IN THE HIGH COURT OF MADHYA PRADESH
G.P. Singh, C.J. and K.K. Dube, J.
Hemant Kumar Ganga Prasad Gupta
Vs.
President, District Co-Operative Central Bank Ltd., Ambikapur, Dist. Surguja and others
Misc. Petn. No. 537 of 1980 (Jabalpur)
Decided On: 23.02.1982
The Registrar is the highest in the hierarchy of officers appointed under section 3 for administering the Act. He is expected to be well acquainted with the conditions prevailing In the Co-operative societies and posted with the factual date necessary for formulating the terms and conditions of employment of employees of the societies. It is true that the rule making power does not oblige the Registrar to give any hearing to the employees and they have no right of appeal to any higher authority against the rules made by the Registrar. But from this alone, it cannot be said that the power conferred is arbitrary. [Para 4]
A provision for laying the rules made under an Act is a method of control exercised by the Legislature over the rule making authority and if such a control is kept, it has been held that the power to make rules cannot suffer from excessive delegation. [Para 4]
(2) Co-operative Societies Act, 1960 (MP)-S. 55 (1)-does not violate section 9-A of the Industrial Disputes Act.
The impugned rules and order made by the Registrar under section 55 have themselves brought about the change in the conditions of employment and they do not violate section 9-A of the Industrial Disputes Act as it is not a change brought about by the employer. [Para 6]
(3) Co-operative Societies Act, 1960 (MP)-S. 55-rules formed under do not violate rules of natural justice.
(4) Natural justice-rules of-when applicable.
The principles of natural justice have no application when an authority is exercising legislative or quasi-legislative power.
The power to make rules and issue orders under section 55 conferred on the Registrar is in the nature of a legislative power which is delegated to him by the Act. The principles of natural justice are applicable when judicial or quasi judicial power is exercised. They are also applicable in some cases where administrative power is exercised to the prejudice of a party. They have, however, no application to the exercise of legislative power. [Para 9]
G.P. Singh, C.J.
The petitioner was employed as a confirmed Super-visor by the District Co-operative Central Bank Limited, Ambikapur respondent No. 1 in the petition. There were 32 other Supervisors who were similarly employed in the various branches of the respondent Bank. The Registrar, Co-operative Societies, in exercise of his powers conferred under section 55 of the Madhya Pradesh Co-operative Societies Act, 1960, made the Madhya Pradesh Co-operative Central Bank Employees Services (Terms of employment and working conditions) Rules, 1977. These Rules were amended by the Registrar on 8th May 1980. By this amendment, the definition of "cadre" contained in Rule 2 (n) was widened to mean a cadre of paid Managers, paid Samiti Sewaks, paid Managing Directors, paid Secretaries of Village Service Co-operative Societies, Large Sized Agricultural Credit Societies, Adimjati Seva Sahakari Samiti, Krishi Sewa Sahakari Samiti and other Societies affiliated to the Bank. Rule 4 (2) was also amended the effect of which was that the posts of Managing Directors/Managers of Adimjati Sewa Sahakari Samiti, Krishi Sewa Sahakari Samiti were equated with Supervisor/Senior Cashier/Upper Division Clerk/Asstt. Accountant. On 12th June 1980, the Registrar issued an order directing the respondent Bank to treat the post of Supervisor as equal to the post of Manager and to post of Supervisors as Managers or Managing Directors of the Affiliated societies. It was also directed that the posts of Supervisors should be abolished. The respondent Bank in compliance with the order of the Registrar by order dated 30th August 1980 transferred the petitioner and other Supervisors to the Societies affiliated to it as Managers or Managing Directors. The petitioner then filed this petition under Article 226 of the Constitution for quashing of the rules made by the Registrar under section 55 including the amendment made on 8th May 1980. The petitioner also prays for quashing of the order of the Registrar dated 12th June 1980 and the order of the Bank dated 30th August 1980.
The Madhya Pradesh Co-operative Societies Act, 1960 was enacted by the Madhya Pradesh Legislature. It received the assent of the President on 28th April 1961 and came into force on 12th May 1961 when the assent was first published in the Madhya Pradesh Gazette. Section 3 of the Act provides that the State Government shall appoint a person to be the Registrar of the Co-operative Societies for the State and may appoint one or more officers of the following categories to assist him, namely (a) Additional Registrar, (b) Joint Registrar, (c) Deputy Registrar, (d) Assistant Registrar and (e) such other categories of officers as may be prescribed. Section 54 provides that no society shall appoint a Manager, Secretary, Accountant or any other paid officer unless he holds such qualifications as may be prescribed. Section 55(1) which deals with the powers of the Registrar to regulate the terms and conditions of employment by making rules and issuing orders, reads as follows:
55 (1) the Registrar may, from time to time, frame rules governing the terms and conditions of employment in a society or class of societies and the society or class of societies to which such terms and conditions of employment are applicable shall comply with the order that may be issued by the Registrar in this behalf.
Section 95 confers rule making power on the State Government. Sub-section (2) (x) of this section enables the State Government to make rules to "prescribe qualifications for members of the committee and employees of a society or class of societies and the conditions of service subject to which persons may be employed by a society." Sub-section (3) of section 95 reads as follows:
(3) All rules made under this Act shall be laid on the table of the Legislative Assembly.
The rules made by the State Government under section 95 are known as the Madhya Pradesh Co-operative Societies Rules, 1962. Rule 6 (2) (e) lays down that a s
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