Chairman Administrative Committee U.P. Milk Union & Dairy Federation Centralized Services v. Jagpal Singh
HEMANT GUPTA, J.
1. The challenge in the present appeal is to an order passed by the
Division Bench of the High Court of Judicature at Allahabad, Lucknow
735
Bench dated 26.8.2019, affirming the order passed by the learned Single
Bench on 17.5.2019.
2. The writ petition filed before the High Court was to assail an
order of punishment dated 26.10.2018, whereby the respondent 1 was
ordered to be reverted to the minimum pay scale and the peri od of
suspension was to be considered as a period spent by the employee in
service. However, for the said suspension period, the employee was not
found to be entitled to any other pay or allowance except sub sistence
allowance and dearness allowance. The order of punishment was passed
after the prior approval of the Commissioner (Dairy Mil k), Lucknow,
designated as Registrar by the State Government on the sa me day.
3. The employee was appointed as Executive Trainee in the
Centralised Services on 11.8.1984. After completion of the training period,
he was appointed as Manager Grade-III. The employee was served
with a charge sheet dated 21.4.2015, inter-alia, on the ground that in
addition to two chambers of milk in tankers, one more additional third
hidden chamber having capacity of 310 liters was created by partition.
Water was filled in the said additional chamber to maintain total weight
of the vehicle. After weight measurement at the time of unloading of
milk from the two chambers, water from the additional hidden chamber
was discharged. On account of manipulation in the weight measurement,
the Federation suffered financial losses. The employee controverted the
said allegations and thus an Inquiry Officer was appointed. In the Inquiry
Report dated 13.6.2018, charges nos. 1 and 3 were found to be partially
proved against the employee. The Inquiry Report was then forwarded
to the employee along with a show cause notice on 25.6 .2018. An
opportunity of personal hearing was also afforded to him. It is thereafter
that the Managing Director/ Chairman (Administrative Com mittee)
passed an order on 26.10.2018 holding the employee guilty of all the
three charges and passed an order of punishment, as mentioned above,
after obtaining approval from the Commissioner (Dairy Milk)/ Registrar,
Dairy Milk Co-operatives, U.P. on 26.10.2018. It is the said order which
was challenged by the employee by way of a writ petition bef ore the
High Court.
4. The learned Single Bench while deciding the Writ Petition held
that the order of punishment was passed without following the due
1 hereinafter referred to as ‘employee’
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
procedure of law, four days prior to the retirement of the e mployee.
There was an undue and unexplained haste in passing the imp ugned
order without taking prior approval under Regulation 87 of the Service
Regulations from the competent authority i.e., the Uttar Prades h Co-
operative Institutional Service Board. It was further held that the
punishment order has been passed by the Chairman of the Administrative
Committee and the approval for the punishment has also been granted
by the same person. Therefore, the present case was found to b e an
example of inappropriate approval given by an incompetent authority.
5. In the intra-court appeal, the Division Bench of the High Court
referred to the inquiry reports dated 9.5.2014 and 15.10.2014 to hold
that the employee has not been given any disagreement note, rather he
was exonerated in those reports. However, it is to be noted that the
Division Bench overlooked the fact that they were preliminary inquiries.
The Division Bench considering the Regulations 87 and 106 of the Service
Regulations held as under:
“15. On due consideration of the aforesaid, it is clear that ba sic
requirement is that the order should not be inconsistent to the
Regulations of 1975 and the order dated 08.08.2016 is in direct
conflict to the provisions as contained under Regulation 87 of the
Regulations of 1975. The respondent-petitioner was a member of
Centralized Services, which were promulgated by the U.P. Dairy
Federation & Milk Union Centralized Services Rules, 1984, which
came into existence after a period of more than five years and,
therefore, the notification dated 17.11.1979 cannot be applicable
to the members of Centralized Services and, as such, the analogy
given by the Milk Commissioner/Registrar while passing the order
dated 08.08.2016 is incorrect.”
