MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA KENDRA PRAMUKH SABHAversusPUNE MUNICIPAL CORPORATION AND ORS.

                        [2023] 2 S.C.R. 981                             981


     MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK                              A
       SHIKSHAK VA KENDRA PRAMUKH SABHA
                                 v.
        PUNE MUNICIPAL CORPORATION AND ORS.
                  (Civil Appeal No. 1765 of 2023)                       B
                         MARCH 17, 2023
       [SURYA KANT AND J. K. MAHESHWARI, JJ.]
      Maharashtra Municipal Corporation Act, 1949 – s.493 r/w
Cl. 5 of Appendix (IV) – Services rendered by primary teachers
                                                                        C
(Respondent nos.5 to 79) while in the service of the Zilla Parishad
(ZP), if to be counted towards their seniority after the transfer and
merger of their services into the Pune Municipal Corporation (PMC)
– On appeal by the primary teachers recruited directly by the PMC
whose seniority is adversely affected, held: Service rendered by
Respondent Nos. 5 to 79 in the ZP has to be treated as service          D
rendered in the PMC and therefore has to be counted towards the
determination of their seniority as well – No infirmity in the view
taken by the High Court in this regard – Also, service rendered by
Respondent Nos. 5 to 79 in the ZP is consistent and unbroken and
it remains in existence even after their absorption into the PMC as
                                                                        E
a result of the statutory protection embodied under Clause (5) of
Appendix (IV) r/w s.493 – No merit in appeal – Service Law –
Constitution of India – Art. 243Q.
     Maharashtra Municipal Corporation Act, 1949 – s.3(3)(b) –
Purpose and scope of – Discussed.
                                                                        F
      Dismissing the appeal, the Court
      HELD: 1.1 On a cursory look of the legislative scheme
behind the MMC Act, it is evident that Section 3 falls in Chapter
1, which is captioned as ‘PRIMARY’. Since, the MMC Act was
enacted in 1949, it has been suitably amended from time to time,        G
especially after the insertion of Part IX-A ‘Municipalities’ in our
Constitution with effect from 01.06.1993. Article 243Q(1)
mandates that, in every State, the following would be constituted:
(a) A nagar panchayat, for a transitional area, namely, an area in
transition from rural to urban area; (b) a municipal council for a
                                                                        H
                                981
982            SUPREME COURT REPORTS                       [2023] 2 S.C.R.


A     smaller urban area; and (c) a municipal corporation for a larger
      urban area. The obligation was placed on every State under sub-
      Article of Article 243Q to define ‘transitional area’, ‘a smaller
      urban area’ or ‘a larger urban area’. It is in discharge of this
      Constitutional obligation that the State of Maharashtra also
      amended the MMC Act thereby providing under Section 3(1)
B
      that a ‘larger urban area’ shall be specified by way of a Notification
      to be issued under Article 243Q(2) of the Constitution, and such
      an area shall be deemed to be a duly constituted Municipal
      Corporation. Sub-Section (3) further provides that the State
      Government, in consultation with the Corporation, may include
C     or exclude an area from within the limits of the Municipal
      Corporation. It is in this context that Clause (b) of sub-section
      (3) provides that when an area is included within the limits of the
      ‘larger urban area’, any appointments, notifications, notices, taxes,
      orders, schemes, licenses, permissions, rules, by-laws issued,
      imposed or granted, under the MMC Act or any other law which
D
      is for the time being in force in the larger urban area shall,
      notwithstanding anything contained in any other law, apply to and
      be in force in the additional area, from the date that area in
      question is included in the city. To simplify, Clause (b) merely
      states that whatever appointments, notifications, notices, rules
E     or by-laws etc. are already in force in the existing ‘larger urban
      area’ will mutatis mutandis come into force in the “additional area”
      which is included by issuing a notification under Clause (a) of
      Section 3(3) of the MMC Act. The purpose of Clause (b) is to
      ensure that any statutory or administrative decision which has
      already been enforced by a Municipal Corporation in its existing
F
      larger urban area shall stay in force and will become applicable
      automatically in the newly added area also. The expression
      ‘appointments’ has to be understood in this context only. The
      scope of Clause (b) as a provision is meant to facilitate the
      inclusion of newly added additional areas and to ensure that such
G     areas do not remain in a vacuum for want of statutory or
      administrative decisions following the cessation of its status as
      part of the ZP. Clause (b) of Section (3)(3) is not concerned with
      the protection of conditions of service of the employees of the
      ZP who are absorbed into a Municipal Corporation. When the
H
   MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA                     983
 KENDRA PRAMUKH SABHA v. PUNE MUNICIPAL CORPORATION AND
                          ORS.

