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Madhya Pradesh High Court · body

1972 DIGILAW 8 (MP)

Nathusingh v. State of M. P.

1972-01-13

A.P.Sen, Vishambhar Dayal

body1972
ORDER A.P. Sen, J. - 1. This is a petition by Nathusingh Chouhan challenging the validity of rule 7 of the M. P. Municipal Services (Scales of Pay and Allowances) Rules, 1967, framed by the State Government under section 95 of the M. P., Municipalities Act, 1961. 2. By virtue of rule 7, the substantive post of a Revenue Inspector in the Municipal Council, Itarsi, which the petitioner was holding on a pay-sca1e of Rs. 40-2-60-EB-2½-80 has been equated with that of a Moharrir in that Council on a pay scale of Rs. 70-2-80-2½-100-EB-4-120, w.e.f. 1st April, 19M, Accordingly, the Chief Municipal Officer, Itarsi, issued an order dated 15th November, 1967, absorbing the petitioner against the post of Moharrir and declaring that the said post shall, for purposes of the rules, be the, post of absorption within the meaning of rule 8. Being aggrieved by such absorption, the petitioner preferred a representation to the Commissioner under rule 12. That representation has been rejected by the Commissioner by his order dated 24th October, 1968, on the ground that under rule 7, the post of Revenue Inspector in the Municipal Council, Itarsi, stands equated with that of a Moharrir in that Council. 3. The circumstances under which equation of posts of municipal employees throughout the State was brought about, shortly stated, are these: With the formation of the new State of M.P. under the States Reorganisation Act, 1956, there came into existence different municipal bodies within the State under the different laws in force in the four integrating units. There was obviously the need to enact a new enactment on the subject to bring about a uniformity in the pattern of municipal administration in the State. The State Legislature accordingly enacted the M.P. Municipalities Act for the constitution of Municipal Councils in the State defining the powers, functions and duties of such Councils under the Act. By section 2 (1), the C. P. and Berar Municipalities Act, 1922, the Madhya Bharat Municipalities Act, 1954, the Vindhya Pradesh Municipalities Act, 1946, and the Bhopal State Municipalities Act, 1955 stood repealed w.e.f. 1st February 1962, when the Act was brought into force. Not with standings the repeal by section 2 (2) (i), all Municipal Committees, Municipal Councils, Municipal Boards and Notified Area Committees, constituted under the repealed enactments were deemed to have been constituted as Municipal Councils under the Act. 4. Not with standings the repeal by section 2 (2) (i), all Municipal Committees, Municipal Councils, Municipal Boards and Notified Area Committees, constituted under the repealed enactments were deemed to have been constituted as Municipal Councils under the Act. 4. Under section 2 (iv) (a) of the Act, all employees belonging to these bodies, were deemed to be the employees of Municipal Councils under the Act. By section 2 (iv) (b), their existing conditions of service were deemed to be their conditions of service under the Act until altered in accordance with the provisions of the Act or the rules made there under. Section 95 of the Act authorised the State Government to frame rules relating to their qualifications, recruitment, appointment, scale of pay.........service conditions etc. 5. There was a felt need to provide for uniformity in the service conditions of municipal employees. The State Government accordingly framed on 29th September, 1967, the M.P. Municipal Services (Scales of Pay and Allowances) Rules, 1967. Under rule 2 (i), the expression "appointed date" was defined to mean 1st April, 1964, rule 3 classified all Municipal Councils into four different categories, depending upon their annual income. Rule 6 provided for the departmental set up of each Council and prescribed the number of posts in each department, as specified in Schedule II and III respectively. The set up was deemed to have taken effect on the appointed date. Under Schedule III, the post of Revenue Inspector in the Municipal Council, Itarsi, was to have a pay-scale of Rs. 170-170-8-250-EB-10-10-290. Under the new set up, Schedule III further provided that a person holding the post of Revenue Inspector must possess the following educational or other qualification: Revenue Inspector:- For direct recruitment- Graduate of a recognised University. Preference will be given to diploma holders in Local Self Government. For depart mental promotees: Certificate of having passed the Higher Secondary School Examination with previous experience of at least 3 years on the revenue side. Admittedly, the petitioner did not have these qualifications to hold the post of Revenue Inspector. Nor did he ever hold a post on a pay-scale in that Council of Rs. 170,170-8-250-EB-10-290. 6. For depart mental promotees: Certificate of having passed the Higher Secondary School Examination with previous experience of at least 3 years on the revenue side. Admittedly, the petitioner did not have these qualifications to hold the post of Revenue Inspector. Nor did he ever hold a post on a pay-scale in that Council of Rs. 170,170-8-250-EB-10-290. 6. It is urged by learned counsel for the petitioner that fir3tly, rule 7 is ultra vires the State Government as no rule relating to equation of posts held by municipal employees could be framed under section 95 of the Act and secondly, rule 7 is otherwise invalid, as it has brought about a reduction in rank of the petitioner, by reason of the equation of his post with that of a Moharrir, Tax Collector, Bazar Moharrir, Octroi Inspector (Non-Matric), Octroi Clerk, Revenue Inspector, Suit Moharrir, who are now placed in the same class, though they were all lower in rank to him, under the equation of posts. There is no merit in either of the contentions. 