CIVIL WRIT JURISDICTION CASE No.11062 OF 1996 In the matter of an application under Article-226 of the Constitution of India. 1. SURENDRA PRASAD SHARMA, SON OF LATE SHEO SHARMA, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE SULTANGANJ, DISTRICT BHAGALPUR. 2. RABINDRA KUMAR SINGH SON OF LATE DAMODAR PRASAD SINGH, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE BANKA, DISTRICT BANKA. 3. GAUTAM KUMAR SHARMA SON OF LATE CHARU CHANDRA SHARMA, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE BIHPUR, DISTRICT BHAGALPUR. 4. KAMALUDDIN SON OF SHRI ABUL HASSAN, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, HEAD OFFICE, BHAGALPUR. 5. SUDHANSHU KUMAR DAS SON OF LATE MAHESHWAR DAS, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, HEAD OFFICE BHAGALPUR. 6. SUBHRANSHU BHUSHAN SINGH SON OF LATE RASIK LAL MAHTO, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE BANKA, DISTRICT BANKA. 7. ASHWINI KUMAR YADAV SON OF LATE KARTIKA MANDAL, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE KAHALGAON, DISTRICT BHAGALPUR. 8. ASHOK KUMAR GUPTA SON OF SHRI RAGHUNANDAN PRASAD GUPTA, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, HEAD OFFICE BHAGALPUR. 9. NITYA NAND PRASAD SINGH SON OF SHRI TILAKDHARI SINGH, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE SHAHKUND, DISTRICT BHAGALPUR. 10. AINUL HAQUE ANSARI SON OF LATE HAKIM MOHAMMAD, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE SULTANGANJ, DISTRICT BHAGALPUR. 11. MOHAMMAD ABUL HASSAN SON OF LATE MANJOOR HASSAN, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, HEAD OFFICE BHAGALPUR. 12. ARUN KUMAR SINGH SON OF SHRI KAILASH PRASAD SINGH, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE BHAGALPUR, DISTRICT BHAGALPUR. 13. RAJEEV LOCHAN VERMA SON OF LAKHAN LAL VERMA, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE SULTANGANJ, DISTRICT BHAGALPUR. 14. SHREEMANT KUMAR SHARMA SON OF LATE BANKIM SHARMA, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE SHAMBHUGANJ, DISTRICT BANKA. 15. KESHAV PRASAD SINGH SON OF SHRI ANIRUDDHA PRASAD SINGH, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE DHARAIYA, DISTRICT BHAGALPUR. - 2 - 16. OM PRAKASH SAH SON OF BATORAN SAH, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE BHAGALPUR, DISTRICT BHAGALPUR. 17. RAMDEO MANDAL SON OF GOKAN MANDAL, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE NAUGACHHIA, DISTRICT BHAGALPUR. 18. JAGDISH PASWAN SON OF GANAURI PASWAN, AT PRESENT WORKING IN THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BRANCH OFFICE AMARPUR, DISTRICT BANKA. -----------------(Petitioners) Versus 1. THE BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BHAGALPUR, THROUGH ITS ADMINISTRATOR, 2. THE MANAGING DIRECTOR, BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BHAGALPUR. 3. THE SUBDIVISIONAL AUDIT OFFICER, CO-OPERATIVE SOCIETIES, INCHARGE OF BANK AUDIT, BHAGALPUR CENTRAL CO-OPERATIVE BANK LIMITED, BHAGALPUR ----------------(Respondents) ----------- For the Petitioner : Mrs. Namrata Mishra, Advocate. For the Bank : M/s Nitiranjan Jha, Rakesh Kumar Jha, Advocates. P R E S E N T THE HON'BLE MR. JUSTICE V.N. SINHA V.N.Sinha, J. Heard learned counsel for the petitioners and the counsel for the Bhagalpur Central Cooperative Bank(hereinafter referred to as the Bank) as also took on record the supplementary affidavit and supplementary counter affidavit filed by them. 2. Petitioners are the employees of the Bank serving on the post of Typist, Peon. They are aggrieved by the order bearing Memo No.1025 dated 5.10.1996, Annexure-15 passed by the Managing Director of the Bank, whereunder their basic salary has been corrected in the light of the audit objection taken by the Sub- - 3 - Divisional Audit Officer, Cooperative Societies, Incharge, Bank Audit contained in letter No.58 dated 22.8.1996 with effect from January, 1988 from Rs.1520/- to 1420/- and 980/- to 835/- respectively. 