6. Before we consider the respective arguments and the findings
of the High Court, some of the statutory provisions are reprod uced
hereunder for appreciation of the contentions raised:
“UTTAR PRADESH CO-OPERATIVE SOCIEITES ACT, 19652
121. Power of Registrar to determine terms of employment
of society. - (1) The Registrar may, from time to time, frame
regulation to regulate the emoluments and other conditions of
service including the disciplinary control of employees in a co-
2 for short, the ‘Act’
737
operative society or a class of co-operative societies a nd any
society to which such terms are applicable, shall comply with those
regulations and with any orders of the Registrar, issued to secure
such compliance.
(2) The regulations framed under sub-section (1) shall be published
in the Gazette and take effect from the date of such publication.
122 . Authority to control employees of co-operative
societies. - (1) The State Government may constitute any
authority or authorities, in such manner as may be prescribed, for
the recruitment, training and disciplinary control of the employees
of co-operative societies, or a class of co-operative societies, and
may require such authority or authorities to frame regulati ons
regarding recruitment, emoluments, terms and conditions of service
including disciplinary control of such employees and subject to
the provisions contained in Section 70, settlement of disput es
between an employee of a co-operative society and the society .
(2) The regulations framed under sub-section (1) shall be subject
to the approval of the State Government and shall after suc h
approval, be published in the Gazette, and take effect from t he
date of such publication and shall supersede any regulations made
under Section 121.
3122-A. Centralisation of certain services .- (1)
Notwithstanding anything contained in this Act, the State
Government may by rules provide for the creation of one there
services of such employees of such co-operative societies or class
of co-operative societies as the Stale Government may think fit ,
common to such co-operative societies and prescribe the method
of recruitment, appointment, removal and other conditions of
service of persons appointed to any such service.
(2) When any such service is created, all employees of su ch
societies existing on the dale of creation of such servi ce on the
posts included in such service, shall be deemed to have been
provisionally absorbed in the service. with effect from the date of
creation of such service:
Provided that any such employee may, by notice in writing to the
prescribed authority within the prescribed period, intimate his option
3 subs.by U.P. Act 17 of 1977 (w.e.f.3-10-1975)
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
of not becoming a member of such service, and in that event his
services in the society shall stand determined with effect from
the date of such notice and he shall be entitled to compensation
from the society which shall be-
xx xx xx
Section 130. Power to make rules. —
(1) the State Government may, make rules to carry out the purposes
of this Act.
(2) xx xx xx
THE UTTAR PRADESH CO-OPERATIVE SOCIETIES
RULES, 1968 4
2. Definitions- In these rules, unless the context otherwise requires
——
(a) *** ***
(b) “Apex Society”, “Apex Level Society” or “State Level C o-
operative Society” means-
(1) to (3) *** ***
(4) Pradeshik Co-operative Dairy Federation Ltd.,
Lucknow;
xx xx xx
*[389-A. The authority or authorities under Section 122 may be
constituted by the State Government by notification published in
the Official Gazette]
* substituted by Notification No. 3885-C/XII-CA-5(1)-69-B, dt.
Aug. 31, 1971, published in the U.P. Gaz., Extra., dt. 31 st Aug.,
1971, p.2.”
7. In terms of Section 122 of the Act and Rule 389-A of the 1968
Rules, a notification was issued on 4.3.1972 constituting Uttar Pradesh
Co-operative Institutional Service Board for the purposes of recruitment,
training and disciplinary control of the employees of apex level, central
4 for short, ‘1968 Rules’
739
or primary societies. Later, the Uttar Pradesh Co-operat ive Societies
Employees Service Regulations, 1975 5 were published in the U.P.
Gazette, Extraordinary on 6.1.1976 in exercise of the powers conferred
under Section 121 of the Act. Some of the relevant provisions read thus:
“2(iii) ‘appointing authority’ means “Committee of Management”
or any other authority which is empowered under these regulations
or the bye-laws of the society concerned to make appointment;
(iv) ‘Board’ means the U.P. Co-operative Institutional Ser vice
Board;
(v) to (viii) *** ***
(ix) ‘Co-operative Society’ means a Co-operative Society placed
under the purview of the Board by Government Notification No.
366-C/XII-C-3-36-71, dated March 4, 1972, as amended from
time to time by notifications issued under Section 122 of the Act
read with Rule 389(a) of the Rules.
xx xx xx
87. Order imposing penalty under sub-clauses (e) to (g) of clause
(1) of Regulation No. 84 shall not be passed except with the prior
concurrence of the Board.”
