Madras High Court Allows Cooperative Society's Appeal Against Reinstatement of Employee in Higher Post — Reversion Upheld Due to Lack of Prescribed Qualifications and Service Period Under Tamil Nadu Cooperative Societies Rules. The court held that promotion to Secretary/General Manager requires a degree and six years of service as Manager under Rule 149, and the employee's promotion was invalid.

High Court: Madras High Court Bench: Principal In Favour of Prosecution
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Case Note & Summary

The case involves an intra-court appeal by the President of LIC Employees Co-operative Bank Ltd. against a writ order dated 30.03.2023 in W.P.No.3083 of 2014. The first respondent, R. Ponnuvelu, was initially appointed as Assistant on 06.11.1978 and promoted to Assistant Accountant on 01.01.2004 during a ban period, later reverted and regularly promoted on 01.11.2007. He was further promoted to Manager on 29.11.2008 and to Secretary/General Manager on 01.02.2013, after completing five years and three months as Manager. He retired on 30.06.2013. Just before retirement, on 26.06.2013, the Board reverted him to Manager, citing lack of prescribed degree qualification (he had only SSLC with Diploma in Cooperative Training) and insufficient service period (five years three months instead of the required six years under the second proviso to Rule 149 of the Tamil Nadu Cooperative Societies Rules). The first respondent challenged the reversion before the Additional Registrar under Section 153 of the Tamil Nadu Cooperative Societies Act, who upheld the reversion on 17.01.2014. The first respondent then filed a writ petition to quash the revisional order and seek retirement benefits as Secretary/General Manager. The writ court allowed the petition. The appellant society appealed. The High Court considered the arguments: the appellant contended that the promotion was invalid due to lack of qualifications and service period; the first respondent argued that the promotion was approved by the Board and he had a legitimate expectation. The court analyzed Rule 149 and found that the first respondent did not meet the qualification or service requirements. The court held that the promotion was contrary to rules and the reversion was valid. The court set aside the writ order and dismissed the writ petition, allowing the appeal. The court also noted that the first respondent had already retired and the society may consider any ex gratia payment if permissible under rules.

Headnote

A) Service Law - Promotion - Eligibility - Qualification - The first respondent was promoted to Secretary/General Manager without possessing the prescribed degree qualification and without completing the required six years of service as Manager under the second proviso to Rule 149 of the Tamil Nadu Cooperative Societies Rules - The reversion order was held valid as the promotion was contrary to rules - Held that the writ court erred in granting relief (Paras 2-8).

B) Cooperative Societies - Reversion - Revision under Section 153 - The revisional authority under Section 153 of the Tamil Nadu Cooperative Societies Act upheld the reversion order after considering the lack of qualifications and service period - The High Court in appeal set aside the writ order and restored the reversion - Held that the revisional authority's order was correct (Paras 3-8).

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Issue of Consideration

Whether the reversion of the first respondent from the post of Secretary/General Manager to Manager was valid due to lack of prescribed qualifications and insufficient service period under Rule 149 of the Tamil Nadu Cooperative Societies Rules.

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Final Decision

The appeal is allowed. The order dated 30.03.2023 in W.P.No.3083 of 2014 is set aside. The writ petition is dismissed. No costs. Consequently, CMP No. 22001 of 2023 is closed.

Law Points

  • Promotion eligibility
  • Reversion
  • Qualification requirements
  • Service period
  • Section 153 Tamil Nadu Cooperative Societies Act
  • Rule 149 Tamil Nadu Cooperative Societies Rules
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Case Details

2026 LawText (MAD) (06) 149

WA No. 2605 of 2023 AND CMP NO. 22001 OF 2023

2026-06-22

S. M. Subramaniam, N. Senthilkumar

2026:MHC:2305

Mr.G.Ilamurugu (for appellant), Mr.C. Prakasam (for R1), Dr.R.Gouri (Government Counsel for R2)

The President, LIC Employees Co Operative Bank Ltd.

R. Ponnuvelu, The Additional Registrar of Co Operative Societies, Chennai Region

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Nature of Litigation

Intra-court appeal against a writ order allowing the first respondent's petition challenging his reversion from Secretary/General Manager to Manager.

Remedy Sought

The appellant sought to set aside the writ order dated 30.03.2023 in W.P.No.3083 of 2014 and uphold the reversion order.

Filing Reason

The appellant contended that the first respondent was not qualified for promotion to Secretary/General Manager as per Rule 149 of the Tamil Nadu Cooperative Societies Rules, lacking the prescribed degree and six years of service as Manager.

Previous Decisions

The writ court allowed the petition on 30.03.2023, quashing the revisional order dated 17.01.2014 and directing settlement of retirement benefits as Secretary/General Manager.

Issues

Whether the first respondent was eligible for promotion to the post of Secretary/General Manager under Rule 149 of the Tamil Nadu Cooperative Societies Rules. Whether the reversion order dated 26.06.2013 was valid.

Submissions/Arguments

Appellant argued that the first respondent did not possess the required degree qualification and had only completed five years and three months as Manager, whereas six years of satisfactory service is required under the second proviso to Rule 149. First respondent argued that the promotion was approved by the Board and he had a legitimate expectation to continue in the post until retirement.

Ratio Decidendi

Promotion to the post of Secretary/General Manager in a cooperative society requires fulfillment of the qualifications and service conditions prescribed under Rule 149 of the Tamil Nadu Cooperative Societies Rules. The first respondent lacked the prescribed degree and had not completed the required six years of service as Manager, rendering his promotion invalid and the reversion justified.

Judgment Excerpts

The first respondent has completed five years and three months. The first respondent is not possessing degree qualification which is prescribed under the Rules. The promotion granted to the first respondent is contrary to the second proviso to Rule 149 of the Tamil Nadu Cooperative Societies Rules.

Procedural History

The first respondent was reverted on 26.06.2013. He filed a revision under Section 153 of the Tamil Nadu Cooperative Societies Act, which was dismissed on 17.01.2014. He then filed W.P.No.3083 of 2014, which was allowed on 30.03.2023. The appellant filed the present writ appeal, which was allowed on 22.06.2026.

Acts & Sections

  • Tamil Nadu Cooperative Societies Act: 153
  • Tamil Nadu Cooperative Societies Rules: 149
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