Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 15
CASE NO.:
Appeal (civil) 1895 of 2006
PETITIONER:
U.P. Gram Panchayat Adhikari Sangh & Ors.
RESPONDENT:
Daya Ram Saroj & Ors.
DATE OF JUDGMENT: 11/12/2006
BENCH:
H.K. SEMA & P.K.BALASUBRAMANYAN
JUDGMENT:
J U D G M E N T
With C.A. Nos. 1896, 1897, 1898, 1899, 1900, 1901, 1902,
3455, 3523 of 2006, 8302-8313, 8314-8315, 8316, 8317-8319
of 2004, 680, 1083, 1084, 2920 of 2005, 6090 of 2001,
Contempt Petition ( C ) Nos. 114, 141 of 2006.
H.K.SEMA,J
The Constitution (Seventy-third Amendment) Act, 1992
came into force on 24.4.1993. The said amendment was
brought into force to give effect to one of the Directive
Principles of State Policy - Article 40 of the Constitution of
India, which directs the State to organise village panchayats
as units of self-government. Article 40 reads as under:
"Organisation of village panchayats. \026 The State
shall take steps to organize village panchayats and
endow them with such powers and authority as may
be necessary to enable them to function as units of
self-government."
PART IV of the Constitution deals with ’Directive
Principles of State Policy’. Article 37 provides that the
provisions contained in this Part shall not be enforceable by
any court, but the principles therein laid down are
nevertheless fundamental in the governance of the country
and it shall be the duty of the State to apply these principles
in making laws.
By 73rd Constitutional Amendment Article 243G was
introduced in the Constitution of India. Article 243G reads as
under:-
"243G. Powers, authority and responsibility of
Panchayat. \026 Subject to the provisions of this
Constitution the Legislature of a State may, by law,
endow the Panchayats with such powers and
authority as may be necessary to enable them to
function as institutions of self-government and such
law may contain provisions for the devolution of
powers and responsibilities upon Panchayats, at the
appropriate level, subject to such conditions as may
be specified therein, with respect to \026
(a) the preparation of plans for economic
development and social justice;
(b) the implementation of schemes for economic
development and social justice as may be
entrusted to them including those in relation
to the matters listed in the Eleventh Schedule."
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 15
Article 243G, thus, endows the Panchyats with such
power and authority as may be necessary to enable them to
function as institutions of self government. Such law may
contain provisions for the devolution of powers and
responsibilities upon Panchayats, subject to conditions as may
be specified, with respect to the implementation of schemes for
economic development and social justice as may be entrusted
to them including those in relation to the matters listed in the
Eleventh Schedule of the Constitution.
To implement the 73rd Constitution Amendment, the
Uttar Pradesh Panchayat Raj Act 1947 (U.P. Act No. 26 of
1947) (hereinafter ’the Act’) was amended and various
Government Orders were passed. We shall advert to the
amendment and orders passed thereunder at an appropriate
time.
We have heard S/Sh. Sunil Gupta, P.N. Mishra, Ashok H.
Desai, Rakesh Dwivedi, N.C. Jain, Jawahar Lal Gupta, L.
Nageshwar Rao, M.N. Rao, P.P. Rao, A.K. Ganguli, Arun
Jaitley, Mathai M. Paikdey Dr. Rajiv Dhawan, Raju
Ramachandran, S.K. Kalia, Ravindra Srivastava, learned
Senior advocates appearing for various
appellants/respondents. We have also heard other learned
counsel appearing for different parties.
FACTS
The facts in these appeals have a chequered history,
which we may recite briefly. By Government Orders (GOs)
dated 12.4.1999, 29.4.1999, 5.5.1999 and 27.5.1999 the
services of the employees of eight Departments were
transferred to the Gram Panchayats. The employees, so
transferred, were to serve the Gram Panchayats (GPs) as
multi-purpose workers or Gram Panchayat Evam Vikas
Adhikaris (GPVAs). The aforesaid orders were challenged by
filing Writ Petitions on the grounds of (i) arbitrariness and (ii)
(executive) interference with the statutory rights of
Government employees under Service Rules made under
Article 309 of the Constitution. The basic grievance raised
was that whereas in the Parent Department, they were
governed by respective Service Rules framed under Article 309
of the Constitution, they were being transferred to Gram
Panchayats where there were no Service Rules governing the
service conditions and their services became insecure.
