High Court of KeralaDivision BenchWrit Appeal disposed of with directions to the ...

Madavoor Service Co-Operative Bank Ltd. & Others v. Bijula P. Nisha Nivas (W.A. No. 1073 of 2018 in WPC 16895/2018)

Case / Petition Number:WA.No. 1073 of 2018 in WPC 16895/2018

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.K. Abdul Rehim
  • Shircy V.
Judgment Date
2018-06-13
Court Decision / Holding
Division Bench held that there was a clear violation of natural justice in the manner Ext.P7 and Ext.P8 were handled. It agreed with the Single Judge that the process caused prejudice to the writ petitioner and directed the Joint Registrar to treat Ext.P8 as a show-cause notice, provide a detailed hearing, and decide the matter in accordance with law. Exts.P7 and P8 were kept in abeyance until the decision is rendered, and the Joint Registrar was directed to expedite the proceedings, with a determination within three months from receipt of a copy of the judgment.
Final Disposition
Writ Appeal disposed of with directions to the Joint Registrar to re‑examine the matter: treat Ext.P8 as a show‑cause, provide hearing, and decide in accordance with law within three months; keep Exts.P7 and P8 in abeyance pending decision.

Parties to the Case

Appellants / Petitioners

  • Madavoor Service Co-Operative Bank Ltd.
  • Board of Directors of Madavoor Service Co-Operative Bank Ltd
  • K. Abdul Azeez

Respondents

  • Bijula P Nisha Nivas
  • Joint Registrar of Co-operatives Societies (General) Kozhikode

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. S. Sreekumar (Sr.)
  • • Sri. P. Martin Jose
  • • Sri. R. Githesh
  • • Sri. P. Prijith
  • • Sri. Thomas P. Kuruvilla
  • • Sri. Ajay Ben Jose
  • • Sri. Manjunath Menon

Counsels for Respondents

  • • Sri. D. Somasundaram
  • • Smt. Deepa K.R

Case Synopsis & Summary

This writ appeal stems from a challenge to Ext.P8, an order of the Joint Registrar of Co-operative Societies declaring the writ petitioner’s appointment as a Junior Clerk with the Madavoor Service Co-Operative Bank as illegal for not being against a vacancy notified by the Co‑operative Examination Board, and Ext.P7, the subsequent termination of her service. The writ petitioner (respondent) contended that her appointment was made and continued for over a year without prior notice or hearing, and that Ext.P8 was issued without due process. The Single Judge found a clear violation of natural justice and held that Ext.P7 and Ext.P8 could not stand as issued, directing the Joint Registrar to treat Ext.P8 as a show-cause notice and to give the petitioner a hearing, with Exts.P7 and P8 kept in abeyance pending fresh action. The Appellants (Bank and its directors) challenged the order, arguing, among other things, that appointments beyond the advertised vacancies are void, citing Rakhi Ray and Mehta, and urging the court not to exercise discretionary review where natural justice might be violated unless prejudice is shown. The Division Bench affirmed the need for due process, agreed with the Single Judge on the prejudice and illegality, and directed the Joint Registrar to expeditiously re‑examine the matter, treat Ext.P8 as a show cause, grant a hearing, and decide within three months, with Exts.P7 and P8 kept in abeyance until a decision is reached.

Provisions of Law Cited

Article 14, Constitution of IndiaArticle 16(1), Constitution of IndiaArticle 226, Constitution of India

Legal Doctrines & Maxims

  • Principles of natural justice (a constitutional–administrative law doctrine)
  • Nullity of appointments made beyond vacancies advertised
  • Waiting list cannot be used to fill vacancies that arise after notification (Rakhi Ray)
  • Discretion under Article 226 in cases of natural justice—court may refrain from exercising jurisdiction if no prejudice is established (Mehta v. UOI)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants-bank argued that the petitioner’s appointment was illegal as it was not made against a vacancy notified by the Co‑operative Examination Board and relied on established jurisprudence that appointments beyond the announced vacancies are void, citing Rakhi Ray. They contended that the High Court should not lightly set aside Ext.P7 and Ext.P8 without due process and that the discretion under Article 226 must be exercised in limited, legally valid circumstances. They also urged timely disposal of the matter.

Contentions of Respondents

The writ petitioner contended that she was appointed and continued for over a year without notice or hearing, and that Ext.P8 was issued after an internal inquiry without giving her an opportunity to respond. She argued that the Joint Registrar failed to provide due process, resulting in prejudice. The respondent also asserted that natural justice cannot be violated with impunity and that the writ court properly protected her rights by directing fair procedure and a decision in accordance with law.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Rakhi Ray and others vs. High Court of Delhi and others2010(2) SCC 637Mentioned OnlyCited to support the proposition that appointment beyond advertised vacancies is void; not directly applied by the court in this case.
M.C. Mehta and others vs. Union of India and others1999(6) SCC 237PositiveUsed to discuss the discretionary power of the court under Article 226 in cases of natural justice violations, and to justify the court’s discretion due to prejudice in the instant case.

