Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.1802-1806 OF 2010
KERALA PUBLIC SERVICE
COMMISSION ...APPELLANTS(S)
VERSUS
K.N. RADHAMANI & ORS.
ETC.ETC. ...RESPONDENT(S)
WITH
TRANSFERRED CASE (CIVIL) NO. 60 OF 2014
WITH
CIVIL APPEAL NO. 2822 OF 2010
WITH
CIVIL APPEAL NO. 2823 OF 2010
J U D G M E N T
ANIRUDDHA BOSE, J.
These five appeals and the connected matters relate to
Signature Not Verified
controversy over the qualification criteria for appointment to
Digitally signed by R
Natarajan
Date: 2021.09.08
16:33:41 IST
Reason:
the posts of clerk/cashier in different cooperative banks in
1
the State of Kerala from in-service category. The dispute is
as to whether an applicant from that category for the said
posts, which carry starting pay beyond Rs. 250/- per
month, was required to have minimum educational
qualification of graduation or not. As per Rule 187 of the
Kerala Co-operative Societies Rules, 1969 framed by the
State Government in exercise of power conferred on it by
Section 109 of the Kerala Co-operative Societies Act, 1969
(the 1969 Act) for appointments to apex societies or central
societies, 50% of the vacancies are required to be reserved
for the employees of the member societies of the respective
apex society or central society. The incumbents from such
in-service categories, however require minimum regular
service of three years in any of the cadre of such society. It
is not in dispute that the posts advertised came within the
fold of the classes of societies to which the said Rules apply.
Rule 186 thereof, however stipulates that for appointment to
posts carrying monthly pay of Rs.250/- and above, the
applicants are required to be graduates, i.e. have bachelor
degree. There are certain other eligibility criteria prescribed,
but in these proceedings the lis is on the point as to
2
whether the in-service candidates required graduation or
not. Contention of the in-service candidates is that for
them, SSLC or equivalent qualification would be sufficient-
which essentially means school clearance certificates. The
said 50% reservation rule was applicable to the advertised
posts. A Full Bench of the Kerala High Court comprising of
three Hon’ble Judges, on reference, inter-alia, held that Rule
186 of the Kerala Co-operative Societies Rules (the said
Rules) which prescribe the floor-level pegging of pay to
Rs. 250/- in respect of the posts to which recruitment was
to be made was not workable as there was no employee with
basic pay of Rs. 250/-. The Full Bench referred to another
set of notifications and Regulations in holding that such
stipulation on graduation for the subject–posts was
unsustainable in law. The Kerala Public Service
Commission (KPSC), being the recruiting body, is contesting
this finding in these proceedings. There are two employment
notifications involved inviting applications for the subject-
th th
posts, one dated 26 October, 1999 and the other of 25
April, 2006. The aspirants for the said posts, who are the
parties to these proceedings were mostly applicants in
3
relation to the 2006 employment notification. The 1999
notification specified the following qualification criteria
contained in clause 7 of the employment notification:-
“7. Qualification :-
1. B.A./B.Sc./B.Com with HDC or JDC or
B.Com with Co-operation or B.Sc. (Co-operation
and Banking) of the Kerala Agricultural
University.
2. Must have three years regular service in
the respective cadre in the Primary Co-operative
Society as experience.”
th
So far as the notification dated 25 April, 2006 is
concerned, the qualification criteria was contained also in
Clause 7 thereof:-
“7. Qualifications:-
1. B.A/B.Sc./B.Com with HDC or JDC OR
B.Com with Co-operation OR B.Sc (Co-
operation and Banking) of the Kerala
Agricultural University.
2. Must be a regular employee who has
completed not less than three years regular
service in any cadre and continuing in service
in a Member Society/Primary cooperative
Society affiliated, to the respective District Co-
operative Bank.
(The employee should be in the service of the
society not only on the date of application but
also on the date of appointment.)”
2. We are concerned in these proceedings with two
provisions of the 1969 Act, both conferring power on the
State Government to make rules and these provisions are
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Section 80 and Section 109 of the said Act. Section 109 (1)
and sub-clause (2) (xv) of the Kerala Co-operative Societies
Act lays down:-
“109. Power to make rules:- (1) The
Government may, for the whole or any part of
the State and for any class of societies, after
previous publication, by notification in the
Gazette, make rules (either prospectively or
retrospectively) to carry out the purpose of this
Act.
