IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD THURSDAY, THE SECOND DAY OF DECEMBER TWO THOUSAND AND TEN PRESENT HON’BLE SRI JUSTICE G. BHAVANI PRASAD WRIT PETTION No.8737 OF 2001 Between: Kolagadi Venkata Siva Kumar ..... Petitioner And 1. The Andhra Bank Farmers Co-op. Society Ltd., Kothipudi, rep. by its Managing Director, K. Sudhakara Rao, Sankavaram Mandal, E.G. Dist. 2. The Divisional Co-op. Officer, Peddapuram, East Godavari District. 3. The Dy. Registrar of Co-op. Societies, Peddapuram, East Godavari District. 4. The Dist. Co-op. Officer, Kakinada, E.G. Dist. 5. The Registrar of Co-op. Societies, A.P., Hyderabad. …Respondents The Court made the following: HON’BLE SRI JUSTICE G. BHAVANI PRASAD WRIT PETTION No.8737 OF 2001 ORDER: The failure of the respondents to provide a suitable job to the writ petitioner on compassionate grounds led him to approach this Court with this Writ Petition. 2. The writ petitioner claims that his father worked as a Clerk with the first respondent Co-operative Society from 1979 to 1996 till his death on 31.05.1996 leaving his wife and three children including his only son, the writ petitioner. Claiming that he alone has to shoulder the responsibilities of himself, his unmarried two sisters and his mother, the writ petitioner made representations to the Society and also to the Divisional Co-operative Officer for providing him employment and also produced all the relevant certificates of qualification and legal heirship before the Society and the Officer. As no employment is provided to him in spite of the proposals from the officials at various levels and as the compassionate appointment should have been taken recourse to in pursuance of G.O.Ms.No.623, dated 26.10.1978, straight away, the writ petitioner sought for a positive direction to the respondents to provide him a suitable appointment. 3. Respondents 2 to 6 stated in their counter affidavit that the first respondent Society is running on a heavy loss of Rs.17,83,282.15 Ps. as on 31.03.2001 with overdues of Rs.107.33 lakhs from the members loans. The Society has already eight employees with an expenditure of Rs.8.42 lakhs towards establishment and contingent charges for the year 2000-2001 which exceeds 2% of the working capital of the Society in violation of the statutory limits. Though the proposals for compassionate appointment were recommended by the concerned officials, the Financing Bank, i.e., the Regional Office of the Andhra Bank, Kakinada, did not consider the proposal as per their letter, dated 21.04.1999, due to the weak financial position of the Society and refused to consider any new appointment in the Society. 4. Sri Dammalapati Srinivas, learned counsel for the writ petitioner and Dr. K. Lakshmi Narasimha, learned counsel for the first respondent are heard. 5. The point for consideration is whether the writ petitioner is entitled for any compulsive direction to the respondents to consider his compassionate appointment? 6. It is true that the amendment to the Rule 3 of the Service Regulations of the staff working in the first respondent Society appears to have been registered with the Deputy Registrar of Co-operative Societies on 28.01.1999 providing for compassionate appointment to the wife or one of the sons or one of the unmarried daughters of an employee of the Society who dies while being in its service subject to possessing the qualifications as per the Service Regulations. However, the amended regulation itself provides that it should be as per the instructions issued by the Commissioner for Co-operation and Registrar of Co-operative Societies, Andhra Pradesh. It is further seen from the letter, dated 15.06.1998, from the Registrar of Co-operative Societies concerning the representation of the writ petitioner’s mother for his compassionate appointment, that the District Co-operative Officer was directed to take action as per the earlier circulars of the Registrar and as per the service by-laws of the Society “with the approval of the Financing Bank of the Society”. The letter from the District Co-operative Officer to the Divisional Co-operative Officer in pursuance of the said instructions of the Registrar, dated 10.07.1998, also reiterated that compassionate appointment has to be considered with the approval of the Financing Bank of the first respondent Society. The District Co-operative Officer also referred to specific guidelines and instructions issued by the Registrar in this regard and directed consideration of the application of the writ petitioner with the prior approval of the Financing Bank of the Society. The Divisional Co-operative Officer appears to have taken consequential action accordingly to seek the consent of the Financing Bank which did not concur with the proposal in view of the weak financial position of the Society. The Financing Bank not agreeing for the proposal for compassionate appointment in the light of the establishment and contingent charges already exceeding 2% of the working capital in violation of the statutory limits cannot be considered to be unreasonable or groundless. If the Financing Bank finds that the weak financial position of the Society does not permit employment of any more persons than the persons already employed with the Society, the same is based on reasonable criteria with reference to the sustenance and existence of the Society itself in terms of the statute enabling the same. As the consideration of the request of the writ petitioner for appointment on compassionate grounds is subject to the instructions of the Registrar of Co-operative Societies and as the Registrar of Co-operative Societies made the consideration subject to the approval of the Financing Bank and as the Financing Bank withheld such consent and approval for valid reasons, the respondents cannot be compelled to appoint the writ petitioner in any post. As the writ petitioner fails only due to the financial crisis of the Society, the parties can be directed to bear their own costs. 7. Accordingly, the Writ Petition is dismissed without costs. _____________________ G. BHAVANI PRASAD, J Date: 2nd December, 2010 KL HON’BLE SRI JUSTICE G. BHAVANI PRASAD WRIT PETTION No.8737 OF 2001 December 02, 2010. KL