THE HON’BLE SRI JUSTICE GHULAM MOHAMMED W.P.No.537 of 2000 O R D E R: This writ petition is filed to declare the action of the second respondent in issuing impugned proceedings Rc.No.53306/99-C3, dated 15.12.1999 directing for keeping the Supervisors of District Cooperative Central Banks (DCCB) as in-charge of the posts of Paid Secretaries, without effecting the promotions to the post of Secretaries, as illegal and arbitrary. The petitioner also seeks to declare the action of the respondents in treating the employees promoted to the post of Secretary as distinct category and in contemplating for reversion of the promoted secretaries, as highly illegal and arbitrary. It is the case of the petitioner - Union that its members are the employees working in Primary Agricultural Co-operative Societies (PACS) in the categories of Secretary, Accountant, Clerk/ Salesman, Attender etc. Though a promotional channel is provided, the members of the petitioner-union could not be promoted, because the posts of Secretaries were occupied by the Secretaries who were appointed under ‘half a million job’ scheme. There was an agreement between the Union and the Management of the DCCBs, according to which the Secretaries were made eligible to be appointed in the V-category posts of the DCCBs. A number of Paid Secretaries were selected to the post of V-category in DCCBs during the selection conducted in 1999, as a result the posts of Secretaries in the societies have fallen vacant. It is the further case of the petitioner that the members of the petitioner-union have been working as Secretaries on promotion they have not been allowed for selection to the post of 5th category in DCCB, which is highly illegal. It is also the case of the petitioners that the respondents are taking steps for reverting the members of the petitioner-union from their promotional post of Secretary to the subordinate category in the guise of the impugned proceedings, to keep the Secretaries appointed in V-category as in-charge of the post of Secretaries in the societies and if the same is allowed, the members of the petitioner-union will be subjected to suffer irreparable loss and injury. Learned Counsel for the petitioner is not present. Learned Government Pleader appearing for the respondents has contended that the members of the petitioner – union, who are appointed by the concerned management, cannot claim the benefits on par with the Paid Secretaries appointed under half a million job scheme. The staffing pattern has to be made following certain prescribed guidelines and there is no infirmity in the impugned proceedings. In support of his contentions, he has drawn the attention of the Court to Section 115-D(2) of the Andhra Pradesh Cooperative Societies Act, 1964 (for short, “the Act”), which reads as under: “115-D(2). The Co-operative Credit Society shall have autonomy in all financial and internal administrative matters, subject to the guidelines of Reserve Bank of India/National Bank for Agriculture and Rural Development, in the following areas: i) Interest rates on deposits and loans, ii) Borrowing and investments, iii) Loan policies and individual loan decisions iv) Personnel policy, staffing, recruitment, posting, and compensation to staff, and v) internal control systems, appointment of Auditors and compensation for the audit”. The impugned Circular reads as under: “It is brought to the notice of Registrar of Cooperative Societies that in some districts the officials of District Cooperative Central Banks are collecting “collection charges” during the course of recovery of loans from the members of PACS. As per the standing instructions of the NABARD/Registrar of Cooperative Societies only loan instalments due from members i.e., principal + interest + penal interest, if any, have to be collected in case of recovery of loans by way of execution of E.Ps such charges are permissible as per the provisions of A.P.C.S. Act & Rules for execution of E.Ps and recovery of such loans under E.P. All the General Managers of District Coop. Central Banks are, therefore, requested to send a report as to whether collection charges are also collected from the members of the PACS in the process of normal recovery of loans from members of PACS. It is also brought to our notice that in several cases, the posts of paid Secretaries are kept vacant in many PACS on account of Selection of paid Secretaries to the posts of Cadre V in District Coop. Central Banks. In the absence of paid Secretaries, the members of PACS are put to lot of inconvenience in sanction of loans etc., thereby the functioning of the PACS would be paralysed. Therefore, the General Managers of D.C.C.Bs are requested to keep the supervisors incharge of the posts of paid Secretaries of the PACS wherever the post of paid Secretaries are vacant presently for smooth functioning of PACSs. The receipt of this circular should be acknowledged.” It appears that the object of the above Circular is to see that the functioning of the Societies will not be affected and they should run smoothly and in that context the scheme of half a million job has been introduced and is being implemented. Here it is relevant to extract Section 116-C of the Act, which reads as under: “116-C. Staffing pattern of Societies:- 1) A Society shall have power to fix the staffing pattern, qualifications, pay scales and other allowances for its employees with the prior approval of the Registrar of Co- operative Societies subject to the condition that expenditure towards pay and allowances of the employees shall not exceed two per cent of the working capital or thirty per cent of the gross profit, in terms of actuals in a year whichever is less. 2) No appointment or removal of a Chief Executive by whatever name called of any Society, or class of societies as may be prescribed which are in receipt of financial aid from the Government, shall be made without the prior approval of the Registrar of Co-operative Societies.” From a reading of the provisions extracted above, it is clear that power was given to the Societies to fix the staffing pattern, qualifications, pay scales and other allowances for its employees with the prior approval of the Registrar of Cooperative Societies subject to certain conditions and guidelines. By the impugned Circular, the General Managers of the DCCBs are requested to keep the supervisors in-charge of the posts of Paid Secretaries of the Societies wherever the post of Paid Secretaries are vacant presently for smooth functioning of the Societies. As the impugned Circular was issued for smooth running of the Societies, I do not find any infirmity or illegality much less tenable in law in the Circular. The writ petition is accordingly dismissed. No costs. ___________________ GHULAM MOHAMMED,J 25th November, 2010. PNV