7. The contentions that the framing of a rule for equation of posts of municipal employees was not permissible in terms of section 95 or that sections 2 (iv) (a) and (b) of the Act guaranteed to the petitioner rank and status of a Revenue Inspector proceed on a misconstruction of these provisions. The provisions read as follows : "2 (iv) (a)--all employees belonging to or under the control of the bodies mentioned in clause (i) immediately before the commencement of this Act shall be deemed to be the employees of the Councils under this Act; (b) the conditions of service including the salary, allowances, gratuity, annuity, pensions and other payments required to be made in accordance with the conditions of service existing in respect of the employees of the said bodies immediately before the commencement of this Act shall be deemed to be their conditions of service; including the salary, allowances, gratuity, annuity, pensions, and other payments required to be made in accordance with the conditions of service under this Act until altered in accordance with the provisions of this Act or the rules made thereunder. S. 95. S. 95. The State Government may make rules, in respect of qualification, recruitment, appointment, scale of pay, leave, leave allowance, acting allowance, loans, pension, gratuity, compassionate fund, provident-fund, annuity, dismissal, removal, conduct and other departmental punishment and appeal and service conditions for Municipal employees other than a member of the State Municipal Service." 8. On a plain reading of these provisions, it is clear that while under section 2 (iv) (a) continuity of employment of municipal employees under the new Municipal Councils was guaranteed, the provision contained in section 2 (iv) (b) in respect of their conditions of service, was of a transitory nature. Their existing conditions of service as on 1st February, 1962 were to be their conditions of service under the Act "until they were altered in accordance with the provisions of the Act or the rules made thereunder". The decision in State Bank of Travancore v. Elias and others 1970 (2) SC Cases 761, is distinguishable on facts. There, section 45 (4) (1) (ii) of the Banking Regulation Act guaranteed to the employees not only the terms of their employment but also their existing conditions of service including their rank and status. There was no such guarantee contained in section 2 (iv) (a) & (b) of the Act. 9. Equation of posts is a compendious expression to indicate the change in the service conditions of individual employees. It only means that from the date of equation the new service conditions applicable to the new post will apply to those who are equated and absorbed into it. Since section 95 of the Act permits change of service conditions, it was competent for the State Government to make rules under which such a change is effected, whatever be the expression used to bring about the change. Learned counsel for the petitioner relied upon Narayan Chandra Mukherjee v. State of M.P. and others 1970 JLJ 653 = 1969 MPLJ 751 , and A.J. Patel and others v. The State of Gujarat and others AIR 1965 Guj 23 , for the proposition that equation of posts is not included within the authority to make rules for "service conditions". The contention advanced by him cannot be accepted. The decisions relied upon are clearly distinguishable. Those were cases under the States Reorganisation Act. There, the old service conditions were guaranteed to the public servants which could not be changed to their detriment. The contention advanced by him cannot be accepted. The decisions relied upon are clearly distinguishable. Those were cases under the States Reorganisation Act. There, the old service conditions were guaranteed to the public servants which could not be changed to their detriment. Therefore, the power to make rules for service conditions was very limited. It was in those circumstances that the expression "conditions of service", appearing in a different context, came to be interpreted. The cases relied upon have, therefore, no application to the facts of the present case. 10. Besides, the cases lay down the principle that rules relating to recruitment of persons to different services and posts are distinct from rules relating to conditions of service. Section 95 of the Act, in terms, not only permits the framing of rules by the State Government regulating terms and conditions relating to recruitment and appointment to municipal posts, but also confer powers on the State Government to make rules regulating the conditions of service governing persons on their appointment to such municipal services and posts. The competence of the State Government to frame rule 7 of the M.P. Municipal Services (Scales of Pay and Allowances) Rules, 1967, cannot, therefore, be challenged. 11. The State Government while framing rule 7 was not, in effect, trying to integrate the employees of all Municipal Councils throughout the State into a municipal service. After the equation of posts, the petitioner cannot complain of a reduction in rank under the new set up, his post is that of a Moharrir, which is the post of absorption. He does not hold the educational or other qualifications of the post of Revenue Inspector and, therefore, has no right to hold that post. Indeed, the petitioner stands to gain. He was previously on a pay-scale of Rs. 40-2-60-B-2 1/2-85, while now in his redesignated post of a Moharrir he is placed on a pay-scale of Rs. 70-2-80-2-1/2-100-EB-4-120. The circumstance that he now stands equated with Moharrir, Tax Collector, Bazar Moharrir, octroi Inspector (Non-Matric), Octroi Clerk, Revenue Inspector, Suit Moharrir is a matter of pure accident which consequence usually flows upon equation of posts. 12. The petition, therefore, fails and is dismissed with costs. Hearing fee Rs. 100/-. The outstanding security amount, if any, shall be refunded to the petitioner.