Legislature never intended to regulate terms and conditions of           A
the employees who are merged in a Municipal Corporation due
to expansion of ‘larger urban area’, no inference in relation
thereto can be drawn from the plain wording of Section 3(3)(b) of
the MMC Act. The reliance placed by the Appellants on the said
provision is, thus, completely misplaced and is liable to be
                                                                         B
rejected. [Paras 15-17][992-D-H; 993-A-F]
       1.2 The provisions of Appendix (IV) shall apply to the
constitution of the Corporation and other matters specified
therein. Clause (1) of Appendix (IV) pertains to ‘construction of
reference in other enactments’ whereas Clause 2 provides that            C
all rights of the municipality or any other local authority shall, on
the date in question, vest in the Corporation constituted for the
said area. Clauses (3) and (4) deal with ‘sums due’ and ‘debts,
obligations, contracts and pending proceedings’, respectively.
Clause 5 deals with ‘continuation of appointments’, taxes, budget
estimates, assessments etc.’ and its Sub-Clause (C) specifically         D
says that all officers and servants under the employment of a
municipality or local authority immediately before the appointed
day shall be officers and servants employed by the Corporation
under this Act and shall, subject to other provisions made in
accordance with the provisions of this Act, receive salaries and         E
allowances and be subject to the conditions of service which were
operative on such date. The first proviso provides, crucially, that
service rendered by such officers and servants before the
appointment date shall be deemed to be service rendered in the
service of the Corporation itself. There is no dispute regarding
the fact that Clause 5(c), including its first proviso, occupies this    F
field of law till date. The provision explicitly deals with protection
of conditions of service of the officers and servants who were
earlier employed in a local authority like a ZP, and who have been
subsequently absorbed into a Municipal Corporation. It expressly
protects their service rendered by them in the local authority           G
before the appointed day and further provides that it shall be
considered as service rendered in the Municipal Corporation
itself. Given the existence of this unambiguous provision, the
only logical conclusion is that the service rendered by Respondent

                                                                         H
984            SUPREME COURT REPORTS                      [2023] 2 S.C.R.


A     Nos. 5 to 79 in the ZP has to be treated as service rendered in
      the PMC. Such service, therefore, has to be counted towards
      the determination of their seniority as well. There is no infirmity
      in the view taken by the High Court in this regard. Additionally,
      Clause (5) of Appendix IV starts with the expression
      ‘continuation’ of appointments. The word ‘continuation’ connotes
B
      ‘without interruption’. It is an unbroken and consistent state of
      affairs or operation of something. In other words, the service
      rendered by Respondent Nos. 5 to 79 in the ZP is consistent and
      unbroken and it remains in existence even after their absorption
      into the PMC as a result of the statutory protection embodied
C     under Clause (5) of Appendix (IV) read with Section 493 of the
      MMC Act. [Paras 18, 20-22][993-H; 994-A-B, H; 995-A, F-H;
      996-A-C]

            Union of India v. Shiv Dayal Soin & Sons (P) Ltd. (2003)
            4 SCC 695 : [2003] 2 SCR 371 – referred to.
D
                             Case Law Reference

      [2003] 2 SCR 371                    referred to         Para 11

            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1765
E     of 2023.

            From the Judgment and Order dated 01.10.2021 of the High Court
      of Judicature at Bombay in WP No. 7135 of 2019.

F          Vinay Navare, Sr. Adv., Ms. Deeplaxmi Subhash Matwankar,
      Ms. Gwen Karthika, Advs. for the Appellant.

