JUDGMENT
Cyriac Joseph, J.
1. This Writ Appeal is filed against the judgment in O.P. No. 26196 of 2001, The appellant is the petitioner in the Original Petition.
2. The appellant is Vazhithala Service Co-operative Bank Ltd. (hereinafter referred to as “the Bank”). As per the bye laws of the Bank, the post of Secretary is to be filled up either by promotion from the cadre of Assistant Secretary/Manager/Chief Accountant or by direct recruitment. Sri. K.M. Mathai, the Secretary of the Bank, was due to retire from service on 31.8.2000. The Assistant Secretary Smt. N.G. Santhakumari and the Branch Manager Smt.N.M.Anice did not possess the necessary qualification for promotion to the post of Secretary. Sri. K.Sugathan Nairand Smt.K.C.Cicily, who are Accountants in the Bank were qualified for the post of Secretary but they relinguished their claim for the post of Secretary. Hence, the Board of Directors of the Bank as per Resolution No.9/239 dated 3.7.2000 resolved to make appointment to the post of Secretary by direct recruitrnent. The Bank approached the Registrar of Co-operative Societies (first respondent) for necessary sanction/permission for making the appointment. The application was routed through the Assistant Registrar of Co-operative Societies(General), Thodupuzha(second respondent). The second respondent returned the application to the Bank stating that the relinquishment letters of Sri. K. Sugathan Nair and Smt. K.C. Cicily should be produced along with the application. The application was resubmitted to the second respondent along with the relinquishment letters. As per letter dated 16.11.2000 (Ext. P4(a)), the Registrar of Cooperative Societies granted permission to the Bank to make direct recruitment to the post of Secretary but directed that the written test should be conducted by the Institute of Cooperative Management, Thiruvananthapuram. Since the Institute of Co-operative Management, Thiruvananthapuram expressed their inability to hold the written test, the Bank approached the first respondent for further orders. As per his letter dated 12.1.2001(Ext.P4), the first respondent granted permission to the Bank to make appointment to the post of Secretary subject to the conditions contained in Circular No. 18/91of the Registrar of Co-operative Societies and directed that the written test should be conducted by the Institute of Management in Government, Ernakulam and that the principles of reservation should be observed by the Bank. After the first respondent granted permission to fill up the post of Secretary by direct recruitment as per his letter dated 16.11.2000, the Bank advertised the vacancy and invited applications through notification published in two leading Malayalam dailies on 20.11.2000. Eleven applications were received within the time stipulated. On receipt of Ext.P4 letter dated 12.1.2001of the first respondent the Bank on 8.2.2001wrote to the Institute of Management in Government, Emakulam requesting to conduct the written test. As per their letter dated 15.3.2001(Ext. P5), the Institute of Management in Government, Ernakulam communicated their terms and conditions for conducting the written test. The Bank remitted the prescribed fee and complied with all the conditions contained in Ext. P5. The Written test was conducted by the Institute of Management in Government on 24.6.2001at St.Sebastian’s Higher Secondary School, Vazhithala. Nine out of the 11applicants appeared for the written test. In their letter dated 25.6.2001(Ext. P6), the Institute of Management in Government, Ernakulam forwarded to the Bank the results of the written test along with all the relevant documents relating to the written test. Ext. P7 is the list of six candidates qualified for interview. The interview of the candidates was held on 5.7.2001. All the six candidates included in Ext.P7 list appeared for the interview before the Interview Board consisting of all the eight Directors of the Bank. While the interview was going on on 5.7.2001, an employee in the office of the second respondent Assistant Registrar of Co-operative Societies came to the Bank and handedover Ext.P5 order dated 5.7.2001of the second respondent staying all further proceedings in connection with the appointment to the post of Secretary of the Bank. Ext. P8 order referred to a complaint dated 5.7.2001of Sri. P.S. Radhakrishnan, Member No.2965 of the Bank. Aggrieved by Ext. P8 order, the Bank filed O.P. No. 20238 of 2001in the High Court of Kerala praying to quash the said order of the Assistant Registrar of Co-operative Societies or, in the alternative, to direct the Assistant Registrar to conclude the proceedings initiated by the impugned order within a time limit. The said Original Petition was disposed of by the High Court as per Ext. P9 judgment dated 26.7.2001directing the Assistant Registrar of Cooperative Societies to dispose of the complaint filed by