8. Regulation 84 of the Service Regulations provides for penalties
such as reduction in rank or grades held substantively by the employee
(clause e), removal from service (Clause f), or dismissal f rom service
(Clause g). As per Regulation 87 of the Service Regulations, the aforesaid
punishment could not be passed except with the prior concurrence of
the Board.
9. It may be stated that all the powers of Registrar i n respect of
all Co-operative Milk Societies were conferred on the Milk Commissioner
Uttar Pradesh by the State Government vide notification dated 19th May,
1976 in exercise of powers conferred under sub-section 2 of Section 3
of the Act.
10. The Uttar Pradesh Co-operative Institutional Service Board
ceased to have jurisdiction to operate regarding recruitment, t raining
and disciplinary control of the employees of the Apex Level Milk Society
i.e. Pradeshik Co-operative Dairy Federation, Central or Primary Milk
5 for short, the ‘Service Regulations’
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
Societies vide notification dated 17.11.1979 issued under Section 122
read with Rule 389-A of the 1968 Rules. Instead, a Selection Committee
for recruitment of Category I and II employees, as spec ified by the
Registrar from time to time, was constituted. Such Selection Committee
consisted of an officer nominated by the State Government as Chairman;
a representative of the National Milk Dairy Development Board, Principal
Agricultural Institute, Naini, Allahabad and one Chairman of a Co-
operative Milk Union or Central Milk Society in the State nominated by
the State Government as Members; and Managing Director, Pradeshik
Co-operative Dairy Federation as Member Secretary.
11. The Uttar Pradesh Co-operative Dairy Federation and M ilk
Union Centralised Service Rules, 19846 came to be published in the U.P.
Government Gazette on 29.8.1984. As per the said Ru les, the
Administrative Committee was to consist of a Managing Director of the
Federation, a nominee of the Registrar not below the rank of Class I
Officer, a nominee of the Managing Director of the Federa tion and a
Member Secretary. Some of the relevant provisions of the Dairy Service
Rules read as under:
“2(a) “Act” means the Uttar Pradesh Co-operative Societies Act,
1965.
(b) “Authority” means the Cadre Authority as constitu ted in
accordance with rule 4 of these rules;
(c) “Board” means the Committee of Management of th e
Pradeshik Co-operative Dairy Federation Ltd., Lucknow (and
includes the Administrator or the Committee of Administrators of
the Federation);
(d) “Committee” means the Administrative Committee constituted
in accordance with rule 5 of these rules;
(e) “Federation” means the Pradeshik Co-operative D airy
Federation Ltd., Lucknow;
(f) to (l) *** ***
3. Creation of Service. – (1) Uttar Pradesh Co-operative Dairy
Federation and Milk Unions Centralised Service shall consist of
all the managerial posts of the Federation and the Unions except
6 for short, the ‘Dairy Service Rules’
741
the post of Managing Director, Chief Commercial Manager and
Chief General Manager of the Federation.
(2) No appointment shall be made to any of the posts falling within
the purview of the service by the Federation or Union from the
date of enforcement of these rules:
Provided that the Government may place on deputation any
officer of the Government on any managerial post of the federation
or Union:
Provided further that the services of the persons already in
the employment of another, Co-operative Society, or a corporation
or undertaking owned or controlled by the central o r State
Government or a body corporate administering a local fund or
National Dairy Development Board may also be taken on
deputation.
4.Constitution of Cadre Authority. - The Cadre Authority shall
be constituted as under:
(i) The Registrar …Chairman
(ii) to (viii) *** ***
(ix) Managing Director of the Federation …Member-Secretary
Note. - In case the post of the Registrar and the Managing
Director of the Federation is held by the same officer, the Chairman
may nominate any member as Member-Secretary and the vacancy
of member so caused shall be filled by nomination of any other
officer or the Federation by the Managing Director.
5. Constitution of Administrative Committee. – The
Administrative Committee shall be constituted as under:
(i) Managing Director of the Federation - Chairman
(ii) A nominee of the Registrar not below the rank of C lass I
Officer – Member
(iii) A nominee of the Managing Director of the Federation –
Member-Secretary.
xx xx xx
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
9. Powers and duties of the Authority. - (1) The Authority
with the prior approval of the State government shall frame
regulations relating to recruitment, training, emoluments, disciplinary
control and other conditions of service of the members s uch
regulations shall come into force from the date of their publication
in the Gazette.
