SOUTH CENTRAL RAILWAY EMPLOYEES COOPERATIVE CREDIT SOCIETY EMPLOYEES UNION SECUNDERABAD Vs. REGISTRAR OF COOPERATIVE SOCIETIES

JUDGEMENT

(1.) The appellant is a society registered under the Andhra Pradesh Co-operative Societies Act and the members of the society are the employees of South Central Railway. The society in turn maintains certain staff members for running the affairs of the society. The service conditions of such employees of the society is governed by the bye-laws of the society. By law 33 of the society empowered the committee of management to frame service regulation pertaining to the service conditions of the officers and the employees of the society. Pursuant to the aforesaid power the society has framed a set of rules with the approval of the Registrar of Co-operative Societies determining the service conditions of the employees of the society. The said rules of society categorically provided that there should be no reservation in promotions of the employees of the society. The private respondent filed a writ petition No. 8051 of 1982 challenging the order of cancellation of their appointment dated 10-8-1982 and that writ petition was allowed by the learned single Judge of the Andhra Pradesh High Court. On an appeal being filed by the present appellant the Division Bench of the High Court dismissed the appeal and affirmed the judgment of the learned single Judge. It may be stated that the private respondents were given promotions on 9-8-1982 to various promotional posts by applying the principle of reservation for Scheduled Castes and Scheduled Tribes but that order was cancelled by order dated 10-8-1982 on the ground that under the rules of the society dealing with the service conditions of its employees the principle of reservation has no application in the matter of promotion. The learned single Judge came to the conclusion that the rule of reservation applies to the promotional posts also. On appeal, the Division Bench of the High Court interpreted the notification issued by the Governor of Andhra Pradesh in exercise of powers conferred by Section 16 of the Andhra Pradesh Co-operative Societies Act, 1964 and held that the notification in question is wide enough to include all posts in all co-operative institutions including the promotional post to which the principle of reservation should be made applicable and the word 'appointment' in the notification is not necessarily referable only to the stage of initial recruitment. With this conclusion the Division Bench dismissed the appeal filed by the present appellant and confirmed the decision of the learned single Judge. Hence the present appeal.

(2.) Mr. K. Subba Rao, learned counsel appearing for the appellant contended that under Section 116-B of the Andhra Pradesh Co-operative Societies Act the Government no doubt has the power to give directions to a society or class of societies or appointment committees to make provisions for the reservation of appointment or posts under any such society in any cadre created under the said section in favour or for the grant of any special concession in the matter of appointments to any such posts or cadre to the Scheduled Castes, Scheduled Tribes and Backward Castes, and the society or appointment committee shall be bound to comply with such directions and give effect to any provisions so made. But in the case in hand in exercise of such power the notification that has been issued by the Governor of Andhra Pradesh does not bring within its purview the promotional posts to which the principle of reservation would get attracted and as such the impugned judgment of the High Court is unsustainable in law. According to the learned counsel for the appellant the High Court while interpreting the notification in question has not considered the later part of the notification which has ultimately vitiated the conclusion arrived at.

(3.) Learned counsel appearing for the respondent on the other hand contended that in view of the wide powers of the Government to issue directions contained in Section 116-B of the Andhra Pradesh Co-operative Societies Act and in view of the fact that the railways have been following the principle of reservation in promotional posts and further the appellant society itself having followed the principle of reservation for some length of time it would not be in the public interest to hold that the principle of reservation should not apply in respect of promotional posts. The learned counsel further contended that in view of the provisions contained in Article 16(4)(a) of the Constitution, it is a constitutional mandate that the State can make laws for reservation in matter of promotion of any class or classes or post in the service under the State in favour of Scheduled Castes and Scheduled Tribes and such constitutional mandate should be borne in mind while interpreting the relevant notification.