Holding

The amendment raising the retirement age to 60 for state government servants applies to Uttar Pradesh Jal Nigam employees, and the appeal is dismissed.

Summary

The respondent, a former employee of Uttar Pradesh Jal Nigam, filed a writ petition seeking to remain in service until the age of 60, arguing that the amendment of Rule 56(a) of the Uttar Pradesh Fundamental Rules, which raised the retirement age for state government servants from 58 to 60, should apply to him. The appellant, the Chairman of UP Jal Nigam, contended that the Nigam’s standard retirement age remained 58 years and that the High Court erred in allowing the petition. The Supreme Court examined Section 37 of the Uttar Pradesh Water Supply and Sewerage Act, 1975 and Regulation 31 of the 1978 Service Regulations, which tie the service conditions of Nigam employees to those applicable to state government servants, including any subsequent amendments, unless the Nigam amends the regulation. Since the regulations were already in force, the amendment raising the retirement age to 60 automatically applied to Nigam employees. The Court held that the State Government’s direction under Section 89 and the Nigam’s administrative decision under Section 15 did not constitute an amendment of Regulation 31 and therefore could not override the higher retirement age. Consequently, the appeal was dismissed.

Issues considered

Whether the amendment of Rule 56(a) of the Uttar Pradesh Fundamental Rules, raising the retirement age to 60, applies to employees of Uttar Pradesh Jal Nigam.
Whether a direction under Section 89 of the Uttar Pradesh Water Supply and Sewerage Act and an administrative decision under Section 15 can override Regulation 31 of the 1978 Service Regulations.

Legislation cited

Uttar Pradesh Fundamental Ruless. Rule 56(a)
Uttar Pradesh Water Supply and Sewerage Act, 1975s. 15, s. 31(1), s. 37, s. 89, s. 97

Subjects

service lawretirement agesuperannuationadministrative lawUttar Pradesh Water Supply and Sewerage Actregulationfundamental rulesemployee rights

Judgment

~~ CHAIRMAN, U.P. JAL NIGAM AND ANR. A
v.
RADHEY SHYAM GAUTAM AND ANR.

MARCH 30, 2007

[DR.ARIJITPASAYAT ANDR.V.RAVEENDRAN,JJ.] B

Service Law: Retirement age-Employees of U. P. Jal Nigam-Service
conditions-Held, would be same as applicable to State Government Services
under rules, regulations or orders applicable to such government servants-
Age of retirement/superannuation of government servants increased by State
c
Govt. from 58 to 60 years by amending R.56(a) of Fundamental Rules-
Hence, same would equally apply to employees of Nigam-Administrative
Law-Administrative decision-Uttar Pradesh Water Supply and Sewerage,
Act, 1975-s.37-Uttar Pradesh Jal Nigam Engineers (Public Health Branch)
Service Regulations, 1978. D

.. Respondent-Writ Petitioner filed writ petition before High Court
seeking permission to continue in service ofappellant no. 1-Jal Nigam till
attaining the age of 60 years. The appellant contested the writ petition on the_
ground that the standard age of retirement of its employees is 58 years. High
Court allowed the writ petition. Hence the present appeal. E
Dismissing the appeal, the Court

HELD: 1.1. The bare reading s.37 ofUttar Pradesh Water Supply and
Sewerage Act, 1975 and Regulation 31 of Uttar Pradesh Jal Nigam Engineers
(Public Health Branch) Service Regulations, 1978, makes it clear that the . F
i> service conditions of the employees of the Nigam would be the same as are
applicable to the employees of the State Government under the rules,
regulations and orders applicable to such government servants so long as
the same are not altered by the Nigam in accordance with the provisions of
the Act If the regulations have not been framed, the Nigam had residuary
G
power under s.lS(l) of the Act whereby under general power it could change
the service conditions and the same could remain operative so long as

.... · regulations were not framed. [Para 8) [588-E-G)

