1 rj 422 IN THE HIGH COURT OF PUNJAB AND HARY AT CHANDIGARH r CWP No 12820of 1999 Date of DecisionlOctoberl 2010 The Jullundur DistrictCoperativeAgricultural Service Societies Union RegdI e ePetitioner Versus 1 1 Stateof Punjaband others 0 ne 0 CORAM HONBLE MRe JUSTICE MeMeKUMAR C5 HONBLE MRe JUSTICE AeNeJINDAL Present Mr GC Dhuriwala Advocate Z Mr RK Shanna Advocate Mr MS Bedi Advocate Mr ICK SinglaAdvocate Mr Anupam Advocate Mr SlC Dhawan Advocate for the a5 Mr Suvir SehgalAdditional Advocate General Punjab 00 for the veA le To be referredto theReporters or not2 Z 2 Whetherthe shouldbe reported in the ll Digest2 MeMeKUMARe Je This order shall disposeof a bunch of 8 because common facts and questionsof law are involved therein However the facts arebeingreferredfrom CWP No 12820of 1999 2 The JullundurDistrict Agricultural Servic Societies Union Regdlfor brevity the Unionl has filed the aforementionedpetitionunder Article 226 of the Constitution the action of the for thepaymentof salaryto the at 75 of the net profitof the Agricultural Service Societies or Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 7 423 3WP No 12820of 1999and connectedpetitions 2 1 brevitthe SociesY The Union has sought of letters dated 2241999 3121998 3999 and 1851999 37 to P on the groundthat the service conditions grantof and other service benefits of the workingin the in the State of Punjabhavebeen in an illegal and mala fide manner which 1S contraryto the PunjabState Service Societies ServiceRules 1997 or brevitythe 1997 Rules1 Further a mandamushas L been soughtdirecting the to allow the of theSociety 0 to continueto draw the regularpayescale and other benefits as providedby the C I Rules C 3 Broadly the Society lIl the State of Punjabhave I employedprimarily thefollowing of a9 bl Z SalesmenlCashierand PeonacumChowkidar These are being m C paidsalariesand other allowancesby therespective Society and thereis no I financialliabilityon the State Their main functionis to provide r5 Fertilizers Pesticidesetc as also to advanceloans to the farmersand in tum r 7 theyget marginalc0mmissionlinterestIn other words the commissionand Z interest is the main source of income of these Society out of which the Qm employees are paidsalaries 4 Under Rule 28 of the PunjabState SocietiesRules 1963 for brevity the 1963 Rules the RegistrarCooperativeSocieties No 2 has been to frame Rules regarding and conditionsof service of the of the Society In exerciseof the said power No 2 initiallyframed the Rules known as the PunjabStateCooperativeAgricultural ServiceSociety Service Rules 1979 for brevitythe 1979Rules2which were noti6ed on 2931979 Rule3 and 50f the 1979 Rules dealswith thestrength of service and scalesof pay 5 On 17111986 the No 2 notified the Rules Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document CWPNo 12820of 1999andconnectedpetitions 3 424 e known as thePunjab State ServiceSocietiesService 1 Rules 1986for brevity the 1986 Rules which came into force wef 18111986 Rule7 of the 1986 Rules the patternof staffing and incentivesin the Society Annexure A to Rule 70f the 1986Rulesfurther the scalesof paye 6 The No 2 constituteda Committeeunder the of AdditionalRegistrar edit SocietiesPunjab 1 r toreview the Servic Rulesof theemployees of theSociety On thebasisof 0 thereportsubmittedbythe said Committeeand in exerciseof the power under C40 Rule 28 of the 1963 Roles the Servics Rules of the of the I C5 were reframedbythe No 2 and the 1986Rules I were by the 1997 Rules we 910997 As per Rule 70f the 1997 Z Ruleswhich deals with the pattemof staffingemolumentsand iIentives members of the serviceare to bepaiddeamessallowance and all other I allowancoeson the patternof the State Govemment Rule 7 alongwith 08 AnnexureA of the 1997Rules readsthusl QO 7 PATTERN OF STAFFING EMOLUMENTS AND vawo Z INCENTIVES tl i1 The of the societies on 61nctional basis staff approved for them and scales of pay of each categoryof the shall be as per Annexure A to thisrule iil The members of the servic