3. It is submitted on behalf of the petitioners that order dated 5.10.1996 passed by the Managing Director of the Bank in the light of the audit objection is contrary to the instructions of the State Government contained in letter No.301 dated 10.1.1983, Annexure-3 revising the scale with effect from 1.7.1982 to Rs.535-765 and Rs.350-425 respectively. The scale of Rs.535-765 was again modified under letter No.7763 dated 21.7.1983, Annexure-4 to Rs.580-860. It appears from perusal of letter dated 10.1.1983, Annexure-3 that the mode to fix the salary in the revised scale was provided in paragraph- 3 of letter dated 10.1.1983, Annexure-3, in terms whereof the emoluments payable to the employees serving in the pre-revised scale prior to 1.7.1982 were entitled for grant of D.A @ 56/42%. Counsel for the petitioners further submitted that contents of letter dated 10.1.1983, Annexure-3 was further revised under letter dated 16.2.1984, Annexure-5 as regards the mode of fixation of the salary in the basic grade. 4. Counsel for the petitioners further submitted that when petitioners were appointed on 14.12.1982 the - 4 - revised scale had not come into effect and their salary was fixed in pre-revised scale at Rs.792.10/- but after revision came into effect as per the chart prepared by the authorities of the Bank the salary of the petitioners on 14.12.1982 is shown to have been fixed at Rs.753.23/- which is less than the amount which the petitioners drew before the revision came into effect and to meet such anomaly an agreement was signed between the employees of the Bank, its union, departmental representatives and the Bank on 8.10.1985, which is contained in Annexure-7 to this application. It is also submitted on behalf of the petitioners that ignoring the fact that petitioners were drawing higher salary before revision came into effect as also the fact that to undo the injustice agreement dated 8.10.1985 was signed by all the stake holders the Auditor made objection in the light of the contents of paragraph-3 of letter dated 10.1.1983, Annexure-3 and it appears that relying on such objection without appreciating that great injustice and financial hardship is being caused to the petitioners the impugned order has been passed reducing their salary with effect from January, 1988. 5. Counsel for the Bank, however, has opposed the prayer. He states that Bank has proceeded to act on the basis of the audit objection and the audit objection - 5 - has been raised in the light of the instructions of the Registrar, Cooperative Societies issued under Rule-33 of the Bihar Cooperative Societies Rules, 1959, which empower the Registrar, Cooperative Societies to provide for the service condition including pay fixation of the employees of the Cooperative Societies and as the Registrar in paragraph-3 of letter dated 10.1.1983 has held that the employees serving the Cooperative Societies prior to 1.7.1982 shall be entitled for fixation of D.A. @ 56-42%, petitioners having joined the Bank after 1.7.1982 on 14.12.1982 cannot be allowed D.A on the date of their joining @ 56-42%. Aforesaid contention as has been raised by the learned counsel for the Bank does not appear from the impugned order dated 5.10.1996, Annexure-15, which only proceeds on the basis of the audit objection of the Sub-Divisional Audit Officer, Cooperative Societies, Incharge, Bank Audit. The impugned order also does not incorporate reasons given by the Auditor in his audit report. It is thus quite apparent that the impugned order does not contain any reason. Any order bereft of reason is no order in the eye of law and suffers from the vice of arbitrariness infracting Article-14 of the constitution of India. 6. Accordingly, order bearing Memo No.1025 dated 5.10.1996, Annexure-15 is quashed with liberty to - 6 - the Managing Director of the Bank to pass fresh orders fixing the salary/emolument of the petitioners in the light of the instructions contained in letter dated 10.1.1983, 21.7.1983 and 8.10.1985, Annexures-3, 4 and 7 with effect from 1.7.1982 taking into account the chart prepared by the counsel for the petitioners and the Bank and appended with the supplementary affidavit and the supplementary counter affidavit filed on their behalf as early as possible, in any case within three months from the date of receipt/production of a copy of this order before the Managing Director. In case, the contention of the petitioners as noted in this order is upheld by the Managing Director, the amount recovered during the pendency of this application be refunded to the petitioners. 7. The writ application is, accordingly, disposed of. Patna High Court, Patna Dated the 22nd July, 2010 NAFR/Rajesh (V.N.Sinha, J.)