(2) In particular, and without prejudice to the
generality of the foregoing power, such rules
may provide for all or any of the following
matters, namely:-
xxx xxx xxx
(xv) the qualifications of employees of
societies
xxx xxx xxx”
Section 80(3) also empowers the State Government to
classify the societies according to their type and financial
position. Section 80(3) at the material point of time stood
as:-
“80(3) The Government shall, in consultation with
the State Co-operative Union, make rules (either
prospectively or retrospectively) regulating the
qualification, remuneration, allowances and other
conditions of service of the officers and servants of
the different classes of societies specified in Sub-S.
(1).”
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3. Rule 186(1) of the 1969 Rules, inter-alia, specifies:-
“186. Qualifications: (1) No person shall
be eligible for appointment in any post
unless he possesses the qualifications
prescribed for the post as shown below:-
xxx xxx xxx
(ii) Other
supervisory
and Ministerial
other than
those requiring
Technical
Qualifications,
the Starting
pay which is
below Rs. 250.
S.S.L.C. or its posts
equivalent and
successful
completion of
the Sub Personal
Co- operative
Training
Course(Junior
Diploma in
Co- operation)
xxx xxx xxx”
4. Rule 187 thereof deals with reservation of in-
service candidates, substance of which we have
already referred to. This Rule as quoted in the
judgment under appeal reads:-
“ 187. Vacancies in Apex Society
or Central Societies.-
Notwithstanding anything
contained in Rule 186, in
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appointments to apex societies
or central societies, 50% of the
vacancies shall be reserved to
the employees of the member
societies, of the respective apex
society or central society as the
case may be, having a minimum
regular service of 3 years in any
of the cadre and having the
required qualification for the
notified posts in the apex society
or central society.”
At the material point of time, when the employment
notifications for the posts of clerk or cashier were published,
they carried starting pay beyond Rs. 250/- per month. This
fact is not in dispute.
5. The applications of the respondents in the first set of
appeals as in-service candidates for the said posts were
rejected. Such rejection orders were assailed in the High
Court and those proceedings give rise to Civil Appeal Nos.
1802-1806 of 2010. The applicants did not possess
graduation in those cases. In Civil Appeal No. 2822 of 2010,
the candidates are appellants and come from the same
category i.e. in-service non-graduates and their candidature
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was rejected on the ground of laches. The plea of the
appellants (in-service non-graduate candidates) in Civil
Appeal No. 2823 of 2010 also stood rejected mainly on the
same ground, i.e. laches. There is also a transferred matter,
registered as Transferred Case (C) No. 60 of 2014, in which
the writ appeal by the Commission was transferred to this
Court. The respondent-writ petitioner therein, who was not a
graduate, was successful before the Single Judge. In the
Transferred Case, however, the writ petitioner had a
provisional degree of graduation when he applied for the said
post.
6. Apart from these Civil Appeals, there are three
Interlocutory Applications. I.A. No. 2 of 2012 has been
taken out in connection with Civil Appeal No. 1802 of 2010,
and this application has been filed by a set of candidates
belonging to scheduled castes/scheduled tribes. They claim
to have had high positions in the rank list and are aggrieved
as they were not appointed as clerks in the District Co-
operative Banks because of pendency of Civil Appeal Nos.
1802-1806 of 2010. These applicants want to intervene in
the said Civil Appeal. In I.A. No. 82851 of 2021, also taken
8
out in connection with the first set of five appeals, the
applicants are in-service candidates who are not graduates.
They seek to intervene in these appeals. The third
Interlocutory Application (registered as I.A. No.84340 of
2021) is by respondent no. 2 in Civil Appeal No. 1805 of
2010. It has been pleaded that he was included in the
select list by KPSC but the appointment process was frozen
in his case. Subsequently, he had participated in a different
selection procedure and was appointed as a Class IV
employee in District Co-operative Bank, Alappuzha. He has
been promoted to the post of clerk in the year 2017. He
wants his selection to be treated as per his earlier selection
so that his seniority is fixed on that basis with
consequential financial benefits.