shall be paid deamess allowance and other allowances on the pattemof the State Government iio The total on staff should ordinarilynot exceed 60 of theannuaIgrossincomeof theSociety The emolumentsalready beingdrawn by an employee byway of payand dearnessallowancesover and above the scale fixed under Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 4252WP No 12820of 1999and connectedPetitions 4 r these rules shall be for the purposeof fixation of pay and P anyamount drawn over and above the gradeshall be treatedas pay which shallbe set offin 8Rwe increments ANNEXURE A to Rule 70fthe 1997Rulesl Sr Category of Societies Staff Scale of No pay A1 Societies havingan Secretaryl1 1200e30e 1 loan againstManager 156040 membersof 4000 lakhs and 1800 aboveor havingaverageloan 0 againstmembers Salesmanl2 950m25 C anddepositcollectively to the Cashier 1200130 tune of Rs 8000 lakhs and 1500 I having annualgross income of C Rs 200 lakhs Peonume 750e201 Chowkidar 950251 4 1200 3011350 Z B1 Societies havingan Secretary 1 9505 m loan above Rs 1200130 0 2500 lakhs or havingaverage 1500 loan against members and depositSalesmanl 950 collectively to the tuneof RSe 1200125e 08 5000 Iakhs and having annual 1350 ao grossincome of Rs 150 lakhs Peonume 7501 mmvo Chowkidar1 950251 Z 1200 3011350 rl Cl Societies havingan Secretary 1 95025 loan upto RS 120030 2500 lakhs or havingaverage 1500 loan against members and depositPeonumm 750201 collectively to the tuneof Rs Chowkidar 1 95025e 5000 lakhs and havingannual 1200 grossincome of Rs 100 Iakhs 3011350 Note to the annexurel 19 The base year for the staff strengthand the of the dearness allowance shall be preceding cooperatlveyear 2 The short term loans converted into Medium Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 6 426 WP No 12820of 1999andconnectedpetitions 5 b Term Agri Loans due to natural calamities in the Coa operative year shall not be included in annualaverageloans 39 Master scale as 111 the case of Government employees will be to the above mentioned henceforthe 95 7 A perusalof Rule 70f the 1997 RuleSwould show that DA and all a Q other allowances are requiredto be paid OIl the patternof the State 0 Govemment It is also clarified that total should not ordinarily 0 I exceeds 60 of the annual gross income of the SocietyThe emoluments C5 beingdrawn byan employee byway of pay and DeamessAllowance over and I abovethepay scalesfixed underthe Rules are protectedMaster scalewhich is Z applicable to thePunjabGovemment was to applyto them m r 8 On the basisof the recommendations of the4 PayCommission I on 1611998 theStateofPunjab notified the Rules known as the PunjabCivil 08 Services Revised PaylRules 1998 which cameinto force wef 11 1996 ClO By the said Rules the pay scales of the PunjabGovemmentemployees were 7 Z revised weef 111996 On 2151998 the pay scales mentionedin Annexure Om A to Rule 70fthe 1997 Rules were also substitutedbytherevised scales of pay bythe No 2 However the said revision was made applicable wef lAl998 insteadof 111996 and no arrears regarding fixation of pay were to bepaidpriorto 1A998 to the membersof the Service 31 9 On 3121998 89 the No 2 issued instructionsregardingdistribution of pay upto 7 of each month to the employees workingin the The said instn1ctionsread as under 66 On the subjectcited above the instructionsare issuedthat the pay of the nployeesworkingin C0operativeAgricultural ServiceSecietiesbe paidregularlyand in this regarda separate Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 427 2WP No 12820of 1999and connectedpetitions 6 savingbank account be maintainedand 7590 commission of the societyshould be and the salaryshould be paidto the by7 of eachmonth The salaryshould be givenfrom this acmunt on half yearlybasis and in case the balanceis not sufficientin that acmunt to meet thesalarythe amount shouldbe arranged from the bank and the acount be reconciled with the bank within six months after the proceeds of six monthlycrops 1 L start coming In case this is not