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SUBHA B. NAIR & ORS. versus STATE OF KERALA & ORS.

Citation: [2008] 9 S.C.R. 1058 · Decided: 27-05-2008 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed

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Judgment (excerpt)

[2008] 9 S.C.R 1058 
.... 
A 
SUBHA B. NAIR & ORS. 
โ€ข 
V. 
STATE OF KERALA & ORS. 
(Civil Appeal No. 4176 of 2008) 
B 
MAY 27, 2008 
[S.B. SINHA AND LOKESHWAR SINGH PANTA, JJ.] 
)' . 
Service law - Cadre strength - Determination of - Req-
uisition by bank to fill uยต 214 posts of clerk/cashier in Co-op-
c erative Bank-Approval of 208 posts by Registrar- Only 201 
vacancies filled up - Challenge to - Order of High Court that 
seven more vacancies to be filled up, one vacancy having 
arisen due to non-joining of duty - Justification of - Held: Or-
der of High Court sustainable - Approval of Registrar is nee-
D essary - It is within the domain of employer to fill up existing 
vacancies or not - Bank had taken a policy decision not to fill 
.. 
up any other or further post - More so, rank list expired and 
โ€ข 
thereafter, the vacancies could not be directed to be filled up 
- Cadre strength of Co-operative Society would depend upon 
E 
its classification - Statement for classifying the branches were 
not prepared scientifically - Further, there has been comput-
erization of branches in the Bank - Kera/a Cooperative Soci-
eties Rules, 1969. 
,; 
Respondent-Cooperative Bank made a requisition 
~ 
F to respondent no. 4-State Public Service Commission for 
,. 
appointment of 214 clerk/cashier in the Bank. The respon-
dent No.2-registrar approved only 208 posts. 201 vacan-
cies were filled up. Appellant filed writ petition on the 
ground that the respondent-Bank could fill 16 more va-
G cancies. The Single Judge of the High Court held that 
having regard to the approved vacancy position, six more 
vacancies could be filled up and one vacancy having 
4 
arisen due to non-joining of the candidate could also be 
~ 
filled up. It issued direction to fill up seven more vacan-
H 
1058 
"4 
SUBHA B. NAIR & ORS. v. STATE OF 
1059 
+-
KERALA & ORS. 
... 
cies. In appeal, order of High Court was upheld. Hence, A 
the present appeal. 
Appellants contended that the High Court commit-
ted a serious error as the approval of Registrar in such 
matters was not necessary; and that in any event profit-
B 
ability or otherwise of the Cooperative Bank was not a 
...... 
relevant factor for determining the cadre strength. 
Respondent-Cooperative Bank, Kerala Public Ser-
vice Commission and the State of Kerala contended that 
the rank list having expired on 31.12.2004, the High Court c 
could not have issued any writ on the petition filed by the 
appellants as the Bank had taken a policy decision not to 
fill up any other or further post; and that under Rule 182 
of the Kerala Cooperative Societies Rules, 1969, the ap-
.... 
proval of the Registrar is imperative . 
D 
Dismissing the appeals, the Court 
HELD: 1.1 After the processes were gone into for ap-
pointment of Clerk-cum-cashier in the Bank, rank list was 
prepared on or about 18.09.2001. Its validity expired on 
E 
or about 31.12.2004. Some persons did not join the posts. 
The vacancies remained unfilled. Another requisition for 
filling up of the vacancies position was notified again on 
~ 
or about 10.05.2005 by which date the validity of the eaยทr-
" 
lier rank list expired. Pursuant or in furtherance thereof 
the Commission already conducted an examination on 
F 
10.05.2008, and in terms thereof a fresh rank list would 
be prepared. [Para 6] [1064-B,C & D] 
1.2 A decision on the part of an employer whether to 
fill up the existing vacancies or not is within its domain. G 
On this limited ground in absence of discrimination or ar-
~ 
bitrariness, a writ court ordinarily would not interfere in 
such matters. [Para 7] [1064-D & E] 
Deepa Keyes v Kera/a State Electricity Board (2007) 6 
SCC 194; K. Thu/aseedharan v Kera/a State Public Service 
H 
1060 
SUPREME COURT REPORTS 
[2008] 9 S.C.R. 
I'-
-;. 
A 
Commission, Trivandrum and Others (2007) 6 SCC 190 -
/ 
relied on. 
1.3 Recruitment to a post having regard to the provi-
sions contained in Article 320 of the Constitution of India 
B 
must be made by the Committee in terms of the Statutory 
Rules. Kerala Cooperative Societies Rules, 1969 has un-
dergone a change in 2004 by way of Kerala Cooperative 
,.. .. 
Societies (Amendment) Rules, 2004. Thus, it may not be 
\...
I 
entirely correct that the Registrar will have no say in the 
matter. [Paras 9, 11 and 12] [1064-G; 1065-E,F & G] 
c 
1.4 Financial heath of a bank is a relevant factor. In 
the instant case, from the profit and loss account it ap-
peared that the statement for classifying the 

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