On the aforesaid premise, the Govt. by an order dated
27.6.1999 brought up an Ordinance followed by Amendment
Act (U.P. Act No. 27 of 1999). Sections 25 and 25-A of the U.P.
Panchayat Raj Act 1947 were substituted by new Sections 25
and 25-A. Thereafter, by G.O. dated 30.6.1999, the G.Os.
Dated 12.4.1999 and 29.4.1999 were revoked. On 1.7.1999, a
G.O. was issued transferring the services of 55,548 employees
from eight Departments, including Tube-well Operators (TOs),
from Irrigation Department to the Gram Panchayats for
providing Multi-purpose workers to the Gram Panchayats and
by G.O. dated 26.7.1999 they were re-designated as Gram
Panchayat Vikas Adhikaris (GPVAs). They were put under the
control of the Gram Panchayats while discharging the
functions of their respective Departments.
Aggrieved thereby, several Writ Petitions, including Writ
Petition No. 33929 of 1999 were filed challenging the
constitutional validity of new Section 25 and Section 25A and
the G.O. dated 1.7.1999. The High Court, after hearing the
parties, upheld the validity of the Section and G.O. dated
1.7.1999 and held that such employees, transferred as GPVAs,
continue to remain Government Servants and to be governed
by the original and respective Service Rules. It was held they
are on deputation to Gram Panchyayats.
By G.O. dated 6.6.2001, 10,102 employees of two
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 15
Departments, viz. Irrigation (Seenchpal Canal Div. \026 4782
employees) and Health (Male Health Workers \026 5320
employees) were repatriated to their Parent Departments.
Similarly, on 21.9.2001, 479 employees of Land Development
and Water Resources Department were also repatriated/called
back.
The aforesaid Govt. Orders were challenged by one
Krishna Kant Tewari by filing a Writ Petition in the High
Court. The learned Single Judge by his order dated 8.1.2002
dismissed the Writ Petition and upheld the G.Os. dated
6.6.2001 and 21.9.2001. It was held inter-alia that their
original cadres were not dead; they continued in their original
cadres; they had been sent only on deputation to the GPs; they
were merely re-designated as GPVAs; they had never been
absorbed into any new cadre of GPVAs and they could always
be repatriated to their original cadres.
Aggrieved by the order of the learned Single Judge, an
appeal was preferred before the Division Bench being Special
Appeal No. 94 of 2002, which was dismissed by the Division
Bench on 28.1.2002.
Against the order of the Division Bench, a Special Leave
Petition (C) No. 7842 of 2002 was preferred before this Court,
which was dismissed by a three Judge Bench of this Court on
26.4.2002, in which one of us (Sema, J.) was a party.
Legally speaking, the whole controversy about the status
of transferred employees as to whether their service conditions
were well protected under the Rules governing them in the
Parent Department and whether they were permanently
transferred to GPVAs or on deputation has been set at rest
and it has become final.
Thereafter, a G.O. dated 20.7.2004 was again issued for
repatriation of the employees of three Departments, viz.
Agriculture (5322 employees), Cane Development (2593
employees) and Rural Development (6906 employees) [totaling
14821 employees] to their Parent Departments. A Writ
Petition was filed by Gauri Shanker challenging the G.O. dated
20.7.2004, which was dismissed by the learned Single Judge
on 6.8.2004. Special Appeal against the order of the learned
Single Judge Bench was dismissed by the Division Bench on
25.8.2004 holding that the transferred employees remained
Government Servants and retained their lien on the posts in
their original Departments and they could always be
repatriated. Several similar Writ Petitions were also filed by
Subhash Chandra Pande, Braj Kishore, Lal Sahab Singh,
Gram Vikas Adhikari Sangh etc. challenging the G.O. dated
20.7.2004, which were dismissed on 20.8.2004, 15.9.2004,
18.9.2004 and 5.11.2004 respectively.