(2) The Authority shall—
(i) determine and modify, from time to time, the scales of pay for
different category of posts, with the approval of the Registrar;
(ii) settle the dispute and allocate the cost of training, travelli ng
allowance, salary and other allowances for the period of training
and the cost of recruitment under sub-rule (6) of rule 22;
(iii) advise the Government and the Registrar on matters relating
to the Service;
(iv) decide such policy matters concerning the Service as may be
referred to it by the Committee;
(v) exercise such other powers and perform such other duties
under these rules, or regulations as may be entrusted to it by the
Government or the Registrar from time to time.
10. Powers and duties of the Committee. - The Committee
shall—
(i) exercise overall control and supervision over the members of
the Service;
(ii) to (vii) *** ***
xx xx xx
15. Appointing Authority. - Appointing authority of and the
authority exercising disciplinary control over, the members of the
service and the Management Trainees and the Executives shall
be such as may be laid down in the regulations:
Provided that till enforcement of such regulations the
Chairman of the Committee shall be the appointing authority and
the authority exercising disciplinary control over them.”
12. Later, Regulation 106 was inserted in the Service Regulations
vide Notification No. 2295 dated 9.12.2002. The provision reads as under:
743
“1. Short title, commencement and application - (1) These
regulations may be called the Uttar Pradesh Co-operative Societies
Employees’ Service (Tenth Amendment) Regulations, 2002.
(2) They shall take effect from the date of their publication in the
U.P. Gazette.
(3) They shall apply to all the Employees of Co-operative Societies
in Uttar Pradesh.
2. Insertion of new Regulation. – In the Uttar Prad esh Co-
operative Societies Employees’ Service Regulations, 1975 after
Regulation 105 the following regulation shall be inserted, namely:-
“106. The State Government or the Registrar may pass such
orders not inconsistent with these Regulations as it or he deems
necessary just and proper to remove any difficulty arising in
relation to emoluments, terms and conditions of ser vice,
appointment or re-appointment, termination, dismissal or
removal, deputation or merger.”
13. The Cadre Authority was required to frame regulations in
terms of Rule 9 of the Dairy Service Rules with the prior approval of the
State Government relating to recruitment, training, emoluments,
disciplinary control and other conditions of service of the members;
whereas, the Administrative Committee under Rule 10 was to exercise
overall control and supervision over the members of the s ervice. Rule
15 of the Dairy Service Rules contemplated that the Appointing Authority
and the authority exercising disciplinary control over the members of the
service shall be such as may be laid down in the regulations. However,
the proviso contemplated that till the enforcement of such regulations,
the Chairman of the Administrative Committee shall be the Appointing
Authority and would act as the authority exercising disciplinary control
as well.
14. The Administrative Committee in exercise of the powe rs
conferred under Rule 10 read with proviso to Rule 15 passed an office
order on 8.8.2016 that prior to imposing of penalty, the approval of Dairy
Milk Commissioner/Registrar would be mandatory. The relevant extract
from the said Circular reads as under:
“… Therefore, in the matter of employees of Centralised Service
Cadre, until the provisions of Uttar Pradesh Cooperative Society
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
Employees Service Rules, 1975 are applicable, till then prior to
imposing of penalty the approval of Dairy Milk Commissioner/
Registrar is mandatory.
Therefore, the Chairman, Administrative Committee, Uttar
Pradesh Cooperative Dairy Federation and Dairy Milk Federation
Centralised Service Cadre, PCDF Hqrs., Lucknow is hereb y
directed that prior to imposing penalty against the members of
aforesaid cadre the prior approval of Dairy Milk Commissioner/
Registrar under the provisions of Regulation 87 of Uttar Pradesh
Cooperative Society Employees Service Rules, 1975 may b e
obtained necessarily.”
15. It is in terms of the said Circular that the order of punishment
was passed against the employee after approval from the Commissioner
(Dairy Milk), discharging functions as the Registrar.