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Extracted Judgment Text

Exact text extracted from official judgment records.

**IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT:** **THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM &** **THE HONOURABLE MRS. JUSTICE SHIRCY V.** **WEDNESDAY, THE 13TH DAY OF JUNE 2018 / 23RD JYAISHTA, 1940** **WA.No. 1073 of 2018 IN WPC. 16895/2018** **AGAINST THE JUDGMENT IN WP(C) 16895/2018 of HIGH COURT OF KERALA DATED 24-05-2018** **APPELLANTS/RESPONDENTS 2 TO 4** **1 MADAVOOR SERVICE CO-OPERATIVE BANK LTD. NO. 1951 MADAVOOR P.O, KOZHIKODE - 673 585, REPRESENTED BY ITS SECRETARY.** **2 THE BOARD OF DIRECTORS OF THE MADAVOOR SERVICE CO-OPERATIVE BANK LTD NO. 1951, MADAVOOR P.O, KOZHIKODE - 673 585, REPRESENTED BY ITS PRESIDENT.** **3 K. ABDUL AZEEZ, PRESIDENT OF THE BOARD OF DIRECTORS OF THE MADAVOOR SERVICE CO-OPERATIVE BANK LTD NO.1951, MADAVOOR P.O, KOZHIKODE - 673 585.** **BY ADVS.SRI.S.SREEKUMAR (SR.) SRI.P.MARTIN JOSE SRI.R.GITHESH SRI.P.PRIJITH SRI.THOMAS P.KURUVILLA SRI.AJAY BEN JOSE SRI.MANJUNATH MENON** ## **RESPONDENTS/PETITIONER & 1ST RESPONDENT:** **1. BIJULA P NISHA NIVAS, KAKKUR P.O, KOZHIKODE, PIN - 673 613.** **2. THE JOINT REGISTRAR OF CO-OPERATIVES SOCIETIES(GENERAL) KOZHIKODE - 673 001.** **BY SRI.D.SOMASUNDARAM BY GOVERNMENT PLEADER SMT.DEEPA.K.R** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 13-06-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **WA.No. 1073 of 2018 IN WPC. 16895/2018** ## **APPENDIX** ## **PETITIONERS ANNEXURES** |**ANNEXURE A**|**COPY OF CONSOLIDATED RANK LIST PREPARED BY THE KERALA**| |---|---| ||**CO-OPERATIVE SERVICE EXAMINATION BOARD.**| |**ANNEXURE B**|**COPY OF RESOLUTION NO.5 DATED 8.9.2016 OF THE 2ND APPELLANT.**| |**ANNEXURE C**|**COPY OF APPOINTMENT ORDER OF SMT.PRINCY JOSE DATED 10.9.2016**| **RESPONDENTS ANNEXURES NIL TRUE COPY** **P.A TO JUDGE** **SMM** ## **C.K.ABDUL REHIM & SHIRCY V.,JJ.** ## **------------------------------------------------------** ## **W.A.No.1073 of 2018** **-----------------------------------------------------Dated this the 13[th] day of June, 2018** ## **JUDGMENT** ## **C.K.Abdul Rehim,J.** The 2[nd] respondent in W.P(C)No.16895/2018 is challenging the judgment of the learned Single Judge. Before the Single Bench the writ petitioner, 1[st] respondent herein, had challenged Ext.P8 order of the Joint Registrar of Co-operative Societies in which her appointment in the appellant Bank was declared as illegal, and also challenged Ext.P7 proceedings issued by the appellant Bank through which her service was terminated. 2. Brief facts are that, the “Co-operative Examination Board” had published Ext.P1 notification through which applications were invited for appointment of one Junior clerk in the appellant Bank. The candidate who secured 1[st] rank in the selection was appointed by the Bank on 2.6.2018. W.A.No.1073 of 2018 2 Subsequently, by virtue of Ext.P3 proceedings issued by the appellant Bank, the writ petitioner was also appointed, presumably in another vacancy which existed. The writ petitioner continued in the service of the appellant Bank from March 2017 onwards. On 5.5.2018 she was issued with Ext.P5 intimation that the appellant Bank had decided to cancel her appointment, as per a decision taken by the Board of Directors on 5.5.2018. She was requested to submit explanations if any, against implementation of the said decision, on or before 11.5.2018. From Ext.P6 it is clear that the writ petitioner had submitted a detailed explanation to the President of the appellant Bank. Meanwhile two persons have submitted a complaint before the Joint Registrar requesting to cancel the appointment of the writ petitioner. Evidently, the Joint Registrar had conducted an enquiry through the Assistant Registrar and issued Ext.P8 proceedings holding that the appointment of W.A.No.1073 of 2018 3 the writ petitioner by the appellant Bank was illegal as it is not against a vacancy notified by the “Co-operative Examination Board”. From Ext.P8 proceedings it is evident that the President of the Bank had participated in a hearing conducted by the Joint Registrar and expressed his willingness to cancel the appointment. In this context the Joint Registrar issued Ext.P8 directing the Bank to cancel the appointment. Subsequently, Ext.P7 proceedings was issued to the writ petitioner terminating her service with effect from 14.5.2018. Ext.P7 refers to another decision of the Director Board of the Bank dated 13.5.2018. The learned Single Judge, after hearing the petitioner and the Government Pleader who represented the Joint Registrar, found that, Ext.P8 was not preceded by any notice to the writ petitioner and that she was not heard before such an order was issued, which had the consequence of termination of her service. It was found that the petitioner's service W.A.No.1073 of 2018 4 could not have been dispensed with in the manner as has been done in Ext.P7 and P8. Therefore, the Joint Registrar was directed to take fresh steps by treating Ext.P8 as a show cause notice and the petitioner was permitted to submit detailed representation to the Joint Registrar. The Joint Registrar was directed to take a decision in accordance with law, with notice to the writ petitioner and to the appellant Bank. Till such time the decision is taken, it was directed to keep in abeyance Exts.P7 and P8 proceedings. 