The present controversy arises from the G.O. dated
19.7.2005 issued to re-transfer all Tube-well Operators and
repatriate the Tube-well Operators as well as part-time Tube-
well operators of Irrigation Department to their Parent
Departments under the control of the Parent Departments.
The Order reads:
"No.3334/05-27-1-5-31-TW/2005
From,
Smt. Neera Yadav,
Chief Secretary,
Uttar Pradesh Shasan,
To,
1. All Divisional Commissioner, U.P.
2. All District Magistrate, U.P.
Irrigation Section-5 Lucknow Dated 19th July,2005
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 15
Sub: Regarding transfer of all Tube Well Operators/
Part time Tube Well Operators back to Irrigation
Department for proper operation and maintenance
of state Tube Well who had been transferred to
Gram Panchayat.
Dear Sir,
In reference to the above subject the Government
has taken following decisions with immediate effect
for proper operation and maintenance of state Tube
Wells transferred to Gram Panchayats:-
(1) All State Tube Wells alongwith their assets may
again be transferred to Irrigation Department
from Gram Panchayats.
(2) Tube Well Operators/ Part time Tubewell
Operators of Irrigation Department, who were
transferred as multipurpose employees along
with tubewells on the post of Gram Panchayats
Development Officer under the control of Gram
Panchayats, may be again transferred alongwith
tube-wells back to their substantive posts of
tubewell operators/ part time tube-well
operators and under the control of Irrigation
Departments. To maintain the control of Gram
Panchayats also on these employees their
monthly attendance be sent to the concerning
officer of the tubewell section by the Chairman
of Water Management Committee.
(3) Right of water distribution and management of
tubewell be given to Water Management
Committee constituted for tubewell but in case
of any dispute the decision of Executive
Engineer, tubewell section shall be final.
(4) Entry of daily irrigation/delivery of water, daily
filing of jamabandi register and distribution of
irrigation fees along with equipments of
tubewells, water management system, previous
record list, pump efficiency chart, tube-well
repair register and inspection register etc. shall
be maintained and entries therein shall be made
by the Tubewell operator-Part time tubewell
operator, Tubewell mechanic/ Junior Engineer
(Tubewell) as done before.
(5) Maintenance expenditure of tubewell and
income expenditure provision for establishment
of tubewell operators/part time tubewell
operator and electrical energy may be made from
the grants of irrigation department as before.
It is requested to ensure compliance of aforesaid
decision on priority basis.
Yours,
Sd/-
(Neera Yadav)
Chief Secretary"
The aforesaid G.O. was challenged before the learned
Single Judge by filing Civil Misc. Writ Petition No. 53127 of
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 15
2005. In the Writ Petition, inter-alia, the contentions raised in
paragraphs 13 and 15 are as under:
"13. That vide Government Order/Notification dated
20.07.2004 a new cadre was created, which
comprised of employees of three Departments i.e.
Gram Panchayat Adhikari, Gram Vikas Adhikari
(Social Welfare) and regular Tube-well Operators.
After creation of new cadre, the petitioners ceased to
be employees of Irrigation Department and their
earlier post of Tube-well Operator stood abolished.
The petitioner became Gram Panchayat Vikas
Adhikari and they were posted in different Gram
Panchayats to work as Gram Panchayat Vikas
Adhikari.
