INDORE PREMIER COOPERATIVE BANK LTD Vs. HEMCHAND

JUDGEMENT

(1.) THIS appeal has been filed against the order of Joint Registrar Cooperative Societies, Ujjain passed in Service Dispute No. C-43/ 07-08 dated 26.6.2008.

(2.) BRIEF facts giving rise to this appeal are that the appellant is a registered Cooperative Bank u/s 9 of the Act and the respondent is its employee. There were some financial irregularities noticed in the working of the respondent and he was issued a show cause notice. Since, the reply to the notice was not found satisfactory, a departmental enquiry was instituted against him. As a result of this enquiry, the respondent by the order of the appellant Bank dated 25.8.2003 was reduced in rank. He was thereby demoted from the post of Public Relation Officer to the level of Clerk. The respondent filed a Service Dispute u/s 55 (2) which was initially heard by the Joint Registrar Cooperative Societies, Indore, but on the request of the respondent, the same was transferred to the Joint Registrar Cooperative Societies Ujjain, who through the impugned order has set aside the reduction in rank's order of the appellant. Therefore this appeal.

(3.) COUNSEL appearing for the respondent urged that the enquiry was conducted by the officer who was not senior to the respondent as required. There have been thus prejudices caused to his case. It was also submitted that because the respondent was appointed on the post of Public Relation Officer on 5.1.1996 he could not have been demoted to a post which he had never held. The counsel has placed his reliance on AIR 1987 SCI 627, Hussain Sasansaheb Kaladgi v. State of Maharashtra, wherein it has been held that a direct recruit cannot be reverted to a lower post. Thus, the Hon'ble apex Court in the cited case had held that the order of State Government reverting direct recruit to the lower post of Primary Teacher is unsustainable.