Surendran Vs. Kerala Public Service Commission - Court Judgment

K.S. Radhakrishnan, J.

1. The question that has come up for consideration in this case is whether theemployees of associate or nominal members of the Apex or Central Society are alsoeligible for appointment for the post of Clerk-Cashier in the District Co-operativeBank on the basis of Ext. P1 notification.

2. In the notification it is stated that 50% of the vacancies will be filled up byselection from eligible employees of Primary Co-operative Societies and rank list willbe prepared for each District Co-operative Banks. As per the notification 50% of theappointment is by direct recruitment and 50% from eligible employees of the PrimaryCo-operative Societies and separate rank lists will be published in respect of bothcategories. Applications were invited by the Public Service Commission as per theamended Co-operative Societies Rules reads as follows:

187. Vacancies in Apex Society or Central Societies - Notwithstanding anythingcontained in Rule 186, in appointments to apex societies or central societies, 50% of the vacanciesshall be reserved to the employees of the member societies, of the respective apex society orcentral society as the case may be, having a minimum regular service of 3 years in any of the cadreand having the required qualification for the notified posts in the apex society or central society.

Circulars No. 45/99 and 49/99 were issued by the Regular of Co-operative Societiesstating that all employees of the member societies of the District Co-operative Banksirrespective of whether they are associate or nominal members are eligible to apply inthe quota earmarked for employees.

3. Petitioners raised a contention that as per the provisions of the Act, employeesof the member societies of District Co-operative Banks which constitute District Co-operativeBanks alone can be considered as eligible to apply in the quota earmarkedfor the employees. They contended only A class members of the District Co-operativeBanks who are Primary Co-operative Societies alone are members of the DistrictCo-operative Banks and as such the employees of A class members of the DistrictCo-operative Banks alone are eligible to apply for the 50% quota reserved for theemployees. Further it was contended that the nominal and associate member societiesare admitted only for lending purpose and they are not full-fledged or A class membersof the District Co-operative Banks and they do not have voting rights in the DistrictCo-operative Banks. It was also contended that nominal or associate members havegot their own apex societies for which the employees of those societies can claim50% quota reserved for employees. Further it was contended that there are only 173banks or societies as A class members of the District Co-operative bank. Ernakulamas on 31.3.1999 whereas there are 522 nominal or associate member societies underthe Ernakulam District Co-operative Bank and if the employees of those nominal orassociate member societies are allowed to apply and included in the rank list earmarkedfor the 50% quota reserved for the employees, it will adversely affect the right andclaim of petitioner and other employees of A class members for getting employmentunder the reserved quota for employees.

4. In order to resolve the above controversy we have to examine the scopeof Section 80, Rule 187 and also allied provisions of the Act. The appointment to the DistrictCo-operative Banks and other Central Societies were left to the Public ServiceCommission by Section 80(3) of the Co-operative Societies Act. By S.R.O. 380/2000published in the Kerala Gazette Extra-ordinary No. 45 dated 2.5.2000 Rule 187 wasamended stating that notwithstanding contained in Rule 186, in appointment toapex societies or central societies, 50% of the vacancies shall be reserved to theemployees of the member societies, of the respective apex society or central societyas the case may be having a minimum regular service of 3 years in any of the cadreand having the required qualification for the notified posts in the apex society or centralsociety. It is pursuance to the above mentioned statutory provisions notificationwas issued by the Public Service Commission. We have to examine whether theexpression 'member societies' used in Rule 187 would take in the nominal associatemember of the District Co-operative Bank or Apex Society as the case may be.

5. District Co-operative Bank is defined under Section 2(ia) which reads as follows:

'District Co-operative Bank' means central society having jurisdiction over one revenuedistrict and having as its members Primary Agricultural Credit Societies and Urban Co-operativeBanks and the principal object of which is to raise funds to be lent to its members, includingnominal or associate members'.

The definition clause therefore takes in nominal and associate members also. Sincethe Legislature uses the expressions 'means' and 'includes' the definition is exhaustive.Expression 'member' is also defined under Section 2(1) as follows:

'Member' means a person joining in the application for the registration of a co-operativesociety or a person admitted to membership after such registration in accordance with this Act,the rules and the bye-laws and includes a nominal or associate member'.

The words nominal or associate member is also defined under Section 2(m) of the Actwhich reads as follows:

(m) 'nominal or associate member' means a member who possess only such privileges andrights of a member who is subject only to such liabilities of a member as may be specifiedin the bye-laws;

On a conjoint reading of Section 50(3A) read with Rule 187 and Section 2(ia), 2(1) and 2(m) wouldconclusively show that nominal or associate member is also a member coming withinthe scope of Rule 187 of the Co-operative Societies Rules. The employees of suchnominal and associate member societies are also therefore eligible to apply in thevacancies earmarked for appointment to 50% vacancies in the District Co-operativeBank. It is so declared. In view of such circumstance we are of the view learnedsingle Judge was justified in declining the relief in the Writ Petition.

6. Appeal is therefore dismissed.