M.M.Kumar, J.

1. This order shall dispose of a bunch of 8 petitions because common facts and questions of law are involved therein. However, the facts are being referred from CWP No. 12820 of 1999.

2. The Jullundur District Co-operative Agricultural Service Societies Employees Union (Regd.) [for brevity, `the Union] has filed the aforementioned petition under Article 226 of the Constitution challenging the action of the respondents for restricting the payment of salary to the employees CWP No. 12820 of 1999 and connected petitions at 75% of the net profit of the Cooperative Agricultural Service Societies (for brevity, `the Society(s). The petitioner Union has sought quashing of letters dated 22.4.1999, 3.12.1998, 3.6.1999 and 18.5.1999 (P-7 to P-10) on the ground that the service conditions regarding grant of pay-scales and other service benefits of the employees working in the Society(s) in the State of Punjab have been changed in an illegal, arbitrary and mala fide manner, which is contrary to the Punjab State Co-operative Agricultural Service Societies Service Rules, 1997 (for brevity, `the 1997 Rules). Further a mandamus has been sought directing the respondents to allow the employees of the Society(s) to continue to draw the regular pay-scale and other benefits as provided by the Rules.

3. Broadly speaking the Society(s) in the State of Punjab, have employed primarily the following categories of employees - (a) Secretary; (b) Salesmen/Cashier; and (c) Peon-cum-Chowkidar. These employees are being paid salaries and other allowances by the respective Society(s) and there is no financial liability on the State exchequer. Their main function is to provide Fertilizers, Pesticides etc. as also to advance loans to the farmers and in turn they get marginal commission/interest. In other words, the commission and interest is the main source of income of these Society(s) out of which the employees are paid salaries.

4. Under Rule 28 of the Punjab State Co-operative Societies Rules, 1963 (for brevity, `the 1963 Rules), the Registrar, Co-operative Societies, Punjab- respondent No. 2 has been empowered to frame Rules regarding qualifications and conditions of service of the employees of the Society(s). In exercise of the said power, respondent No. 2 initially framed the Rules, known as `the Punjab State Co-operative Agricultural Service Society Service Rules, 1979 (for brevity, `the 1979 Rules), which were notified on 29.5.1979. Rule 3 and 5 of the 1979 Rules deals with the strength of service and scales of pay.

5. On 17.11.1986, the Registrar-respondent No. 2 notified the Rules, known as `the Punjab State Co-operative Agricultural Service Societies Service Rules, 1986 (for brevity, `the 1986 Rules), which came into force w.e.f. 18.11.1986. Rule 7 of the 1986 Rules prescribed the pattern of staffing, emoluments and incentives in the Society(s). Annexure A to Rule 7 of the 1986 Rules further prescribes the scales of pay.

6. The Registrar-respondent No. 2 constituted a Committee under the chairmanship of Additional Registrar (Credit), Co-operative Societies, Punjab, to review the Service Rules of the employees of the Society(s). On the basis of the report submitted by the said Committee and in exercise of the power under Rule 28 of the 1963 Rules, the Service Rules of the employees of the Society(s) were reframed by the Registrar-respondent No. 2 and the 1986 Rules were repealed by the 1997 Rules w.e.f. 9.10.1997. As per Rule 7 of the 1997 Rules, which deals with the pattern of staffing, emoluments and incentives, members of the service are required to be paid dearness allowance and all other allowances on the pattern of the State Government. Rule 7 along with Annexure A of the 1997 Rules reads thus :-

"7. PATTERN OF STAFFING, EMOLUMENTS, AND INCENTIVES : i) The categories of the societies on functional basis, staff strength approved for them and scales of pay of each category of the employees shall be as per Annexure "A" to this