7. The scale of pay of different categories of posts have
been shown in Appendix III to the 1969 Rules, which were
framed under Section 109 of the Act. The said appendix
reads:-
| Sl.<br>No. | Classifica<br>tion of the<br>Society<br>according | Classificat<br>ion<br>according<br>to<br>financial | Staff<br>Designation | Pattern<br>No. of<br>Posts | Scale of pay<br>Rs. |
|---|
9
| to type | position | ||||
|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) |
| 1. | Co-<br>operative<br>Banks<br>(b) State<br>Co-<br>operative<br>Bank<br>A Class<br>(b)<br>Central<br>Co-<br>operative<br>Banks<br>(District<br>Co-<br>operative<br>Banks<br>B Class | Cashier/<br>Custodian<br>Clerk Grade<br>I<br>Clerk Grade<br>II<br>Head Office<br>(Common<br>to all<br>branches)<br>Staff in<br>Section<br>Clerks- | 2<br>25<br>3<br>1 (Acounts<br>& Billing<br>3<br>(Personnel<br>& General)<br>1<br>(Planning<br>& | 210-15-285-20-<br>385-25-510-30-<br>720<br>160-10-200-15-<br>290-20-450<br>150-10-200-15-<br>290-20-410<br>As fixed by<br>Government<br>from time to<br>time<br>As fixed by<br>Government<br>from time to<br>time | |
10
| C Class<br>Grade A<br>Grade B<br>Grade C | Staff for<br>Branches<br>4. Clerk<br>5. Cashier<br>4. Clerk<br>5. Cashier<br>3. Clerk | Developme<br>nt<br>2 Loan<br>and<br>Advances<br>1<br>Inspectio<br>n<br>3<br>Industrial<br>& Housing<br>11 (Total) | As fixed by<br>Government<br>from time to<br>time<br>As fixed by<br>Government<br>from time to<br>time<br>As fixed by<br>Government<br>from time to<br>time<br>As fixed by<br>Government<br>from time to<br>time |
|---|
8. Several writ petitions were filed in the High Court of
Kerala by the SSLC qualified in-service candidates over
rejection of their candidature. The KPSC had taken the
11
stand, which is also recorded in the Full Bench judgment,
that since the starting pay to the subject-posts was beyond
Rs.250/-, they ought to have had cleared graduation to be
eligible for consideration to such posts. In the case of
Valsala Devi v. Leela Bhai [(2002) 3 KLT SN 18], a Division
Bench of the Kerala High Court had sustained the stand of
the KPSC that the scale of pay as on the date of recruitment
should be the criteria for the purpose of determination of
the qualification in terms of Rule 186 (1). This case dealt
with the question of promotion and it was not a case of
direct recruitment of in-service candidates. The same view
was followed by the Division Bench in the case of Public
Service Commission v. Ramesan [(2005) SCC Online Ker
297]. In this case, plea of in-service candidates for direct
recruitment was rejected. The correctness of the view of the
Division Bench in the case of Ramesan (supra), however,
was doubted in Writ Petition Nos. 13921, 20776, 22072,
22211 and 23157 of 2006 filed before the High Court and
these matters were referred to the Full Bench. In the
th
judgment delivered on 24 October, 2007, which is under
appeal, the Full Bench of the Kerala High Court upheld the
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contention of the in-service candidates (who were not
graduates) to be considered for recruitment to the posts of
clerk/cashier in different District Co-Operative Banks.
Referring to various administrative orders and notifications
which were relied on by the respective parties, the Full
Bench held:-
“7. As held by this court in Abdul Rasheed
v. Kerala Public Service Commission (2002
(3) KLT 405) & Public Service Commission
v. Abdul Rasheed (2007 (3) KLT 881) P.S.C
has no power to go beyond qualification
prescribed by the rule. Hence, considering
Rule 186, Appendix III to KCS Rules, Ext.P2
and Ext.P5 regulation as amended by
Ext.P6, we were of the opinion that
petitioners who had qualification of S.S.L.C
with JDC and three years continuous
experience are entitled to write the test
under the 50% quota reserved for in-service
candidates if they are otherwise eligible and
rejection of their candidature for lack of
qualification cannot be sustained. In
Ramesan’s case (supra) Ext.P5 regulation
was relied on as a rule made under Section
80(3), but it was not pointed out that Ext.P5
was amended by Ext.P6. Since Ext.P5 was
amended by Ext.P6, Ramesan’s case is
more applicable. Ext.P6 is still valid. We
also note that by interim order of this court
dated 3/10/2007 we have allowed the
petitioners to participate in the test
provisionally if test is conducted subject to
the result of the writ petitions. It is
submitted that the test is yet to be
conducted. So, petitioners herein also shall
be allowed to write the test, if they are not
otherwise ineligible. Ext. P1 notification was
published in the gazette dated 25.4.2006.