            Abhay Anil Anturkar, Dhruv Tank for M/s. Dr R. R. Deshpande
      And Associates, Sachin Pahwa, Arvind S. Avhad, Sanjay Dubey, Roshan
      Kumar Singh, Sandeep Lamba, Ms. Reeta Puniya, Ms. Sundri, Ms. Saloni
G     Sharan, Ruma Pathak, Ms. Surajita Pattanaik, Ms. Nayan Maggo,
      Ms. Goldy Goyal, Vijay Singh, Kiran Mahato, Gurmeet Singh, K. R.
      Satheesh, Hira Singh Rawat, Anand Dilip Landge, Siddharth
      Dharmadhikari, Aaditya Aniruddha Pande, Bharat Bagla, Kirti Dadheech,
      Advs. for the Respondents.
H
   MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA                          985
 KENDRA PRAMUKH SABHA v. PUNE MUNICIPAL CORPORATION AND
                          ORS.

      The Judgment of the Court was delivered by                              A
      SURYA KANT, J.
      Leave granted.
       2. The issue that requires our consideration in this case is whether
the services rendered by primary teachers while in the service of the         B
Zilla Parishad (hereinafter “ZP”) deserves to be counted towards their
seniority after the transfer and merger of their services into the Pune
Municipal Corporation (hereinafter “PMC”)?
      FACTS :
       3. The State of Maharashtra is vested with the power to specify        C
a ‘larger urban area’ of a municipal corporation under Section 3(1) of
the Maharashtra Municipal Corporation Act, 1949 (in short, “MMC Act”).
Such an area can further be altered by issuing a Notification under Section
3(3). The expression, “larger urban area” is defined under Article 243Q(2)
of the Constitution, which says that:-                                        D
      “(2) In this article, “a transitional area”, a “smaller urban area”
      or “a larger urban area” means such area as the Governor may,
      having regard to the population of the area, the density of the
      population therein, the revenue generated for local administration,
      the percentage of employment in non- agricultural activities, the
                                                                              E
      economic importance or such other factors as he may deem fit,
      specify by public notification for the purposes of this Part.”
       4. State of Maharashtra in exercise of its powers under Section
3(1) of MMC Act decided to expand the territorial limits of the PMC
and, consequently, the geographical area of 38 villages which were part
                                                                              F
of the Pune ZP were merged into the PMC with effect from 01.11.1999.
Post the merger, primary teachers as well as employees from other
departments who were serving in those villages were given the option to
have themselves transferred and absorbed into the services of PMC.
      5. In this context, Sections 3(1) & 3(3) of the MMC Act being
relevant are reproduced below: -                                              G

      “3. Specification of larger urban areas and constitution of
      Corporations. [(1) The Corporation for every City constituted
      under this Act existing on the date of coming into force of the
      Maharashtra Municipal Corporations and Municipal Councils
                                                                              H
986             SUPREME COURT REPORTS                           [2023] 2 S.C.R.


A           (Amendment) Act, 1994, specified as a larger urban area in the
            notification issued in respect thereof under clause (2) of Article
            243-Q of the Constitution of India, shall be deemed to be a duly
            constituted Municipal Corporation for the larger urban area so
            specified forming a City, known by the name “The Municipal
            Corporation of the City of....”;
B
            xxx        xxx      xxx
            (3) [(a)Subject to the provisions of sub-section (2), the State
            Government] may also from time to time after consultation with
            the Corporation by notification in the Official Gazette, alter the
C           limits specified for any larger urban area under sub-section (1) or
            sub-section (2) so as to include therein, or to exclude therefrom,
            such area as is specified in the notification.
            (b) Where any area is included within the limits of the [larger
            urban area] under clause (a), any appointments, notifications,
D           notices, taxes, orders, schemes, licences, permissions, rules, bye-
            laws or forms made, issued, imposed or granted under this Act or
            any other law, which are for the time being in force in the [larger
            urban area] shall, notwithstanding anything contained in any other
            law for the time being in force but save as otherwise provided in
            section 129A or any other provision of this Act, apply to and be in
E           force in the additional area also from the date that area is included
            in the City.
            xxx        xxx      xxx”
             6. Respondent Nos. 5 to 79 were working as Primary Teachers in
F     the Pune ZP. They were appointed on different dates prior to 01.11.1999.
      They too were given option for their merger in the PMC. They opted to
      accede to the absorption and joined the PMC. It may be relevant to
      mention at this stage that with a view to regulate the conditions of service
      of employees who are merged from the Zilla Parishad to Municipalities,
      the State Government had passed a Resolution (hereinafter “GR”) dated
G     13.08.1990, the relevant part whereof reads as follows: -
            “xxx       xxx      xxx
            government was considering whether to consider service provided
            for Zilla Parishad by said teachers should be considered for pay
            fixing, seniority, retirement benefit, etc.in Municipal Council/
H
   MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA                            987
 KENDRA PRAMUKH SABHA v. PUNE MUNICIPAL CORPORATION AND
                   ORS. [SURYA KANT, J.]

