Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 30 July 2026

Case Overview

  • Parties: Appellant S.P. Chandrakar (employee of District Central Cooperative Bank Ltd, Raipur) vs. State of Chhattisgarh & others (respondents), with Kishor Bagh as original writ petitioner (respondent No. 5).
  • Background: Chandrakar was promoted to Additional Manager on 30 December 2010 pursuant to Departmental Promotion Committee recommendation dated 20 December 2010. The promotion was challenged by Kishor Bagh on the ground that Rule 5(3)(a) of the Chhattisgarh District Cooperative Central Bank Employee Service Rules, 1982 barred a technical employee from being promoted to a non‑technical post.
  • Lower Courts: Single Judge of the High Court of Chhattisgarh quashed the promotion on 31 July 2023; Division Bench affirmed on 2 February 2024, relying on the view that the amendment of Rule 5(3)(a) communicated by the Registrar was not a valid statutory amendment.
  • Statutory Framework: The service rules are framed under Section 55 of the Chhattisgarh Cooperative Societies Act, 1960. The Registrar issued a circular on 4 July 2005 deleting Rule 5(3)(a), (b) and (c); the Additional Registrar reiterated the deletion in a subsequent notice. The Court examined whether the Registrar (or Additional Registrar) possessed the power to amend the rule and whether the procedural requirement of laying the amendment before the Legislative Assembly under Section 95(3) of the Act was mandatory.
  • Legal Reasoning: The Court held that the Registrar’s power under Section 55 includes the authority to amend, vary or rescind rules, supported by Section 21 of the General Clauses Act, 1897. It further concluded that the word “shall” in Section 95(3) is directory; non‑laying does not invalidate the amendment. Executive instructions cannot override statutory provisions, but here the amendment was within the Registrar’s statutory competence.

Final Outcome

  • The appeal is allowed. Chandrakar is to be reinstated to the post of Additional Manager with his seniority protected.
  • He is entitled to all benefits accruing from the promotion, including salary differentials.
  • He shall receive 50 % of back wages for the period he was deprived of the post, payable within two months of the judgment; failure to pay will attract interest at 6 % per annum.
  • No costs are awarded to either party.

Topics: Promotion Dispute, Cooperative Banking