Q: Discuss the citation of Registrar, Cooperative Societies Haryana And Others v. Israil Khan And Others, Supreme Court Of India, Oct 8, 2009 ?

 Ans: 

Registrar, Cooperative Societies Haryana And Others v. Israil Khan And Others, Supreme Court Of India, Oct 8, 2009

The respondents and other employees of the said Society submitted representations for regular pay scales, instead of consolidated pay. The Managing Committee of the said Society passed a resolution extending the benefit of regular pay scale to the respondents with retrospective effect from 1-1-1996. 

As a consequence, instead of a consolidated salary of Rs 1200 and Rs 800 respectively to which they were entitled, the first respondent and the second respondent were paid salary at the rate of Rs 3050 and Rs 2550 per month. As no funds were sanctioned or available to pay the arrears on the basis of such higher pay, the Managing Committee diverted the funds made available by the State Government (through the controlling bank) for disbursement of loans to farmers, to pay arrears of Rs 47,891 to the first respondent and Rs 42,300 to the second respondent on 27-2-1999.

When this came to the notice of the office of the Registrar of Cooperative Societies, the Deputy Registrar of Cooperative Societies, Gurgaon made an order dated 2-4-2002 rescinding the resolution dated 1-3-1999 of the Managing Committee, in exercise of powers conferred under Section 27 of the Haryana Cooperative Societies Act, 1984 (for short “the Act”) and directed the employer Society to recover back the excess payment made to the employees. The Society gave effect to the said direction by passing a resolution dated 22-3-2002 directing recovery of the excess payments from the respondents.

Therefore, the appeals are allowed, the impugned orders of the High Court holding that the illegal payments to the respondents need not be refunded to them are set aside. However, having regard to the hardship put forth by the employees, the appellants are directed to calculate and recover the excess payment in twenty-four monthly instalments.

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