ANDHRA PRADESH STATE CO OPERATIVE SOCIETIES SECRETARIES AND EMPLOYEES UNION Vs. GOVT OF ANDHRA PRADESH CO OPERATION DEPT

JUDGEMENT

(1.) The Union of the Employees and Secretaries of the A.P. State Co-operative Societies has filed this writ petition. Initially invalidation of the Government orders in G.O.Ms. No. 308, Agriculture and Cooperation (Co-op. VI) Department, dated 19-11 -2003 was sought. By an amendment, which was ordered on 18-3-2004, in addition, invalidation of G.O.Ms. No. 94 .Agriculture and Co-operation (Coop. VI) Department, dated 28-2-2004 and G.O.Ms. No. 1104, Agriculture and Co-operation (Coop. VI) Department, dated 4-12-2003 has also been prayed for and in addition a direction to the respondents to implement the directions of the Registrar of Co- operative Societies contained in the proceedings Re. No. 3958/2004, dated 23-2-2004. Chronology of events, in brief:

(2.) A scheme for providing financial assistance to Primary Agricultural Credit Cooperative Societies (PACS) was formulated by the Government of India known as "Half a Million Jobs Programme". The intent of the scheme was, inter alia, to meet the managerial requirements of the PACS. Under the scheme during the year 1973-73 approval was accorded by the Central Government for incurring an expenditure of Rs. 36 lakhs on the payment of subsidy to PACS to enable them to meet the cost on account of employing Paid Secretaries. The Registrar of Co-operative Societies (the Registrar) was accordingly directed, in G.O.Ms. No. 390 Agriculture and Cooperation (Co-op. VI) Department, dated 12-7-1973 of the State Government to consider the factors enumerated in the G.O. while selecting societies for appointment of 2,000 Paid Secretaries in respect of whom subsidy has been sanctioned by the Government of India. The Paid Secretaries so appointed were to be paid a consolidated salary of Rs.150/- p.m. The Cadre Committee constituted by the Registrar u/Sec. 116-A of the A.P. Co-operative Societies Act, 1964 (for short 'the Act') was required to administer the scheme. Despite the above measure PACS continued to be in financial distress and were unable to meet the cost of Paid Secretaries. Consequently a restructuring of the large number of PACS was undertaken in 1977 by merging what were perceived to be financially weak PACS. As a result, about 15000 PACS were pruned to about 7,000.

(3.) In G.O.Ms. No. 198 dated 28-3-1978 and consequent proceedings of the Registrar dated 29-4-1979 a common cadre fund was created to meet the cost of Paid Secretaries of PACS out of the contributions from co-operative institutions. A State Cadre Fund Committee was also constituted for the administration of the cadre fund. Despite these and other measures, PACS continued to be financially weak. Over the years the salaries of the Paid Secretaries was enhanced contributing to further financial distress of the PACS. There also ensued over a period of time persistent friction between the elected managements of the PACS and the Paid Secretaries. Successive committees were appointed (B.K. Rao Committee and D.S. Iyer Committee) to study the problem. The latter committee recommended the abolition of the common cadre and relegation of Paid Secretaries to the PACS with administrative control over them vested with the management of the PACS.