Amendment To Punjab Cooperative Societies Agricultural Rules Lowering Employees' Retirement Age Needs To Be Tabled Before State Assembly: High Court

The Punjab & Haryana High Court has made it clear that the amendment made in the  Punjab State Cooperative Agricultural Service Societies Service Rules by the Registrar which lowered the retirement age of employee from 60 yrs to 58 yrs needs to be tabled before the State Legislative Assembly.

Justice Sureshwar Thakur and Justice Sudeepti Sharma said, "Resultantly, the respondent concerned, may consider, if now also possible, thus the placing of the said Rules before the State Legislative Assembly for therebys compliance being made to Section 85 (3) of the Act of 1961, and/or may enact either fresh Rules at par with the Rules under challenge, so that therebys the apposite retrospective approval becomes granted to the relevant Rule."

The Court was hearing a batch of petitions involving a common question of law, challenging the amendment made in 2020,  in Rule 19 (A) of the Punjab State Cooperative Agricultural Service Societies Service Rules, 1997 (Rules) pertaining to the retirement age of its employees.

It was argued that by the petitioners that since the impugned amendment lowering the retirement age was purportedly made in terms of Rule 28 of the 1963 Rules, yet when in terms of Section 85 (3) of Punjab Cooperative Societies Act, the said amendment was required to be tabled before the State Legislative Assembly for the latter proceeding to either accord assent.

However, when the said impugned amendment to Rule 19(A) of the Punjab Cooperative Societies Rules, 1963, was not placed before the State Legislature, therebys the impugned amendment to the Rule, is ultra vires to the provision embodied in Sub Section (3) of Section 85 of the Cooperative Society Act, and as such it is required to be quashed and set aside, it added.

After hearing the submissions the Court accepted the argument of the petitioner stating that the parent provisions of the Rules is the Punjab Cooperative Societies Act and hence any amendment in the Rules required to be done by the State Assembly in compliance of Section 85.

The bench added that the exercise is required to be completed. "within two months from today. It is also further expected that the cooperative societies concerned may rejuvenate their financial position, so that therebys they are able to mop up funds sufficient for liquidation of the liabilities concerned."

Title: PUNJAB PUNJAB STATE AGRICULTURAL COOPERATIVE SOCIETIES EMPLOYEES UNION V. STATE OF PUNJAB & ANR [with connected matters]

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