Sri. P.S. Radhakrishnan within a period of three weeks. It was also directed that if the Assistant Registrar did not dispose of the complaint within three weeks, the Bank was free to proceed with the selection and appointment to the post of Secretary, subject to the final decision on the complaint Pursuant to Ext. P9 judgment, the second respondent issued Ext.P10 notice dated 4.8,2001calling for the explanation of the Bank with regard to the complaint of Sri. P.S. Radhakrishnan. A copy of the complaint (Ext. P11) also was forwarded to the Bank. The main complaint of Sri. P.S. Radhakrishnan was regarding the conduct of the written test by the Institute of Management in Government, Ernakulam after the constitution of the Co-operative Service Examination Board. He had also objected to the appointment to the post of Secretary by direct recruitment when the Bank was functioning at aloss. Though the Bank submitted its explanation on 9.8.2001, the second respondent as per Ext. P12 order dated 13.8.2001declared that all the steps taken for appointment to the post of Secretary of the Bank were invalid and directed to make appointment only on the basis of written test conducted by Cooperative Service Examination Board. It was also directed that the appointment shall be made only after hearing persons in the feeder category who are eligible for appointment by promotion to the post of Secretary. Aggrieved by Ext.P12 order of the second respondent, the Bank filed O.P.No. 26196 of 2001which has been disposed of by the impugned judgment.
3. The main contention of the Bank in the Original Petition was that the second respondent, Assistant Registrar of Co-operative Societies had no power or jurisdiction to issue Ext. P12 order. It was also contended that the second respondent had practically usurped the power and jurisdiction of the Registrar of Co-operative Societies. It was further contended that by setting aside the entire proceedings taken by the Bank for making the appointment to the post of Secretary, the second respondent practically rescinded the resolutions of the Board of Directors of the Bank and that the power to rescind the resolutions was conferred exclusively on the Registrar of Co-operative Societies as per R.176 of the Kerala Co-operative Societies Rules, 1969. The Bank also disputed the assumption of the second respondent that the request to conduct the written test was made and the written test was conducted after the Co-operative Service Examination Board was constituted. According to the Bank, the decision to appoint the Secretary by direct recruitment was taken as per Ext. P2 resolution dated 3.7.2000 and the subsequent resolution (Ext. P3) dated 28.10.2000. It was contended that permission of the Registrar was sought and permission was granted by the Registrar before the Co-operative Service Examination Board was constituted. The Bank also disputed the assumption of the second respondent that the qualified persons in the feeder category were not heard before taking the decision to make appointment by direct recruitment. It was contended that the Registrar was informed that the two officers in the feeder category were not qualified and the two qualified officers in the feeder category had relinquished their claim for promotion.
4. In the impugned judgment, the learned Single Judge has held that the written test for appointment to the post of Secretary in the Bank has to be conducted in accordance with the provisions of Section 80B of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as “the Act”) read with Rule 182A of the Kerala Cooperative Societies Rules, 1969 (hereinafter referred to as “the Rules”) and G.O.(P) No.18/2001dated 25.1.2001. Consequently, the learned Single Judge has held that the written test has to be conducted by the Co-operative Service Examination Board, The learned Single Judge has also held that the second respondent Assistant Registrar was competent to issue Ext. P12 order exercising the powers of the Registrar under Section 66(5) of the Act. The learned Single Judge accepted the contention of the secondrespondent that he was competent to exercise the powers of the Registrar under Section 66(5) by virtue of the Government Notification No. 255/69/AD dated 28.6.1969. Rejecting the contention of the petitioner that in Ext. P12 order the second respondent took a decision contrary to the decision taken by the first respondent in Ext P4, the learned Single Judge observed that though the direction contained in Ext. P4 was valid at the time when it was issued by the first respondent, since the direction in Ext. P4 was not effectuated at the time of constitution of the Co-operative Service Examination Board as provided under Section 80B of the Act and Rules 182A and 182 B, the Bank was bound to follow the procedure prescribed in the Rules and to conduct the written test through Co-operative Service Examination Board.
