jammu & Kashmir Cooperative Supply & Marketing Federation (JAKFED) (hereinafter referred to as the Federation), has been compulsorily retired from service w.e.f. 12.12.2003 after-noon, on his completing 24 years 10 months service and attaining 51 years of age.

2. However, vide order dated 18.5.2004, one Rajinder Singh, describing himself as Chairman of the Federation, recalled order dated 12.12.2003 compulsory retiring the petitioner from service. The Chairman on coming to know of the order issued by Rajinder Singh passed order dated 22.5.2004 keeping in abeyance order dated 18.5.2004 issued by Rajinder Singh. In SWP No. 904/2004 challenge by the petitioner is to order of Chairman dated 22.5.2004.

3. Before meeting with the issues involved in both the writ petitions, it deserves to be mentioned that perusal of Bye-laws of the Federation (amended upto 31st December 1975) shows that the Federation was initially registered in the year 1948 as a Cooperative Society with its Headquarter at R.S.Pora, Jammu. In the year 1960 it became an Apex Body when its headquarter was shifted to Jammu. The membership of the Federation comprises Cooperative Societies, individuals, the State Government and merchants, traders, commission agents as nominated members, having no right to vote. The objects for which the Federation was constituted, inter alia, are to arrange for the sale of agricultural produce of the members or purchased by the Federation; to prepare the produce for markets by sorting, grading, packing and re-packing; to transport produce from members residence, farms or go-downs to markets; to encourage, assist members to grow improved and standardized varieties of produce; to rent or own go-downs to facilitate storage, processing and sale of goods; to produce and supply to members, fertilizers, manure, seed and implements etc. and essential domestic requirements; to encourage thrift, self-help and cooperation among its members; to act as Warehouse men; to carry publicity and propaganda in respect of Cooperative Marketing and Supply by publication of suitable literature; to undertake all other activities calculated to further the object of the Federation; to advance loan to members on the security of their produce, raw or processed; to act as transporters and to arrange essential and consumer goods.

4. Bye-laws further provide that management of affairs of the Federation shall vest in the Board of 18 Directors, i.e. one nominee from the Government; four representatives of Marketing Societies each from Kashmir and Jammu Division; four representatives from Primary Agriculture Cooperative Societies; four representatives from individual cultivators and one from Financing Agency.

5. It is stated that as against the given set up, the elected management of the Board could function in the Federation only till 29.12.1969. Thereafter, the State Government provided a nominated set of Board and since 1969 the affairs of the Federation were being managed through the nominated management constituted from time to time by the Government, till very recently when elected Body came to manage the affairs of the Federation. In the beginning the Federation was operating on small scale catering to the needs of farmers but with the increase of consumption of agricultural inputs in the State of Jammu and Kashmir the activity for distribution of fertilizer was also entrusted to it. The foodgrain procurement was later on withdrawn as the Food & Supplies Department switched over to policy of procuring foodgrains from Food Corporation of India. The distribution of fertilizer continues to be the major activity of the Federation and the business of Cement and LPG Gas Cylinders was also brought within the fold of Federation. Though Federation diversified into other various business activities

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