Kerala Primary Co-operative Societies Assn. and Other vs Registrar of Co-operative Societies

K. Balakrishnan Nair, J.—In all these cases, the validity of two circulars issued by the Registrar of Cooperative Societies prohibiting

appointments to all posts and promotions from posts lower to that of Junior Clerk in primary credit societies is under challenge Therefore they are

being heard and disposed of by a common Judgment. For convenience. O.P. No. 26973/02 is treated as the main case and the exhibits in that

Original Petition are referred to in this Judgment. Ext. P5 dated 03-05-2002 is the first circular issued by the Registrar. The English translation of

the said circular reads as follows:-

Circular No. 18/2002

Sub: Regarding prohibition of all appointments in primary credit co-operative societies and promotions from posts below that of Junior Clerk.

Ref: Government Note No. 1446/M(C)/2002 dated 03-05-2002.

Majority of the primary credit societies in the State are running at loss. Direct recruitments to the posts of Junior Clerk and above in these societies

are done by the Co-operative Service Examination Board u/s SOB of the Kerala Co-operative Societies Act. 1969. The power to make

appointments to posts below that of Junior Clerk is with the managing Committees of the respective societies. It is seen that using this facility, the

legal provision regarding appointments through Co-operative Service Examination Board is bypassed by appointing persons with higher

educational qualifications in posts below that of Junior Clerk and giving them promotion to the vacancies of Junior Clerk arising as a result of

promotion or change of classification. It is convinced that this tendency has to be stopped as the same is not good for the proper functioning of the

societies.

In the above circumstances, it is decided to stop all appointments [to all posts] and promotions from posts below that of Junior Clerk in all primary

credit co-operative societies other than urban co-operative banks under the control of the Reserve Bank and newly registered co-operative banks

societies, temporarily for a period of 6 months.

(Sd/-)

Names Varghese. I.A.S.

Registrar of Co-operative Societies

The said circular has been issued on the basis of the directions contained in a note issued by the Minister for Co-operation. The said note which

has been referred to in the above circular and available in the file, on translation, reads as follows:-

Majority of the primary credit co-operative societies in the State are running on loss. The appointments to the posts of Clerk and above in the

societies are done through the Examination Board. The respective managing committees have the power to make appointments to the posts below

them. It is seen that the law that all appointments should be made through the Examination Board is bypassed by appointing persons with higher

qualifications to the posts below that of Junior Clerk and promoting them to the vacancies of Junior Clerk arising as a result of change of

classification or promotion. This tendency has to be stopped. Therefore, the Government have decided to stop all appointments [to all posts] and

promotions from the posts below that of Junior Clerk in all primary credit co-operative.