      Municipal Corporation education department. Government is                 A
      passing order now regarding same that, service in Zilla Parishad
      of primary teachers should be considered for pay fixing, seniority,
      retirement benefit, etc. in Municipal Council/Municipal Corporation
      service, who are transferred under rule in concerned Municipal
      Corporation/Municipal Council education board from concerned
                                                                                B
      Zilla Parishad for reasons mentioned above. but concerned Zilla
      Parishad should accept liability of service prior to classification of
      concerned primary teachers. government grant shall be passed
      for. Zilla Parishad at the rate fixed thereon.
      2. This government resolution is passed under official approval of
      town development department, village development department               C
      and finance department
      and under official reference - 1045 / number-cr-1045/ 86/ser-4,
      dated 18.8.1986 of finance department.
      xxx        xxx      xxx”                                                  D
                                                                       (sic.)
       7. The GR reproduced above unambiguously provides that the
services rendered by teachers in a ZP shall be taken into consideration
when fixing pay, seniority, retiral benefits etc. on their permanent transfer
to Municipalities. Despite the seeming clarity on this point, there arose a     E
dispute in respect to fixation of inter se seniority between the teachers
who were initially recruited in the ZP and were later on absorbed into
the PMC, as opposed to the primary teachers who had been part of the
services of the PMC from the very beginning. There were a series of
correspondence on this issue between the Chief Executive Officer of             F
the ZP and the Administrative Officer, Shikshan Mandal of the PMC,
including two letters dated 11.10.1999 and 02.07.2011. These
communications do not appear to us of any legal consequence given the
fact that the GR dated 13.08.1990 has not been rescinded, modified or
superseded by any subsequent government resolution.
                                                                                G
       8. The Appellant is an Association formed by the primary teachers
who were directly recruited by the PMC. Its members have an inter se
seniority dispute with Respondent Nos. 5 to 79. A draft seniority list was
circulated by the PMC which proposed to assign seniority to Respondent
Nos. 5 to 79 from the dates they joined service in the ZP. The PMC,
                                                                                H
988            SUPREME COURT REPORTS                           [2023] 2 S.C.R.


A     however, reversed its tentative decision vide letter on 04.02.2017 which
      stated that Respondent Nos. 5 to 79 would be assigned seniority only
      from the date of their absorption into PMC. The private respondents
      raised objections against the aforementioned decision, which resulted in
      the constitution of a committee of five officers of the PMC for
      consideration of those objections. On the recommendations of the
B
      Committee a final seniority list was eventually issued on 20.02.2018 in
      which the seniority of Respondent Nos. 5 to 79 was fixed only from the
      date of their absorption into the PMC. For the sake of specificity, the
      outcome of the Committee’s recommendations was that the service
      rendered by Respondent Nos. 5 to 79 in their roles within the ZP stood
C     excluded from the length of their service.
            9. Aggrieved, Respondent Nos. 5 to 79 approached the High Court
      and a Division Bench vide the impugned judgment dated 1 st October,
      2021 has allowed their writ petition in the following terms: -
            “52. A conjoint reading of Section 493 which provides for transitory
D           provisions read with Clause 5 of Appendix IV clearly indicates
            that the service rendered by the officers and servants before in
            the employment of the Municipality or the local authority
            immediately before the appended date shall be the officers and
            servants employed by the Corporation under the said Act and the
E           services rendered by such officers and servants before the
            appointed date shall be deemed to be service rendered in the service
            of the Corporation. The second proviso to Clause 5 of Appendix
            IV empowers the Corporation to discontinue, the service of any
            officer or servant who in its opinion is not necessary or suitable to
            the requirements of the municipal service, after giving such officer
F           or servant, such notice as is required to be given by the terms of
            his employment. Such discontinued employee shall be entitled to
            such leave, pension or gratuity as he would have been entitled to
            take or receive on being invalided out of service if this Act had
            not been passed.
G           53. It is not the case of the respondent no.1 or respondent no.3
            that service of any of these petitioners were discontinued by the
            respondent no.1 under second proviso to Clause 5 of Appendix
            IV on the ground of not being suitable to the requirements of the
            municipal service or on the ground that their services were not
H           necessary for the respondent no.1 – Corporation.
   MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA                          989
 KENDRA PRAMUKH SABHA v. PUNE MUNICIPAL CORPORATION AND
                   ORS. [SURYA KANT, J.]

