The Karnataka District Central Co-operative Bank Ltd. , Rep by its Chairman v. The Registrar of Co-operative Societies
2009-02-11
MOHAN M.SHANTANAGOUDAR
body2009
DigiLaw.ai
JUDGMENT 1. The petitioner has prayed for the following reliefs in this writ petition: (i) issue a writ in the nature of declaration or any other appropriate writ, order or direction to the effect that the 1st respondent has no statutory authority to direct the cooperative societies including the petitioner Bank to increase the retirement age limit of its employees to 60 years from the existing age limit of 58 years in the light of the amendment brought about by the 2nd respondent State to Section 18 (a)(2) of the Karnataka State Co-operative Societies Rules, 1960 as amended as sought to be done by means of an issuance of a circular dated 25.9.2008 bearing No.RSR: 33:XMC:2008-09 vide Annexure-A. (ii) and further issue a writ in the nature of declaration that notwithstanding the amendment brought about by the state government to rule 18 (a) (2) of the aforesaid rules in the matter of increasing the retirement age limit of the employees of the cooperative societies to 60 years by virtue of the notification dated 17.9.2008 bearing No.CO:140 CLM 2008 vide Annexure-B the petitioner Bank is entitled to continue the retirement age limit of its employees at 58 years in terms of its existing rule 31 of the Staff Service Rules of the employees of the Kanara District Central Co-operative Bank Ltd., Sirsi. 2. Petitioner is registered under the provisions of Karnataka Co-operative Societies Act. Rule 18 (2) of Karnataka Co-operative Societies Rules is amended by the State Government vide Notification dated 17.9.2008 bearing No.CO:140 CLM 2008. The said Notification is produced at Annexure-B to the writ petition. By the said amendment, the age of superannuation of the employees is enhanced to 60 years from 58 years. In other words, the words ‘58 years’ found in unamended sub-rule (2) of Rule 18 of Karnataka Co-operative Societies Rules, 1960, will have to be read as ‘60 years’ from the date of amendment. It is relevant to note that, pursuant to the unamended rules, the petitioner-Bank had framed Service Bye-Law No.31 fixing the date of superanuation of the employees of the Bank as the last date of the calendar month during which the employee attains the age of fifty eight years. The copy of the said service Bye-law is produced at Annexure-D to the writ petition.
The copy of the said service Bye-law is produced at Annexure-D to the writ petition. It is not in dispute that the said Bye-law is framed and registered as per the Karnataka Co-operative Societies Act and the Rules framed thereunder as they then existed. Subsequent to the amendment to Rule 18 (2) of the Rules, the Registrar of Karnataka Co-operative Societies, Bangalore, has issued a Circular dated 25.9.2008 instructing all the Co-operative Societies in the State to implement the amended Rule 18(2) of the Rules. 3. As could be seen from the reliefs sought for in the writ petition mentioned above, it is clear that the petitioner has not prayed for quashing the amendment made to Rule 18(2) of the Karnataka Co-operative Societies Rules. On the other hand, the petitioner seeks to challenge the circular issued by the Registrar of Co-operative Societies vide Annexure-A dated 25.9.2008 by which the Registrar has directed all the Co-operative Societies in the State to implement the amended rule. Consequently, the petitioner has prayed that he may be permitted to implement his Bye-law as it stands today, fixing the date of retirement at the age of 58 years despite the amendment of Rule 18(2) of the Karnataka Co-operative Societies Rules. 4. The writ petition is liable to be rejected as the same is frivolous. There cannot be any dispute that the Bye-laws of the Co-operative Societies or Co-operative Banks registered under the Karnataka Co-operative Societies Act will have to be in accordance with the statute i.e., the Karnataka Co-operative Societies Act and Rules framed thereunder. If any Bye-law contravenes the Act and the Rules framed thereunder, the same is liable to be struck down. The Bye-laws of the Co-operative Societies cannot run contrary to the enactment. The State Government in its wisdom has taken the policy decision to enhance the age of retirement of the employees of Co-operative Societies to 60 years from 58 years. As aforementioned, the amended Rule 18(2) of the Karnataka Co-operative Societies Rules is not under challenge. If it is so, the Bye-laws of the petitioner-society shall concur with the amended rules framed under Karnataka Cooperative Societies Rules. 5. Section 129 of the Karnataka Co-operative Societies Act enables the State to frame rules. Consequently, the State can amend the rules also. Therefore, it cannot be said that the State Government did not have jurisdiction to amend the rules. 6.
5. Section 129 of the Karnataka Co-operative Societies Act enables the State to frame rules. Consequently, the State can amend the rules also. Therefore, it cannot be said that the State Government did not have jurisdiction to amend the rules. 6. Sri Sampat Anand Shetty, learned counsel appearing on behalf of the petitioner submits that the final authority with regard to the Co-operative Societies is vested with the general body members of the Co-operative societies in view of Section 26 of the Karnataka Co-operative Societies Act and therefore, it is not open for the Registrar or the State Government to dictate terms to the Societies to modify the age of superanuation of the employees of Co-operative Societies. The said submission is also untenable. Section 26 of the Karnataka Co-operative Societies Act no doubt vests the final authority in general body of the members, but the same would be subject to the provisions of the Karnataka Co-operative Societies Act and Rules framed thereunder. The provision of Section 26 of the Act is clear on the point. Therefore, the Society will have to act in accordance with the Act and Rules framed thereunder and consequently, the Bye-laws will have to be amended in accordance with the statute and the rules. Hence, this Court does not find any ground to interfere in the writ petition. Writ petition is accordingly dismissed.