? E .^^ ^ 'f: .^^ ^*^ SJ r P^t^rL ^^. ?"*• ^-^ s F= r i .& •^'u^'^ *?Ii .3tlk^ .^ ^al& ^ ?' ^ lfrf 'ui-^ :i ^ -^ ±^tls.^ 'f. H'GH COURT OF CKHATTISGARH AT S'LASPl COPAI/i '. HoE'^'bIc1 Shfi H.L.D^ttu. OhJsfjustlcs & Kon bie 5hri V.K.Shrivasfava, Judse ^E-r" PtSi&3A^-?"; N^;. '%.f'^% ,/usf ^ft^*? '^n.i; I^SL^EQH iMQ.^y^^ 01 ^yv^ Sd/- Chief Justice HON'BLE SHR«V.K. SKRIVASTAVA, -SMJ-. Sd/- V.K.Shrivastava Judge •W-^ „ S" ns T»? : ^'j;-,....... ^:.;^;^;.3^.lL Sd/- Chief Jusdce HLGH COURT OF CHHArTlSGARH ATBILASPUR DiVSjQNBENCH CORAM HON'BLE SHR! H.L. DATTU, CJ. HON'BLESHRI V.K.SHRiVASTAVA, J. Writ Petition No.30S3 of2M3 RESPOJ^DENTS Vijay Kumar Soni, S/o Shri Rangnath Soni, aged about 49 years, Occupation Sen/ice, presently working as Clerk in Sewa Sahakari Samiti Maryadit, Maungeli, Tahsil Mungeli, Distt. Bilaspur (C.G.) / " : Durga Prasad Soni, S/o Shri Mohan Lal Soni, aged about 47 years, Ocoupation Service, presently working as Glerk in Sewa Sahakari Samiti Mar/adit, Birkona District Biiaspur (Chhattisgarh) Vinod Kumar Sharma, S/o Saheb Lal Sharma, aged 48 years, Occupation Service , presentiy working as Cierk in Sewa Sahakari Samiti Maryadit, Hardi, District Bilaspur (Chhattisgarh) Om Prakash Dwivedi, S/'o Ramkumar Dwivedi, aged 46 years, Oocupation Service, presently working as Sales Man, Sewa Sahakari Samiti Mary'adit, Loharsi (Sone), District Bilaspur (C.G.) Nand Kumar Sharma, S/o Krishna Sharma, .aged about 49 years, Occupation Sen/ice, presently working as Sales Man, Sewa Sahakari samiti Maryadit, Meiu, District Bilaspur (Chhattisgarh) Versus State of Chhattisgarh, thru' Department of Agriculture, Co-operative, Dian/ and Fishery, Mantralaya, Dau Kalyan Singh Bhawan, Raipur (Chhattisgarh) The Registrar, Co-operative Societies, Chhattisgarh, Raipur (Chhattisgarh) Biiaspur Zila Sahakari Kendriya Bank Maryadit, thru' Its Chief Exeoutive Officer, Bilaspur (Chhattisgarh) Shri Manindra Shrivastava, Senior Advocate with Shri D.Patei, counsel for the petitioners. Shri Prashant Mishra, Additional Advooate Genera! for the State/respondents No.1 and 2. Shri S.L.Kurmi, counsei for respondent No.3. ORDER (Passed on 03"' April, 2007) The fotlowing order of the Court was H.L. Dattu, C.J. The petitioners in this writ petition are the employees of van Co-operative Societies (for short 'the Sooieties'). They have fil petition under Artictes 226 and 227 of the Constitution of Ind requesting this Court to issue a writ in the nature of certiorari V eiigibitity criteria of fixation of age for the purpose of promotion ta Samiti Prabandhak as amended in sub-rute (7) of Rule 24 of the < Zila Sahakari Kendriya Bank Karmachari Seva (Niyojan, Nibandhas Karya Sthiti) Niyam, 1982 (for short 'the Rules, 1982') by declaring illegat, unconscionable and violative of Articles 14 and 16 ofthe Gi India. Consequential relief sought in the writ petition is tc respondents to consider the case of the petitioners as fuily eligii; considered for promotion to the post of Samiti Prabandhak. (2) The first three pgtitioners are working as Clerks in the Se Samiti Maryadit and the other two petitioners are working as Sale Sewa Sahakari Samiti Maryadit. (3) The Sewa Sahakari Samiti Maryadit is a Resourees Socief Society. The Society is constituted as a body corporate uncier Sec< Chhattisgarh Co-operative Societies Act, 1960 (for short 'the K Section 10 of the Aot the sooieties are classified into different types They are 13 in number. Sub-section (1-a) of Section 10 of W permits the Registrar to classify the societies falling under the'hes in Section 10(1) ofthe Act as Apex Society, Centrat Society, Prin The petitioners in this writ petition are working in Primary Societies.i •» assed by js Primari/ J this writ inter alia quash the he post of ihattisgarh rath'a Unki e same as stitution of direct the : for being i Sahakari nan in the or Primary n 31 ofthe '). Under f societies. Act further s specified ry Soclety. (4) The Registrar of the Co-operative Sooieties in exereisi ; of his power under Section 55 of the Act had framed ffieir rules in the yeai i 982 and the same were notified on 15-06-1982. Under the aforesaid ruies i the posts of Samiti Prabandhak were to be filled in by direct recruitment. The ' i ruies would apply for direct recruitment of Samiti Prabandhak in the Central ; i )ciety for the reason that the post ofSamiti Prabandhak is not available in a Pr ' iary Socie'iy. The said Rule reads as under: ^F 1T^f^gra "^fiTCT i--fe -tripf ^pTfsiT^ (31) •H 1?1 WT-ER5 "iT" -Erf (sr) ^PrRr IWETEP, "3t" ^ (w) ysl-si*, girf^T uirf^r 1 wrr ^^rft W&TII? Wl "er" -^ ^ miTRr y6i*icfii ^ WT UlrKid 60 yf?i<id cpf "ST" ^ffftRr w-s^i rj ^ 40; ^) gsra^ tot^y"^ 1 W7ER5T ;?