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Supreme Court of India

STATE OF UTTARANCHALversusALOK SHARMA & ORS.

Citation
2009 INSC 502
Decided
15 April 2009
Disposal
Appeal(s) allowed

Holding

The circular letters were not notified orders; the conditions of the 1991 Rules were not complied with, so the petitioners had no enforceable right to absorption and the High Court orders were set aside.

Summary

The Supreme Court examined whether circular letters issued by the Uttar Pradesh Government in 1995 and 1996 could be treated as the "notified orders" required under the Uttar Pradesh Absorption of Retrenched Employees of Government of Public Corporations in Government Services Rules, 1991, which mandated a cut‑off date of 1 October 1986 for eligibility. The Court held that the circulars were not notified orders and therefore did not create any legal right for the retrenched employees appointed after the cut‑off date to claim absorption. Consequently, the High Court judgments directing the State to appoint those employees were set aside, though any amounts already paid to them would not be recovered. The appeals were allowed and the orders directing absorption were recalled.

Issues considered

  • Whether the circular letters of 30 December 1995 and 26 February 1996 constitute a "notified order" under Rule 3(1) of the 1991 Rules.
  • Whether the cut‑off date of 1 October 1986 and the conditions precedent for absorption violate Article 14 of the Constitution.
  • Whether employees appointed after the cut‑off date can claim a right to absorption under the Rules.
  • Whether executive circulars can modify statutory rules framed under the proviso to Article 309 of the Constitution.
  • Whether amounts paid to the respondents under the impugned orders can be recovered.

Legislation cited

Subjects

service lawretrenched employeesabsorptionstatutory rulescircularsmandamusArticle 14Article 309U.P. Reorganisation Actback wages

Judgment

                              (2009] 7 S.C.R. 1

j
                         STATE OF UTTARANCHAL                           A
                                     V.
                          ALOK SHARMA & ORS.
                   Civil Appeal Nos. 2444-2445 of 2009
                              APRIL 15, 2009
                                                                        B
                (S.B. SINHA AND CYRIAC JOSEPH, JJ.)
    1        Service Law:
             Uttar Pradesh Absorption of Retrenched Employees of
        Public Corporations in Government Service Rules, 1991:          c
              Rule 2(c), 3(1) - Retrenched employees -Absorption of
        - Circular issued by the State Government - Subsequent
        circular issued in continuation of the earlier one which provided
        for a cut-off date - Both the Circulars to be read together- If
        the respondents were kept outside the purview of the said D
        circulars, indisputably they cannot be said to have derived
        any legal right so as to enable them to pray for issuance of a
        writ of mandamus - Impugned judgments set aside - Any
        amount paid to the respondents not to be recovered - U.P
        Reorganisation Act, 2000, Section 2(g) - Constitution of India, E
        1950, Articles 12, 14, 142.
             Secretary, State of Karnataka & Ors. Vs. Umadevi (3) and
~~
        Ors. (2006) 4 SCC 1 - followed.
              Post Master General, Kolkata & Ors. Vs. Tutu Das (Dutta)
                                                                       F
        (2007) 5 SCC 317; State of Punjab vs. Bahadur Singh & Ors.
        2009 (1) SCALE 316; Official Liquidator vs. Dayanand & Ors.
        (2008) 10 SCC 1; State of Bihar vs. Upendra Narayan Singh
        & Ors. 2009 (4) SCALE 282; Punjab State Warehousing
        Corpn., Chandigarh vs. Manmohan Singh & Anr. (2007) 9
        SCC 337; Kendriya Vidyalaya Sangathan vs. Sajal Kumar G
        Roy (2006) 8 SCC 671; State of Karnataka & Anr. Vs. R.
        Vivekananda Swamy (2008) 5 SCC 328 and Punjab State
        Electricity Board & Ors. Vs. Gurmail Singh (2008) 7 SCC 245
        - relied on.
                                      1                                H
     2         SUPREME COURT REPORTS                  [2009] 7 S.C.R.


