D.P. WADHWA, J. - (1.) THE Judgment of the court was delivered by
(2.) THIS appeal is directed against the judgment dated 3/7/1989 of the division bench of the High court of Judicature at Allahabad (Lucknow bench) allowing the writ petition of the respondent. The 347 respondent who was an employee with the appellant challenged the order dated 25/5/1978 of the Joint Managing Director of the appellant terminating his services on the ground that he abandoned his services from 21/7/1977 and that the respondent would not be entitled to any pay and allowances. The order terminating the services of the respondent, however, says that "as such he is absent since 21/7/1977, and his services are terminated for the reason of being absconded in this way". By the impugned judgment, the High court set aside the order dated 25/5/1978 on the ground that no disciplinary proceedings were initiated against the respondent and his services could not have been terminated without there being an enquiry officer appointed and no enquiry ever having been conducted against the appellant on the alleged ground of his abandoning his job. The appellant is a cooperative society registered under the U.P. Cooperative Societies Act, 1965 (for short "the Act"). It is, therefore, governed by the provisions of that Act and the Rules framed thereunder. Section 122 of the Act prescribes constitution of an authority to control employees of cooperative societies. This section, we may reproduce as under: "122. Authority to control employees of cooperative societies.-(1 The State government may constitute an authority or authorities, in such manner as may be prescribed, for the recruitment, training and disciplinary control of the employees of cooperative societies, or a class of cooperative societies, and may require such authority or authorities to frame regulations regarding recruitment, emoluments, terms and conditions of service including disciplinary control of such employees and, subject to the provisions contained in Section 70, settlement of disputes between an employee of a cooperative society and the society. (2 The regulations framed under Ss. (1 shall be subject to the approval of the State government and shall, after such approval, be published in the Gazette, and take effect from the date of such publication and shall supersede any regulations made under Section 121." The State government framed the U.P. Cooperative Societies Employees' Service Regulations, 1975 which were published in the U.P. Gazette dated 6/1/1976. The Regulations were applicable with effect from the date of their publication in the U.P. Gazette. Clause (xi) of Regulation 2 defines "employee" which means a person in whole-time service of a cooperative society, but does not include a casual worker employed on daily wages or a person in part-time service of a society. Under Regulation 5 recruitment for all appointments in a cooperative society shall be made through the Board which means the U.P. Cooperative Institutional Service Board. The constitution and the functions of this Board may, however, be not relevant at this stage as the respondent was appointed on 22/1/1973 as a Helper, a Class IV employee, temporarily by the secretary of the appellant, viz., prior to the coming into force of the Regulations. Under Regulation 102 a cooperative society is empowered to frame service rules for its employees which, however, are to be subject to the provisions of the Regulations. The 348 Regulations, however, apply to the existing employees of a cooperative society which were on its roll on the date the Regulations took effect. Under Regulation 103, the Regulations shall be deemed inoperative to the extent they are inconsistent with any of the provisions of the Industrial Disputes Act, 1947, U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962, Workmen's Compensation Act, 1923 and any other labour laws for the time being in force. Regulations 102 and 103 may be set out as under: "102. (i) Subject to the provisions of these Regulations, a cooperative society shall within three months from the date of coming into force of these Regulations (unless an extension of time is allowed by the Board in writing) frame service rules for its employees. (ii) The service rules framed under Ss. (i) shall be submitted to the Board for approval and shall be operative only after the approval. (iii) Notwithstanding, anything contained in these Regulations the existing employees shall have an option to continue to be governed by the existing service rules, if any, in the society only in respect of their emoluments and benefits or to opt for the new service rules on these matters. Explanations.-(1 Provisions relating to pay, increments and allowances (other than travelling allowance), probation, confirmation, retirement, provident fund, and gratuity, shall be deemed as included in the term 'emoluments and benefits'. (2 In case of any doubt or dispute in interpretation in respect of the matter mentioned in (1 above, reference shall be made to the Board whose decision shall be final. (3 Existing service rules means authentic service rules framed by and with the approval of the competent authority. 103. The provisions of these Regulations to the extent of their inconsistency, with any of the provisions of the Industrial Disputes Act, 1947, U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962, Workmen's Compensation Act, 1923 and any other labour laws for the time being in force, if applicable to any cooperative society or class of cooperative societies, shall be deemed to be inoperative."
(3.) REGULATION 19 provides for termination of services of an employee. This REGULATION, in relevant part, is as under: "19. Termination.-Services of an employee shall be terminable: (a) in case of a temporary employee, on one month's notice in writing on either side, or in lieu thereof by payment of one month's salary by the party which gives notice: Provided that in case of direct appointments made for a specific period, it shall not be necessary to give any notice or any pay in lieu thereof. Explanation.-'Specific period' means stated period of less than six months. (b) by three months' notice in writing on either side in case of a confirmed employee. 349 Explanation.-(1 A notice given by an employee under REGULATION 19 shall be deemed to be proper only if he remains on duty during the period of the notice: Provided that the employee may be allowed on request to avail of such portion of earned leave as may be due to him which shall however not exceed the notice period." Under Regulation 33, the salary accruing to an employee ceases when the employee ceases to be in the service of the cooperative society. In case of an employee who is dismissed or removed from service or dies while in the service of the cooperative society the salary shall cease from the date of his dismissal, removal or death, as the case may be. Ch. VII of the Regulations contains provisions for penalties, disciplinary proceedings and appeals. Under Regulation 84, an employee can be removed from service and he is to be provided with the copy of the order of punishment. The penalty of removal from service cannot be imposed without recourse to disciplinary proceedings. An employee cannot be removed or dismissed by an authority other than by which he was appointed unless the appointing authority has made prior delegation of such authority to such other person or authority in writing. Regulation 85 provides in detail as to how disciplinary proceedings are to be conducted. Any order of removal or dismissal from the service or reduction in rank or grade held substantively by the employee cannot be passed except with the prior concurrence of the Board (Regulation 87. The order imposing penalty is also appealable under the Regulations.;