More than one and a half years have
13
passed. We make it clear that
W.P.(C)13921/2006 & Connection those
who have not approached this court will not
get the benefit as they are guilty of laches”
9. There were certain parallel developments in the
litigation course, which also we have to address in this
judgment. The judgment in the case of Valsala Devi (supra)
was carried up in appeal before this Court by the
unsuccessful candidates. By an order passed on 29th
January, 2008, the said appeal (Civil Appeal No. 6734 of
2003) was dismissed by a Coordinate Bench of this Court.
The text of the order of this Court dismissing the said
appeal is reproduced below:-
“Having heard the learned counsel for the
appellants at great length, we see no reason to interfere.
The appeals being devoid of merit are accordingly
dismissed. Civil Appeal Nos.917, 916 and 915 of 2008,
SLP(C)Nos.25202/2005, 5723/2006 and 2703/2007.
Leave granted.
Heard the learned counsel for the appellants at
great length. The appellant has challenged the
advertisement dated 26.10.1999 before the High Court.
The learned Single Judge dismissed the petition on the
ground of laches. The appeal before the Division Bench of
the High Court met with the same fate. Hence these
appeals.
In the advertisement the qualification prescribed for
the post of Cashier-cum-Clerk in the District Co-operative
Societies is B.A./B.Sc./B.Com with HDC or JDC or
B.Com with Co-operation or B.Sc. (Co-operation and
Banking) of the Kerala Agricultural University. It is the
contention of the counsel that in the relevant service rules
the qualification prescribed is S.S.L.C. with J.D.C. and
14
three years experience in the affiliated Primary Co-
operative Society. According to the counsel the
qualification prescribed in the Advertisement is contrary
to the qualification prescribed in the service rules and
discriminatory.
We see no substance in the contention. Since, the
advertisement has been issued for all the candidates, we
do not see any substance in the contention of the
appellant that he has been thereby discriminated. We see
nothing wrong in prescribing higher qualification in the
advertisement.
These appeals being devoid of merit are accordingly
dismissed.”
10. As we have already indicated, the Full Bench judgment
th
was delivered on 24 October 2007. It, however, does not
appear that the Full Bench decision was brought to the
notice of the Coordinate Bench, when the appeal was heard
and ultimately dismissed. There is no discussion on the Full
Bench judgment of the Kerala High Court in the decision of
the Coordinate Bench. We are referring to the said
proceedings as on behalf of the KPSC, it has been contended
that the decision of the Coordinate Bench would be a
binding precedent so far as these appeals are concerned as
the question that arose in the case of Valsala Devi (supra)
was identical to the question of law involved in the case of
Ramesan (supra) before the High Court. The Division
Bench in the case of Ramesan had followed the decision of
15
a Bench of equal strength in the case of Valsala Devi
(supra).
11. Learned Counsel for the candidates have referred to a
communication made by the Registrar of Co-operative
th
Societies Trivandrum on 15 June, 1982, bearing no. E(M)
1.1062/82. This communication is quoted below:-
“The Scale of pay of various categories of posts
in Appendix III to KCS Rules 1969 have been
revised as per different executive orders of
Government in respect of certain categories of
Co-op. institutions such as Kerala state Co-op.
Bank, Kerala Co-operative Central and
Mortgage Bank Central Co-operative Bank,
Primary Land Mortgage Banks and Primary
Agricultural Credit Societies etc. The different
Govt. orders as per which the scale of pay have
been thus revised have no effect of amending
the relevant rules (appendix III to KCS Rules).
Steps are being taken to get the rules suitably
amended.
It is therefore clarified that, pending
amendment of the Rules, the qualification
under Rules 186 of K.C.S. Rules for different
categories of posts, have to be decided based
on the pre-revision scales of pay which is
prescribed in appendix III to the KCS Rules
1969.
Sd/-
For Registrar to Co-op.
