- (1.) The only question which arises for determination in this petition under Articles 226 and 227 of the Constitution of India is as to whether the Primary Co-operative Service Societies Employees Service Rules, 1970 (hereinafter referred to as the Service Rules), are ultra vires of Rule 28 of the Punjab Co-operative Societies Rules, 1963 (hereinafter called the Rules).
(2.) The circumstances leading to the institution of these proceedings are these. The three Petitioners are corporate bodies, being co-operative societies registered under the Punjab Co-operative Societies Act, 1961 (hereinafter referred to as the Act), the relevant part of Section 85 of which is reproduced below: 85. The Government may, for any co-operative society or class of such societies, make rules to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: * * * * * * * * * * * * (xxxviii) qualifications for members of the committee and employees of a society or class of societies and the conditions of service subject to which persons may be employed by societies; * * * * * * * The Rules were framed by the Government in exercise of the powers conferred on it under Section 85 of the Act and Rules 28 and 45 of the Rules make provision as follows: 28. (1) The qualifications and conditions of service subject to which any person may be employed by a co-operative society or a class of co-operative societies shall be such as may be determined by the Registrar from time to time. (2) Where the Registrar is of the opinion that it is necessary or expedient so to do, he may by order, for reasons to be recorded in writing, relax the provisions of this rule with respect to any co-operative society or class of co-operative societies to such extent as he may consider proper. 45. The Registrar may from time to time, issue such directives as he considers necessary for the successful conduct of the business of a co-operative society or class of co-operative societies.
(3.) Purporting to act under rule 45 of the Rules, the Registrar, Co-operative Societies, Punjab (Respondent No. 2 and hereinafter referred to as the Registrar) framed the Service Rules, Rule 2.1 whereof makes provision for the constitution of an "Administrative Committee" consisting of the Managing Director of the Central Co-operative Bank, the Assistant Registrar, Co-operative Societies, and the Chief Executive Officer of the Central Co-operative Bank, and states that the Service Rules shall be administered by the Administrative Committee. The Service Rules lay down the conditions of service of the employees covered by it, namely, Secretaries, Managers, Secretaries-cum-Salesmen, Managers-cum-Salesmen and Salesmen who are employees of the Co-operative Agricultural Service Societies (such as the Petitioners are) and the Co-operative Thrift and Credit Societies. Rules 2.3 and 2.11 of the Service Rules are in the following terms: 2.3. All the employees covered by these rules shall be deemed to be in service of the Sangrur Central Co-operative Bank Ltd., Sangrur. Provisions of these rules may be made applicable by the Registrar, Co-operative Societies, Punjab to areas of operation of other Central Co-operative Banks.;