      54. In our view, the said provision under Section 493 of the            A
      Maharashtra Municipal Corporations Act read with Clause S(c)
      of the Appendix IV would also apply in case of en bloc transfer of
      the property forming part of such village which were transferred
      to the Municipal Corporation along with the schools, employees
      and the students. In our view, the seniority of each of these
                                                                              B
      petitioners thus will have to be counted from their initial date of
      appointment in the schools run by Zilla Parishad and not from the
      date of their transfer in the schools run by the respondent no.1
      Corporation. The impugned order showing the petitioners below
      the then existing employees of the respondent no. 1 by considering
      the date of their transfer in the schools run by the respondent no.1    C
      as the date of appointment is totally illegal and contrary to Section
      493 read with Clause S(c) of Appendix IV thereto.”
      10. The Appellant Association, representing those primary teachers
who have been recruited directly by the PMC and whose seniority is
adversely affected by the inclusion of the period spent by Respondent         D
Nos. 5 to 79 in ZP towards their seniority after absorption into the PMC,
has now filed this appeal.
      SUBMISSIONS:
     11. Mr. Vinay Navare, learned Senior Counsel for the Appellant
advanced three submissions:                                                   E

      (i)    Firstly, he argued that Respondent Nos. 5 to 79 were given
             a choice to either seek transfer into the PMC or to continue
             with their services in the schools run by the ZP. The
             respondent-teachers consciously made a choice to be
             assimilated into the PMC. Since this was a case involving        F
             ‘voluntary transfer’ rather than an ‘administrative transfer’,
             they cannot claim the benefit of their past service towards
             fixation of seniority.
      (ii)   Secondly, it was a case of expansion of the ‘larger urban
             area’ belonging to the PMC and, hence, conditions of service     G
             of Respondent Nos. 5 to 79 shall remain protected only to
             the extent as provided under Section 3(3)(b) of the MMC
             Act. The said provision is conspicuously silent with respect
             to protection and consideration of past service. Section 493
             of the MMC Act read with Clause 5(c) of Appendix (IV)
                                                                              H
990                  SUPREME COURT REPORTS                          [2023] 2 S.C.R.


A                      relied upon by the High Court will be attracted only in a
                       case of newly constituted Municipality. That being not the
                       case here, the High Court gravely erred in relying upon the
                       said provision. Shri Navare explained that the legislative
                       intent can be discerned from the fact that a provision similar
                       to the first proviso to Clause 5(c) of Appendix IV, has not
B
                       been added to Section 3(3)(b) of the MMC Act. Reliance
                       was placed on Union of India v. Shiv Dayal Soin & Sons
                       (P) Ltd.1,wherein the following was observed:
                             “6. …… As a canon of statutory interpretation,
                             expression unaus Est exclusion arteries, what is
C                            expressly mentioned in one place but not in another must
                             be taken to have been deliberately omitted. ……..”
               (iii)   Thirdly, Shri Navare argued that the decision of PMC five-
                       Member Committee, which unequivocally held that the date
                       of joining the PMC would be the conclusive determinant
D                      for the purpose of inter-se seniority, was a quasi-judicial
                       order which Respondent Nos. 5 to 79 did not assail before
                       any forum. Their acquiescence and long silence on the matter
                       estop them from questioning the subsequently published final
                       seniority list which was a step taken to comply with the
E                      decision of the Five Member Committee.
             12. Learned counsel for Respondent No. 1, the PMC, also
      supported the cause of the Appellant and urged that in the event of
      granting the benefit of past service to Respondent Nos. 5 to 79, a
      cascading domino effect will be triggered which will lead to other
F     employees of different departments who have been absorbed into PMC
      raising similar claims, thus, spawning an unending seniority dispute
      between different cadres.
            13. On the other hand, Mr. Abhay Anil Anurak, learned counsel
      for Respondent Nos. 5 to 79 strenuously opposed the Appellant’s claim
G     and urged that:
               (i)     First proviso to Clause 5(c) of Appendix IV, which is to be
                       read into Section 493 of MMC Act, categorically provides
                       that the service rendered by Officers and Servants before
                       their date of appointment shall be deemed to be service
H     1
          (2003) 4 SCC 695
  MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA                              991
KENDRA PRAMUKH SABHA v. PUNE MUNICIPAL CORPORATION AND
                  ORS. [SURYA KANT, J.]

