CO OPERATIVE CENTRAL BANK EMPLOYEES UNION CUDDAPAH Vs. DISTRICT CO OPERATIVE OFFICER

JUDGEMENT

(1.) The Joint Collector of Cuddapah, the District Co-operative Officer of Cuddapah, and the Secretary of the Co-operative Central Bank, Cuddapah, all appointed to act together as the Managing Committee of the Cuddapah District Co-operative Bank resolved on 26th July, 1978 to amend the special bye-laws of that Co-operative Bank relating to the service conditions of its employees and to permit them to encash their earned leave. G.O. Ms.No. 334 (Finance and Planning) dated 28th September, 1977 issued by the State Government allowed its employees the facility to encash earned leave. Drawing inspiration from that G.O. and the bye-laws framed by the Andhra Pradesh State Co-operative Central Bank to which the aforesaid District Co-operative Central Bank, Cuddapah is affiliated and the bye-laws of the other primary Co-operative Agricultural Development Banks permitting their employees the facility of encashment of earned leave, the Cuddapah District Co-operative Bank proposed an amendment to its bye-laws permitting its employees also the facility of encashment of earned leave. The making of a bye-law of a Co-operative Society is governed by the provisions of the Andhra Pradesh Co-operative Societies Act, 1964. Section 16 of the Andhra Pradesh Co-operative Societies Act, in material parts reads thus: "Section 16 (1).-No amendment of any bye-law of a society shall be valid unless such amendment has been registered under this Act. Where such an amendment is not expressed to come into operation of a particular day then, it shall come into force, on the day, on which it is registered. (2) Every proposal for such amendment shall be forwarded to the Registrar who shall, if he is satisfied that the proposed amendment fulfils the conditions specified in sub-section (1) of section 7, register the amendment within a period of sixty days from the date of receipt of such proposal: Provided that the Government may, for sufficient cause which shall be recorded in writing, extend the said period for a further period of sixty days. (3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate signed and sealed by him, and such certificate shall be conclusive evidence that the amendment has been duly registered. (4) Where the Registrar is not so satisfied, he, shall communicate by registered post the order of refusal together with the reasons therefor, to the society within the period specified in sub-section (2)".

(2.) It is in pursuance of the requirements of section 16 that aforesaid proposal dated 26th July, 1978 was made by the Cuddapah District Co-operative Bank for the purpose of its being registered by the Registrar of Co-operative Societies. On receipt of the above proposal from the Cuddapah District Co-operative Bank, Registrar of Co-operative Societies presumably finding nothing unreasonable about the proposals, by his proceedings dated 31st August, 1978, approved and registered the amendment of the special bye-laws by inserting a new bye-law No.12-A. Strangely, within a period of 10 months, the Registrar of Co-operative Societies had issued the present show cause notice on 30th April, 1979, to the District Co-operative Central Bank, Cuddapah to show the cause why the bye-law No.12-A registered by him earlier should not be annulled from the date of its registration i.e., 30th August, 1978. The validity of this show cause notice is challenged in this writ petition, by the Co-operative Central Bank Employees' Union, Cuddapah who are the beneficiaries of the aforesaid bye-law No.12-A. The impugned show cause notice issued by the Registrar reads thus:- "Whereas the Deputy Registrar of Co-operative Societies (Divisional Co-operative Officer), Cuddapah registered the amendment in the reference first read above to the special bye-laws relating to the service conditions of the employees of the Cuddapah District Co-operative Central Bank Ltd., Cuddapah providing encashment of privilege leave and whereas the propriety or otherwise, of this provision is sub-judice as communicated in the reference second read above; The special category Deputy Registrar District Co-operative Officer, Cuddapah under powers vested in him under section 77 of the Andhra Pradesh Co-operative Societies Act, VII of 1964, hereby directs the Secretary, the Cuddapah District Co-operative Central Bank Ltd., Cuddapah to show cause within fifteen days from the date of receipt of this notice as to why the registration of the amendment in the reference read above as : (1) should not be annulled from the date of registration. Be it also known that in the absence of any representation within the stipulated time the matter will be disposed off on merits".

(3.) The main contention advanced by the petitioners is that bye-law No. 12-A is not unreasonable and that it is in harmony not only with the aforesaid Co-operative Societies, Act, but also with G.O. Ms. No. 334 (Finance and Planning) dated 28th Septem ber, 1977, issued by the Government. The petitioners also plead that the Andhra Pradesh State Co-operative Central Bank to which the District Co-operative Central Bank, Cuddapah is affiliated had already amended its own bye-laws on 3rd June, 1974, providing for encashment of earned leave for its employees.