Bombay High Court Dismisses Petition Challenging Modification of Group Secretaries' Service Conditions — State Government's Power to Modify Policy Upheld. The Court held that the Government Resolution dated 15 March 2022, which modified the earlier directive of 6 December 2010 regarding payment of service charges to Group Secretaries, was valid and within the State's policy-making authority.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Solapur District Co-operative Group Secretaries Association, filed a writ petition seeking implementation of the State Government's directive dated 6 December 2010 regarding payment of service charges to Group Secretaries. Subsequently, the State Government issued an order dated 15 March 2022 modifying the earlier directive. The petitioner amended the petition to challenge the 2022 order. The petitioner association, established in 1990 with about 510 members, represents Group Secretaries who process loan applications and disburse loans to farmer members of cooperative societies. The concept of Group Secretaries originated from the Mehta-Bhansali Committee in 1940, and their work began around 1945. The State Government issued a Government Resolution on 18 June 1971 for caderisation of Group Secretaries. The petitioner sought enforcement of the 2010 directive, but the 2022 order modified the service charge payment mechanism. The court examined whether the modification was valid. The respondents argued that the State Government has the power to modify its policies and the modification was necessary due to financial constraints and administrative reasons. The court held that the State Government's power to modify policy is well-recognized and the modification was not arbitrary. The court also rejected the argument of legitimate expectation, stating that a reasonable policy change cannot be challenged on that ground. The court found that the modification was in public interest and within the government's policy-making authority. The writ petition was dismissed, and the rule was discharged. No order as to costs.

Headnote

A) Cooperative Law - Service Conditions of Group Secretaries - Government Policy Modification - Maharashtra Cooperative Societies Act, 1960 - The petitioner association challenged the State Government's order dated 15 March 2022 which modified the earlier directive of 6 December 2010 regarding payment of service charges to Group Secretaries. The Court held that the State Government has the power to modify its policies and the modification was not arbitrary or illegal. (Paras 2-10)

B) Administrative Law - Legitimate Expectation - Policy Change - The petitioner argued that the modification violated their legitimate expectation. The Court held that legitimate expectation cannot be claimed against a policy change that is reasonable and in public interest. (Paras 11-15)

C) Constitutional Law - Writ Jurisdiction - Scope of Judicial Review - The Court held that in matters of policy, the writ court will not interfere unless the policy is arbitrary, irrational, or violative of constitutional provisions. The modification was found to be reasonable. (Paras 16-20)

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Issue of Consideration

Whether the State Government's order dated 15 March 2022, modifying the earlier directive of 6 December 2010 regarding payment of service charges to Group Secretaries, is valid and legal.

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Final Decision

The writ petition is dismissed. Rule discharged. No order as to costs.

Law Points

  • Government's power to modify policy
  • Service conditions of Group Secretaries
  • Cooperative Societies Act
  • 1960
  • Maharashtra Cooperative Societies Act
  • Writ jurisdiction
  • Policy modification
  • Legitimate expectation
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Case Details

2023 LawText (BOM) (12) 118

Writ Petition No. 5758 of 2021

2023-12-18

Nitin Jamdar, Manjusha Deshpande

2023:BHC-AS:38200-DB

Y.S. Jahagirdar (Senior Advocate) with Sarang Aradhye, Shantanu Gurav, Shruti Kothavade, Saarth Chordia for Petitioner; Dr. Birendra B. Saraf (Advocate General) with P.P. Kakade (G.P.), M.M. Pabale (AGP) for State Respondents; Anil Sakhare (Senior Advocate) i/b Umesh Mankapure for Respondent No.3

Solapur District Co-operative Group Secretaries Association through its President Pandurang Dnyanoba Vyavhare

State of Maharashtra through Ministry of Co-operation and Textiles, The Commissioner of Co-operation and Registrar, Co-operative Societies Maharashtra, The District Central Co-operative Bank Solapur through its Administrator, The Solapur Zillah Dekharekh Sahakari Sanstha, Solapur through Liquidator, The District Deputy Registrar, Co-operative Societies, Solapur

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Nature of Litigation

Writ petition seeking implementation of government directive and challenging subsequent modification of service conditions of Group Secretaries.

Remedy Sought

Direction to respondents to implement the directives issued by the State Government on 6 December 2010 and challenge to the order dated 15 March 2022 modifying the same.

Filing Reason

The petitioner association sought enforcement of the 2010 directive regarding payment of service charges to Group Secretaries, which was later modified by the 2022 order.

Previous Decisions

The State Government issued a directive on 6 December 2010 regarding service charges, which was modified by order dated 15 March 2022.

Issues

Whether the State Government's order dated 15 March 2022 modifying the earlier directive of 6 December 2010 is valid and legal. Whether the modification violates the legitimate expectation of the petitioner association.

Submissions/Arguments

Petitioner argued that the 2022 order arbitrarily modified the 2010 directive and violated their legitimate expectation. Respondents argued that the State Government has the power to modify its policies and the modification was reasonable and in public interest.

Ratio Decidendi

The State Government has the power to modify its policies, and a reasonable policy change cannot be challenged on the ground of legitimate expectation. The modification of the 2010 directive by the 2022 order was within the government's policy-making authority and not arbitrary.

Judgment Excerpts

The Petitioner – Solapur District Co-operative Group Secretaries Association filed this Writ Petition on 21 March 2021 for a direction to the Respondents to implement the directives issued by the State Government on 6 December 2010 and the subsequent decisions. The primary challenge in the Petition now, after amendment, is to the order dated 15 March 2022. The members of the Petitioner – Society are Group Secretaries.

Procedural History

The petitioner filed the writ petition on 21 March 2021 seeking implementation of the 2010 directive. Subsequently, the State Government issued an order on 15 March 2022 modifying the directive. The petitioner amended the petition to challenge the 2022 order. The petition was heard and decided on 18 December 2023.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960:
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