|STT cpf 3 T ^ WT VRi srrfeT 'uiifil '•^T TR&m? CCT' WBff^ I 2—tcp^?qi 1 (31) Vf-4 1 ^) W-3 1-tpf^gTcl? z-^N tref ig ^i) vi-2 90 1 10 Ufi^m q^f-5 ^ cb4'd|R^' 4^ I ^f-"3?" ^rftRr <tef;f ^' ^ ~^-A ^ ^ '?m WT fff?RRT qrf-3 dSTT OT7ETEpF Ii; ^ ?RT ?ff5-1. ftoRT ^o? ^^q^T^TT^lf^ WTT 7T?cpT^ WW[3)T ^RTT !:iR?^cTr 1ffWT3JT 'rJ cti|^d y<,t't.|ct>f 'Ept 4c;1"lRl ^T?uff 'c^ 'f? Tff^ tT? cCT qrH'TT'T cf5IT ?t cft ~<^!^ ^•iliH ~^t a?r f^aiCT '^ ! 2. fcfi ct)*fT|l'{) T+-2 1^ 'RI'T)f?l c^ f^P? ttf? cti^l'?) q^f - 3: IET m^FpT. ^! T^f; v^vi w ^T 1i^ft ?FR?( ^f^W ^ sffen i '^ ^iTC ........" (5) After promulgation of the aforesaid rules, the employees of ti " Primary Societies had represented to the R^istrar of the Co-operative Soi \ 'ties that they do not have any promotional avenues in the Pnman ; Society and, therefbre, some provision requires to be made fbr creating promc 1 )nalavenues in the Primary Society. (6) Keeping in view the representation so made and also ki ; that the employees of the Primary Societies had no avenus promotion to the next promotional post, the R^istrar, Co-opers has amended. the rule vi/hich has come into effect from 03-04-1i 50% of the posts of Samiti Prabandhak in the District Central Bank (Central Society) shall be filled up direct recruitment and ) 50% shatl be filled up by promotion through selection purely made of merit after written examination. The amended rule has come ii wjth effect from 03-04-1992. The said rule reads as under:- ping in view by way of /e Societies 2, provding ;o-operative |3 remaining in the basis 3 existence S.NO. Class (a) 1/ Bank Cadre Officer Society IVIanager By Promotlon 50% posts from amongst Assistant Society Manager/Salesman working in all the Primary Agricultural Credit Cooperative societies in the District and who possesses necessary educational qualification, has put in five years satisfactory service, is not more than 45 years of age and against whom charges of misappropriate, forgery, rarruptiQn 1 and other serious irregularities have not been leveled. The seiection shail be mads on the basis of msrit after a written examination. Sydlrectj i cruitment ! 5 1 >S by direct | sruitment I (7) The said amended rule is questioned by the petitioners |and their learned Senior Counsel Shri Manindra Shrivastava inter alia contend ' g that the same is irrational, arbitrary and has no reasonable nexus with the ob |ct sought to be achieved. It is further stated that it is discriminatory on the groi ! j that the eligibility criteria of less than 45 years of age is fixed only in the c i se of the persons working in the Primary Societies and not in the case of i ; ipioyees working in the Cerrtral Society. In aid of his submission, learned c< Inse! has relied upon certain obsen/ations made by the Apex Court in th case of Indravadan H. Shah vs. State of Gujaratand another, reports in 198S (Supp) SCC 254. (8) The respondents have filed their return before this Court and | | ihat they have stated in detail the objeot and purpose of the amendment whicf ! las been brought in the rules by fixing 45 years as age criterion for consii ! ration of promotion of the employees working in the Primary Societies to ti i • oost of Samiti Prabandhak. Shri Prashant Mishra, Isarned Additionali i \dvocate Generat appearing for the State would submit that the expression \ 1 omotion' used in the amended rule is misnomer and it is an appointment! 11' way of promotion to the employees working in a Primary Society. Learne | counse! would submit that keeping in view the object and the purpose of the | imended provision, it cannot be said that the said provision is either arbrtrary c : rrational or has no nexus with the purpose and objeot sought to be achieved 't | the said amendment. ^ (9) The question that falls for consideration of this Court is whetl- i • fixation of the age of 45 years by the amended rule is either irrational or arb| i ary or in violation of the constitutional provisions. (10) The Chhattisgarh Cooperative Sooieties Act, 1960 has comei i ito force with effectfrom 12-05-1961. InthediotionaryclauseoftheActthe ri laning of expression of 'Primary Society, Central Society and Apex Society' i ' defined. Apex Society means a society whose principal objeot is to provide fa | lities for the operation of other societies affiliated to it and whose arsa of iperat'on extends to the whole State of Chhattisgarti. The Central Societyi neans a District Cooperative Agriculture and