1.2. In the present case, regulations were already framed in the year
583 H
584 SUPREME COURT REPORTS [2007] 4 S.C.R.

·A 1978 specifically providing in Regulation 31 that the conditions of service of
the employees of the Nigam shall be governed by the rules, regulations and
orders governing the conditions of service of government servants which
would not only mean then in existence but any amendment made therein as
neither in s.37 nor in Regulation 31, it has been mentioned that the Rules
then in existence shall only apply. After the amendment made in Rule 56(a)
B of the Fundamental Rules by the State Government and thereby enhancing
the age of superannuation of government servants from 58 years to 60 years,
the same would equally apply to the employees of the Nigam and in case the
State Government as well as the Nigam intended that the same would not be
applicable, the only option with it was to make suitable amendment in
C Regulation 31 of the Regulations after taking previous approval of the State
Government By simply issuing direction by the State Government purporting
to act under s.89 of tbe Act and thereupon taking administrative decision by
the Nigam under s.15 of the Act in relation to the age of the employees would
not tantamount to amending Regulation 31 of the Regulations.
[Para 8) [588-G-H; 589-A-B]
D
Harwindra Kumar v. Chief Enginee1 Karmik, UP Jal, ljigam, Lakhnow
and Ors., [2002) 2 UPLBEC 1511; Harwindra Kumar v. Chief Engineer
Karmik & Ors., [2005] 13 SCC 300 and Chairman, UP. Jal Nigam & 1nr. v.
Jaswant Singh & Anr., JT (2006) 10 SC ~00, referred to.

.E CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1701 of2007.

From the Final Judgment and Order dated 10.05.2005 of the High Court
of Judicature at Allahabad in Special Appeal No. 559 of 2005.

S. Was~ A. Qadri, Raj iv Dubey and Kamlendra Mishra for the Appellants.
F
Rachna Gupta and Dr. Indra Pratap .Singh for the Respondents.

The Judgment of .the Court was delivered by

DR. ARIJIT PASAYAT, J. I. Leave granted.
G , 2. Challenge in this appeal is to the judgment rendered by a Division
Bench of the Allahabad High Court questioning· correctness of the order
passed by a: Division Bench in the Special Appeal filed by the appellant
against an interim order. passed by a learned Single Judge peilllitting the
respondent No. I to continue in service of the appellant No. I till attaining the
H age of 60 years. The case of the appellant before both learned Single Judge
CHAIRMAN,U.P.JALNIGAMv.RADHEYSHYAMGAUTAM[PASAYAT,J.] 585

..__ ..,... and the Division Bench was that the standard age of retirement of its employees A
is 58 years and the writ petitioner i.e. respondent No. l was· no exception. The
Special Appeal was filed stating that the interim order was co~trary to the
view taken by a Division Bench in Harwindra KumaP- v. Chief Engineer
Karmik, UP Jal, Nigam, Lakhnow and Ors., (2002) 2 UPLBEC 1511. The
Division Bench dismissed the appeal.
B
3. In support of the appeal learned counsel for the appellant submitted
that the ip.terim order was contrary to the view expressed by the Division
Bench which was binding on a subsequent Division Bench and in any event
on all learned Single Judges.

4. Learned counsel for respondent No.I on the other hand stated that C
the controversy as to whether the age of the retirement of employees is 58
or 60 has already been settled by this Court.

5. In Harwindra Kumar v. Chief Engineer Karmik & Ors., [2005] 13
SCC 300 the question raised was whether the retirement age in terms of the D
Uttar Pradesh Fundamental Rules was applicable to the employees of the Jal
Nigam.

6. Various provision~ ofUttar Pradesh Water Supply and Sewerage Act,
1975 (in short the 'Act') and Uttar Pradesh Jal Nigam Engineers (Public Health
Branch) Service Regulations, 1978 (in short the "Regulations") need to be E
noted.

7. To appreciate the point in issue, it would be necessary to refer to the
relevant provisions of Sections 15, 31(1), 37, 89 and 97 of the Act and
Regulation 31 of the Regulations which read thus:
F
"15. Powers of the Jal Nigam.(l) The Nigam shall, subject to the
provisions of this Act have power to do anything which may be
necessary or expedient for carrying out its functions under this Act.