 A       CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.               '\
     2444-2445 of 2009
          From the Judgement and Order dated 20.09.2005 of the
     Hon'ble Hight Court of Uttaranchal at Nainital is Special Appeal
-B   No. 56 and 57 of 2005
                                  WITH
          Civil Appeal Nos. 2453 of 2009                                ~-



          Civil Appeal Nos. 2463 of 2009
 c        Civil Appeal Nos. 2465 of 2009
          Civil Appeal Nos. 2455 of 2009
          Civil Appeal Nos. 2457 of 2009

 D        Civil Appeal Nos. 2459 of 2009
          Civil Appeal Nos. 2461 of 2009
          Civil Appeal Nos. 2448 of 2009
          Civil Appeal Nos. 2463 of 2009
 E
          Civil Appeal Nos. 2451 of 2009
          Civil Appeal Nos. 2466 of 2009
          Civil Appeal Nos. 2450 of 2009
 F        Civil Appeal Nos. 2468 of 2009
          Civil Appeal Nos. 2470 of 2009
         Pinky Anand, M.N. Rao, Ratnakar Dash, Abhay Prakash
   Sahay, Jatinder Kumar Bhatia, Rac;;hana Srivastava, Nurullah,
 G Promila, Deba Prasad Mukherjee, Fuzail Khan, Anuvrat Sharma,
   Nikilesh Ramachandran, Shirish Kumar Mishra, with them for
   the Appearing Parties.
          The Judgement of the Court was delivered by
 H
           STATE OF UTIARANCHAL V. ALOK SHARMA & ORS.               3


  "        S.B. SINHA, J.                                                A
           1. Leave granted.

            2. Interpretation and/ or application of various circular
      letters issued by the State of Uttar Pradesh which have been
      adopted by the State of Uttarakhand after it was formed in terms   B
      of the U.P. State Reorganisation Act is in question in these
      appeals.
  1
            3. Two government companies being M/s. Teletronix Ltd.
      and Kumaon Television Ltd. were the subsidiary companies of
      Kumaon Mandal Vikas Nigam Ltd. The employees of the said           c
      government companies were retrenched. The State of Uttar
      Pradesh took a policy decision to appoint the employees of the
      said government companies. For the said purpose, it framed
      rules purported to be in exercise of its power under the proviso
      appended to Article 309 of the Constitution of India, known as     D
      the Uttar Pradesh Absorption of Retrenched Employees of
      Government of Public Corporations in Government Services
      Rules, 1991 (for short "the Rules").
            4. The term "retrenched employee" is defined in Rule 2(c)
                                                                         E
      of the Rules as under:

           "(c) "retrenched employee" means a person who was
-j·        appointed on a post under the Government or a public
           corporation on or before October 1, 1986 in accordance
           with the procedure laid down for recruitment to the post F
           and was continuously working in any post under the
           Government or such corporation upto the date of his
           retrenchment due to reduction in, or winding up of, any
           establishment of the Government or the public corporation,
           as the case may be and in respect of whom a certificate
                                                                      G
           of being a retrenched employee has been issued by his
           appointing
                    I
                       authority."
           The charging provision is contained in Rule 3(1) of the ·
      Rules, which reads as under:
                                                                         H
    4          SUPREME COURT REPORTS                    [2009] 7 S.C.R.


A        "3(1) Notwithstanding anything to the contrary contained
         in any other service rules for the time being in force, the
         State Government may by notified order require the
         absorption of the retrenched employees in any post or
         service under the Government and may prescribe the
8        procedure for such absorption including relaxation in
         various terms and conditions of recruitment in respect of
         such retrenched employees."

       5. Admittedly, except Karan Pal, respondent No. 1 in Civil
C Appeal arising out of SLP (C) No. 6451 of 2005 who was
  appointed in the month of January, 1980 and Vijay Kumar Joshi,
  respondent No. 1 in Civil Appeal arising out of SLP (C) No.
  8239 of 2005 who was appointed on 1.07 .1983 (they were
  absorbed in the services of the State on 14.12.2005), other
D respondents herein were appointed after the cut-off date
  provided for in the Rules, viz., 1.10.1986.

