Rajasthan High Court Quashes Termination Of Cooperative Bank Employees, Says Registrar Can't Undermine Society's Autonomy
The Rajasthan High Court has held that while exercising powers under Section 125 Rajasthan Cooperative Societies Act, 2001 (the “Act”), the Registrar cannot make such interference that curtails or undermines the autonomy of the society. The bench of Justice Anand Sharma was hearing a petition challenging the orders by which the petitioner's regularisation as a Class IV employee of the...
The Rajasthan High Court has held that while exercising powers under Section 125 Rajasthan Cooperative Societies Act, 2001 (the “Act”), the Registrar cannot make such interference that curtails or undermines the autonomy of the society.
The bench of Justice Anand Sharma was hearing a petition challenging the orders by which the petitioner's regularisation as a Class IV employee of the Central Cooperative Bank Limited was cancelled and his services were terminated.
The Petitioner submitted that while he was contractually working in the Central Cooperative Bank, Sawaimadhopur, resolution was passed by which he was regularly appointed as a Class IV employee. However, subsequently, the Additional Registrar of the Cooperative Societies stayed the resolution while exercising powers under Section 125 of the Act.
Furthermore, for cancelling the resolution, the matter was sent to the Rajasthan State Cooperatives Tribunal, Jaipur. The Managing Director of the Bank passed an order to cancel the resolution as well as appointment orders. Hence, the petition was filed.
On the contrary, the respondent argued that the society had not followed due procedure for the appointment of the petitioner, and hence the appointments were illegal.
After hearing the contentions, the Court referred to a decision of the division bench of the Court i.e. Tej Singh Vs. Hanumangarh Central Co-operative Bank Ltd. Ors. which held that Sections 30B and 125 of the Act, read together, reflected that the Registrar was prohibited from exercising powers under Section 125 in a manner that interfered with society's autonomy in Section 30B.
Section 30B of the Act provides for autonomy of a short term cooperative society in all financial and internal administrative matters.
Proviso to Section 125 of the Act lays down that the government or the registrar shall not do anything which had the effect of curtailing any freedom or powers given to any short-term cooperative society, under the Act.
Hence, it was observed by the Court,
“…controversy involved in the present writ petition is no more res integra and it has already been held by the Division Bench that the Registrar while exercising the powers under Section 125 of the Act of 2001 cannot make any interference so as to curtail or undermine the autonomy of the Society, this Court finds that the decision to terminate services of the petitioner vide orders dated 25.08.2015 and 01.09.2015 is arbitrary and contrary to the above decision of the Division Bench.”
Accordingly, the petition was allowed, and the respondents were directed to permit the petitioner to continue in service and be granted all benefits.
Title: Pooran Singh v State of Rajasthan & Ors, and other connected petition
Citation: 2026 LiveLaw (Raj) 393