16. The High Court relied upon a judgment of Division Bench of
the High Court in Chandra Pal Singh v. State of U.P . & Ors.7 wherein
it was held that prior approval of the Board was not obtained as is required
under Regulation 87 of the Service Regulations. It was noted that though
in terms of notification dated 17.11.1979 Service Regulations ceased to
apply, but provisions as were existing before the provisions of Service
Regulations, would be applicable to the employees of the Centr alised
Services in terms of the resolution dated 20.9.1984. It was also held that
the notification dated 17.11.1979 was not mentioned in the resolution
dated 20.9.1984. Thus, it was concluded that the order of punishment
without approval of the Board was not legal in terms of Regulation 87 of
the Service Regulations. Hence, the order of punishment was quashed.
The relevant extract from Chandra Pal Singh reads as under:
“Considered the submissions of learned counsel for the partie s
and perused the record. As far as the approval part is concerned,
admittedly, no approval/concurrence was obtained by the Board
before passing the order of dismissal from service. In view of the
provision of Regulation 87 of U.P. Cooperative Soci eties
Employees Service Regulation 1975, concurrence of the Board is
required before passing the order of dismissal. According to
notification dated 17.11.1979, Pradeshik Cooperative Dairy
Federation Ltd. including the Primary Milk Cooperative Society
7 Writ-A No. 45263 of 2011 passed on 9.1.2018
745
were put out of purview of U.P. Cooperative Societies Employees
Service Regulation 1975 with respect to the recruitment, training
and disciplinary control and by the same notification, select ion
committee was constituted for category 1 and 2 employees of
cooperative dairy federation. Hence, in case of the Centra lised
Services, the provision of Regulation 87 ceased to apply and
whatever provision was applicable before the provis ion of
Regulation 1975 was adopted, which will be applicable to the
employees of Centralised Services. When the provision was
adopted by the resolution of the Board dated 20.9.1984 , the
notification of 1979 was not mentioned in the same and t he
resolution regarding adoption of the provisions of Prad eshik
Cooperative Society Employees Service Regulation 1979 we re
adopted till regulation for the Centralised Services was framed.
Subsequently, it was clarified and approved vide ord er dated
31.1.2000 by the Dairy Commissioner/Registrar and the resolution
dated 20.9.1984 was approved. Hence, till regulations are framed,
the provisions of U.P. Cooperative Societies Employees Service
Regulations 1975 are applicable.”
17. We find that the High Court in the impugned judgment and in
Chandra Pal Singh proceeded on wrong assumptions of facts and law.
Factually, in the present appeal, the disciplinary proceedings against the
employee were initiated on 21.4.2015. The Inquiry Report was submitted
on 13.6.2018 wherein the charges nos. 1 and 3 were found to be proved.
Thus, there was no question of recording of any disagreement with the
findings recorded by the Inquiry Officer. A show cause not ice was
subsequently served upon the employee enclosing a copy of the Inquiry
Report on 25.6.2018. The employee was given an opportunity for personal
hearing as well. Thereafter, an order of punishment was pas sed after
obtaining approval from the Commissioner (Dairy Milk).
18. Section 122 of the Act and Rule 389-A of the 1968 Rules
empower the State Government to constitute an authority for recruitment,
training and disciplinary control of the employees of Co -operative
Societies. By virtue of notification dated 4.3.1972, Uttar Pradesh Co-
operative Institutional Service Board was constituted for the purpose of
recruiting, training and exercising disciplinary control of the employees
of Apex Level Societies, Central or Primary Societies. Later, Regulation
87 of the Service Regulations mandated that no order of punishment
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
could be passed without prior concurrence of the Board. However, by
notification dated 17.11.1979 issued again in terms of t he powers
conferred on the State Government under Section 122 of the Act a nd
Rule 389-A of the 1968 Rules, the Apex Level Society i.e. Prade shik
Co-operative Dairy Federation, Central or Primary Milk Societies, whose
area of operation extends to more than one district or State and Co-
operative Milk Unions, including Kanpur Co-operative Milk Board, were
taken out of the control of Uttar Pradesh Co-operative Ins titutional
Service Board. A Selection Committee was constituted in re spect of
Category I and II employees. Thereafter, it was the Selection Committee
who was empowered for the purpose of recruitment, tr aining and
disciplinary control of the employees of Dairy Co-operati ve Societies
until the Dairy Service Rules came into force upon publi cation of the
Gazette on 29.8.1984 and not the Service Regulations since it ceased to
apply vide notification 17.11.1979 issued by the State. The Resolution
dated 20.09.1984 by the Cadre Authority which provided that the service
conditions of the members of the Centralised Service shall be governed
by the 1975 Regulations will not revive the applicability of Regulation 87
of the Service Regulations as Rule 15 of the Dairy Ser vice Rules
contemplate the Appointing and Disciplinary Authority.
