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High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P. S. MISHRA
A. Natarajan and Others
Versus
Registrar of Co-Operative Societies and Others
W.P. No. 12811 of 1944
Decided On :Decided on : 03-07-1991
CO-OPERATIVE SOCIETIES - SERVICE CONDITIONS - BRANCH MANAGERS AND UPPER DIVISION CLERKS - MERGER OF CADRES - BY-LAWS - AMENDMENT - PUBLIC DUTY - ARTICLE 14 - WRIT JURISDICTION - Held, the impugned actions of merging the Branch Managers and Upper Division Clerks in one category and fixing their inter-se seniority reckoning with effect from their respective dates of joining as Branch Manager or Upper Division Clerk, as the case may be, of the Special Officer of the Salem Central Co-operative Bank Ltd., are stricken by the vice of arbitrariness and since the Special Officer represented the Government of the State, either as their servant, or as their agent, he violated Article 14 of the Constitution of India, in arbitrarily implementing the directions of the Registrar of Co-operative Societies.
Fact of the Case:
The petitioners were appointed as Branch Managers in the Salem Central Co-operative Bank Ltd., by direct recruitment in the years 1969 and 1972 by the competent authority and that the Special By-laws of the Salem Central Co-operative Bank Ltd., contained inter-alia, that persons recruited to the posts of Branch Managers should be atleast a Graduate in Arts or Commerce with a first or second class or possess any other equivalent or higher qualifications recognised by the State Government and should undergo a course in Co-operative Banking successfully at any of the Co-operative Training Colleges, administered by the Committee for Co-operative Training, New Delhi or at the Vaikuntalala Institute of Co-operative Management, Poona or by the Reserve Bank of India, within the period of probation, and that the Upper Division Clerks with three years experience can also be considered for the posts of Branch Managers.
Finding of the Court:
The impugned actions of merging the Branch Managers and the Upper Division Clerks in one category and fixing their inter-se seniority reckoning with effect from their respective dates of joining as Branch Manager or Upper Division Clerk, as the case may be, of the Special Officer of the Salem Central Co-operative Bank Ltd., are stricken by the vice of arbitrariness and since the Special Officer represented the Government of the State, either as their servant, or as their agent, he violated Article 14 of the Constitution of India, in arbitrarily implementing the directions of the Registrar of Co-operative Societies.
Issues: Whether the impugned actions of merging the Branch Managers and the Upper Division Clerks in one category and fixing their inter-se seniority reckoning with effect from their respective dates of joining as Branch Manager or Upper Division Clerk, as the case may be, of the Special Officer of the Salem Central Co-operative Bank Ltd., are stricken by the vice of arbitrariness and since the Special Officer represented the Government of the State, either as their servant, or as their agent, he violated Article 14 of the Constitution of India, in arbitrarily implementing the directions of the Registrar of Co-operative Societies.
Ratio Decidendi: The impugned actions of merging the Branch Managers and the Upper Division Clerks in one category and fixing their inter-se seniority reckoning with effect from their respective dates of joining as Branch Manager or Upper Division Clerk, as the case may be, of the Special Officer of the Salem Central Co-operative Bank Ltd., are stricken by the vice of arbitrariness and since the Special Officer represented the Government of the State, either as their servant, or as their agent, he violated Article 14 of the Constitution of India, in arbitrarily implementing the directions of the Registrar of Co-operative Societies.
Final Decision: The application is allowed. The Respondents are directed to forbear from implementing the merger of the Branch Managers and the Upper Division Clerks in one category until the bye-laws are amended in accordance with law and accordingly service conditions are altered, and restrained from interfering with their service conditions by placing them in the common cadre of the Branch Managers and Upper Division Clerks and/or superseding them by giving promotion to the Upper Division Clerks over their heads. There shall be no order as to costs.
Mishra, J.
This application, by twelve employees of the Salem Central Co-operative Bank Ltd., is directed against the orders of the Special Officer of the said Bank, the Deputy Registrar of the Co-operative Societies, Salem and the Special Tribunal for Co-operative Cases, Madras, impleading besides them as respondents, the Registrar of Co-operative Societies. The Salem District Co-operative Sector Bank Employees Union represented by its Joint Secretary has applied for being impleaded as a party respondent and has been heard as per the order of Court dated 28th January, 1985 in WMP No. 906 of 1985.
2. It is not in dispute that the petitioners were appointed as Branch Managers in the Salem Central Co-operative Bank Ltd., by direct recruitment in the years 1969 and 1972 by the competent authority and that the Special By-laws of the Salem Central Co-operative Bank Ltd., contained inter-alia, that persons recruited to the posts of Branch Managers should be atleast a Graduate in Arts or Commerce with a first or second class or possess any other equivalent or higher qualifications recognised by the State Government and should undergo a course in Co-operative Banking successfully at any of the Co-operative Training Colleges, administered by the Committee for Co-operative Training, New Delhi or at the Vaikuntalala Institute of Co-operative Management, Poona or by the Reserve Bank of India, within the period of probation, and that the Upper Division Clerks with three years experience can also be considered for the posts of Branch Managers. The State Government however constituted a Committee, which made certain recommendations and pursuant to the recommendations of the Committee, the Government issued G.O.Ms. No. 645 Co-operative Department dated 1st December, 1977.
3. Following the directions in the said G.O., it is said, the first respondent, that is to say, the Registrar of Co-operative Societies issued certain instructions and the Special Officer of the Bank in his proceeding No. 4735/76-E1 dated 18th August, 1981 recorded :
"Pursuant to implement certain recommendations of the Committee constituted by the Government in G.O.Ms. No. 645, Co-op. Dept., dated 1st December, 1977, the respondent has proceeded to categories the several posts in Salem Central Co-operative Bank as follows in his proceedings Rc. No. 4735/76-E1 dated 18th August, 1981 : (see page 293)
4. On account of the new scheme sought to be introduced, the third respondent promoted certain Upper Division Clerks/Senior Assistants as Assistant Managers ignoring the claims of the petitioners, who were appointed as Branch Managers and which, according to the Special By-laws of the Bank, were a Grade above the Upper Divisions Clerks. The petitioners and other Branch Managers of the bank raised a dispute before the Deputy Registrar (first respondent), who advised to raise a dispute under Section73 of the Tamil Nadu Co-operative Societies Act, 1961 (hereinafter referred to as "the Act").
5. The petitioners then filed a petition before the Deputy Registrar of Co-operative Societies.
To be fitted into the categories S. No. Category of post existing ------------------------------------ Office
Field
I. Secretary/Executive Officer Secretary Executive Officer
II. Asst. Secretary Asst. Asst. Executive Secretary Officer
III. Administrative Officer Manager Field Officer
IV. Special Post Asst. Manager Asst. Field Manager
V. Upper Division Clerk Senior Senior Supervisor Branch Manager and Senior Assistant TypistVI. Lower Division Clerks, Junior Junior Junior Supervisor Bank Inspector, Shroff, Assistant Care-taker, Junior Typist and Steno-Typist
VII. Peon, Drivers, Sweepers, Sub-staff Sub-staff and Scavengers
Salem, who on 30th April, 1983 dismissed their petitions, but observed :" *
If aggrieved, appeal lies under Sec. 96 of the Tamil Nadu Co-operative Societies Act, 1961 to the Co-operative Tribunal within 2 months from the date of this Order".
6. The petitioners then moved the Tribunal, fil
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