Madras High Court

Mandatory educational qualifications and service period prescribed in Cooperative Rules and By-laws are essential for valid promotions.

THE PRESIDENT vs R. Ponnuvelu

Madras High CourtJUDGMENT: June 22, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The first respondent, R. Ponnuvelu, joined the appellant Cooperative Bank as an Assistant in 1978.

Source reference: p. 2

He received various promotions, eventually reaching the post of Secretary/General Manager on 01.02.2013.

Source reference: p. 2

On 26.06.2013, four days prior to his superannuation, the Management reverted him to the post of Manager.

Source reference: p. 2

The respondent challenged this reversion before the Additional Registrar under Section 153 of the Tamil Nadu Cooperative Societies Act, but the revision was dismissed on 17.01.2014.

Source reference: p. 2-3

The respondent then filed W.P.No.3083 of 2014, which was allowed on 30.03.2023.

Source reference: p. 1, 3

The Bank preferred this intra-court appeal to set aside the Writ Court's order.

Source reference: p. 1, 3
02

Issues

1. Whether the first respondent met the mandatory educational and service seniority qualifications for the post of Secretary/General Manager as prescribed under the Rules and By-laws.

Source reference: p. 3, 5

2. Whether the order of reversion passed by the Management and upheld by the Revisional Authority was legally sustainable.

Source reference: p. 7
03

Law Applied

The Court applied Rule 149 of the Tamil Nadu Cooperative Societies Rules, specifically the second proviso to Rule 149(1), which mandates a minimum of six years of combined satisfactory service in the current and feeder categories for promotion to Manager or above.

Source reference: p. 5-6

The Court also relied on By-law 23 of the LIC Employees Co Operative Bank Ltd., which prescribes a mandatory educational qualification of a degree (B.A., B.Com., or B.Sc.) and specific cooperative training for the post of Secretary/General Manager.

Source reference: p. 6

The Court noted the principle that promotion is not an absolute right but a right to be considered based on eligibility as per prevailing Rules.

Source reference: p. 5
04

Reasoning

The Court observed that while the first respondent was promoted to General Manager in 2013, he did not possess the mandatory degree qualification required by By-law 23, having only completed SSLC and a Diploma in Cooperative Training.

Source reference: p. 6-7

Furthermore, under the second proviso to Rule 149(1), the respondent failed to meet the six-year service requirement in the feeder category (Manager) before his elevation to General Manager, as he had served only five years and three months.

Source reference: p. 3, 6

The Court reasoned that educational qualifications prescribed by by-laws are mandatory for promotion unless the rules specify otherwise.

Source reference: p. 7

Since the respondent lacked the requisite academic credentials and the statutory length of service, his promotion was found to be in violation of the legal framework.

Source reference: p. 7

The Court highlights that the Writ Court erred by focusing purely on the length of service while ignoring the specific statutory rules and approved by-laws regarding eligibility.

Source reference: p. 7-8
05

Holding

The High Court held that the first respondent was not qualified to hold the post of Secretary/General Manager.

The High Court answered the issues in favor of the appellant, holding that the reversion order dated 26.06.2013 was in consonance with Rule 149(1) and the Society’s By-laws.

Source reference: p. 7

The Writ Appeal was allowed, the order of the Writ Court dated 30.03.2023 was set aside, and the reversion was upheld.

Source reference: p. 8

No costs were awarded.

Source reference: p. 8
Madras High Court

Original Court PDF

THE PRESIDENTvsR. Ponnuvelu

Madras High Court · June 22, 2026

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