High Court of KeralaDivision BenchWrit appeals allowed; writ petitions dismissed;...

W.A. Nos. 2311 of 2018 & 2474 of 2018

Case / Petition Number:W.A.No. 2311 of 2018 & W.A.No. 2474 of 2018

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V. Chitambaresh
  • R. Narayana Pisharadi
Judgment Date
2019-01-22
Court Decision / Holding
The impugned judgment is set aside and the writ appeals filed by the Bank as well as a claimant to the post of Deputy General Manager in the Bank are allowed thereby dismissing the writ petition.
Final Disposition
Writ appeals allowed; writ petitions dismissed; no costs.

Parties to the Case

Appellants / Petitioners

  • Vasudevan Unni P.S., Deputy General Manager-in-Charge, Kollam District Co-operative Bank Ltd., Head Office, Kollam
  • The Kollam District Co-operative Bank Ltd., represented by its General Manager, Head Office, Kollam-691001

Respondents

  • T. L. Parthasarathi, Senior Manager/Recovery Superintendent, Kollam District Co-operative Bank Ltd., Head Office, Kollam 691001
  • The Kollam District Co-operative Bank Ltd., represented by its General Manager, Head Office, Chinnakkada, Kollam 691001
  • Kerala Public Service Commission, represented by its Secretary, PSC Office, Pattom, Thiruvananthapuram 695004

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. B.S. Swathy Kumar
  • • Sri. Anitha Ravindran
  • • Sri. Harisankar N. Unni
  • • Sri. P.C. Sasidharan (for Kollam DCB)

Counsels for Respondents

  • • Dr. K.P. SatheesAN (Sr.)
  • • Sri. P. Mohandas
  • • Sri. P.C. Sasidharan (SC for PSC)
  • • Sri. K. Sudhinkumar
  • • Sri. Muhammed Ibrahim Abdul Samad
  • • Sri. Mohandas (ERNAKULAM)
  • • Sri. Sabu Pullan
  • • Sri S.K. Adhithyan
  • • Sri S. Vibheeshanan

Case Synopsis & Summary

The present consolidated appeals challenge the appointment to the post of Deputy General Manager (DGM) of the Kollam District Co‑operative Bank Ltd. (the Bank). The PSC conducted direct recruitment in 2011, publishing a ranked list valid for 4½ years. The first respondent stood at Rank 3 but the list expired before the vacancy was reported to PSC in 2016, and no appointment could be made from that list. The Bank promoted the second vacancy and direct recruitment for the first and third vacancies, with the fourth vacancy expected to be filled by promotion. The Bank, relying on Rule 185(3) and Rule 187, argued that vacancy processing and open/direct quotas, with 50% quota reserved for member societies under Rule 80(3A) of the Act, should govern appointment. The single Judge had directed out‑of‑turn appointment of the first respondent, which the Bank and the claimant to the post challenged. The Division Bench, citing Vimala Kumari v. State (Full Bench) and the reservation principles under the Rules, held that the first respondent’s appointment out of turn was not permissible and that vacancies must be filled per the established rules and quotas, with the 4th vacancy by promotion and the turn in open recruitment at the 17th position. The appeals are allowed and the writ petition(s) dismissed.

Provisions of Law Cited

Rule 185(3) of the Kerala Co-operative Societies Rules, 1969Rule 187 of the Kerala Co-operative Societies Rules, 1969Section 80(3A) of the Kerala Co-operative Societies Act, 1969Rules 14 to 17 of the Kerala State and Subordinate Service Rules, 1958

Legal Doctrines & Maxims

  • Out-of-turn appointment doctrine
  • Reservation principles for direct recruitment under 80(3A) of the Co-operative Societies Act
  • Allocation of vacancies between open quota and member societies quota (alternation)
  • 50% reservation for member societies (Rule 187)
  • Full Bench Vimala Kumari v. State (1994) 2 KLT 47 (cited as binding on proper interpretation of recruitment rules)

Submissions & Arguments

Contentions of Appellants / Petitioners

The applicants contend that vacancy fill‑ups must strictly follow the rules: 1) direct recruitment and equal promotion quotas between direct recruitment and promotions; 2) 50% of vacancies reserved to member societies; 3) open quota vacancies must be reported timely to PSC; and 4) turn of direct recruitment should be observed, with out‑of‑turn appointments not permissible, especially when vacancies were reported late. They rely on Rule 185(3), Rule 187, and Section 80(3A) of the Act, as well as the reservation framework under Rules 14–17 of the 1958 Rules, and Vimala Kumari to argue the need for orderly, rule‑based appointment and non‑preference to belated claims.

