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1985 Supreme(MP) 296

High Court Of Madhya Pradesh
Gulab C. Gupta
BIKAL BIBARI SONI - Appellant
Versus
STATE OF M.P. - Respondents
MISC. PETN. 305 Of 1978
Decided On : 04/26/1985

Headnote:(1) Constitution of India-Art. 226-locus standi to file a petition tests.

       The law can no longer be as a closed shop. An organisation‘s and even an individual‘s locus standi cannot be denied when a class and section in interest is affected. The Court would, therefore, unhesitatingly and without the slightest qualms of conscience cast aside the technical rules of procedure in the exercise of its dispensing power and treat the letter of the public minded individual as a writ petition and act upon it. AIR 1980 SC 1622, AIR 1981 SC 344, AIR 1980 SC 1579, 1982 (2) SCC 494 & AIR 1982 SC 149 followed. [Para 5

       (2) Co-operative Societies Act, 1960 (M.P.)-S. 55d`rule making power of the State Government is constitutionally valid. 1982 JLJ 763 relied on. [Para 6

       (3) Co-operative Central Bank Employees Service Rules, 1977 (M.P.) R. 2 (f)-‘employee‘-who is.

       The Manager appointed by the Bank to look after the affairs of an affiliated society is employee of the Bank. 1982 JLJ 763 relied on. [Para 6

       (4) Co-operative Societies Act, 1960 (M.P.)-S. 55 (1)d`rules made under this section-distinction between ‘rule‘ and ‘order‘-words ‘in this behalf‘-import of-power of the Registrar to amend the Rules-principles of natural justice-General Clauses Act, 1957 (M. P.)-S. 21.

       The first part of section 55 (1) permits the Registrar to frame Rules, from time to time governing the terms and conditions of employment in a society or class of societies. The second part requires the society or class of societies to which these Rules are applicable, to comply with the order that may be issued by the Registrar in this behalf. The first part is really the rule making authority conferred upon the Registrar whereas the second part is the order making authority of the Registrar. General distinction between ‘Rule‘ and "order" is now no longer in doubt. The rule making function is usually regarded legislative in nature. As far as the present provision is concerned, the rule making power conferred on the Registrar has been held to be in the nature of legislative power.

       The order must be in the context of terms and conditions of employment laid down by the Rules.

       The object of conferring on the Registrar the power to issue orders to the societies appears to be to enable him to see that the rules relating to the terms and conditions of the employment are complied with. 1982 JLJ 763 relied on. [Para 7

       (5) General Clauses Act, 1957 (M. P)-S. 21-import of. (Para 7

       (6) Natural Justiced`rules of-when attracted.

       The principles of natural justice would not be attracted while making a rule under the first part of section 55, the principles of natural justice may be attracted in the process of issuing orders to secure compliance of the Rules under the second part of section 55. It must, as a logical corollary, be held that the powers vested in the Registrar to issue order to secure compliance of Rules made by him cannot be used to amend, modify, or repeal the rules. [Para 7

       On general principle of law a statutory rule can be amended or superseded. 1982 JLJ 230 relied on. [Para 7

       (7) Co-operative Movement-duty of the Registrar.

       The Registrar is supposed to be the ‘friend, philosopher and guide‘ and is required to see that the movement remains within the prescribed limits.

       It should be the obligation of the Registrar to see that the movement of removing economic disparities and help development of the State. The wisdom, for this purpose, lies in giving effect to the policy laid down in the Act and the Rules made there under, and not in ignoring them. 1980 JLJ 536 relied on. [Para 9

GULAB C. GUPTA, J.

( 1 ) THE petitioners No. 1 and 2 were the candidates for selection for appointment as Manager pursuance to the advertisement (Annexure 'f') and were not found qualified for the purpose. They feel aggriev, ed by the selection and appointment of respondents 5 to 57 as Managers and challenge the legality thereof in this petition filed under Article 226 of the constitution. The petitioner No. 3 claims to be a registered Trade Union representing the employees of respondent No. 3 and challenges the process of selection and appointment of Managers including respondents 3 to 57 in its representative capacity.

( 2 ) FACTS of the case are within a very narrow campus and are as under : respondent No. 3 is a Central Co-operative Bank registered under the m. P. Co-operative Societies Act, 1960 (hereinafter referred to as 'the Act') and employs several persons for purposes of its business. The terms and conditions of its employees are governed by statutory Rules framed by the respondent registrar under Section 55 (1) of the Act. The Rules are known as the M. P. Co-operative Central Bank Employees Services Rules, 1977 and were brought into force on 1-4-1977. The membership of the respondent-Bank consists of individuals as also registered primary co-operative societies at village level. The managers under reference are tbe persons appointed to manage the affairs of these primary societies. These primary societies are separately registered under the Act and have their own Managing Committee to look after their work. The respondent-Bank advances loan to these societies who on their turn distribute the amounts to their individual members. Since most of these societies in so far as Mandi District is concerned deal with Scheduled Castes and Scheduled Tribes in backward areas. They are known as 'adimjati Sewa Sahkari Samiti. Since these Societies are affiliated to the respondent-Bank, respondent-Bank has been directed by the respondent-Registrar to select and appoint Managers for them and see that their financial interest are completely safeguarded in this manner. The employees working for these primary societies draw their salary from a "pool fund", as maintained by the respondent-Bank and created by annual contributions made to it by each member Society, the respondent-Bank and the state Government. It is not disputed that in case the Managers are also held to be the employees of the respondent-Bank their appointment would also be governed by the Rules. The case of the respondent Nos. 1, 2 and 3, however, is that these Managers, though appointed by the respondent-Bank, are really the employees of the Individual Co-operative Societies and hence the Rules do not apply to their selection and appointment. From the return filed by the respondents state Government it appears that the question of recruitment of Managers for Adhim Jati Sewa Sahakari Samities was considered by the Cabinet Subcommittee for Tribal Sub-Plan in its meeting dated 13-8-1976 when it was decided that recruitment and training of Managers of these Societies should be controlled and co-ordinated by the respondent-Registrar. It appears that another state level committee considered the question of qualification of Managers and managing Directors to ba appointed in these Societies in its meeting dated 10-10-1976 and not only their pay scale but also their qualification, experience and mode of recruitment also fixed. A perusal of the minutes of this meeting (Annexure R-3) does not however indicate that this committee considered the matter in the context of the provisions of the Act or the Rules.

( 3 ) IT further appears that in pursuance to the decision taken in the meeting dated 10-10-1976, an advertisement inviting applications for appointment of persons against these posts was issued by the M. P. State Co-operative Central bank, (Annexure R-4) and appointments were made against the post of managers. It is the case of the respondent-State that inspite of the afores























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