3. It is strange to notice that the present appeal was filed only by the Bank and not by the Joint Registrar or the State Government. In fact it is only the Bank who appointed the writ petitioner and allowed her to continue in service for a period of more than one year. Evidently the Bank had taken a decision of 5.5.2018 to cancel the appointment of the writ petitioner. It is not in dispute that, before taking any such decision the Bank had not afforded any W.A.No.1073 of 2018 5 opportunity to the writ petitioner in the matter of cancellation of her appointment. Subsequently, the President of the Bank had participated in the enquiry conducted by the Joint Registrar and expressed willingness to cancel the appointment. There also, the writ petitioner was not afforded with any opportunity to object the decision nor she was put to notice about any such proceedings initiated by the Joint Registrar or about the enquiry conducted. It is evident that pursuant to Ext.P8 the appellant Bank had again taken a decision on 13.5.2018 to terminate her service. No notice was seen issued even before taking such a decision. 4. Under the above mentioned circumstances, we are absolutely in agreement with the view taken by the learned Single Judge that there occurred clear violation of principles of natural justice and the impugned actions had resulted in causing severe prejudice to the writ petitioner. W.A.No.1073 of 2018 6 5. Learned Senior Counsel appearing for the appellant had drawn our attention to a decision of the Honourable Supreme Court in _**Rakhi Ray and others vs. High Court of Delhi and others (2010(2) SCC 637)**_ wherein it is held that, any appointment made beyond the number of vacancies advertised is without jurisdiction, being violative of Articles 14 and 16(1) of the Constitution of India and is a nullity which is inexecutable and unenforceable in law. It is held that the waiting list etc: cannot be used as a reservoir to fill up any vacancy which comes into existence after issuance of the notification/advertisement. The finding is that the unexhausted select list/waiting list become meaningless and cannot be pressed into service anymore. The contention in this regard is with respect to the merits concerning legality of the appointment. Evidently, the writ petitioner has got a case that her appointment is legal since it is made within the period of validity of the select list. W.A.No.1073 of 2018 7 However, it is a matter to be adjudicated based on the direction issued by the learned Judge, by the Joint Registrar. Definitely the appellant Bank as well as the writ petitioner will get chance to place their versions before the said authority. Since clear violation of principles of natural justice was found by the learned Judge, the direction issued in this regard cannot be found as illegal or erroneous. 6. The learned Senior Counsel for the appellant further submitted that it is not necessary for this court to exercise the discretionary jurisdiction in all the cases where principles of natural justice is violated, if it is convinced that the action through which the wrong was set at right, is purely legal and valid. In support of such a contention he placed reliance on a decision of the Honourable Supreme Court in **M.C.Mehta and others vs. Union of India and others (1999(6) SCC 237)** . The dictum contained is only that, the court exercising jurisdiction under Article 226 can W.A.No.1073 of 2018 8 refuse to exercise the discretion even in cases of clear violation of the principles of natural justice, on the facts or on the grounds that no defacto prejudice is established. But in the case at hand, as already observed, the impugned actions had resulted in causing clear prejudice to the writ petitioner and therefore, it was fully justified that the writ court had exercised its discretion in favour of her. 8. Learned counsel who entered appearance on behalf of the 1[st] respondent/writ petitioner had also alleged that, the change in the attitude of the appellant Bank is due to the reason that there occurred a change in the incumbent in the office of the President, in between. However, we are not expressing any opinion on such aspects, because it is for the Joint Registrar to analyse and evaluate all the disputed contentions and to take an appropriate decision. 9. Lastly, the learned Senior Counsel requested this court to put a time limit with respect to the decision to be W.A.No.1073 of 2018 9 taken by the Joint Registrar, in accordance with the directions contained in the impugned judgment. We are of the opinion that, the Joint Registrar will take necessary steps to expedite the matter and to take a decision as directed at the earliest, at any rate, within a period of three months from the date of receipt of a copy of this judgment. ## **Sd/-** ## **C.K.ABDUL REHIM** **JUDGE** **Sd/-** **SHIRCY.V JUDGE** smm