Case Note & Summary
The dispute arose from the appellant's challenge to the rejection of his promotion to Society Manager due to educational qualification requirements. The appellant, appointed as Sahayak Samiti Sevak in 1987 under the Madhya Pradesh Cooperative Societies Act, 1960, had 28 years of experience and a Higher Secondary qualification, which sufficed under old rules. In 2013, new rules required graduation for promotion, but Rule 19-A proviso allowed relaxation based on special experience, competence, or seniority. The Board of Directors and General Body of respondent No. 5 society passed resolutions in 2015 recommending relaxation and promotion for the appellant, citing his seniority, clean record, and institutional needs. However, the Registrar rejected this proposal in 2016 without reasons. The appellant filed a writ petition, which the Single Judge allowed, directing the Registrar to grant relaxation. The Division Bench reversed, holding that discretion lay with the Board, not the Registrar, and the appellant lacked qualification. The Supreme Court granted leave and heard arguments from both sides. The legal issues centered on whether the Registrar's rejection was arbitrary and discriminatory, and whether the Board had the power to grant relaxation. The court analyzed the facts, noting that the Registrar had approved promotions for two other employees with similar qualifications and less experience, creating discrimination. It emphasized that discrimination constitutes injustice and that the Registrar's decision was cryptic and unreasoned. The court held that the power to grant relaxation vested with the Board of Directors under Rule 19-A proviso, and the Registrar could not disapprove a valid resolution. It found the rejection violated Article 14, as the appellant was similarly situated to promoted employees. The decision quashed the Registrar's order and the High Court's Division Bench judgment, restoring the Single Judge's direction for promotion with relaxation.
Headnote
A) Administrative Law - Judicial Review - Arbitrary Administrative Action - Madhya Pradesh Cooperative Societies Act, 1960, Section 55(1) and Service Rules - Registrar rejected Board of Directors' resolution granting relaxation in educational qualification for promotion without assigning reasons - Court held Registrar's decision cryptic and arbitrary, violating principles of natural justice and administrative fairness - Registrar could not disapprove valid resolution passed by competent authority (Paras 5.3-5.5, 6.2). B) Cooperative Societies Law - Promotion and Relaxation of Qualifications - Rule 19-A Proviso - Prathmic, Krishi Saakh Sahakari Sanstha, Vrihattakar Saakh Sahakari Sanstha, Adim Jati Sewa Sahakari Sewa Sanstha, Krishak Sewa Sahakari Sanstha Karmchari Sewa (Niyojan, Nibandhan, Tatha Karya Sthiti) Niyam, 2013, Rule 19-A - Board of Directors recommended promotion based on appellant's 28 years experience, clean record, and seniority - Registrar rejected proposal despite Rule 19-A proviso allowing relaxation for special experience/competence/seniority - Court held power to grant relaxation vested with Board of Directors, Registrar's rejection unjustified (Paras 5.6-5.7, 6.1-6.2). C) Constitutional Law - Equality and Non-Discrimination - Article 14 of Constitution of India - Appellant denied promotion while similarly situated employees with same qualification were promoted - Registrar approved promotions of Sushil Kumar Tripathi and Ram Swaroop Pandey but rejected appellant's case - Court held discrimination violated Article 14, as appellant formed homogeneous class with other promoted employees (Paras 3.5, 7-7.1).
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Issue of Consideration: Whether the Registrar could reject the Board of Directors' resolution granting relaxation in educational qualification for the appellant's promotion, and whether such rejection was discriminatory and arbitrary
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Final Decision
Supreme Court allowed the appeal, quashed the Registrar's order dated 07.06.2016 and the High Court Division Bench order, restored the Single Judge's direction for promotion with relaxation