Contentions of Respondents

Respondents maintain that vacancies must be filled according to the statutory framework: open quota vs member societies quota with alternation, reporting of vacancies to PSC, and adherence to the ratio of direct recruitment to promotions (1:1). They argue that the single Judge erred in directing out‑of‑turn appointment and that proper prescription of all quotas, including 50% reserved for member societies, should apply, with the PSC advised to give directions where vacancies are reported on time.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Vimala Kumari v. State1994(2) KLT 47PositiveFull Bench decision relied upon to emphasize proper application of recruitment/reservation rules; used to counter the single Judge’s out‑of‑turn appointment direction.

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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 V.CHITAMBARESH** **&** **THE HONOURABLE MR.JUSTICE R. NARAYANA PISHARADI** **TUESDAY, THE 22ND DAY OF JANUARY 2019/2ND MAGHA, 1940** **W.A.No. 2311 OF 2018** **AGAINST THE JUDGMENT DATED 15.11.2018 IN W.P(C).NO.3379/2017 OF THE HIGH COURT OF KERALA** ## **APPELLANT/3RD PARTY:** **VASUDEVAN UNNI P.S., DEPUTY GENERAL MANAGER-IN-CHARGE, KOLLAM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, KOLLAM.** **BY ADVS. SRI.B.S.SWATHY KUMAR SMT.ANITHA RAVINDRAN SRI.HARISANKAR N. UNNI** ## **RESPONDENTS/PETITIONER & RESPONDENTS:** > 1 **T.L.PARTHASARATHI, SENIOR MANAGER/RECOVERY SUPERINTENDENT, KOLLAM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, KOLLAM 691 001.** 2 **THE KOLLAM DISTRICT CO-OPERATIVE BANK LTD., REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, P.B.NO.130, CHINNAKKADA, KOLLAM 691 001.** 3 **KERALA PUBLIC SERVICE COMMISSION, REPRESENTED BY ITS SECRETARY, P.S.C.OFFICE, PATTOM, THIRUVANANTHAPURAM 695 004.** **R1 BY DR. K.P.SATHEESAN(SR) ADV.SRI.P.MOHANDAS R3 BY SRI.P.C.SASIDHARAN, SC FOR PSC.** **THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 21.01.2019, ALONG WITH W.A.NO.2474/2018, THE COURT ON 22.01.2019 DELIVERED THE FOLLOWING:** WANos.2311 & 2474 of 2018 -: 2 :- # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** **&** **THE HONOURABLE MR.JUSTICE R. NARAYANA PISHARADI** **TUESDAY, THE 22ND DAY OF JANUARY 2019/2ND MAGHA, 1940** **W.A.No. 2474 of 2018** **AGAINST THE JUDGMENT DATED 15.11.2018 IN W.P(C).NO.3379/2017 OF THE HIGH COURT OF KERALA** ## **APPELLANT/1ST RESPONDENT:** **THE KOLLAM DISTRICT CO-OPERATIVE BANK LIMITED, REPRESENTED BY ITS GENERAL MANGER, HEAD OFFICE, P.B.NO.130, CHINNAKADA, KOLLAM-691 001.** **BY ADV. SRI.P.C.SASIDHARAN** ## **RESPONDENTS/PETITIONER & 2ND RESPONDENT:** **1 T.L.PARTHASARATHI, SENIOR MANAGER/RECOVERY SUPERINTENDENT, KOLLAM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, KOLLAM-691 001. 2 KERALA PUBLIC SERVICE COMMISSION, REPRESENTED BY ITS SECRETARY, P.S.C.OFFICE, PATTOM, THIRUVANANTHAPURAM-695004. R1 BY ADVS. DR.K.P.SATHEESAN (SR.) SRI.K.SUDHINKUMAR SRI.MUHAMMED IBRAHIM ABDUL SAMAD SRI.P.MOHANDAS (ERNAKULAM) SRI.SABU PULLAN SRI.S.K.ADHITHYAN SRI.S.VIBHEESHANAN** **THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 21.01.2019, ALONG WITH W.A.NO.2311/2018, THE COURT ON 22.01.2019 DELIVERED THE FOLLOWING:** WANos.2311 & 2474 of 2018 -: 3 :- ## Judgment ## Chitambaresh, J. 1.The first respondent who is working as a senior manager in the Kollam District Co-operative Bank Ltd. ('the Bank' for short) stakes claim for appointment to the post of Deputy General Manager. Substantive vacancies to the post have to be filled up by promotion and direct recruitment in the ratio of 1:1 as per Rule 185(3) of the Kerala Co-operative Societies Rules, 1969 ('the Rules' for short). The direct recruitment was entrusted to the Kerala Public Service Commission ('PSC' for short) who published ranked lists dated 28.9.2011. The first respondent figured as Rank No.3 in a ranked list which had validity only for a period of 4½ years from the date of its publication and it obviously expired on 27.9.2016. But the vacancy was reported by the Bank to the PSC only on 20.10.2016 after the expiry of the ranked list and no WANos.2311 & 2474 of 2018 -: 4 :- appointment could be made therefrom as has been held time and again. The law in this regard has been laid down by a Full Bench of this Court in Vimala Kumari v. State [1994(2) KLT 47] which has escaped the notice of the learned single Judge. 