Rural Development Bank or l |iy other society, whose area of operation is confined to a part of the State < | d which has, as its object the promotion of the objects of the member sod !:ies snd which has at least five societies as its members. The Central Cs 'perative Bank means a resouroe society registered or deemed to be cegistg | d under «^'' the Act, which is either licensed under the Banking Regutation | \ct, 1949 or permitted bythe Resen/e Bank of India to do banking business t| so licensed, and has area of operation confined to part of the State, and hi i its principal object, the oreation of funds and obtaining oredit, goods or sei i ces for and providing credit, goods or services as loan to Cooperative Societi i. affiliated to it fbr agrioulture, industrial and other altied purposes. Primary Sd 1 sty means a society which is neither an Apex Sooiety nor a Central Society.1 | The Off'cer means a person elected or appointed by a society accQrding to i i bye-!aws to any ofRce of such society and inoludes a Chairman, Vice-Chairm^ 11, President, Vioe-President, Managing Director, Manager, Secretary, Treasurs | Member of the Committee and any other person eleoted or appointed undel | his Act, the rules or the bye-laws to give direotions in regard to the busii i 'ss of such society. (11) Section 10 of the Aot authorises the Registrar of the Socie< i s to classify all the sooieties in the State under one or more heads of the | iciety which inoludes Consumer's Society, Farming Society eto. Further, unds ; sub-section (1-a) of Section 10 of the Act , the Registrar is authorised tc Islassify the societies falling under any of the heads specified in sub-section ] 11 of Section 10 of the Act. The Registrar is authorised to classify the societies; ! lentioned in sub-section (1) as Apex Society, Central Society and Primary Soci| (12) Chapter IV oftheAct provides for duties, privileges, prope ' and funds of societies and under the aforesaict heading, Section 31 of thi lAot finds a place. It speaks of societies to be bodies corporate. The | | aid section envisages that the Registrar of a society shall register it a body coii i srate by the name underwhich it is registered having perpetual succession ae, | a common seal, and with power to hold property, enter into contracts, institut| 1 and defend suits and other legal proceedings and to do all things neces |ary for the purposes for which it was constituted. 7 (13) Section 55 of the Act empowers the Registrar of a Socii the terms and conditions of employment in a society. The authorises the Registrar to frame rules governing the terms ai employment in a society or class of sooieties and the soci societies to which such terms and conditions of employment^ shall comply with the order that would be issued by the Registra (14) The Registrar of the Societies in exercise of his power; 55 of the Act has framed rules in the year 1982. The said rule p post of Samiti Prabandhak shall be filled by 100% direct recruit rule is now amended with effect from 03-04-1992. The Prabandhak (Society Manager) is now filled up by 50% direct the remaining 50% from among the Assistant Society Mar viforking in all the Primary Agriculture Credit Cooperative Societii and who possesses the necessary educationai qualification ai years of satisfactory sen/ice and is.not more than 45 years of i whom charges of misappropriation, forgery, corruption anc irregularities have not been leveled. The selection should be the basjs of merit after a written examlnatlon. It is the fixatic years in the amended rule which has come into force 'A 03-04-1992 is questioned by the petitioners who are the empio the Primary Societies. As we have already noticed that the Prabandhak or Society Manager is not avaiiable in the Primary said posts are availabie only in the Central Society. Since a rep made by the members working in the Primary Sooieties that tf any promotional avenues, the Registrar of the Societies has amend the earlier rule which was promulgated on 15-06-1982 opportunity to the employees working in the Primary Sooieties the selection prooess to the post of Samiti Prabandhak or Saies post was to be filled up by the direct recruitment. / to detennine >aid provision conditions of y or ciass of re applicable, i that behalf. jnder Section ivided that the ent. The said 3st of Samitl cruitment and ger/Salesman in the District has put in 5 e and against other serious ade pureiy on of age of 45 i effect from 'es working in >ost of Samiti ocieties. The sentation was •j do not have louaht it fit to / providing an 1 