19. The Administrative Committee exercises overall control and
supervision over the members of the Service in terms of Rule 10(i) of
the Dairy Service Rules. Such Administrative Committee constituted
under Rule 5 of the Dairy Service Rules is the Appointing Authority till
the time Regulations are framed in terms of Rule 15 of the said Rules.
Therefore, the Resolution dated 20.9.1984 will not d etermine the
Appointing or Disciplinary Authority, the same being covered the Statutory
Rule namely the Dairy Service Rules.
20. The Dairy Service Rules have been framed in exercise of the
jurisdiction conferred under Section 122A of the Act. The Regulations
can be framed by the Registrar or the State either under Section 121 or
122 of the Act or in terms of Rule 9 of the Dairy Service Rules. Such
Rules would have precedence over the Regulations, which are framed
or are required to be framed either by the Registrar or by the Authority
entrusted with the task of recruitment, training and disciplinary control.
Therefore, in terms of proviso to Rule 15, the Chair man of the
Administrative Committee is the Appointing and Disciplinary Authority.
Hence, the Service Regulations would be inapplicable to determine the
747
Appointing Authority and/or the Disciplinary Authority in respect of the
employees of Co-operative Milk Societies.
21. The attention of the Division Bench in Chandra Pal Singh
was not drawn to Rule 15 of the Dairy Service Rules. The proviso to the
said Rule empowered the Administrative Committee constituted under
Rule 5 as an Appointing Authority and the authority to exercise disciplinary
control over the employees of the centralised services till the time
regulations are framed. The resolution dated 20.9.1984 would thus be
applicable in respect of other service conditions. However, with regard
to disciplinary control, it would be the Dairy Service Rules which would
be applicable.
22. Regulation 106 of the Service Regulations empowers the State
Government or the Registrar to pass such orders not inconsisten t with
the Regulations in respect of termination, dismissal or removal. The
punishment imposed is of reversion and not of either termination, dismissal
or removal. Therefore, Regulation 106 will not be applicable. There is
also no inconsistency or difficulty which the State Gove rnment or
Registrar is empowered to remove in exercise of powers conferred under
Regulation 106.
23. In Chandra Pal Singh, the finding of the Division Bench that
the 1979 notification is not mentioned in the resolution of th e Cadre
Authority passed on 20.9.1984 is untenable in view of statutory rules
contemplating the Appointing Authority. Therefore, the order of
punishment passed by the Chairman of the Administrative Committee in
terms of proviso to Rule 15 is by the competent Disciplinary Authority.
24. The Administrative Committee however passed an office order
on 8.8.2016 that the Chairman shall seek prior approval of Dairy Milk
Commissioner/Registrar prior to imposing penalty. Such decision of the
Administrative Committee is self-regulatory and has been applied by the
Administrative Committee in the present case as well while seeking
prior approval of the Milk Commissioner/Registrar.
25. As mentioned before, the 1975 Regulations were framed in
exercise of power conferred under Section 122 of the 1965 Act. Till the
time 1975 Regulations were framed, the entire statutory regime, in terms
of which service conditions including disciplinary control of employees
in a co-operative society or class of co-operative socie ties could be
regulated, was in terms of Sections 121 and 122 of th e 1965 Act.
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
Regulation 87 of 1975 Regulations, therefore, has to be seen as part of
such general statutory regime.
26. On 16.04.1976, Section 122-A was inserted in the 1965 Act
which now provided for centralization of services. This Section opens
with a non-obstante clause and thus, the intent is to give an overriding
effect over the general regime contemplated by Sections 121 and 122 of
the 1965 Act. Section 122-A of the 1965 Act empowers the Government,
by rules, to provide for creation of one or more services of employees of
such co-operative society or class of co-operative soci eties as the
Government may think fit and prescribe inter alia conditions of service
including appointment and removal of persons appointed to such service.