5. Admittedly, the appellant Bank is governed by the provisions of the Act and Rules. Section 80B of the Act reads thus:
“80B. Co-operative Service Examination Board:
(1) Notwithstanding anything contained in this Act or the rules or in the bye-laws of any society relating to the recruitment of officers and servants thereof the Government shall, by notification in the Gazette constitute a Co-operative Service Examination Board for the conduct of written examination for all direct recruitment to posts of and above the category of Junior Clerks in the Primary Agricultural Credit Societies. Primary Cedit Societies, Urban Co-operative Banks and Primary Agricultural and Rural Development Banks in the State.
(2) The Examination Board shall consist of not more than three members and the term of the Board shall be five years. The powers and functions and other conditions of appointment of the members of the Board and the procedures to be followed by the Board for the conduct of examination and the preparation of list of candidates to be interviewed for appointment shall be such as may be prescribed.
(3) All appointments shall be made by the committee concerned from the list of candidates after conducting an interview of the candidates and making a select list therefrom in such manner as may be prescribed.
(4) Notwithstanding any thing contained in Sub-section (3A) of Section 80 and in Sub-section (1) of this section, the committee of a society may, with the prior approval of the Registrar appoint persons who are professionally or technically qualified or persons with experience and expertise to posts requiring such technical or professional qualifications on contract basis or by the method of deputation for such period, but not exceeding five years, as may be specified.”
Though Section 80B was inserted by Act No. 1of 2000 published in Kerala Gazette Extraordinary dated 1.1.2000 it was brought into force only with effect from 25.1.2001as per G.O.(P) No. 19/2001/Co-op. dated 25.1.2001(SRO No. 89/2001) published in Kerala Gazette Extraordinary Vol. 46, No. 165, dated 29.1.2001. The powers and functions of the Co-operative Service Examination Board constituted under Section 80B of the Act are stated in Rule 182A(1) of the Rules. Such powers and functions include the conduct of the written examination of candidates for selection to various categories of posts as specified in Section 80B of the Act as and when the requisition for such examination is received from the concerned societies and making of all required arrangements in connection with the examination including the preparation of question papers, supervision, valuation etc. As per Rule 182 A(6), the Co-operative Service Examination Board shall frame necessary regulations and rules of procedure for the proper conduct of examination and get it approved by the Government before its publication. The terms and conditions of appointment of the members of the Co-operative Service Examination Board are stated in Rule 182B of the Rules. Rule 182A was inserted by SRO No. 380/2000 published in Kerala Gazette Extraordinary No. 45 dated 2.5.2000 and Rule 182B was inserted by SRO 24/2001published in Kerala Gazette Extraordinary No. 46 dated 8.1.2001. In exercise of the powers conferred by Section 80B of the Act read with Rule 182B of the Rules, the Government of Kerala constituted the Co-operative Service Examination Board as per G.O.(P) No. 18/2001/Co-op. dated 25.1.2001(SRO No. 88/2001) published in Kerala Gazette Erxtraordinary Vol. 46 (No. 164) dated 29.1.2001. The newly constituted Co-operative Service Examination Board framed necessary regulations and rules of procedure for the proper conduct of examinations and submitted it for approval of the Government as per Rule 182A(6) of the Rules. The said regulations and rules of procedure were approved by the Government as per G.O. (Ms) No.74/2001/ Co-op. dated 5.5.2001.