          6. It also does not appear that pursuant to or in furtherance
    of the provisions contained in Rule 3(1) of the Rules, the State
    Government has issued any notified order requiring absorption
E   of retrenched employees in any post or service under the
    Government or prescribed any procedure therefor including
    relaxation in various terms and conditions of recruitment in
    relation to the retrenched employees.

         The State of Uttar Pradesh, however, issued a letter to the
F   Managing Director of Kumaon Manda! Vikas Nigam Ltd on
    30.12.1995. While informing that approval has been granted
    by the Governor for winding up of the aforementioned
    companies, it was stated:

G        "3. Order for adjustment of the employees retrenched in
         resu It of the winding up of the aforesaid units and relaxation
         in age will be issued separately by the Personnel
         Department.
        . 4.   Retrenched employees will be adjusted/ re-appointed
H
          STATE OF UTTARANCHAL V. ALOK SHARMA & ORS.                 5
                         [S.B. SINHA, J.)

          on their equivalent posts in view of their qualification in    A
          Kumaun Manda!."

          7. It is contended that in terms of paragraph 3 of the said
    circular letter, no such order had been issued by the Personnel
    Department of the State of Uttar Pradesh. However, it appears
    that the Secretary to the Government of Uttar Pradesh issued a       B
    letter addressed to all Principal Secretaries I Secretaries of
    the Government of Uttar Pradesh, all Heads of the Departments
t
    and all Commissioners, Uttar Pradesh stating that on
    humanitarian ground a decision has been taken by the State for
    adjustment of the employees/ officers retrenched from the said       c
    units, subject to the terms and conditions laid down therein;
    some of which are inter alia being:

         "(1) For the Government/ Corporations/ Enterprises
         service only such employees will be eligible whose
                                                                         D
         services had been regularized with M/s. Teletronics and
         Kumaun Television Limited, the sister units of Kumaun
         Mandal Vikas Nigam Limited on or before 1st October
         1986 and have been continuously working with the
         aforesaid Teletronics and Kumaun Television· on the date
         of its winding up."                                             E

         The said orders were issued with the consultation and
    approval of the Personnel Department.

         8. As despite framing of the aforementioned rules and
    issuance of the aforementioned circulars, respondents had not        F
    been absorbed· in the services of the State, they filed writ
    applications before the High Court of Uttaranchal.

          9. The case ofVijay Kumar Joshi, respondent No. 1 in the
    Civil Appeal arising out of SLP (C) No. 8239 of 2005 was
                                                                         G
    decided first wherein having regard to the fact that he was
    appointed prior to the cut-off date, his writ petition was allowed
    by an order dated 03.11.2004. Following the said judgment,
    other writ petitions were also allowed by an order dated
    6.06.2005, noticing:
                                                                         H
    6         SUPREME COURT REPORTS                   [2009]7 S.C.R.


A        "Learned Counsel for the petitioners has filed the copy of
         the judgment passed in Civil Writ Petition No. 6609 of
         2001 (S/S) Vijay Kumar Joshi & others Vs. State of Uttar
         Pradesh & others and has submitted that this Court has
         allowed the writ petition of certain other retrenched
B        employees with the directions that the State of Uttar
         Pradesh and the counter part of respondent No. 1 and 2
         i.e. Director, Training and Employment, Government of
         U. P., Lucknow, in the State of Uttaranchal to give
         appointment to the petitioners in suitable post in
c        compliance of the Government Orders dated 30.12.1995
         and 26.02.1996 with full salary w.e.f. 1st April, 1996."
        10. Intra-court appeals preferred thereagainst were
  dismissed by the High Court opining that this Court had issued
  limited notice in the special leave petitions filed thereagainst. It
D was held:                                                              ~

