THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION NO.1613 OF 2004 DATED 1st FEBRUARY, 2010 BETWEEN: M.V.Raghava Reddy, and another. … Petitioners A n d The Co-Op. Sub-Registrar/Auditor, Ravulapalem & Kothapeta Group, O/o.Dy. Co-Operative Registrar, Amalapuram, East Godavari District. And others. … Respondents THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION NO.1613 OF 2004 O R D E R The petitioners, being employees of a Co-operative Rural Bank and a Primary Agricultural Co-Operative Society, challenge the action of the authorities under the A.P.Co-Operative Societies Act, 1964 (for brevity, ‘the Act of 1964’) in revising/reducing their pay and not permitting them to draw salary from 2% of the working capital and insisting upon the Societies to keep the salaries drawn as dues recoverable in the audit report. They seek a consequential direction to the authorities to permit the petitioners to draw salary from 2% of the working capital and not to insist upon the Societies to keep the salaries drawn as dues recoverable amount. By interim order dated 29.01.2004, this Court directed the respondent authorities to pay salaries to the petitioners subject to the condition that the same does not exceed 2% of the working capital. This Court further clarified that if the salaries payable to the petitioners and other employees of the Society exceed 2% of the working capital, the same shall be restricted to 2% of the working capital by proportionate reduction, if necessary. In view of the statutory bar imposed by Section 116-C of the Act of 1964 that the expenditure towards the employees salaries shall not exceed 2% of the working capital or 30% of the gross profit of the Societies, whichever is lesser, the respondents are bound to give effect to the same. The petitioners would be entitled to their salaries, subject to the above statutory bar. The writ petition is accordingly disposed of declaring that the petitioners shall be entitled to payment of their salaries in accordance with Section 116-C of the Act of 1964. No costs. -------------------------- SANJAY KUMAR,J 1st FEBRUARY, 2010 PGS