PRESIDENT ACTING Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE first petitioner who is claiming to be the President of Karnataka State Coir Co-operative Federation LTD. , (in short the Federation) and petitioners 2 to 4 its Directors have filed these writ petitions seeking for issuance of a writ of certiorari to quash the orders at Annexure-A dated 19. 7. 2002 passed by the 5th respondent, Annexure-B, dated 15. 7. 1998 by the second respondent, Annexure-C dated 3. 8. 1998 by third respondent Annexure-D dated 22. 12. 1999 by third respondent and order at Annexure-E dated 2. 7. 2000 by the 10th respondent respectively. Further, the petitioners have sought for issuance of a writ of mandamus directing the respondents 1 to 5 to fill up the post of Managing Director of the Federation from the cadre of Asst. Director of Industries and Commerce department as per sanctioned cadre strength, urging various legal contentions.

(2.) CERTAIN relevant facts are stated hereunder for the purpose of appreciating the rival contentions of the parties. The cadre strength of the Federation was sanctioned by the Government vide Government orders Annexure-F, H, J, K and L respectively, 103 posts including its chief Executive officer. Further, as per sanctioned cadre strength, the post of Secretary before amendment to Clause 2 (N) of the Bye-laws in the cadre of Asst. Director of Industries and Commerce Department was eligible to be appointed on deputation. From the year 1999-2000 the post of Secretary in the Federation is re-designated as Managing Director (Chief Executive Officer ). The Chief Executive Officer can be appointed by the state Government in exercise of its power under the provisions of Sec. 29-G of the Karnataka Co-operative societies Act, 1959 (in short the Act ). The major share capital of the State Government is involved in the Federation and it has retained its power in appointing chief Executive Officer on deputation from second respondent Department. When the Government appoints to the above post it has to follow the procedure prescribed under Rule 17 of the Karnataka Co-operative Societies Rules, 1960 (in short the Rules) and also Section 128-A of the Act.

(3.) AS per Rule 17 of the said Rules, appointment of Chief Executive Officer of, the Federation has to be made subject to budget allotment sanctioned by its General Body from time to time by obtaining prior approval of the Government before disbursing salary. In the case of deputation, the Government cannot directly post the deputed person to the post of Federation. It has to lend the services of an officer to the Dept. of Co-operation and in turn, the Department of Co-operation after verifying the cadre strength of either a Society, Federation or Bank, has to give posting orders to it. In the cadre strength of the Federation, the approved cadre to the post of chief Executive is Asst. Director. It is the case of the petitioners that, without verifying the cadre strength, the second respondent has appointed 6th respondent to the Federation on deputation without lending his services to the Department of Co-operation as per order Annexure-B whereas the approved cadre strength of the Federation to the chief Executive officer post is in the cadre of the Asst. Director of the second respondent Department. It is their further case that, the Federation can allow to draw a maximum salary of Rs. 5,000/- to the post of Chief Executive officer i. e. salary of the Asst. Director which is the sanctioned post in the Federation, where as, 6th respondent is drawing salary of Rs. 20,150/- per month and other perks which is more than Rs. 40,000/- per month than the cadre of Asst. Director. Such a huge salary cannot be given by the Federation to the second respondent as the provisions of the Act, Rules and Bye-laws do not permit it to do so.