Societies”
12. This was followed by a Regulation brought into effect
th
by GO(MS)79/86/Coop. dated 30 September, 1986. The
16
substance of this GO(1986) would appear from para 13
judgment of the Division Bench of the High Court in the
case of Ramesan (supra). It reads:-
“When we go through G.O. No. 79/86/Co-op.
dated 30-9-1986, we see that the Government
have approved the rules appended to the said
Government Order and has prescribed in R. 8
thereof separate qualifications for different
categories of posts including that of
Clerks/Cashiers notified in Ext. P-1.
Qualifications are prescribed differently for
direct recruitment and for promotion. The said
Rules provide that “for Direct Recruitment the
qualification for the post of Clerks/Cashiers
will be BA, B. Sc. or B. Com. with
H.D.C/J.D.C. or B. Com. with Cooperation or
B. Sc. (Co-operation and Banking) of Kerala
Agricultural University.”
13. Another service Regulation came into effect by
rd
G.O.(MS) 9/88/Co-op. dated 23 March, 1988 and clause 8
of the 1986 Regulation dealing with qualification criteria
was substituted. The Regulation has been annexed as “R1”
to the counter-affidavit (at page 95 of composite paperbook)
filed on behalf of the respondents in the first set of Civil
Appeals. The first clause thereof specifies that these
Regulations cover employees of District/Central Co-
operative Banks of Kerala. In this annexure, however, the
17
source of power under which the Regulation has been
framed has not been disclosed. This clause reads:-
“8. Qualifications.
“No person shall be eligible for appointment in
any post noted below unless they possess the
qualification prescribed for the post.
“(i) Clerks/Cashier
“(a) For direct recruitment the qualification for the
post of Clerks/Cashiers will be B.A., B.Sc., or
B.com with H.D.C./J.D.C. or B.Com with Co-
operation or B.Sc. (Co-operation and Banking) of
Kerala Agricultural University.
“(b) In the case of the post reserved for
employees of the affiliated Primary Co-
operative Societies the qualification will be
S.S.L.C. with J.D.C. and three years
experience in affiliated Primary Co-operative
Society.
“(c) The sub-staff of the Bank will be eligible
for promotion as Clerk, if they possess S.S.L.C.
with J.D.C. and minimum three years
experience.” (emphasis added).
The in-service candidates primarily relied on these
Regulations before the Full Bench.
14. The State has filed a counter-affidavit to the special
leave petition, which transformed into civil appeal on leave
being granted. This counter affidavit has been affirmed by
one B. R. Mohan Kumar, Law Officer to the Government of
th
Kerala on 17 February, 2010. The State has prayed for
18
dismissal of the special leave petition in this counter-
affidavit. Referring to Rule 186, it has been stated therein
that the same has to be decided based on the scale of pay as
on 01.01.1974 which is prescribed in Appendix III to the
said Rules. It is also the State’s stand, as outlined in this
affidavit, that qualification for the posts of clerk/cashier in
the District Co-operative Banks has not been specifically
prescribed in the said Rules. The GO of 1988 has also been
referred to and basic stand of the State appears to be that
there is no separate qualification prescribed in the
recruitment rules for the District Co-operative Banks.
15. In this factual background we are to examine the rival
cases. We shall first address the question as to whether the
point of law raised in these appeals stands already
concluded or not in view of the Coordinate judgment in the
Valsala Devi
case of (supra).
16. The proceedings out of which that appeal arose related
th
to an earlier advertisement dated 26 October, 1999. In
these cases, however, we are primarily concerned with the
advertisement of 2006. Moreover, the case of Valsala Devi
19
(supra) was in relation to promotion whereas in the present
set of proceedings, the vacancies are to be filled up by direct
recruitment from in-service candidates. Thirdly, the
reasoning on which the High Court had rejected the plea of
the candidates was laches, as recorded in the Coordinate
Bench judgment. Only in Civil Appeal No. 2822 of 2010, the
appellants had applied for the posts in question both under
the 1999 and 2006 advertisements. They were not
successful before the High Court on the ground of having
filed a belated writ petition, after delivery of the Full Bench
decision.
17. The Coordinate Bench in the case of Valsala Devi
(supra) had sustained the stand of the Commission on two
grounds. The first was that the advertisement had been
issued for all the candidates. The rationale appears to be
that the appellant had not been discriminated against.