         "Similar controversy was involved in earlier Civil Writ
          Petition No. 1322/2003 (S/S) which was decided by the
         Court per judgment dated 26.10.2004 and the State
         instead of preferring Special Appeal before the Division
E        Bench went up in S.L.P. before the Hon'ble Supreme Court
         S.L.P. (Civil) No. 6451/2005 was registered and by order
         dated 7.3.2005 the Hon'ble Judges of the Apex Court
         admitted the S.L.P. only on the point of direction of payment
         of back wages to that petitioner. Learned Brief Holder for
F        the State submits that the petitioners of the earlier Writ
         Petition [(1322/2003(S/S)) had already been given
         appointment in compliance of the order dated 26.10.2004.
         There can be no controversy that the respondent -
         petitioners shall also be placed on same footing by the
G        State in regard to·the compliance to the direction of the
         Court regarding appointment as contained in the
         impugned judgment dated 6.6.2005 and the respondent
         - petitioners have to be given appointment in the
         establishments of the State as observed in the judgment
H        under appeal."
            STATE OF UTIARANCHAL V. ALOK SHARMA & ORS.                7
                           [S.S. SINHA, J.]
   ~        11. Ms. Pinki Anand, learned Addi. Advocate General A
       appearing on behalf of the• State, would submit that the
       respondents herein having not fulfilled the conditions precedent
       for application of the said circulars dated 30.12.1995 and
       26.02.1996 as they were appointed after the cut-off date, and
       as they had not been working continuously and furthermore as B
       no notification was issued by the Personnel Department, the
       impugned judgments cannot be sustained.
  ·I
              1.t was furthermore contended that in terms of the Rules,
       notified orders were required to be issued and the said condition
       having not been complied with, the Rules could not be said to       c
       have come into force. Statutory rules, it was urged, could not
       have been superseded, modified ·or altered by reason of
       executive instructions as the procedures laid down for making
       a rule were required to be followed therefor.
                                                                          D
             12. Ms. Rachana Srivastava, learned counsel appearing
       on behalf of the Kumaon Mandal Vikas Nigam Ltd., would
       contend that the names of the candidates should have been in
       the rolls of the employment exchange. In any event, as the names ·
       of the companies having not been mentioned in the IX Schedule
       appended to the U.P. Reorganisation Act, 2000, as envisaged E
       under Section 66 thereof, the State of Uttarakhand and for that
       matter, her client had no liability to pay any amount in regard to
       the dues of the companies.
            13. Mr. M.N. Rao, learned senior counsel and Mr. Deba          F
       Prasad Mukherjee, learned counsel, appearing on behalf of the
       respondents, on the other hand, urged:
            (i)    Notices having been issued limited to the payment
                   of back wages in two matters, this Court should not
                   exercise its discretionary jurisdiction as the G
·--1
                   respondents are ready and willing to forego their
                   claim for back wages.
            (ii)   In Civil Appeal arising out of SLP (C) No. 6451 of
                   2005 [State of U.P. & Anr. v. Karan Pal & Ors.], the
                                                                           H
    8          SUPREME COURT REPORTS                   [2009] 7 S.C.R.


A              only objection taken by the State being that he did         ~.
               not possess the re~uisite educational qualification,
               the contentions raised before this Court for the first
               time should not be permitted to be raised.
        (iii) A large number of retrenched employees having been
B             absorbed in the services of the State pursuant to the
              aforementioned circular letters although their initial
              appointment took place after the cut-off date, viz.,
              1.10.1986, respondents herein must be held to have           f