2.It appears that the first and third vacancies in the post of Deputy General Manager were filled up by direct recruitment and the second vacancy by promotion in accordance with Rule 187 of the Rules. The employee promoted to the second vacancy retired on superannuation and the resultant vacancy was filled up by promotion instead of direct recruitment which was challenged. The challenge by the first respondent in WP(C).No.36352/2015 was successful to the extent that the Bank was directed to report the vacancy to the PSC within a period of two weeks. But the judgment was impugned by the Bank in W.A.No.1295/2016 which was however dismissed six months after the expiry of the ranked WANos.2311 & 2474 of 2018 -: 5 :- list for direct recruitment. Even otherwise the fourth vacancy to which the claim is laid has to be filled up by promotion and not by the open merit category in which only the first respondent can be accommodated. 3.It may at once be noticed that the bank is a Central Society and hence 50% of the vacancies should be reserved to the employees of the member societies having the required qualification under Rule 187 of the Rules. Every succeeding vacancy after the promotion post has to be alternated between the direct recruitment from the open quota and the member societies quota. Separate ranked lists are being maintained for the alternate direct recruitment for two streams in addition to the stream for promotion as envisaged in Rule 185(3) of the Rules. The turn of the first respondent who is rank No.3 in the ranked list for open quota would come only in the 17[th] position on a proper WANos.2311 & 2474 of 2018 -: 6 :- application of the Rules aforesaid. 4.Section 80(3A) of the Kerala Co-operative Societies Act,1969 ('the Act' for short) mandates that the reservation principles under Rules 14 to 17 of the Kerala State and Subordinate Service Rules,1958 shall be followed. The reservation principles have to be applied for direct recruitment in the open quota and this is how the turn of the first respondent comes in the 17[th] position. The mere fact that the Bank was at fault in not reporting the vacancy in time does not entail in the first respondent getting appointment to the post of Deputy General Manager out of turn. The turn of the first respondent would not come for direct recruitment even if the vacancy had been reported by the Bank to the PSC in time which has also escaped notice. The learned single Judge erred in directing the appointment of the first respondent to the post of Deputy General Manager dehors the Rules without WANos.2311 & 2474 of 2018 -: 7 :- waiting for advice from PSC. The impugned judgment is set aside and the writ appeals filed by the bank as well as a claimant to the post of Deputy General Manager in the bank are allowed thereby dismissing the writ petition. No costs. Sd/V. CHITAMBARESH, JUDGE Sd/R. NARAYANA PISHARADI, JUDGE Sha/210119 WANos.2311 & 2474 of 2018 -: 8 :- ## **APPENDIX** ## **RESPONDENTS' ANNEXURES:** |**ANNEXURE-R1(A)**|**TRUE COPY OF THE LIST PREPARED BY THE FIRST RESPONDENT.**| |---|---| |**ANNEXURE-R1(B)**|**TRUE COPY OF THE ORDER G.O.(MS)NO.47/2014/PLG DATED**| ||**24.10.2014.**| |**ANNEXURE-R1(C)**|**TRUE COPY OF THE ORDER G.O.(RT)NO.13/15/PLG DATED**| ||**26.2.2015.**| |**ANNEXURE-R1(D)**|**TRUE COPY OF THE LETTER NO.DR III(1)374/11/GW/DY-4/PLG**| ||**DATED 1.9.2015 ISSUED BY P.S.C.**|