Secondly, the Court found nothing wrong in prescribing
higher qualification in the advertisement by the KPSC.
18. So far as Civil Appeal Nos. 2822 and 2823 of 2010 are
concerned, we do not find any error in the judgment of the
20
High Court in rejecting the writ petition on the ground of
delay. In disputes related to service, particularly in the field
of recruitment, fate of a large number of candidates are
involved. An aspirant for the posts advertised has to
demonstrate promptitude in approaching the Court if in his
perception, the eligibility criteria is fixed beyond that
stipulated by law. Delayed arrival of a candidate in the
judicial forum can have chaotic consequences if decisions
taken on the basis of the disputed eligibility criteria are
required to be upset much after the selection process is
over. The High Court has rightly exercised its discretion in
dismissing the said two writ petitions. We dismiss both the
appeals.
19. So far as rest of the appeals are concerned, these arise
out of the 2006 advertisement. The rejected candidates had
instituted the proceedings immediately after their
applications were rejected. Though the candidates did not
challenge legality of the notified eligibility criteria, there was
no inordinate delay in questioning the Commission’s action.
So far as decision of the Coordinate Bench in Valsala Devi
21
(supra) is concerned, there is no doubt that the said
judgment was delivered in respect of a different
advertisement, but the eligibility criteria remained
substantially same. A plain reading of clause 186 of the
1969 Rules shows that those from in-service category with
base education of SSLC or equivalent are eligible for
participation in recruitment process for those posts which
have starting pay below Rs.250/-.
20. Before the Full Bench, main argument of the
Commission was anchored on Rule 186 as well as to the GO
of 1986 which has been referred to in the judgment as
Exhibit P5. Submission of KPSC is that the said Exhibit P5
was Rule made under Section 80 of the 1969 Act and this
was not required to be published. But the said Rule was
rd
again altered by a GO dated 23 March, 1988, and for in-
service candidates, only three years experience in affiliated
primary co-operative society with minimum qualification of
SSLC with JDC was prescribed under revised Rule 8(i)(b) of
the Service Regulation.
22
21. As regards, source of power of making these
regulations under respective GOs, KPSC had taken stand
before the Full Bench that these were made under Section
80 of the said Act. Question has been raised about
implementation of the said Rules as there was no
consultation with the State Co-operative Union for making
these Rules. The Constitution Bench decision in the case of
State Of U. P. v. Manbodhan Lal Srivastava [(AIR) 1957
SC 912] has been referred to before us. In this case, the
question of lack of consultation with Public Service
Commission and the effect thereof in the light of the
provisions of Article 320 of the Constitution of India was
examined by the Constitution Bench. It was, inter-alia, held
in this judgment:-
“We have already indicated that Article
320(3)(c) of the Constitution does not confer
any rights on a public servant so that the
absence of consultation or any irregularity in
consultation, should not afford him a cause of
action in a court of law, or entitle him to relief
under the special powers of a High Court under
Article 226 of the Constitution or of this Court
under Article 32. It is not a right which could
be recognized and enforced by a writ. On the
other hand, Article 311 of the Constitution has
been construed as conferring a right on a civil
servant of the Union or a State, which he can
enforce in a court of law. Hence, if the
23
provisions of Article 311, have been complied
with in this case — and it has not been
contended at any stage that they had not been
complied with — he has no remedy against any
irregularity that the State Government may
have committed. Unless, it can be held, and we
are not prepared to hold, that Article 320(3)(c)
is in the nature of a rider or proviso to Article
311, it is not possible to construe Article
320(3)(c) in the sense of affording a cause of
action to a public servant against whom some
action has been taken by his employer.”
22. The judicial exercise we have to undertake is to
examine the applicability of the provisions of Rule 186 made
under Section 109 of the 1969 Act and the scope of
operation of the Regulations made under Section 80 thereof.