6. Admittedly, the vacancy of Secretary of the Bank arose on 1.9.2000. The Bank had passed resolutions dated 3.7.2000 and 28.10.2000 resolving to make appointment to the vacancy of Secretary by direct recruitment and sought the permission of the Registrar of Co-operative Societies for making such appointment by direct recruitment. As per Ext. P4(a) letter dated 16.11.2000, the Registrar permitted the Bank to get the written test conducted by the Institute of Co-operative Management, Thiruvananthapuram. When the said Institute expressed their inability to conduct the written test, the Bank again approached the Registrar of Co-operative Societies and as per Ext. P4 letter dated 12.1.2001the Bank was given permission to get the written test conducted by the Institute of Management in Government, Ernakulam. Admittedly the Bank wrote to the Institute of Management in Government, Ernakulam only on 8.2.2001requesting them to conduct the written test. In the meanwhile, Section 80B of the Act was brought into force with effect from 25.1.2001and the Co-operative Service Examination Board was constituted by the Government of Kerala as per G.O.(P) No. 18/2001/Co-op. dated 25.1.2001. Hence, with effect from 25.1.2001the written examination for all direct recruitment to posts of and above the category of Junior Clerks in the Primary Agricultural Credit Societies, Primary Credit Societies, Urban Co-operative Banks and Primary Agricultural and Rural Development Banks in the State of Kerala could be conducted only by the Co-operative Service Examination Board. In other words, the permission granted by the first respondent, Registrar of Co-operative Societies as per Ext. P4 letter dated 12.1.2001could not have any force or operation with effect from 25.1.2001. Though Ext. P4 letter was valid when it was issued, it ceased to be operative with effect from 25.1.2001because the administrative order issued by the first respondent, Registrar of Co-operative Societies, could not over ride the statutory provisions contained in Section 80B of the Act. It is significant that the Bank wrote to the Institute of Management in Government, Ernakulam only after Section 80B of the Act was brought into force and the Co-operative Service Examination Board was constituted. Notwithstanding the permission granted by the Registrar of Co-operative Societies as per Ext. P4 letter dated 12.1.2001, the action taken by the Bank in writing to the Institute of Management in Government, Ernakulam and getting the written examination conducted by the said Institute was in contravention of Section 80B of the Act and therefore, the said action could not have been approved or upheld by the second respondent. Hence, the decision of the second respondent in Ext. P12 to the extent of setting aside the action of the Bank in getting the written examination conducted by the Institute of Management in Government, Ernakulam and interviewing the candidates selected on the basis of the said written examination, is perfectly legal and justified. However, there is no justification for setting aside the decision of the Bank to make appointment to the vacancy of Secretary by direct recruitment and its action in seeking and obtaining permission of the Registrar for making the appointment by direct recruitment. The said decision and action of the Bank were not contrary to any statutory provision and the first respondent Registrar of Co-operative Societies was competent to grant permission to make the appointment by direct recruitment. The second respondent, Assistant Registrar of Co-operative Societies was not competent to review, modify or cancel the decision of the Registrar in that regard. Hence the action taken by the Bank to fill up the vacancy of the Secretary of the Bank by direct recruitment was legal and valid and it could not have been interferred with by the second respondent. In view of the statutory provisions contained in Section 80B of the Act, the Bank can continue with the proceedings for making appointment to the post of Secretary through a written examination conducted by the Co-operative Service Examination Board.