possibleand the Society1S 0 runmng 111losses the salaries of of such societies C0 I should not be givenabove 10 months After the C of the societythe salaryshould be distributedfrom I the 70 of the net profitof the society6thesalaryof the Z employees should not exceed 70 of the net profitof theSociety lr Theseinstructionsbe complied 10 From a bareperusalof the said instructionsit is clearlyspelledout c6 that the total salaryof the working in the Society in the Stateof CLO Punjabwere not to exceed 70 of the net profitof the Society and the AW3 Z salaries were to be paidon half yearlybasis In case theSociety lS running in tl losses the were not to be paidsalariesexceeding 10 months This is contraryto the servicerules of 1997whereit is laid down that60 of annual grossprofitmay be spenton salary 11 On 17121998 the No 2 after consideration of the matter regardingreviabilityof distribution systemof essential commoditiesin the Socieos9passedan order for optionsof the Salesmenworking111the in the Stateof Punjabas to whetherthey are willingto work on basis and in case theyare not interested to work under the new scheme the concmed Societywas competent ake action againstthem P49 In furtheranceto the Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 128 WP No 12820of 1999and connectedpetitions 7 order dated 17121998 another letter dated 2511999 was issued by the 40 Assistant Registrar Societies Ludhiana lnter alia directingall l 1 the Secretariesof the Society 111 the Regionthat the services of those Salesmenwho were unvillingto work on basis be witlPe51 On 2241999 the No 2 issuedyet anotherletter to all the Assistant Cooerative Societiesin the field statingtherein that the Salesman be appointed on Cossionlretainership m lr basisandin case theyare not interestedto work theSocietywould be at liberty 0 to take stepsagainstthem 71 Letters dated 17121998 and 40 2511999 P4 c Pm5J were by way filingCWP No 3201 of 1999 I C0 111this Court In the said petitionthe No 2 filed a I written statement statingthat the letter dated2511999 has beenwithdrawn on Z 451999 Accordinglythe said writ petition was of as havingbeen r renderedinfructuous I 12 On 1851999 the No 2 formulated 08 an Inntive for the of theSociety In this regard 120 rules known as the Punjab Service Societies Employees mm Z IncentiveRules 1999 were framedunder the 1997Rules As per Rule 4 of Q the lncentive Rules onlythose Society who were in profitwithout any accumulatedlosses were eligiblefor the IncentiveSchemee1999It has been furtherprovided in the saidrule that the overall including incentive pay and other would not increasebeyond 70 of the net pro6t 13 On 361999 P99 the No 2 issued another letteramending Rule 196 of the 1997Rules which readsthusl 46 In the Rule 19b1of the PunjabState Agricultural Service Societies Service Rules 1997 the following amendmentis beingmade 19b9 An employeeshall be entitled to deathacum Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 429m2WPNo 12820of 1999and connectedDetitions 8 retirementgratuity on acmuntof death while in the J servics of the Society or on retirement as admissible to Govt subjectto the Rider that all the benefitsextendedto the includingGratuity maynot exceed70 of profitof theSociety Note Deletede Thisissueswiththeconcurrence ofRCS 1 C 14 It is claimedby the Union that the aforementioned 0 amendmentis illegalarbitrary and mala fide becauseif a employee C who hasretiredafterrendering more than 25 yearsof servic and in the year of I C5 retirementif thereis no profiteamedby the concernedSocietythen such an I would not getany gratuity etc even though in thelongservicetenure Z hemighthaveworkedhard and theSocietymighthaveeamedgoodprofit On m Q the contrarythere is that in the case of another employee who I retiredfrom servicr in the year when thesocietyearns more profit 08 thensuch an employee would getgratuity and all otherbenefitsthough he may m behavingsmallerperiodof servicethan theemployee who retired in the earlier 7 Z yearin which therewas no profitin