M ANJANEYA Vs. GOVERNMENT OF A P

JUDGEMENT

(1.) The employees who are forty one in number of the Ongole Cooperative Bank Limited, the 4th respondent herein have filed these three writ petitions questioning the proceedings issued by the said Bank in Proceedings File No. 9/2003-2003 dated 28-4-2003 in reducing their existing salaries, pursuant to the resolution taken in the General Body dated 27-4-2003 to create 2% working capital towards the administrative and contingent fund in pursuance of Rule-36 (B) of the Andhra Pradesh Cooperative Societies Rules ( hereinafter referred as 'the Rules') for utilization of the administrative and contingent expenditure of the bank for the year 2003-2004.

(2.) In the impugned order it is that, in view of the weak financial position of the bank and in view of the provisions contained in the newly added Rule-36 (B) of the Rules, it is a statutory obligation on the part of the management of the bank to implement the resolution passed by the General Body effectively and therefore, it was decided to reduce the salaries of the employees of the bank commensurating to the amount available in the administrative and contingent fund for the year 2003-2004. It is also stated that the working capital of the bank as on 31-3-2003 is 3575.45 lakhs and the administrative and contingent charges on 2% working capital worked out to Rs. 71.51 lakhs. Accordingly, the salaries of the respect of the 69 employees of the bank were reduced from the existing gross salaries.

(3.) This Court while admitting W.P. No. 9033 of 2003 granted interim direction suspending operation of the said proceedings by order dated 6-5-2003 in W.P.M.P.No.11578 of 2003. For non-implementation of the said order i.e. for not paying the gross salaries, Contempt Case No. 672 of 2003 has been filed. To vacate the said interim order dated6-5-2003, W.V.M.P.No. 1893 of 2003 has been filed by the respondents. By order dated 02-05-2003 in W.P.No. 11315 of 2003 in W.P.No. 8785 of 2003, this Court directed the respondents that the deductions towards recovery of advances paid to the petitioners shall not be made from the reduced salaries of the petitioners for a period of two months. In another writ petition 11132 of 2003, this court by order dated 16-6-2003 in W.P.M.P.No. 13895 of 2003 granted interim stay of all further proceedings in pursuance of the impugned order dated 28------4-2003. However, it was made clar that the said order does nto preclude the 4th respondent bank from giving effect to the provisions of section 116-C of the A.P. Cooperative Societies Act by retrenching the persons, following the Rule of Last-cum-First go and by issuing necessary notices or proceedings as the case may be. Vacate stay petitions have been filed in all the three writ petitions to vacate the interim orders. At the stage of considering the vacate stay petitions, a request has been made by the learned counsel appearing for the petitioners as well as the respondents to hear the main writ petitions themselves and dispose of the same. That is how these writ petitions have been heard and disposed of finally by this common order.