We do not accept the argument that because these
Regulations were made without prior consultation with the
State Co-operative Unions, the Rules would not be
implementable. KPSC itself relied on the said provisions to
justify making of the GO of 1986. Moreover, following the
Constitution Bench judgment in the case of Manbodhan Lal
Srivastava (supra), we hold that lack of consultation as
specified in Section 80(3) of the Act by itself would not
render any Rule made thereunder a stillborn statutory
instrument. KPSC’s own stand before the Full Bench
24
appeared to be that rules made under Section 109 as also
under Section 80 can co-exist. By issuing the 1982 order,
the Registrar of the Co-operative Societies had in substance
suspended the applicability of the floor-level pay stipulation,
directing that pending amendment of the rules the
qualification under Rule 186 for different categories of posts
have to be decided based on pre-revision scales of pay. On
this count, the Commission’s position is that it was not
within the power of jurisdiction of the Registrar of Co-
operative Societies to keep on hold the provisions of
rd
statutory rules. But this factor read with the GO of 23
March, 1988 establishes that the State Government had
intended to keep in abeyance the benchmark pay provision
as specified in Rule 186 thereof. KPSC cannot ignore
existence of these provisions giving their own interpretation
to law and statutory instruments made under it.
23. The 1982 circular read with the Service Regulation for
employees of the Co-operative Banks reflected that there
was no requirement of having a benchmark pay level for the
posts of clerk/cashier under applicable rules for non-
25
graduate in-service candidates to apply for the subject-
posts. Section 109 of the 1969 Act empowers the State to
make rules for any class of societies. The 1988 Service
Regulations, however, has been made specifically for
employees of Districts/Central Co-operative Banks of
Kerala. So, this is a special class for Co-operative Societies.
The circular of 1982 also refers to certain categories of co-
operative institutions such as Kerala State Co-operative
Bank, Primary Land Mortgage Bank and Primary
Agricultural Credit Societies etc. The Commission has
accepted the Rule making power under Section 80(3) under
the Act before the Full Bench while defending their action
th
on the basis of the GO dated 30 September, 1986. The GO
rd
dated 23 March, 1988 ought to be attributed to the same
Rule making power which does not stipulate a floor-level
pay for the advertised posts to enable non-graduate
candidates’ participation in the recruitment process thereof.
For determining the educational qualification of the in-
service candidates the State Government has proceeded by
issuing various GOs without the benchmark pay stipulation
for recruitment to the posts of clerk/cashier from in-service
26
category and made SSLC qualification to be acceptable
eligibility criteria. This practice developed under the 1969
Act is indicative of the fact that for in-service candidates
applying for direct recruitment to the posts of clerk/cashier
in District Co-operative Banks, the minimum eligibility
criteria so far as qualification is concerned is SSLC or
equivalent and the floor-level pay stipulation would not
apply. This practise can be sustained applying principle
akin to contemporaneous expositio. The provisions of Rule
186 relate to Co-operative Societies in general whereas the
GO of 1988 relates to service Regulations of a sub-species-
District/Central Co-operative Banks.
24. Now we shall turn to the Coordinate Bench decision
delivered in the case of Valsala Devi (supra). On behalf of
KPSC it has been argued that it is a binding precedent and
our attention has been particularly drawn to the last
paragraph of this judgment in which opinion of the Bench is
reflected. There are, however three factors which we have to
consider before we come to a conclusion as to whether the
finding of the Coordinate Bench could be treated to be a
27
binding precedent for us or not in this set of proceedings.
First is that Valsala Devi (supra) considered the issue of
promotion from feeder posts and was not a contest in
relation to direct recruitment to the subject post. The
second factor is that the circular of 1982 and the Service
Regulation of 1988 were not considered in that decision. We
have gone through the Bench decision from which the
appeal arose and we did not find any discussion on these
circulars and regulations. Thirdly, the Coordinate Bench
did not have the advantage of considering the reasoning
contained in the Full Bench decision, which is under appeal
before us. The impact of statutory instruments in the form
of GOs were not brought to the notice of the Coordinate
Bench and hence not considered in the case of Valsala Devi
(supra). The legality of the 1982 circular and the 1988 GO
has not been questioned by KPSC. There is overlapping
effect of the 1969 Rules and the GOs issued in exercise of
power under Section 80 of the Act in the field of laying down
qualification criteria for the subject-posts. But in such a
situation, in our opinion it would be imprudent on our part
to treat such overlapping zone as collision point to
28
determine which provision carries greater legislative
strength. In such circumstances, the Court has to take a
harmonious approach and in extreme cases apply the
“reading down” principle to reconcile inconsistent provisions
flowing from different provisions having same statutory
origin. The Kerala Co-operative Societies Rules empower the
Government to make rules to provide for, inter-alia,
qualifications for employment in certain classes of societies.