27. It was in exercise of power conferred under Section 122-A of
the 1965 Act that 1984 Rules were framed. Rule 15 of the 1984 Rules
stipulates that the appointing authority and the authority e xercising
disciplinary control over the members of the service shall be such as
may be laid down in the Regulations and till such Regulations are brought
in force, ‘ the Chairman of the Committee shall be the appointi ng
authority and the authority exercising disciplinary control over
them’.
28. In terms of the specific statutory regime referable to Section
122-A of the 1965 Act, Rule 15 thus, would be the governing principle
rather than Regulation 87 framed in exercise of regulation making power
referable to the general dispensation under Sections 121 and 122 of the
1965 Act. Rule 15 does not contemplate that the Chair man of the
Committee is required to have any prior concurrence of any authority.
29. It would, therefore, be incorrect to rely upon or impor t the
principles of Rule 87 in substitution of clear intent and mandate of Rule
15 of 1984 Rules.
30. The Resolution dated 20.09.1984 or for that matter the Office
Order dated 08.08.2016 which are pure departmental executive
instructions cannot displace statutory Rule 15 and the process
contemplated therein and import a requirement which would be in the
teeth of Rule 15.
31. The learned Single Bench found that the Chairman of the
Administrative Committee and that the Milk Commissioner are one and
the same person, which vitiates the order of punishment passed. We do
749
not find any merit in the said finding. Sir William Wade in
his Administrative Law stated:
“But there are many cases where no substitution is possible, since
no one else is empowered to act. Natural justice then has to give
way to necessity; for otherwise there is no means of deciding and
the machinery of justice or administration will break down.
It was further stated:
“In administrative cases the same exigency may arise. Whe re
the statute empowers a particular minister or official to act, he
will usually be the one and only person who can do so. There is
then no way of escaping the responsibility, even if he is personally
interested. Transfer of responsibility is, indeed, a recognised type
of ultra vires. In one case it was unsuccessfully argued that the
only minister competent to confirm a compulsory purchase order
for land for an airport had disqualified himself by showing bi as
and that the local authority could only apply for a local Ac t of
Parliament.”
32. The Milk Commissioner has been appointed as Registrar in
exercise of the powers conferred on the State Government b y the Act.
The approval from the Registrar is in terms of the resoluti on of the
Administrative Committee constituted in terms of Dairy Service Rules.
The exercise of the powers under the Act are conferred by designation.
The prior approval of the punishment is by the Registrar. If, incidentally,
the person holding the post of Registrar is also Ch airman of the
Administrative Committee, it cannot be said to be illegal as he is exercising
the powers of Registrar as well as of the Chairman of the Administrative
Committee in terms of the Act or the Rules.
33. The Chairman is the Disciplinary Authority in terms of proviso
to Rule 15 of the Dairy Service Rules. Though, the Administ rative
Committee has resolved that the approval of the Dai ry Milk
Commissioner/Registrar would be mandatory, but such Resolution has
to be read in the context of proviso to Rule 15 which confers jurisdiction
on the Chairman of the Administrative Committee to be a Disciplinary
Authority. Since the Chairman of the Administrative Committee happens
to be the Registrar, the decision to impose punishment may not require
prior approval. However, if the prior approval has been sought from the
office of Registrar, that will not vitiate the proceedings.
CHAIRMAN ADMIN. COMM. U.P. MILK UNION & DAIRY FEDERATION
CENTRALIZED SERVICES v. JAGPAL SINGH [HEMANT GUPTA, J.]
34. Viewed thus, the power exercised by the Chairman of the
Committee in the instant case cannot be subject to Re gulation 87.
Therefore, there is nothing wrong in the exercise of power by the
Chairman of the Committee in the present case.
35. Thus, we do not find any error in the order of punishment
passed by the Administrative Committee. We find that the orders passed
by the High Court are not based upon correct appreciation of law and
facts. Consequently, the orders are set aside and the writ pe tition is
dismissed. The appeal is allowed.
Devika Gujral Appeal allowed.