(2) Without prejudice to the generality of the foregoing provision,
such power shall include the power- G
(i) to inspect all water supply and sewerage facilities in the State
by whomsoever th~y are operated;
.
(ii) to obtain such periodic or specific information from any local
body and operating agency as it may deem necessary;
H
586 SUPREME COURT REPORTS [2007] 4 S.C.R.

A (iii) to provide training for its own personnel as well as emploY.ees
of the local bodies;

(iv) to prepare and carry out schemes for water supply and
sewerage; ,. .fa

(v) to lay down the schedule of fees for all se.rvices rendered by
B
the Nigam to the State Government, local bodies, institutions or
individuals;

(vi) to enter into contract or agreement with any person, firm or ,._;
,,.
institution, as the Nigam may deem necessary, for performing its
c functions under this Act;

(vii) to adopt its own budget annually;

(viii) to approve tariffs for water supply and sewerage services
applicable to respective local areas comprised within the jurisdiction
of Jal Sansthans and such local bodies as have entered into an
D agreement a with the Nigam under Section 46;

(ix) to borrow money, issue debentures to obtain subventions and .....
.>..
grants and manage its own funds;

(x) to disburse loans to local bodies for their water supply and
E sewerage schemes; 4-

(xi) to incur expenditure and to grant loans and advances to such
b persons or authorities as the N igam may deem necessary for
performing the functions under this Act.
p
F JO{ xx xx
;...
31. Vesting and transfer of property to Nigam.(l) As from June 18, ,,..
1975, the date of establishment of the Nigam hereinafter in this Chapter
referred to as 'the appointed date',-

(a) all properties and assets (including waterworks, buildings,
G laboratories, stores, vehicles, furnitures and other furnishing) which
immediately before the appointed date were vested in the State
Government for the purposes of the Local Self-Government Engineering
Department shall vest in and stand transferred to the Nigam; and ~..-

(b) all.the rights, liabilities and obligations of the State Government
H
---r
CHAIRMAN,U.P.JALNIGAMv.RADHEYSHYAMGAUTAM[PASAYAT,J.] 587
whether arising out of any contract or otherwise pertaining to the said A
departments shall be the rights, liabilities and obligations of the Nigam.
)IX xx xx
37. Transfer of employees to Nigam.(I) Save as otherwise provided
in this section every person, who was employed in the Local Self- B
Government Engineering Department of the State Government shall on
and from the appointed date become employee of the Nigam and shall
hold his office or service therein by the same tenure, at the same
,J. remuneration and upon same other terms and conditions, and with the
same rights and privileges as to pension, gratuity and other matters
as he would have held the same on the appointed date if this Act had c
not come into force, and shall continue to do so until his employment
in the Nigam is tenninated or until his remuneration or other terms and
conditions of services are revised or altered by the Nigam under or
in pursuance of any law or in accordance with any provision which
for the time being governs his service: D
JQ{ xxx xxx
....
.....
89. Directions to the Nigam on questions of policy. (I) In the
discharge of its functions, the Nigam shall be guided by such
directions on questions of policy as may be given to it by the State E
Government.
(2) If any question arises whether any matter is or is not a matter
as respects which the State Government may issue a direction under
sub section (1), the decision of the State Government shall be final.
F
... JQ{ xxx xxx
~ 97. Regulations.--{!) The Nigam and a Jal Sansthan may, with the
previous approval of the State Government, make regulations, not
inconsistent with this Act and the rules made thereunder, for the
administration of the affairs of the Nigam or a Jal Sansthan. G
(2) In particular, and without prejudice to the generality of the
foregoing power, such regulations may provide for all or any of the
following matters, namely -
""'"-~
(a)(b) * * H
(c) the salaries and allowances and other conditions of service of
588 SUPREME COURT REPORTS [2007) 4 S.C.R.

A employees of the Nigam or a Jal Sansthan other than employees
employed on contract basis;"

Regulation 31

"31. Besides the provision made under these Regulations, the pay
B and allowances, pension, leave, imposition of penalty and other terms
and conditions of ser\iice shall be governed by such rules, regulations
and orders which are equally applicable to other serving government
servants concerned functioning in the Statt-."