theSociety tl 150 In pursuanceof letter dated 3 121998 Pa81the Assistant Cooperative Societies Nakodar issueda letterdated731999 to the Presidentand all CommitteeMembers of SahreeCooerative Servic SocietyLimited Sarhee directing them to effect recovery on account of payingexcss saIary to the over and above70 net profitof the SocietyTheywere also upon for placingthe Salesmen Essential on basis otherwise action under Section220 of the Punjab SocietiesAct 1961 6forbrevitythe Act was to be taken againstthem elll It is alleged that similar letters werealso issuedbythe Assistant to various Societies Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 0 C 430 3WP No 12820of 1999and connectedpetitions 9 16 In the backdrop of the above factual matnx the instantpetition as well as other connectedpetitions havebeen filed alleging that the action of the Registrar Societies No 2 amounts to change of servic conditionsof the employees working in vanous Society in the State of Punjabwithout actually the statutory1997 Rules which govemstheir conditionsof service 17 In the writtenstatement filed on behalf ofthe at the a outset a preliminary objection has been raisedthat thepetitioner Union hasnot 0 exhausted the remedyof revision providedunder Section 69 of the Act C I thereforethe writ petition is not maintainable Justifying the letters C5 issued by the Noe 2 it has been assertedthat under Rule I 28 of the 1963 Rules the Registrarof Societies Punjab1S Z empowered to framerules the conditionsof serviceof the m 1 of the Societysl Accordingto the the Registraris also I competent to amendtherules byvarious basedon 08 the wholesomeprinciplethat the diligentand hard workingstaff is not OO exploitedand suitablyrewarded for the servics rendered whereas the mmo Z and lazystaff is curbed If a societyis suffering Om losses it cannot run for a longtime and allowing it to run for a longtimewould also not be profitable and possibleIt has been submittedthat the 1997 Rules initiallyprovidedthat the total Oll staff should ordinarily not exceed60 of the annualgrossincomeof theSocietyHowever the said rule was amendedby the No 2 vide circularNo CreditICAe 51368dated751998 and the cap of 60 in respectof the on the staff of theSociety was raised to 75070of the annualincomeof the Society Re19 It has also beenpointedout that the amendmentin the service rules 111 respectof gratuityetc issued vide letter dated36999 6P9 has been made on a of the Union of theEmployees of the in the State Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 431 CWP No 12820of 1999and connectedpetitions 11 of Punjab The petitioners are membersof the said Employees Union thus theycannot objectto the demandmadebythe Union In para 23 of the reply on merit it has been statedthat the servics conditionsof the ofthe Societyslin the Stateof Punjabare not governed byany statutoryrules but are governedbythe rulesframedbythe No 2 under Rule 28 of the 1963 Rules These rules are 111the nature of executive instructions issuedby the and it is within his competence to modillamendthe 1 tZ servlce rules of theemployeesThereforenothing wrong has beencommitted 0 byhime 0 18 We have heard leamed counsel at a considerablelengthand have I C9 perused the record with their assistance I 19 On the basisof the arguments and recrordwe find that Z the followingquestions of law would arisefor determinationof this Court l Whether the letters the pay scales or co I relating the pay of the to the profitof the Society as 08 00 against fix in accordanc with the pay scale in the rules is pennissible byissuanceof lettersbytheRegistrar2 7 Z 2 Whether the action of the is punitive nature and lll therefore in law2 3 Whether converting the tenure of servic of a Salesmanretiring him at the ageof 60 in accordancewith Rule 19 of the 1997Rules to that of unsalariedemployee bypaylngcommission on the sale transactioneffectedbyhim is RE OUESTION NOS 1 AND 2 20 We havealready noticed in the paras Rule 70f the 1997 Rules and Annexure A appendedto that Rule