              been discriminated against.
c
        (iv) The State itself having absorbed the employees in
             its services despite fixation of cut-off date, the same
             would amount to grant of suo motu relaxation by the
             State and in that view of the matter respondents being
             similarly situated are entitled to be treated alike.
D                                                                          .
        (v)    Some of the respondents being respondent Nos. 5
               and 6 in Civil Appeal arising out of SLP (C) No.
               12526 of 2007, respondent Nos. 1 and 3 in Civil
               Appeal arising out of SLP (C) No. 3241 of 2006
E              having been appointed temporarily and working in
               that post, the other respondents, in particular
               respondent Nos. 1 and 2 in Civil Appeal arising out
               of SLP (C) Nos. 2171-2172 of 2006, respondent in
               Civil Appeal arising out of SLP (C) No. 3242 of 2006
F              are out of job which itself go to show that the appellant
               had not been taking the same stand in the case of
               similarly situated persons.
        (vi)   Even if the circular letters are held to be not
               applicable, the principles of industrial law, viz., last-
G              cum-first-go should be applied in this case.
        (vii) The employees of the erstwhile companies having                  .._
              been subjected to gross injustice, this Court should
              not exercise its discretionary jurisdiction under Article
              136 of the Constitution of India.
H
                  STATE OF UTTARANCHAL V. ALOK SHARMA & ORS.                   9
                                 [S.B. SINHA, J.]

 '     ).         14. The relationship between the respondents herein and           A
            the said government companies was that of employee and
            employer. The companies under liquidation although were
            incorporated and registered under the Companies Act, 1956,
            they are 'State' within the meaning of Article 12 of the Constitution
            of India. As a 'State', therefore, they were bound to comply with       B
            the equality clause contained in Articles 14 and 16 of the
            Constitution of India; in terms whereof cases of all the eligible
       ~    candidates for appointment were required to be considered.
            Recruitment in government service must be carried out in terms
            of the Rules framed under a statute or the proviso appended to          c
            Article 109 of the Constitution of India.

                  15. In Secretary, State of Karnataka and Others v.
            Umadevi (3) and Others [(2006) 4 SCC 1], a Constitution Bench
            of this Court while laying emphasis on the strict application of
       r    the principles of equality clauses contained in Articles 14 and D
            16 of the Constitution of India, held:
                 "37. It is not necessary to multiply authorities on this aspect.
                 It is only necessary to refer to one or two of the recent
                 decisions in this context. In State of U.P. v. Neeraj Awasthi
                 this Court after referring to a number of prior decisions E
                 held that there was no power in the State under Article 162
                 of the Constitution to make appointments and even if there
     '"i,        was any such power, no appointment could be made in
                 contravention of statutory rules. This Court also held that
                 past alleged regularisation or appointment does not . F
                 connote entitlement to further regularisation or
                 appointment. It was further held that the High Court has no
                 jurisdiction to frame a scheme by itself or direct the framing
                 of a scheme for regularisation. This view was reiterated in
                 State of Karnataka v. KGSD Canteen Employees' Welfare G
                 Assn."
     ...;
                 It was furthermore opined:
                 "43. Thus, it is clear that adherence to the rule of equality
                 in public employment is a basic feature of our Constitution· H


..
    10        SUPREME COURT REPORTS                     [2009] 7 S.C.R.


A         and since the rule of law is the core of our Constitution, a      ~

          court would certainly be disabled from passing an order
          upholding a violation of Article 14 or in ordering the
          overlooking of the need to comply with the requirements
          of Article 14 read with Article 16 of the Constitution.
B         Therefore, consistent with the scheme for public
          employment, this Court while laying down the law, has
          necessarily to hold that unless the appointment is in terms
          of the relevant rules and after a proper competition among        ~   /



          qualified persons, the same would not confer any right on
          the appointee. If it is a contractual appointment, the
c          appointment comes to an end at the end of the contract,
           if it were an engagement or appointment on daily wages
           or casual basis, the same would come to an end when it
           is discontinued. Similarly, a temporary employee could
           not claim to be made permanent on the expiry of his term
D
           of appointment. It has also to be clarified that merely
           because a temporary employee or a casual wage worker
           is continued for a time beyond the term of his appointment,
           he would not be entitled to be absorbed in regular service
           or made permanent, merely on the strength of such
E          continuance, if the original appointment was not made by
           following a due process of selection as envisaged by the
           relevant rules. It is not open to the court to prevent regular
           recruitment at the instance of temporary employees whose
           period of employment has come to an end or of ad hoc
                                                                            "
F          employees who by the very nature of their appointment,
           do not acquire any right. The High Courts acting under
          Article 226 of the Constitution, should not ordinarily issue
           directions for absorption, regularisation, or permanent
           continuance unless the recruitment itself was made
G          regularly and in terms of the constitutional scheme. Merely
           because an employee had continued under cover of an
                                                                            ~
         . order of the court, which we have described as "litigious
           employment" in the earlier part of the judgment, he would
           not be entitled to any right to be absorbed or made
H          permanent in the service. In fact, in such cases. the High


