GUJJA RAJAVARDHAN REDDY Vs. STATE OF TELANGANA

JUDGEMENT

(1.) In all these writ petitions, the petitioners are employees working in various Primary Agricultural Co-operative Societies (PACS) located the Districts of Mahaboobnagar, Ranga Reddy, Nagarkurnool, Siddipet and Narayanpet. The petitioners are working as Chief Executive Officers, Staff Assistance and Clerks, etc. The Government of Telangana has issued G.O.Ms.No.44, Agriculture and Co-operation (Coop-II) Department, dtd. 17/12/2022 issuing guidelines in the name of uniform Human Resource (HR) Policy for Primary Agricultural Cooperative Societies (PACS) employees, whereunder the Primary Agricultural Cooperative Societies (PACS) have been categorized into A, B, C and D Categories basing on the business level of the respective societies and further mentioned permitted staff structure in respect of the PACS. The said G.O., further imposed restrictions over the powers of PACS in appointment of staff and payment of salaries etc., and separate committees called State Level Committee (SLC) and District Level Committee (DLC) were formed for the said purpose. The above G.O., is thus challenged on the ground that it vitiates the provisions of Sec. 115(D) of Telangana Cooperative Societies Act, the petitioners have filed the present writ petitions claiming that G.O.Ms.No.44, dtd. 17/12/2022 is issued in violation of powers vested under Sec. 131 of Cooperative Societies Act. In addition to the averments made in the respective writ petitions, the learned senior counsel appearing for the petitioners has advanced to the following written arguments:

(2.) In W.P.No.4309 of 2023, this writ petition has been filed by the Presidents of various societies in the Jogulamba Gadwal, Ranga Reddy, Nagarkurnool, Mahabubnagar, Wanaparthy, Narayanpet Districts, challenging the G.O.Ms.No.44, dtd. 17/12/2022 as illegal, arbitrary and against the very spirit of the cooperative movement. In addition to the legal arguments advanced in the above paragraphs, it is further submitted that the ultimate authority of the society is the general body of the society in terms of Sec. 30 of the Cooperative Societies Act and Sec. 31 gives power to the general body to constitute the management committee in accordance with its byelaws and Sec. 116(c) of the Act gives the powers to societies to fix the staffing pattern, qualification, pay scale, and other allowances for the employees with the prior approval of Registrar of Cooperative Societies subject to the conditions that the expenditure towards pay and allowance of the employees shall not exceed 2% of the working capital or 30% of the gross profit in terms of actual in a year whichever is less. It is further submitted that Government of India has declared a cooperative credit revival package to bring the cooperative societies to an acceptable level of health through financial restructuring along with legal and institutional reforms and the letter of NABARD dtd. 28/1/2009 addressed to the Commissioner for Cooperation, Registrar of Cooperative Societies specifically refers to Clause 9.2(IV) of the MOU executed by the Government of India, State Governments and NABARD which reads that "providing autonomy to CCS in all financial and internal administrative matters especially in the personnel policy, staffing, recruitment, posting and compensation to staff".

(3.) According to the learned senior counsel, NABARD may issue only guidelines for establishment expenditure vis-a- visa business and viabilities, suggestions of staff size, qualifications, etc., but the actual staffing and composition has to be decided by the respective cooperatives on the basis of their capacity to pay.