The posts of SalesmanlCashierand PeonmcunChowkidarhave been shown to carryspecified scalesof pay On the enforcementof theRevisedPay Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 432 CWP No 12820of 1999andconnectedpetitions 11 Rules in theyear 1998 wel 111996 the aforesaidpay scales were also d revised no arrears after fixationof pay were to be paidin respectof priorto lA1998 However the No 2 issueda the of letterscontaining theinstructionsbylinkingthe pay of the ofthe the profitearnedby them For exampleon 3121998 the addresseda letter to the Joint RegistrarsDeputy and of all the Societies Thecontents of the j been noticedin para 8 above and a aforesaidletter lIl extensohave 0 of the same shows that of every Society are to be 0 paid their salaryby7 of each month However in case theSocietyis running I C5 111losses then the employees areto be paidsalarynot over and above ten I monthsandthesalaryis to be distributedto theextent of 70 of the net profit Z by the Society Obviouslyit has resultedin reductionof the salary e2 whichis linked with thescaleof pay as determinedbythe expertbodylike the tr I PayCommission which analyse vanous factorsbefore the 08 Theanalysis of thePayCommissionis ordinarily basedon consumer revlS1011 00 index The consumer pric index is an estimationof percentageof 7 2 thepres so as to correlatethevalue of money in terms increase in of cunency The priceshave hardlyever come down but have always arisingtrend Therefore reductionof pay in such a fashion by the No 2 is not 21 The No 2 also addresseda letter dated 31999 Pe91It seeks to amendRule ltbI of the 1997 Rules which has been noticed in para 11 It may be true that the has been power to frame and conditions of service of of the In fact Section85 of the Act vests the State Governmentwith thepower to makerules to carry out the purposesof the Act Therelevantprovision of Section85 of theAct readsthus Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 433 2WPNo 12820of 1999and connectedpetitions L4 85 Rules l9 The Governmentmay for any coperative soclety or class of such societies make rules to carry out the purposes of this Act 29 In particularand without to the of the power such nlles may provide for aH or any of thefollowing matters namelyl 6i to xxxviil XXX Xxx XXX 1 0 xxxviii9 for members of the committee and 0 employee of a societyor class of societiesand the conditionsof 0 I servic subjectto which personsmay be bysocieties C5 e In pursuance of the aforesaidpower the State Govemmenthas I framed the 1963Rules Rule 28 of the 1963Rules the Z and conditions of service of employeesThe aforesaidlettersassume to have beenwritten in pursuanceof power vestedwith theRegistrarby Rule 28 of the I 1963Rules Rule 28 ofthe 1963Rules readsas under 08 28 Qualificationsand conditionsof serv of CQ lSection850cm7iiill619The and conditionsof 7 Z servlce subjectto which any personmay be employedby a coa r operative society or a class of cooperative societiesshall be such asmay be determinedbythe Registrar from time to time 29 Where the RegistrarlS of the opinionthat lt 1S necessary or expedient so to do he maybyorder for reasons to be recordedin writingrelax theprovisions of this rule with respectto any cooperativesocietyor class of cooperative societies to such extentas hemay considerproper 23 A perusalof the aforesaid Rule shows that and conditions of service of an employee of theSocietyare as may be determined by theRegistrarThe conditions of service havebeen determinedby the 1997 Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document c1 434 WP No 12820of 1999and connectedpetitions 13 11 Rules and for various categories of workingin theSociety posts Y4 of SalesmanlCashierPeolecumwChowkidaretc have been shown to carry a specificpay scale As against the aforesaidstatutoryRules the Registrarhas started powerby issuingletters It is highly doubthll whether by executive tnstructions of this nature any statutoryrule could be altered According to the stand taken by the in the written