8. From the aforesaid provisions, it would. be clear that the appointed
C date for the purposes of the Act was 18-6-1975 when the Nigam was established
and under Section 37 of the Act, conditions of service of the appellant-
petitioners who were employed in the Local Self-Government Engineering
Department of the Government of Uttar Pradesh before the appointed date,
were continued to remain the same as they were before the appointed date
D unless and until the same are altered by the Nigam under the provisions of
the Act. Section 97 confers power upon the Nigam with the previous approval
of the State Government to frame regulations in relation to service conditions
of employees of the Nigam and, acting thereunder, the Regulations were
framed by the Nigam in the year 1978, Regulation 31 whereof provides that
service conditions of the employees of the Nigam shall be governed by such
E rules, regulations and orders which are applicable to other serving government
servants functioning in the State of Uttar Pradesh. Thus, from a bare reading
of Section 37 and Regulation 31, it would be clear that the service conditions
of the employees of the Nigam would be the same as are applicable to the
-
employees of the State Government under the rules, regulations and orders
F applicable to such government servants so long as the same are not altered
by the Nigam in accordance with the provisions of the Act. If the regulations
have not been framed, the Nigam had residuary power under Section 15(1) of
the Act whereby under general power it could change the service conditions
and the same could remain operative so long as regulations were not framed
G but in the present case, regulations were already framed in the year 1978
specifically providing in Regulation 31 that the conditions of service of the
employees of the Nigam shall be governed by the rules, regulations and
orders governing the conditions of service of government servants which
would not only mean then in existence but any amendment made therein as
neither in Section 37 nor in Regulation 31, has it been mentioned that the
H Rules then in existence shall only apply. After the amendment made in Rule
56(a) of the Rules by the State Government and thereby enhancing the age
CHAIRMAN,U.P.JALNIGAMv.RADHEYSHYAMGAUTAM[PASAYAT,J.] 589
of superannuation of government servants from 58 years to 60 years, the same A
would equally apply to the employees of the Nigam and in case the State
Government as well as the Nigam intended that the same would not be
applicable, the only option with it was to make suitable amendment in
Regulation 31 of the Regulations after taking previous approval of the Sta~
Government and by simply issuing direction by the State Government purporting
to act under Section 89 of the Act and a thereupon taking administrative B
decision by the Nigam under Section 15 of the Act in relation to the age of
the employees would not tantamount to amending Regulation 31 of the
Regulations.

9. In Harwindra Kumar's case (supra) the Division Bench decision on C
which the appellant places reliance was challenged. Orders passed by the
High Court dismissing the writ petitions as well as those by tile Nigam
directing that the appellants of the Civil Appeals and the petitioners of the
writ petitions would superannuate upon completion of the age of 58 years
were set aside and it was directed that in case the employees have been
allowed to continue up to the age of 60 years by virtue of some interim order, D
no recovery shall be made from them but in case, however, they have not been
allowed to continue after completing the age of 58 years by virtue of erroneous
decision taken by tile Nigam for no fault of theirs. They would be entitled to
payment of salary for the remaining period up to the age of 60 years which
was to be paid to them within a period of three months from the date ofreceipt E
of copy of this Court's order by the Nigam.

10. It appears that the High Court placed reliance on the decision in
Harwindra Kumar's case (supra). Additionally, in Chairman, U.P.Jal Nigam
& Anr. v. Jaswant Singh & Anr., JT (2006) l 0 SC 500) the decision was
reiterated in the following terms: F
"The benefits shall only be confined to above mentioned persons
who have filed writ petitions before their retirement or they have
obtained interim order before their retirement. The appeals filed against
these persons by the Nigam shall fail and the same are dismissed. Rest
of the appeals are allowed and orders passed by the High Court are G
set aside. There would be no order as to costs."
.-r .••
11. In view of what has been stated above the inevitable conclusion is
that the appeal is sans merit, deserves dismissal, which we direct.

D.G. Appeal dismissed. H