MANAGING DIRECTOR APCCAD BANK HYD Vs. VOPISETTI NAGARAJU

JUDGEMENT

(1.) The nature of the powers exercisable by the Registrar of the Co-operative Society under sec. 32 (7) (a) and (b) of A.P. Co-operative Societies Act 7 of 1974 falls for determination in this appeal.

(2.) The Andhra Pradesh Co-operative Central Land Mortgage Bank Limited which is now called Andhra Pradesh Co-operative Central Agricultural Development Bank Limited (hereinafter called the Bank) is a federal type of co-operative society governed by the provisions of Andhra Pradesh Co-operative Societies Act 1964 (herein after called the Act). This bank has to its credit several service litigation episodes and the present appeal is one such episode for which the Registrar himself is the author. In order to appreciate the present controversy the constitution of the Bank and the previous history may be referred.

(3.) The Members of the Central Bank are the primary Co-operative- Agricultural Development Banks and the Government in the first instance framed Rule 70 in exercise of the powers conferred under Sub-section (1) of Sec. 30 read with sec. 115 of the Act and the said rule empowered the Board of Directors of the Bank to constitute a centralised service for the mortgage banks in the State and conferred power on the Board with effect from such constitution to make appointments to those posts. The said rule was held to be ultra vires by this Court and the same was confirmed by the Supreme Court-Vide A.P. Co-operative Bank vs. C.P. Cooperative Land Mortgage Bank (1) A.I.R. 1974 Supreme Court 1692. Subsequently new Section 114- A was introduced in the Act by Amending Act 51 of 1976 and under the powers conferred under the said provision new Rule 70 was framed. Pending the framing of new staff patron several circulars were issued by the Central Bank directing the primary banks not to fill up any vacancies till the new staffing patron was evolved. When the Primary Banks made appointments and promotions in respect of Centralised service, the Central Bank passed orders revoking those orders of appointments and promotions and reverting those officers to substantive posts and the said action of the Central Bank was challenged in Writ Petition No. 4208/80 and batch dated 27-10-1978 and Ramachandra Rao J., upheld the orders passed by the Central Bank.