                                                                                    ..
       STATE OF UTTARANCHAL V. ALOK SHARMA & ORS.                   11
                      [S.S. SINHA, J.]
J.:
       Court may not be justified in issuing interim directions, A
       since, after all, if ultimately the employee approaching it is
       found entitled to relief, it may be possible for it to mould
       the relief in such a manner that ultimately no prejudice will
       be caused to him, whereas an interim direction to continue
       his employment would hold up the regular procedure for B
       selection or impose on the State the burden of paying an
       employee who is really not required. The courts must be
       careful in ensuring that they do not interfere unduly with the
       economic arrangement of its affairs by the State or its
       instrumentalities or lend themselves the instruments to c
       facilitate the bypassing of the constitutional and statutory
       mandates."
       It was, however, observed:
       "53. One aspect needs to be clarified. There may be cases
                                                                          D
       where irregular appointments (not illegal appointments)
       as explained in S.V. Narayanappa, R.N. Nanjundappa and
       B.N. Nagarajan and referred to in para 15 above, of duly
       qualified persons in duly sanctioned vacant posts might
       have been made and the employees have continued to
       work for ten years or more but without the intervention of         E
       orders of the courts or of tribunals. The question of
       regularisation of the services of such employees may have
~
       to be considered on merits in the light of the principles
       settled by this Court in the cases abovereferred to and in
       the light of this judgment. In that context, the Union of India,   F
       the State Governments and their instrumentalities should
       take steps to regularise as a one-time measure, the
       services of such irregularly appointed, who have worked
       for ten years or more in duly sanctioned posts but not
       under cover of orders of the courts or of tribunals and            G
·-'/   should further ensure that regular recruitments are
       undertaken to fill those vacant sanctioned posts that require
       to be filled up, in cases where temporary employees or
       daily wagers are being now employed. The process must
       be set in motion within six months from this date. We also         H
    12        SUPREME COURT REPORTS                    [2009] 7 S.C.R.


A        clarify that regularisation, if any already made, but not sub
         judice, need not be reopened based on this judgment, but
                                                                           "'
         there should be no further bypassing of the constitutional
         requirement and regularising or making permanent, those
         not duly appointed as per the constitutional scheme.
B        54. It is also clarified that those decisions which run counter
         to the principle settled in this decision, or in which
         directions running counter to what we have held herein,           f
         will stand denuded of their status as precedents."

c      The aforementioned dicta laid down in Umadevi (supra)
  has been followed by this Court in a large number of cases.
  [For example, see Post Master General, Kolkata and Others
  v. Tutu Oas (Dutta) (2007) 5 SCC 317, State of Punjab v.
  Bahadur Singh and Ors., 2009 (1) SCALE 316 Official
  Liquidator v. Dayanand and Others (2008) 10 SCC 1, State of              -~

D
  Bihar v. Upendra Narayan Singh & Others 2009 (4) SCALE
  282]
        16. In case of liquidation of the companies, the employees
  were entitled to back wages and other amounts by way of
E compensation as may be admissible to them under the Industrial
  Disputes Act, 1947. The State, however, framed the Rules
  purported to be in exercise of its power under the proviso to
  Article 309 of the Constitution of India. Validity of the said Rules      ~