            rendered in the service of the Municipal Corporation itself.         A
            In view of this statutory mandate, the High Court has rightly
            held that Respondent Nos. 5 to 79 are entitled to assign the
            seniority from the date they were appointed in ZP.
    (ii)    The Government Resolution dated 13.08.1990, in no
            uncertain terms, provides that on inclusion of the area of a         B
            ZP within the limits of Municipal Corporation, the transferred
            employees shall be entitled to the benefit of their past service
            towards fixation of pay, seniority and retiral benefits etc.
            This Resolution falls within the ambit of Article 162 of the
            Constitution, and is binding on all inferior authorities including
            the PMC. Since Respondent Nos. 5 to 79 were appointed                C
            in the ZP, their previous service cannot be ignored. He
            forcefully denied the Appellant’s contention that it was a
            case of ‘voluntary transfer’ and maintained that private
            respondents had no choice but to give their consent for
            absorption in PMC as all the schools where they were                 D
            working had been transferred to within the municipal limits.
    (iii)   The Appellants have mis-quoted the contents of letter dated
            11.10.1999. The true extracts of the letter are as follows:
               “xxx      xxx xxx
                                                                                 E
               4. Also, it is hereby ordered to absorb only those primary
               teachers who have consented for being transferred to
               the Pune Municipal Corporation and it is hereby
               requested to accommodate said primary teachers with
               Municipal Corporation.
                                                                                 F
                xxx      xxx xxx”
    (iv)    Neither the Appellant nor the PMC invoked Section 3(3)(b)
            of MMC Act before the High Court and their reliance upon
            this provision has been made for the first time before this
            Court only.
                                                                                 G
    (v)     With regard to the claim raised by Appellant regarding
            acquiescence and estoppel, learned counsel countered by
            arguing that Respondent Nos. 5 to 79 were not obliged to
            challenge recommendations of PMC Committee specifically,
            given that they consequently objected to the culmination of
                                                                                 H
992             SUPREME COURT REPORTS                            [2023] 2 S.C.R.


A                   those recommendations into the final seniority list dated 20th
                    February, 2018, without any delay.
            ANALYSIS :
            14. We have considered the rival submissions made on behalf of
      the parties and have minutely examined the statutory provisions relied
B     upon by both the sides. In our considered view, the following two questions
      need to be determined to resolve the controversy:
            (I) Whether the inter se seniority of the primary teachers who
            were appointed in the ZP and were later on absorbed into PMC,
            vis-à-vis those primary teachers who directly joined PMC, is to
C           be determined in accordance with Section 3(3)(b) of the MMC
            Act?;
            (II) Alternatively, should such inter se seniority be determined in
            accordance with Section 493 read with Clause 5I of Appendix IV
            of the MMC Act?
D
            Question No. I:
             15. On a cursory look of the legislative scheme behind the MMC
      Act, it is evident that Section 3 falls in Chapter 1, which is captioned as
      ‘PRIMARY’. Since, the MMC Act was enacted in 1949, it has been
      suitably amended from time to time, especially after the insertion of Part
E
      IX-A ‘Municipalities’ in our Constitution with effect from 01.06.1993.
      Article 243Q(1) mandates that, in every State, the following would be
      constituted: (a) A nagar panchayat, for a transitional area, namely, an
      area in transition from rural to urban area; (b) a municipal council for a
      smaller urban area; and (c) a municipal corporation for a larger urban
F     area. The obligation was placed on every State under sub-Article (2) of
      Article 243Q to define ‘transitional area’, ‘a smaller urban area’ or ‘a
      larger urban area’. It is in discharge of this Constitutional obligation that
      the State of Maharashtra also amended the MMC Act thereby providing
      under Section 3(1) that a `larger urban area’ shall be specified by way of
      a Notification to be issued under Article 243Q(2) of the Constitution,
G
      and such an area shall be deemed to be a duly constituted Municipal
      Corporation. Sub-Section (3) further provides that the State Government,
      in consultation with the Corporation, may include or exclude an area
      from within the limits of the Municipal Corporation. It is in this context
      that Clause (b) of sub-section (3) provides that when an area is included
H
   MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA                             993
 KENDRA PRAMUKH SABHA v. PUNE MUNICIPAL CORPORATION AND
                   ORS. [SURYA KANT, J.]