Sub-clause (3) of Section 80 of the same statute permits the
Government to make rules for regulating the qualifications,
remuneration and other conditions of service. The Rules
made under Section 80(3) are thus to address the detailed
stipulations pertaining to conditions of service of the officers
and servants of different classes of societies specified in
Section 80(1).
25.
Moreover, the authorities have been dealing with the
qualification criteria at specific level for a particular class of
society by issuing circulars and GOs over a period of time
and in our opinion such implementation criteria has
acquired enforceability status on the basis of usage at the
29
administrative level. The 1982 Instruction has not been
invalidated by any subsequent Government action or
judicial order. Nothing on that count has been brought to
our notice. The authorities appear to have carved out the
posts of clerk/cashier in Co-operative Banks to subject
them to the instruments made in various forms under
Section 80(3) of the Act, whereas Rule 186 has general
application. The 1988 Regulations relate to Co-operative
Banks only, and source of power for making such
Regulations appear to be Section 80(3) of the 1969 Act.
Thus, in respect of such special category, Regulations made
under Section 80(3) of the Act ought to prevail.
26. In these circumstances, in our opinion, if an
advertisement is made providing for eligibility criteria
different from that statutorily prescribed, it would be open to
the candidates to challenge the legality of such eligibility
criteria. We do not think in the peculiar circumstances of
this case it was permissible on the part of KPSC to prescribe
qualification as minimum eligibility criteria which is beyond
that prescribed by the statute. While it is true that none of
30
the candidates have had challenged the legality of the
qualification condition stipulated in the advertisement,
majority have come to this Court at a time in close
proximity to the publication of the employment notification.
The judgment of the Coordinate Bench has not been decided
on the points argued before us. Nor the Coordinate Bench
had the advantage of going through the reasoning contained
in the Full Bench decision though before the said judgment
was delivered by the Coordinate Bench, the Full Bench
decision was rendered. For these reasons, in our opinion,
the Coordinate Bench decision would not constitute a
binding precedent so far as the present set of proceedings is
concerned. In these circumstances, we dismiss the five
appeals of the Commission. The Writ Appeal No. 865 of
2013 which was filed by the Commission before the Kerala
High Court against the judgment in WP (C) No. 21073 of
nd
2011 dated 22 February, 2013 being Transferred Case
(Civil) No. 60 of 2014 - Kerala Public Service Commission
v. Yesudas and Ors . is also dismissed. Notices were not
issued in the two Interlocutory Applications, I.A. No. 2 of
2012 and I.A. No. 82851 of 2021.
31
27. From Annexures “B” to I.A. No. 2 of 2012, we find that
for taking further steps in the matter of appointment of the
applicants thereof, the Commission was waiting for the
position of SLP….(CC) No. 17182 of 2008 (now Civil Appeal
No.1802 of 2010). In I.A. No.82851 of 2021 also, intending
intervenors seek to support the respondent candidates’
stand in the main set of appeals. We did not consider it
necessary to issue notice at this stage as the applicants in
these interlocutory applications are mainly supporting the
respondents/writ petitioners in the main set of five appeals.
As we have upheld the stand of the respondent candidates,
we do not think their intervention is necessary. Appropriate
steps shall be taken by the Public Service Commission on
the basis of performance or position in the selection process
of these applicants for intervention. So far as the I.A.
brought by Respondent No. 2 (i.e. No.84340 of 2021) in Civil
Appeal No.1805 of 2010 is concerned, we find that he has
participated in a different selection process and had been
appointed as a class IV employee in a District Co-operative
th
Bank on the basis of the Commission’s advice dated 6
October, 2012. He has been further promoted to the post of
32
th
clerk by an order dated 5 June, 2017. It is pleaded in his
I.A. that he is continuing to work in that capacity. As he has
chosen a career path different from that which is subject
matter of the present set of appeals of connected matters,
no relief can be granted to him by antedating his promotion.
This application is rejected.
28. All other connected applications shall stand disposed
of.
29. There shall be no order as to costs.
..........................J
(L. Nageswara Rao)
.........................J
(Aniruddha Bose)
NEW DELHI
September 06, 2021
33