  is not under challenge. For the purpose of invoking the
F provisions  of the Rules, however, the employee concerned must
  be a retrenched employee. In view of the definition of retrenched
  employee, as contained in Rule 2(c) of the Rules, appointment
  should have taken place on or before 1.10.1986.
        17. The conditions for application of the Rules do not stop
G there. The Rules envisage issuance of notified order notifying
  absorption of the retrenched employee. The procedures therefor            >-
  including relaxation of various terms and conditions of
  recruitment, if any, were required to be prescribed. It is
  conceded at the bar that a statutory rule cannot be modified or
H altered by reason of an executive instruction far less by way of a
                  STATE OF UTTARANCHAL V. ALOK SHARMA & ORS.               13
'=1                              [S.B. SINHA, J.]
       ~     circular letter. It has been so held in Punjab State Warehousing    A
             Corpn., Chandigarh v. Manmohan Singh and Another [(2007)
             9 sec 337], stating:
                  "12. Furthermore, when the terms and conditions of the
                  services of an employee are governed by the rules made
                  under a statute or the proviso appended to Article 309 of      B
                  the Constitution of India laying down the mode and manner
       el
                  in which the recruitment would be given effect to, even no
                  order under Article 162 of the Constitution of India can be
                  made by way of alterations or amendments of the said

 -                rules. A fortiori if the recruitment rules could not be
                  amended even by issuing a notification under Article 162
                                                                                 c
                  of the Constitution of India the same cannot be done by
                  way of a circular letter."
                   18. Keeping in view the principles laid down by the
                                                                                 D
             Constitution Bench of this Court in Umadevi (supra), there
             cannot be any doubt whatsoever that any condition laid down in
             any rules which is in derogation of the recruitment rules framed
             by the State, should receive strict construction.
                    19. The learned Single Judge committed an error insofar      E
             as it proceeded on the basis that the decision of the High' Court
             in Vijay Kumar Joshi was not under challenge. Vijay Kumar Joshi
      -;     is subject matter of the Civil Appeal arising out of SLP(C) No.
             8239 of 2005. The High Court also failed to take into
             consideration that the circular letters dated 30.12.1995 arid       F
             26.02.1996 being not notified orders as envisaged in the Rules
             would not be law within the meaning of Article 13 of the
             Constitution of India.
                   20. The High Court did not find that the cut-off date to be
             arbitrary or discriminatory and was, thus, liable to be struck G
      ·-'I
             down being ultra vires Article 14 of the Constitution of India. It
             did not hold that the conditions precedent contained in the Rules
             prescribing procedure for such recruitment and/ or grant of
             power of relaxation have been complied with. An authority, unless
             a power is conferred on it expressly, cannot exercise a statutory H
    14       SUPREME COURT REPORTS                   [2009] 7 S.C:R.


A power. Power of relaxation must be specifically conferred. Such
  power having been envisaged to be conferred by reason of a
  rule made under the proviso appended to Article 309 of the
  Constitution of India, the contention of the learned counsel for
  the respondents that relaxation must be deemed to have been
B granted cannot be accepted.
         In Kendriya Vidya/aya Sangathan v. Saja/ Kumar Roy
    [(2006) 8 sec 671], this Court held:                                I

         "11. The respondents are not members of the Scheduled
c        Caste or Scheduled Tribe. Age-limit is prescribed for
         appointment to the general category of employees. The
         upper age-limit for appointment to the post of LDC is 25
                                                                            -
         years. The advertisement also says so. The Rules, as
         noticed hereinbefore, are in two parts. The first part talks
         about the age-limit. The second part provides for
D
         relaxation. Such relaxation can be granted for the purpose
         specified i.e. in favour of those who answered the
         descriptions stated therein. Relaxation of age-limit even
         in relation to the Scheduled Caste and the Scheduled
         Tribe candidates or the retrenched Central Government
E        employees, including the defence personnel is, however,
         not automatic. The appointing authorities are required to
         apply their mind while exercising their discretionary
         jurisdiction to relax the age-limits. Discretion of the
         authorities is required to be exercised only for deserving
F        candidates and upon recommendations of the Appointing
         Committee/Selection Committee. The requirements to
         comply with the rules, it is trite, were required to be
         complied with fairly and reasonably. They were bound by
         the rules. The discretionary jurisdiction could be exercised
G        for relaxation of age provided for in the rules and within
         the four corners thereof. As the respondents do not come
         within the purview of the exception contained in Article 45
         of the Education Code, in our opinion, the Tribunal and
         consequently, the High Court committed a manifest error
H        in issuing the aforementioned directions."
          STATE OF UTTARANCHAL V. ALOK SHARMA & ORS.                15
                         [S.B. SINHA, J.]