statement letters are lIl the nature of executiveinstructions It is well m C settledthat executiveinstructionscannot alter the rules or could be contraryto 0 such rules It is well settled that statutoryrules cannot be by 0 executive instructionsand run contraryto the rules In thatregardreliance may I Ca be placedon thejudgment ofHonble the Court renderedin the case I of Stateof Maharashtra ve JieannathAchvut Karandikar AIR 1989 SC Z 1133 Thereforethe lettersdated 3l21998 and 361999 6P8and Pe99 are not e sustainable 24 Even if it is presumed that letter dated31999 P8I amounts to a5 exercising the power of amendmentand Rule 19b9of the 1997Rules has been 00 amended still it would not be sustainablebecauseno rule muld be framedor 2 Z executive instructionsbe issued reducing the pay of an employee CL when under the 1997 Rules it is considered as penalaction Rule 14 of the 1997 Rules postulate infliction of llllnor and major Under both the heads reduction in emoluments stoppageof incrementsand recovery of pecumaryIoss are some of the Therefore any instructionissued or rule made to the detrimentof elnployees and against their interestscausing loss of salarywould be considered and such a action can be taken onlyas a measure of The of minor nature can be inflicted under Rule 149 however a majorpunishment can be inOicted in accordancewith the procdureestablishedby Rule 1439of the 1997 Rules Therefore on that score also the amendmentis not in law Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 135 OWPNo 12820of 1999and connectedpetitions C7114 25 Another reason which weigh favour of the petitioners 111 is that 4V theymightbe governedbythe statutoryrules but no onerous conditioncould be imposed upon thembyframing any rule which would reducetheir salary A contract of soon assumes the characterof status where terms and conditionsof serv could be by the amendmentof the rules But still it would be for a Public ora Society to proceedln a manner so as to violate Article 14 of theConstitution m r which requirethat all Public Societiesand are 0 expectedto act fairly In Central Inland Water TransportCorporation C I d0 Ve BrOiONath GangulyAIR 1986Sc 1571 it has been observedthat C the service of a permanentemployee without givingany reason and bygivingthreemonthsnoticeis opposedto publicpolicyand such a rule Z was held to be ultraviresof Article 14 of the ConstitutionThe argumenthat Q therewas a contract betweenthe of the Pubc with the I hasbeenrepelledbyholdingthat in standardform contract the 08 m weakerpartyhas no real freedomof contract becausein everyorganisation weaker partyhas to face the e same consequenceof signing on the dottedIine 2 virtuallyleavingthe weaker partyno optionlPS AtiayhRise and Fall of tl Freedom of ContractlSuch a freedomto contract has beenregarded as freedomof a lambbeforea lion in jungleTherefore we are of the view that lncorporation of Rule the of the to cannot be sustained111the eyes of law Acordinglysuch an amendment cannot meet the approvalof Article 14 of theConstitutionOn that score also the amendmentis liableto be set aside RE OUESTION No 3 26 This questionhas ansen on acount of the fact that vide letter dated 73999 the NO 2 has placedthe Salesman Singh Gagan Preet 2014.02.15 15: 48 TRUE SCANNED COPY OF ORIGINAL PHHC CHANDIGARH Sahil Soni 2016.03.21 12:27 I attest to the accuracy and integrity of this document 6 436 2WPNo 12820of 1999and connectedpetitions 15 Essential Commodities on basis The provision in J that regard has been made which is based on restricting the salaryto the net profitsamounting to 75 and then placingthe post of Salesman on basis The letter deservesto be read in extenso which is as under 46 lcmrdingto letter No dated 8ieSP C the of Servic Societies 0 cannot be givensalaryexceeding 75 per cent of the net profitof C I the SocietyWhereas your Societyhad duringthe year 199899 C5 has016 and 223 hasbeen paidas salaryto theemployees which I lS more than 75 per cent of the net profit Therefore the salary Z which has