ORDER
Puttaswamy, J.
1. As the questions that arise for determination in these cases are inter connected? we propose to dispose of them by a common order.
2. As on 1-11-1956 on which day the new State of Karnataka comprising of the areas specified in Section 7 of the States Reorganization Act come into being, there were co-operative laws regulating the establishment, functioning and control of co-operative societies in the respective erstwhile areas of the new State. The new State by virtue of the powers derived by Article 246(3) and Entry 32 of List-II-State List of the Seventh Schedule to the Constitution, enacted the uniform Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959) ('the Act') repealing all the corresponding enactments referred to in Section 131 of that Act. The Act came into force from 1st June, 1960.
3. Chapter XI of the Act containing Sections 76 to 98 as originally enacted made special provisions for the establishment of Land Mortgage Banks, their area of operation, control and all other incidental matters. Broadly the said chapter provided for the establishment of an apex Bank then called the 'State Land Mortgage Bank', later as State Land Development Bank from 26-6-1965 but is now called as 'the State Agricultural and Rural Development Bank' ('Apex Bank') from 9-1-1984 and one Land Mortgage Bank for each revenue Taluk called as 'Primary Land Development Bank' of the Taluk (PLD Bank) from 26-6-1965, but is now called as Agricultural and Rural Development Bank of the Taluk (ARD Bank) from 9-1-1984 to achieve the purposes and objects enumerated therein. This chapter with the Rules made thereunder as also under Section 129 of the Act and other provisions of the Act to the extent they were not - in derogation of the special provisions governed the societies or Banks established arid functioning under the Act. Both these 'societies' as separate organisations were free to make appointments of the personnel required and deal with them subject to rules made by Government under the Act.
4. The Karnataka Co-operative Societies (Amendment)' Act of 1975 (Karnataka Act 39 of 1975) (1975 Act) that came into force on and from 23-9-1975 (vide Notification No. RDC 322 CEA 75 dated 23-9-1975) inter alia incorporated Section 128-A empowering Government to constitute an authority or authorities on matters of recruitment, training and disciplinary control of such class of employees of co-operative societies prescribed by Rules but in receipt of financial aid from Government. In other words this Section empowered Government to establish a Common Cadre Authority (CCA) for certain class of co-operative societies. The Karnataka Co-operative Societies (Amendment) Act of 1976 (Karnataka Act 19 of 1976) ('1976 Act') which came into force from 20-1-1976 [vide : Sub-section (2) of Section 1] incorporated Sub-section (3) of Section 128A of the Act empowering Government to give directions for reservations to members of scheduled castes, scheduled tribes and backward classes. With the object of effectuating the purposes of Section 128-A Government in its Notification Nos. (i) RDC 37 CLM 76 dated 26-3-1977 and (ii) RDC 21 CLM 78 dated 16-8-1978 published in the Karnataka Gazette dated 31-3-1977 and 28-8-1978 respectively framed Rules 17A & 17B, the first one in respect of the class of societies referred to in Rule 17(A) (1)(b) and the second one in respect of ARD Banks only.
5. In order No. RDC 22 CLM 78 dated 24-8-1978 (Annexure-A in W.P. No. 3598 of 1979) Government constituted a 'Common Cadre Authority' for recruitment, training and disciplinary control of all the employees of ARD Banks (CCA) for the State. With the prior approval of Government sanctioned in its order No. RDC 37 CLM 80 dated 30-1-1981 (published in the Karnataka Gazette dated 26-2-1981) the CCA had framed regulations called 'the Regulations regarding recruitment, emoluments, terms and conditions of service including the disciplinary control of the employees of PLD Banks in the State' (Regulations) which have come into force from 1-10-1978 (vide Regulation No. 2).
6. After its constitution by Government, the CCA had sought to interfere with the recruitment, transfers and disciplinary control of employees of the ARD Banks in diverse ways. Some of the ARD Banks, their Presidents or their employees as the case may be have approached this Court under Articles 226 of the Constitution in Writ Petitions Nos. 3598, 11694, 19803, of 1979, 13336, 21034 30711 of 1981 and 7666 of 1983 challenging the validity of Chapter XI-A in whole or Section 128-A, Rules 17A, 17B or the actions taken thereunder by the CCA against them or their employees. During the pendency of these cases before this Court, the. Karnataka Co-operative Societies (Amendment) Act of 1984 (Karnataka Act 5 of 1984) (1984 Act) which came into force from 9-1-1984 substituted Section 128A with a new Section from that day empowering the Registrar of Co-operative Societies (Registrar) to exercise that power on complying with the requirements stipulated thereto. With this brief statement of legislation and facts that are relevant to the Writ Petitions, we will notice the facts in Writ Appeal No. 1211 of 1985.
7. At Coondapur, Holalkere and K. R. Nagar Towns which are also the Taluk Head Quarters of those revenue taluks of Dakshina Kannada, Chitradurga and Mysore Districts, there are ARD Banks for those taluks constituted and functioning under Chapter XI of the Act. In these three ARD Banks prior to 18th June, 1984 Sriyuths B.M. Neelakantaiah, B. K. Raja Rao and U. Krishnamaiya were working as the Secretaries of the said Banks respectively. In order No. CCA/EST/TR/8399-8410-84-85 dated 18-6-1984 (Annexure-C) the CCA transferred those three Secretaries from their respective Banks to other Banks and that order which gave rise to Writ Petition No. 16346 of 1984 by Neelakantaiah before this Court out of which W.A. No. 1211 of 1985 arises before us reads thus :