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Retired employees of cooperative societies cannot claim retirement benefits at par with govt staff: Punjab and Haryana HC

Punjab and Haryana HC strikes down 1997 cooperative societies service rules in Punjab.

Punjab and Haryana HCFile Photo of the Punjab and Haryana High Court.

The Punjab and Haryana High Court has declared the Punjab State Cooperative Agricultural Service Societies Service Rules, 1997, invalid, holding that they are beyond the scope of the Punjab Cooperative Societies Act, 1961, and cannot be enforced to claim retirement benefits.

In a judgment delivered on March 5, 2026, Justice Harpreet Singh Brar dismissed four connected writ petitions filed by retired employees of cooperative societies in Punjab seeking benefits such as gratuity, leave encashment, provident fund, and interest on delayed payments. The court also disposed of a petition filed by a cooperative society challenging pressure to release benefits to a former employee despite pending recovery proceedings.

The dispute centred on the applicability of the 1997 Service Rules framed by the Registrar, Cooperative Societies, Punjab. The petitioners argued that they were entitled to retirement benefits at par with Punjab government employees, citing acknowledgments by societies and authorities, pre-audits, and earlier court directions. Cooperative societies, on the other hand, cited financial losses, constraints, and pending recoveries to justify delays or non-payment.

The court held that the rules are ultra vires the parent statute and, therefore, unenforceable. It ruled that retired employees have no vested or enforceable right under these rules to seek retirement benefits from cooperative societies.

The petitions included claims by Samarjit Singh for balance gratuity, leave encashment and interest; Balbir Singh for interest on delayed payments made in instalments and challenge to an inquiry denying interest; Surinder Singh for unpaid gratuity, leave encashment, provident fund, salary and interest; and a plea by Bir Rau Ke Multipurpose Cooperative Society contesting directions to release dues to its former secretary despite pending arbitral recovery awards.

Key reasons offered by the judge:

• The state government could not delegate its rule-making power under Section 85(2)(xxxviii) of the Punjab Cooperative Societies Act, 1961, to the Registrar, Cooperative Societies.

• The 1997 Service Rules were framed by the Registrar without lawful authority from the parent Act, rendering them ultra vires and non-statutory in nature.

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• The respondent-State admitted the rules’ non-statutory character, confirming they lack legal force.

• Without a valid statutory basis, petitioners could not enforce claims for benefits such as gratuity and leave encashment at government parity or interest on delays through writ jurisdiction under Articles 226 and 227 of the Constitution.

• A writ seeking enforcement of unenforceable or invalid rules is not maintainable.

The court observed that cooperative societies function under their own bye-laws and the 1961 Act, and are not automatically entitled to adopt government service conditions unless specifically provided for by law. While noting the financial constraints of societies, the court said the core issue was the invalidity of the 1997 Rules.

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The ruling is expected to affect similar pending cases involving cooperative employees in Punjab seeking government-like retirement benefits under the 1997 Rules.

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

 

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