within the limits of the `larger urban area’, any appointments, notifications,   A
notices, taxes, orders, schemes, licenses, permissions, rules, by-laws
issued, imposed or granted, under the MMC Act or any other law which
is for the time being in force in the larger urban area shall, notwithstanding
anything contained in any other law, apply to and be in force in the
additional area, from the date that area in question is included in the city.
                                                                                 B
To simplify, Clause (b) merely states that whatever appointments,
notifications, notices, rules or by-laws etc. are already in force in the
existing ‘larger urban area’ will mutatis mutandis come into force in the
“additional area” which is included by issuing a notification under Clause
(a) of Section 3(3) of the MMC Act.
      16. The purpose of Clause (b) is to ensure that any statutory or           C
administrative decision which has already been enforced by a Municipal
Corporation in its existing larger urban area shall stay in force and will
become applicable automatically in the newly added area also. The
expression ‘appointments’ has to be understood in this context only.
       17. The scope of Clause (b) as a provision is meant to facilitate         D
the inclusion of newly added additional areas and to ensure that such
areas do not remain in a vacuum for want of statutory or administrative
decisions following the cessation of its status as part of the ZP. Clause
(b) of Section (3)(3) is not concerned with the protection of conditions
of service of the employees of the ZP who are absorbed into a Municipal          E
Corporation. When the Legislature never intended to regulate terms and
conditions of the employees who are merged in a Municipal Corporation
due to expansion of ‘larger urban area’, no inference in relation thereto
can be drawn from the plain wording of Section 3(3)(b) of the MMC
Act. The reliance placed by the Appellants on the said provision is, thus,
completely misplaced and is liable to be rejected.                               F

       Question No. II:
       18. Section 493 of the MMC Act reads as follows: -
       “493. Transitory provisions.- The provisions of Appendix IV
       shall apply to the constitution of the Corporation and other matters      G
       specified therein.”
      It may be seen that the provisions of Appendix (IV) shall apply to
the constitution of the Corporation and other matters specified therein.
Clause (1) of Appendix (IV) pertains to ‘construction of reference in
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994            SUPREME COURT REPORTS                          [2023] 2 S.C.R.


A     other enactments’ whereas Clause 2 provides that all rights of the
      municipality or any other local authority shall, on the date in question,
      vest in the Corporation constituted for the said area. Clauses (3) and (4)
      deal with ‘sums due’ and ‘debts, obligations, contracts and pending
      proceedings’, respectively.
B           19. Clause (5) thereafter reads as follows:-
                                 “APPENDIX IV
            TRANSITORY PROVISIONS
            1. Construction of references in other enactments. ….
C           2. Transfer of rights.- …
            3. Sums due. - ….
            4. Debts, obligations, contracts and pending proceedings.
            - ….
D           5. Continuation of appointments, taxes, budget estimates,
            assessments, etc. – Save as expressly provided by the provisions
            of this Appendix or by a notification issued under paragraph 22 or
            order made under paragraph 23, -
            (a) any appointment, notification, notice, tax, order, scheme,
E           licence, permission, rule, bye-law or form made, issued, imposed
            or granted under (the area constituted to be a City immediately,
            before the appointed day shall, in so far as it is not inconsistent
            with the provisions of this Act, continue in force until it is
            superseded by any appointment, notification, notice, tax, order,
            scheme, licence, permission, rule, bye-law, or form made, issued,
F           imposed or granted under this Act or any other law as aforesaid,
            as the case may be;
            (b) all budget estimates, assessments, valuations, measurements,
            and divisions made under (the Maharashtra Municipalities Act,
            1965) or any other law in force in any area constituted to be a
G           City immediately before the appointed day shall in so far as they
            are consistent with the provisions of this Act, be deemed to have
            been made under this Act;
            (c) all officers and servants in the employ of the said municipality
            or local authority immediately before the appointed day shall be
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   MAHARASHTRA RAJYA PADVIDHAR PRATHAMIK SHIKSHAK VA                                995
 KENDRA PRAMUKH SABHA v. PUNE MUNICIPAL CORPORATION AND
                   ORS. [SURYA KANT, J.]

