This civil appeal arose from a challenge to a promotion order dated December 30, 2010, whereby the appellant, S.P. Chandrakar, was promoted to the post of Additional Manager in the District Central Cooperative Bank Ltd. The promotion was challenged via a writ petition by respondent No. 5 (Kishor Bagh), which was allowed by the learned Single Judge thirteen years later and affirmed by the Division Bench of the High Court on the ground that Rule 5(3)(a) of the 1982 Rules could not be amended by a mere executive circular or letter issued by the Registrar of Cooperative Societies without following formal legislative amendment procedures.
The Supreme Court allowed the appeal and set aside the concurrent findings of the High Court. The Apex Court held that Section 55(1) of the Chhattisgarh Cooperative Societies Act, 1960 explicitly empowers the Registrar to frame and alter rules governing terms and conditions of employment. Furthermore, interpreting Section 95(3) of the Act, the Court held that the requirement of laying rules before the Legislative Assembly is directory rather than mandatory since the statute prescribes no nullification consequence for non-tabling. Consequently, the deletion of Rule 5(3)(a) via the Registrar’s circular was legally valid, restoring the appellant’s promotion along with protected seniority, consequential benefits, and 50% back wages.
- Statutory Power to Amend:
- Under Section 55(1) of the Chhattisgarh Cooperative Societies Act, 1960, the Registrar possesses the statutory authority to frame and modify terms and conditions of employment in cooperative societies.
- The exercise of this power via the circular dated August 13, 2010, deleting Rule 5(3)(a) to enable technical employees to seek promotions, was lawful and well within jurisdiction.
- Interpretation of “Shall” and Laying Clauses:
- Relying on established constitutional benchmarks (State of U.P. v. Manbodhan Lal Srivastava and Atlas Cycle Industries Ltd. v. State of Haryana), the Court reiterated that the use of “shall” in a laying clause (Section 95(3)) is directory when the statute specifies no penal consequence for non-compliance.
- The failure to table rules before the legislature does not invalidate delegated legislation or executive rules framed under enabling statutory provisions.
- Nomenclature and Authority:
- Quoting settled principles from Kiran Devi v. Bihar State Sunni Wakf Board, a wrong reference to a procedure or improper formatting of an official communication does not vitiate an action if the competent authority possesses the substantive legal power to execute it.
- Relief Granted:
- The Supreme Court set aside the judgments of the High Court and Single Judge.
- The appellant was ordered to be restored to his position and status as Additional Manager with protected seniority, entitled benefits of promotion, and 50% back wages payable within two months, failing which 6% interest per annum would apply.
