Kerala High Court
Kerala Co-Operative Employees Front vs Government Of Kerala
Author: A. Muhamed Mustaque
Bench: A.Muhamed Mustaque
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE
TUESDAY, THE 10TH DAY OF APRIL 2018 / 20TH CHAITHRA, 1940
WP(C).No. 33131 of 2010
PETITIONERS :
1 KERALA CO-OPERATIVE EMPLOYEES FRONT,
WAYANAD DISTRICT COMMITTEE
REPRESENTED BY DISTRICT SECRETARY,
MOHANA DAS, NOW WORKING IN
PULPPALLY SERVICE CO-OPERATIVE BANK
AS HEAD CLERK, PULPALLY P.O.,
WAYANAD DISTRICT.
2 SUDHAKARAN P.N.,
ACCOUNTANT,
MULLANKOLLY SERVICE CO-OPERATIVE BANK,
PANICHIRA,
WAYANAD DISTRICT.
BY ADVS.SRI.P.N.MOHANAN
SMT.I.VINAYAKUMARI
RESPONDENTS:
1. GOVERNMENT OF KERALA,
REPRESENTED BY SECRETARY TO GOVERNMENT,
CO-OPERATIVE DEPARTMENT, SECRETARIAT,
THIRUVANANTHAPURAM-695001.
2. REGISTRAR OF CO-OPERATIVE SOCIETIES,
THIRUVANANTHAPURAM-695001.
3. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G),
WAYANAD-673121.
BY SPL. GOVERNMENT PLEADER SRI.K.S.MOHAMMED HASHIM
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08.12.2016,
ALONG WITH WPC.29458/2011 THE COURT ON 10.4.2018 DELIVERED THE FOLLOWING:
EL
WP(C).No. 33131 of 2010
APPENDIX
PETITIONER(S)' EXHIBITS
P1 A TRUE COPY OF THE SRO.903/93 W.E.F. 14.7.92 PUB IN KG DATED 14.7.92
P2 A TRUE COPY OF THE SRO 355/98 W.E.F. 3.4.1998 PUB IN KG DATED
28.4.1998
P3 A TRUE COPY OF THE SRO 9/2010 W.E.F. 4.1.2010 PUB IN K.G. DATED
4.1.2010
P4 A COMPARATIVE CHART OF THE EXT.P1 P2 AND P3
P5 A TRUE COPY OF THE COMPARATIVE CHART OF THE SALARY REVISED FROM TIME
TO TIME
P6 A TRUE COPY OF ONE OF THE PAY REVISION ORDER
P7 A TRUE COPY OF THE INTERIM ORDER DATED 1.11.2010 IN WPC.33131/2010
P8 A TRUE COPY OF THE ORDER DATED 27.9.2013 OF THE JOINT REGISTRAR
RESPONDENT(S)' EXHIBITS
NIL
TRUE COPY
P.S. TO JUDGE
EL
11.4.2018
C.R
A. MUHAMED MUSTAQUE, J.
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W.P. (C) Nos.33131 of 2010 &
29458 of 2011
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Dated this the 10th day of April, 2018
JUDGMENT
It is unusual for a Court to render a judgment with illustrations or story. The problem presented in these writ petitions impels this Court to begin the judgment with an illustration to espouse the legal question germane to the dispute. 'A' commenced his service in a co-operative society in a lowest cadre. At the time of his initial appointment, society was classified as Class V society. Before his retirement, society was re-classified as Class I. The pay and allowances of different class of societies are fixed based on the classification of the society. Therefore, when the society reached the classification as Class I, 'A' was drawing higher pay and allowances comparing to such pay and allowances drawn by the employees of Class V society. The average pay for ten months preceding the retirement is reckoned for the purpose W.P.(C) Nos.33131/2010 & 29458/2011 2 of pension under the pension scheme floated for the employees working in the co-operative sector. The classification of the society is based on the capital deposit, loan outstanding, audit classification, declaration of profit, dividend etc. Due to severe drought and calamities in the area of operation of the society, financial position of the society became precarious. Thus the society was ordered to be reclassified as Class V. By virtue of Note 6 to Appendix III of the Kerala Co-operative Societies Rules, 1969, the society is given six months time from being reclassified to lower categories. If not, the classification of society will be reduced and pay and allowances will be refixed accordingly. In the matter of 'A', classification is reduced/downgraded prior to ten months of his retirement and his pay and allowances for the purpose of pension was worked out based on reduction in classification. In case the society where 'A' was employed achieves higher criteria for upgradation after his retirement, the society will be upgraded and those employees will be able to enjoy higher pay and allowances. This is one of the illustrations. Illustrations as above are referred in the matter W.P.(C) Nos.33131/2010 & 29458/2011 3 of pension. The question that looms large in this case is whether consequent upon the degradation of the society, the Government has the right to revise and reduce the pay and allowances that was enjoyed by such employees before the degradation.
2. These writ petitions are filed by the association of co-operative employees as well as the employees working in the co-operative sector challenging the Rules framed by the Government invoking Section 109 of the Kerala Co-operative Societies Act, 1969 ('the Act', for short). Clause (xxxviii) under Section 109 refers to the residuary power of the Government to make rules for any other matters required or allowed under the Co-operative Societies Act. The amended rules are in respect of Appendix III to the Kerala Co-operative Societies Rules. The Government is having power under Section 80 of the Act to classify the societies according to their type and financial position. Accordingly, the Government classified the societies as shown in Appendix III. Rule 182 of the Co-operative Societies Rules states that societies in the State shall be classified as shown in Appendix III. Rule 188 W.P.(C) Nos.33131/2010 & 29458/2011 4 states that every society shall adopt the staff pattern indicated in Appendix III. Under Section 80(6) of the Act, the Government is having power to fix the pay and allowances and other benefits of employees of co-operative societies. Thus it is clear that the Government is having power to classify the society in accordance with its financial position. The Government also have the power to prescribe the staff pattern as well as the pay and allowances applicable to such societies.
3. The problem in this context is peculiar to the co-operative societies owing to the power given to the Government. That is to say, co-operative societies, though an autonomous body, have no power in fixing the pay and allowances.
4. The financial position of the society is not static and it varies according to the volume and nature of the business. The classification also will change in accordance with the variable factors reckoned for such classification. The staff pattern and the pay and allowances applicable to each class of society are also different. The salary pattern is also different from one class to another. For example, in Appendix III which W.P.(C) Nos.33131/2010 & 29458/2011 5 came into force with effect from 01.07.1974, the Secretary of the Class I employees draws the pay scale of 400-40-800. Secretary of Class II society draws pay scale of 350-35-700 and Secretary of Class V society draws pay scale of 125-8- 165-10-195. This was revised from time to time by the Government. Thus a Secretary of Class I society who was drawing pay scale of 400-40-800 on degradation of the society as Class V, would be eligible to the pay scale of 125-8-165-10-
195.
5. Consequent upon the degradation of the society, staff pattern of the society also will change. However, the Government Orders and Rules are silent in regard to dealing with excess staff as a result of degradation. Since that issue has not been cropped up in these writ petitions, this Court is of the view that the question relating to excess staff on account of degradation can be left open.
6. The challenge in these writ petitions is against Note 6 to Appendix III of the Co-operative Societies Rules as amended by S.R.O 9/2010. Note 6 to Appendix III reads as follows:
W.P.(C) Nos.33131/2010 & 29458/2011 6
b