partlcipate in (anager which ^ (15) Shri Manindra Shrivastava, learned Senior Counsel ap 'aring for the petitioners would primarily contend that the fixation of 45 years s age criterion is arbitrary, irrational and has no nexus with the object sought l be achieved and, therefore, violative ofArticte 16 ofthe Constitution. Learne : counsel has elaborately argued the aforesaid issue before us at the time of he i ing. (16) Shri Prashant Mishrai learned Additional Advooate Gen< |il appearing for the respondents/State would submit that the expression 'pron ; lion' used in the amended provision is only a method of recruitment for appoi i 'ment to the post of Samiti Prabandhak (Sales Manager^. Insofar as the purpc | i and object sought to be achieved by the State, learned oounsel would submil ; lat it is only to provide a promotiona! avenue to the Clerks, Saiesman a il Assistant Managers working in the Primary Sooieties to participate in i ; 3 selection process to the post of Samiti Prabandhak/Sales Manager in the C« tral Society and, therefore, has nexus with the object sought to be aohii ed by the impugned amendment. (17) It is now well settled law by a oatena of decisions rendered^ \ f the Apex Court that public employment can be by way of direot recruitms ^ t which 'is normally called as external source of recruitment or by way of: i 'omotions, appointment by transfers and appointment by absorption, which c | ' norma!!y known as internal sourees of recruitment. External source of g ^oointment would comprise all eligible persons who are not already in ser |;e in the organization to which recruitment is to be made. Sometimes, thesei i andidates are known as candidates from the open market. in the case of rec ; itment by internal sources, it would comprise those who are already in ser i;e in the organization to which recruitment is to be made. The recruitment| i y way of promotion is done with a view to provide incentives and generate efi ; iency. It is now well settled that it is fully within the competence of the ei liloyer to decide as a matter of policy, the source from whioh the personnet n i uired for manning the sen/ices are to be drawn. The recruitment rules mi \ provide 1:^ eligibility criteria such as, educational qualifioations, age limit, exp I'ience etc. The recruitment rules may also provide that certain categories s 1 posts are required to be filled by promotion from lower posts. But, as | balanoing exercise to ensure fresh employment opportunities these rules or i ;rms more often than not also provide for recruitment to these categories al: |i by direct recruitment from open market. When this dual oourse is adopted, '; is said the recruitment is from two sources, i.e., either by promotion or absc ition or on transfer and direot reoruitment of persons from outside the sen/ioe| ; When tvvo sourees of recruitment are invoived, the rules must also fix quot | specifying what percentage of the total recruitment is to be reserved for e |;h source. When a person is so recruited by promotion, strictly speaking it is r :: a case of promotion according to the normal significance. 'lt is a ca ! of n-esh appointment to service and prescription ofthe promotional avenui Is nothing, but the prescription of eligibility criteria for recruitment. (18) in the instant case, as we have notioed earlier, the petitionel | before the Couri: are all the persons working in the Primary Sooieties, as such j ley do not have any promotional avenues. tn order to give them an incenti' | , the rule- makingauthority has thought it fit to give them an appointment tc ;he post of Samiti Prabandhak. While doing so, the rule-making authority 11 |s fixed 45 years as the age limit. The prescription of such an age limit i | within the domain of the employer. It is also now well settled that the ruU | or norms should provide a minimum or maximum age for appointment. (19) in our view, the prescription of age limit for appointment by | l smotion to the post of Samiti Prabandhak cannot be characterized either as \ irbitrary or irrationai or it has no nexus with ihe objeot sought to be achieved d | n vioiation of the Constitutional provisions. : (20) In view of the above discussion, we see no merit in thj | contention canvassed by learned counsel appearing for the petitioners. Aoc u.. dingly, the K^ 10 IS^ petition requires to be rejected and it is rejected. In the facts and circumstances of ithe case, the parties shall bear their respective costs. ^Qrdered accordingly. \..-s Sd/. auefJustfce Sd/- V.K.Shrivastava Judge v^i-v^-au'vr l:t'!-' : '