7. There is no merit in the contention of the appellant that since Section 80B of the Act has no retrospective effect, the Bank was entitled to get the written examination conducted by the Institute of Management in Government, Ernakulam. The written examination was actually conducted only on 24.6.2001. Even the requisition to the Institute for conducting the written examination was send by the Bank only on 8.2.2001, i.e., after the coming into force of Section 80B of the Act and the constitution of the Cooperative Service Examination Board. The fact that the vacancy had arisen on 1.9.2000 or that the vacancy was advertised and applications were invited and permission was obtained from the first respondent to get the written examination conducted by the Institute of Management in Government, Ernakulam before the coming into force of Section 80B of the Act and the constitution of Co-operative Service Examination Board, cannot ex’clude the operation of Section 80B of the Act in this case. As per Section 80B of the Act no change was effected in the matter of qualification or criteria for eligibility. The only change was in respect of agency for conducting the written examination. So long as the written examination was not actually conducted before the coming into force of Section 80B and the constitution of the Co-operative Service Examination Board, the Bank was bound to get the written examination conducted only by the Co-operative Service Examination Board as required under Section 80B of the Act. It is true that Section 80B has only prospective operation; but, after the coming into force of Section 80B the written examination can be conducted only by the Co-operative Service Examination Board. In this case, even the requisition to the Institute of Management in Government was sent only after the coming into force of Section 80B of the Act. Hence, the reliance placed by the learned counsel for the appellant on the decisions in P. Mahendra and Ors. v. State of Karnataka (AIR 1990 SC 405) and A.A. Calton v. The Director of Education and Anr. (AIR 1983 SC 1143) is totally misplaced. Those decisions have no application to the facts of this case.
8. There is also no merit in the contention that the bank was justified in getting the written examination conducted by the Institute of Management in Government, Ernakulam since the regulations and rules of procedure including the scheme and syllabus were approved by the Government only on 5.5.2001as per G.O.(MS) No. 74/2001/Co-op, dated 5.5.2001. The appellant has no case that the appellant had approached the Co-operative Service Examination Board for the conduct of the written examination and the Board had expressed its inability to conduct the written examination for want of approved regulations and rules of procedure. Moreover, admittedly the regulations and rules of procedure for the proper conduct of the examination by the Co-operative Service Examination Board had been approved by the Government on 5.5.2001whereas the written examination was conducted by the Institute of Management in Government only on 24.6.2001.
9. Learned counsel for the appellant contended that since the appellant Bank has already spent considerable amount for the conduct of the written examination by the Institute of Management in Government, Ernakulam, the present appointment to the post of Secretary may be exempted from the operation of Section 80B of the Act. Neither this Court is competent, nor is it proper, to grant such exemption contrary to the provisions contained in the statute, G.O.(P) No. 19/2001/Co-op. dated 25.1.2001(SRO No. 89/2001) bringing into force Section 80B of the Act with effect from 25.1.2001and G.O. (P) No.18/2001/Co-op. dated 25.1.2001(SRO No. 88/2001) constituting the Cooperative Service Examination Board were published in the Kerala Gazette Extraordinary dated 29.1.2001. Hence, the appellant cannot plead ignorance of the coming into force of Section 80B of the Act with effect from 25.1.2001. Even after the coming into force of Section 80B of the Act and the constitution of the Co-operative Service Examination Board, if the appellant chose to spend money for getting the written examination conducted by an agency other than the Co-operative Service Examination Board, the Appellant alone should bear the blame and suffer the loss on account of its action contrary to the statutory provisions. Such a conscious violation of the statutory provision by the appellant Bank cannot be a valid ground for seeking exemption from the operation of the statutory provision.
10. On the question of competence of the second respondent to issue Ext. P12 order, we agree with the view taken by the learned Single Judge that the second respondent was competent to issue Ext. P12 order under Section 66(5) of the Act read with Government Notification No. 255/69/AD dated 28.6.1969.
11. There is no legal basis for the contention of the appellant that by Ext. P12 order the second respondent practically rescinded the resolutions passed by the Board of Directors of the appellant Bank and that the power to rescind a resolution of the Board of Directors can be exercised only by the Registrar under Rule 176 of the Rules. By Ext. P12 order, the second respondent has only directed the appellant Bank to comply with the statutory provisions contained in Section 80B of the Act. The second respondent is competent to issue such a direction to the appellant Bank in exercise of his supervisory powers under Section 66(5) of the Act.
12. In the above circumstances, there is no merit in the Writ Appeal and hence the Writ Appeal is dismissed. No costs.