K. SREEDHARAN, C.J.

1. PETITIONERS ? 71 in number ? were appointed to the staff of the Sabarkantha District Central Co-operative Bank Ltd., Himatnagar (hereinafter referred to as "the Bank" in December 1996. The Registrar, Co-operative Societies, Gujarat State, Gandhinagar (hereinafter referred to as "the Registrar"), by order dated 18/19th September 1997 (Annexure F) issued directions to the Bank to cancel the appointment of 72 candidates, invoking the power under Section 160 of the Gujarat Co-operative Societies Act, 1961 (hereinafter referred to as "the Act" Legality of that order passed by the Registrar is in issue in this petition.

2. FOURTH respondent-Bank was declared weak bank in 1990. That was on account of its inability to recover the amount advanced to Sabarkantha Spinning Co-operative Mills. For more than ten years no vacancy in the staff of the Bank was filled up. Therefore, by letter dated 15-4-1993 the Bank sought sanction of Registrar for recruitment of 72 clerks and typists. The sanction was sought for because advance transactions of the Bank increased many- fold and it was not possible to manage its affairs with the existing staff. Registrar by letter dated 26/27-6-1995 (Annex. III) accorded sanction for filling up 25 posts of clerks. While giving that sanction, Registrar insisted the candidate to be having 1st Class B. Com. Degree and that standard of reservation prescribed by the Government should be maintained. On receipt of that letter the Society took up the matter with the Registrar for relaxing the educational qualifications of the candidates as per its letter dated 14-7-1995. Thereupon the Registrar by his communication dated 4-3-1996 allowed the Bank to fill up 25 posts of clerks in accordance with the recruitment rules of the Bank, after calling for the names from the Employment Exchange and publishing an advertisement. Since the Bank wanted more clerks In its staff, it took up the matter with the Registrar as seen in its communication dated 28-10-1996 (Annexure VI). After realising the financial position of the Bank the Registrar, by communication dated 11-12-1996 permitted the Bank to recruit 47 clerks more, over and above 25 clerks already sanctioned. While granting sanction Registrar again reiterated the educational qualification of 50% marks in B.A., B.Sc., B.Com. degree examination and compliance of the standard of reservation as prescribed by the Government for recruitment.

Coming to know about the steps taken by the Bank, in filling up the vacancies, Loka Adhikar Sangh and Ramjibhai Nathubhai Patel approached this Court praying for quashing the advertisement given in the newspaper and to direct the Bank to make recruitment to the posts of clerks and typists after following due process as required under the Service Regulations. Sabarkantha District Central Co-operative Bank Ltd., Himatnagar, its Chairman and the District Registrar (Co-operative) were the three respondents in that Special Civil Application. A Division Bench of this Court disposed of that petition by judgment dated 10-10-1996 and directed the Bank to follow the Service Regulations in the matter of appointment to its staff.

3. CLAUSE 31 (5) of the Bye-Laws of the Sabarkantha District Central Co-operative Bank Ltd., enables the Bank to frame service rules subject to the approval of the Registrar of the Co-operative Societies. Pursuant to this provision contained in the byelaws, the Bank framed the Sabarkantha District Central Co-operative Bank Ltd. Employees' Service Regulations. Those Service Regulations were approved by the Registrar. CLAUSE 9(5) of the said Service Regulations is in the following terms:

"9(5). The minimum qualification required for recruitment in the service of the Bank, except recruitment in the subordinate grade, shall ordinarily be the passing of the S.S.C. Examination, or an equivalent examination, except in cases of persons with previous experience and/or fairly good knowledge of accounts, banking