           [See also State of Karnataka and Another v.                    A
     R. Vivekananda Swamy (2008) 5 SCC 328]
           21. It is in the aforementioned backdrop, the circular letters
     dated 30.12.1995 and 26.02.1996 are required to be construed.
     Although in the former, no cut-off date as such has been
                                                                          8
     mentioned and paragraph 4 thereof refers to retrenched
     employees, by reason whereof they were to be adjusted/ re-
     appointed on their equivalent posts in view of their qualification
     in Kumaun Mandal, the term 'retrenched employees' would carry ·
     the same meaning as contained in the rules. Furthermore, the
     circular letter dated 26.02.1996 was issued in continuation of C
     the earlier letter dated 30.12.1995, which provided for a cut-off
     date. Both the circular letters are to be read together. If, thus,
     the respondents were kept outside the purview of the said
     circular letters, indisputably, they cannot be said to have derived
                                                                          0
     any legal right so as to enable them to pray for issuance of a
     writ of or in the nature of mandamus.

            22. Our attention has been drawn to an additional affidavit
     filed by the respondents wherein inter alia it has been shown
     that a large number of employees who had been absorbed were          E
     initially appointed after 1.10.1986.

          Article 14 carries with it a positive concept. It would have
     no application in the matter of enforcement of an order which
     has its source in illegality. In other words, equality cannot be
     applied in illegality. [See Post Master General, Kolkata (supra)     F
     and Punjab State Electn"city Board and Others v. Gurmai/ Singh
     (2008) 7 sec 245]
           23. Moreover, the matter relating to division of assets of a
     government company which had been functioning in the State G
-"   of Uttar Pradesh as also in the territories forming the State of
     Uttarakhand could be given effect to only in terms of notified
     order as contemplated in Section 2(g) of the U.P. Reorganisation
     Act, 2000 defining it to mean "an order published in the Official
     Gazette". It has not been denied or disputed that the name of H
    16       SUPREME COURT REPORTS                   [2009] 7 S.C.R.


A the two companies do not find place in the IXth Schedule
  appended to the U.P. Reorganisation Act, 2000.
        24. We may furthermore notice that in Civil Appeal arising
  out of SLP (C) No. 8708 of 2006,. the post in which the
  respondent was working has to be filled up on the basis of the
B recommendations of the Public Service Commission. Public
  Service Commission being a constitutional authority, it cannot
  be by-passed by way of a circular letter or otherwise. It,           f
  furthermore, appears that he was employed in another concern.
  In most of the other cases, orders had been passed ex-parte.
c He had also been paid a huge amount pursuant thereto.
         25. For the reasons aforementioned, the impugned
    judgments cannot be sustained, which are set aside accordingly.
                                                                                -
    However, if any amount has been paid to the respondents, the
    same shall not be recovered from them.                             "
D
        26. So far as Civil Appeal arising out of SLP (C) No. 6451
  of 2005 and Civil Appeal arising out of SLP (C) No. 8239 of
  2005 are concerned, although limited notice having been issued
  confining the case to back wages, but keeping in view the order
E passed   in the other cases, we are of the opinion that the said
  order shall be recalled and leave on all points should be granted.
  Respondents being placed similarly should not, in our opinion,
  be treated differently. This order is being passed in exercise of        #

  our jurisdiction under Article 142 of the Constitution of India.
F However, we make clear that if any amount has been paid to
  the said respondents, the same should not be recovered. The
  appeals are allowed with the aforementioned directions. No
  costs.

    G.N.                                          Appeals allowed.
                                                                           ._


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