Case Note & Summary
The dispute arose from the termination of a Clerk employed by a Primary Agricultural Cooperative Credit Society in Tamil Nadu. The employee had been engaged on 04.11.1996 and was terminated on 23.09.2002 on the ground that there was no cadre strength and the appointment was not made in accordance with the rules applicable to the society. The employee filed a revision petition under Section 153 of the Tamil Nadu Co-operative Societies Act, 1983, which was returned as being beyond the limitation period. He then filed W.P.No.11564 of 2008, where the High Court directed the Joint Registrar of Co-operative Societies to consider the revision on merits without reference to the delay. After affording an opportunity, the competent revisional authority dismissed the revision on 18.09.2010. Challenging that order, the employee filed W.P.No.27257 of 2010. A single judge of the High Court allowed the writ petition on 22.11.2023, directing the society to reinstate the employee with 50% backwages. The cooperative society challenged this order in the present writ appeal. The core legal issue was whether the writ court's direction for reinstatement could be sustained in light of the well-settled legal position that irregular and illegal appointments made in co-operative societies without following the procedures prescribed under Rule 149 of the Tamil Nadu Cooperative Societies Rules are void and cannot be upheld. The appellant society argued that the appointment was irregular and illegal, and relied on the Division Bench judgment in L. Justin v. Registrar of Cooperative Societies (2002) and its affirmation by the Supreme Court in A. Uma Rani v. Registrar, Co-operative Societies (2004), which held that such appointments cannot be sustained and that termination orders are valid. The Division Bench noted that the issue was no longer res integra and that thousands of similar writ petitions had been disposed of on the basis of the L. Justin judgment, which directed scrutiny of appointments, regularization of those made in accordance with rules, and upholding of termination for irregular ones. The writ court's order was found to be directly contrary to these binding precedents. Consequently, the Division Bench allowed the writ appeal, set aside the impugned order dated 22.11.2023, and upheld the termination. No costs were awarded, and the connected miscellaneous petition was closed.
Headnote
A) Service Law - Irregular/Illegal Appointments in Co-operative Societies - Tamil Nadu Co-operative Societies Act, 1983, Section 153; Tamil Nadu Cooperative Societies Rules, Rule 149 - An employee appointed as Clerk in a primary agricultural co-operative credit society without cadre strength and in violation of rules was terminated; the revisional authority upheld the termination, but the writ court directed reinstatement with 50% backwages - On appeal, held that irregular and illegal appointments made without following Rule 149 of the Tamil Nadu Cooperative Societies Rules cannot be sustained, as settled by the Division Bench in L. Justin v. Registrar of Cooperative Societies (2002) and affirmed by the Supreme Court in A. Uma Rani v. Registrar, Co-operative Societies (2004); the writ court's order being contrary to this settled law was set aside, and the termination upheld (Paras 4-5).
Issue of Consideration
Whether the writ court was correct in directing reinstatement with 50% backwages to an employee whose appointment was irregular and illegal, contrary to the settled law on irregular appointments in co-operative societies.
Final Decision
The writ appeal is allowed. The impugned order of the writ court dated 22.11.2023 passed in W.P.No.27257 of 2010 is set aside. No costs. Connected Miscellaneous Petition is closed.
Law Points
- Irregular and illegal appointments made without following procedures under Rule 149 of Tamil Nadu Cooperative Societies Rules cannot be sustained
- termination of such appointments is valid
- writ court order contrary to binding precedents of Division Bench and Supreme Court is unsustainable.