       officers and servants employed by the Corporation under this Act             A
       and shall, until other provision is made in accordance with the
       provisions of this Act, receive salaries and allowances and be
       subject to the conditions of service to which they were entitled to
       subject on such date:
       Provided that service rendered by such officers and servants                 B
       before the appointed day shall be deemed to be service
       rendered in the service of the Corporation:
       Provided further that it shall be competent to the Corporation to
       discontinue the services of any officer or servant who, in its opinion,
       is not necessary or suitable to the requirements of the municipal            C
       service, after giving such officer or servant, such notice as is
       required to be given by the terms of his employment and every
       officer or servant whose services are so discontinued, shall be
       entitled to such leave, pension or gratuity as he would have been
       entitled to take or receive on being invalided out of service if this
       Act had not been passed.”                                                    D

                                                           [Emphasis applied]
       20. Clause 5, thus, deals with ‘continuation of appointments’, taxes,
budget estimates, assessments etc.’ and its Sub-Clause (C) specifically
says that all officers and servants under the employment of a municipality          E
or local authority immediately before the appointed day shall be officers
and servants employed by the Corporation under this Act and shall, subject
to other provisions made in accordance with the provisions of this Act,
receive salaries and allowances and be subject to the conditions of service
which were operative on such date. The first proviso provides, crucially,
that service rendered by such officers and servants before the                      F
appointment date shall be deemed to be service rendered in the service
of the Corporation itself.
         21. There is no dispute regarding the fact that Clause 5(c), including
its first proviso, occupies this field of law till date. The provision explicitly
deals with protection of conditions of service of the officers and servants         G
who were earlier employed in a local authority like a ZP, and who have
been subsequently absorbed into a Municipal Corporation. It expressly
protects their service rendered by them in the local authority before the
appointed day and further provides that it shall be considered as service
rendered in the Municipal Corporation itself. Given the existence of this
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996              SUPREME COURT REPORTS                         [2023] 2 S.C.R.


A     unambiguous provision, the only logical conclusion is that the service
      rendered by Respondent Nos. 5 to 79 in the ZP has to be treated as
      service rendered in the PMC. Such service, therefore, has to be counted
      towards the determination of their seniority as well. There is no infirmity
      in the view taken by the High Court in this regard.
B            22. Additionally, Clause (5) of Appendix IV starts with the
      expression ‘continuation’ of appointments. The word ‘continuation’
      connotes ‘without interruption’. It is an unbroken and consistent state of
      affairs or operation of something. In other words, the service rendered
      by Respondent Nos. 5 to 79 in the ZP is consistent and unbroken and it
      remains in existence even after their absorption into the PMC as a result
C     of the statutory protection embodied under Clause (5) of Appendix (IV)
      read with Section 493 of the MMC Act.
             23. The appellant’s attempt to invoke estoppel against Respondent
      Nos. 5 to 79 for their failure to challenge the report of the PMC
      Committee does not assist its case. Firstly, the PMC Committee was not
D     competent to make any administrative recommendation dehors the
      Government Resolution dated 13.08.1990. Secondly, the cause of action
      to launch the challenge arose in the first place only when final seniority
      list was issued on 20.02.2018. Soon thereafter, Respondent Nos. 5 to 79
      approached the High Court, thus, dispelling any notion of them having
E     slept on their rights. They cannot be said to have acquiesced to the
      adverse decision taken against them and neither there is any delay or
      latches on their part. Appellant’s objection on this ground is untenable
      and must be rejected.
             CONCLUSION:
F            24. For the aforementioned reasons, we do not find any merit in
      this appeal which is, accordingly, dismissed.
             25. All pending applications, if any, stand disposed of.

      Divya Pandey                                                Appeal dismissed.
G     (Assisted by : Roopanshi Virang, LCRA)




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