KAPILESHWAR SHARMA Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioners (72 in number) working as paid Managers in the different branches of the Primary Agriculture Co-operative Societies (in short 'P. A. C. S.') have come to this court in an application under Articles 226 and 227 of the Constitution of India challerging the termination of their services by letter No. 571 dated 16.2.1991 issued by the Administrator, Murger-Jaroui Central Co-operative Bank, Munger ; a photo stat copy of the impugned letter has been enclosed as Annexure-1 to the writ petition. The letter, addressed to all the Branch Managers of Munger-Jaraui Central Co-operativ; Bank Limited, enclosed a list of 72 paid Managers of the different Co-operative Societies whose services were being terminated thereunder. The reason assigned in the impugned letter for the termination of the services is that the recovery of loans by them had been less than 20/ during the year 1983-89.

(2.) At this stage, it may be noted that the pay scale and other service conditions of the Paid Managers are governed by an order contained in letter No. 503/AK, dated May 31, 1989 issued under section 668 of the Bihar Co operative ocieties Act, 1935 ; Clause 10 of this order stipulated that the services of a paid Manager whose recovery was less than 40%of the share capital of his Co-operative Society shall be terminated. It is, however, an admitted position that for th-J year 1988-89 the target of recovery had been reduced to 20% vide Clause 1 (ka) of letter No. 10552, dated 19.9-1990 issued by the Cooperative Department. It is also required to be noted that in terms of Clause IV of the order as contained in the letter dated May 31, 1989 the salary of the Paid Managers is to be paid out of the recovery made by them ; Clause 8 of this order further stipulated that the Managing Director of the Central Co-operative Bank shall be the controlling authority of the paid Managers and he will be authorised to initiate a disciplinary proceeding against them and to punish them.

(3.) In the present case as has been noted above, the order of the termination of services was issued by the Administrator at a time when the Board of Directors of the Bank had been superseded and the Bank was functioning under an Administrator in place of the Board of Directors.