15. That, from perusal of impugned circular dated
19.07.2005 it is obvious that while issuing circular
dated 19.07.2005 the Chief Secretary to the
Government of U.P. did not look at the earlier
Government Order/Notification dated 20.07.2004
which was a decision taken by His Excellency, the
Governor of U.P. by which a new cadre of Gram
Panchayat Vikas Adhikari was created. The Chief
Secretary totally ignoring the Government Order
dated 20.07.2004 and provisions made therein
which have statutory force, issued impugned
circular without even referring or taking note of the
Government Order dated 20.07.2004. Thus, the
impugned circular is apparently without application
of mind and arbitrary."
The prayers made in the Writ Petition are as under:
(A) "Issue a writ, order or direction in the nature of
certiorari, quashing the impugned circular dated
19.7.2005, issued by the Chief Secretary,
Government of U.P. (Annexure 3 to this writ
petition).
(B) Issue a writ, order or direction in the nature of
mandamus commanding the opposite parties
not to interfere in the working of the petitioners
as Gram Panchayat Vikas Adhikari and to give
the petitioners all consequential service benefits
for which they are found entitled under law.
(C) Issue any other and further suitable writ, order
or direction which this Hon’ble Court may deem
fit and proper in the facts and circumstances of
the case.
(D) Award the cost of this petition to the
petitioners."
A perusal of the Writ Petition, particularly paragraphs 13,
15, 16, 17, 18 and 21 discloses that the contention, raised by
the petitioners that by G.O. dated 20.7.2004, a cadre had been
created and after creating a new cadre, the writ petitioners
cease to be employees of the Irrigation Department and the
earlier posts of Tube-well Operators stood abolished and their
order of repatriation, is bad. A contention has also been
raised that the petitioners could not be treated as on
deputation in the Gram Panchayats and they be treated as
simple transferees from Irrigation Department to Gram
Panchayat Department.
As already noticed, the G.O. dated 20.7.2004 was
questioned in Gauri Shanker (supra) by employees of three
Departments, viz. Agriculture, Cane Development and Rural
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 15
Development, which was dismissed by the learned Single
Judge and affirmed by the Division Bench. In the aforesaid
decision, the High Court was of the view that the transferred
employees were actually on deputation to the Gram Panchayat
retaining lien in their Parent Department and, therefore, the
Government is competent to bring them back in their Parent
Department, as and when the necessity arises.
Keeping the aforesaid background in mind, we will now
examine the merits of the Writ Petition filed by the
petitioners/respondents herein questioning the legality of the
G.O. dated 19.7.1999 and the impugned judgment of the
Division Bench of the High Court.
As already noticed, out of the employees of eight
Departments sent to Gram Panchayats as multi-purpose
workers, the employees of Five Departments had been
repatriated by G.Os. 6.6.2001, 21.9.2001 and 20.7.2004,
which were assailed by filing Writ Petitions. The writ petitions
were dismissed by learned Single Judge, and the orders were
affirmed by the Division Bench of the High Court which had
attained finality as far as a co-ordinate Bench of the same
High Court was concerned. Having noticed the aforesaid
decision, the learned counsel for the petitioners (respondents
herein) fairly conceded before the learned Single Judge and
noted by the learned Single Judge as under:
"\005..conceded and stated that the petitioners have a
lien with the parent department and that the
petition has not been filed on those grounds on
which this Court had dismissed the earlier
petitions."
In fact the earlier judgments of the Co-ordinate Bench
were taken note of by the Division Bench in its Judgment as
under:
"It is to be noted that the repatriated workers of the
five departments did not take their repatriation
lying down, those were challenged in the Courts of
law; Writ Petitions were filed and in each and every
case those workers have been unsuccessful. We
make references to the cases of Krishna Kant
Tripathi, 2002 (1) U.P.L.B.E.C. 256. Certain other
references would also be found in one of the
judgments under appeal delivered on the 11th of
August, 2005 in Civil Misc. Writ Petition No. 53174
of 2005 and others. Reference should also be made
to the main case of Gauri Shanker and others Vs.
State of U.P. and others which is a decision given in
Special Appeal No. 1005 of 2004. The judgment
was delivered on the 25th of August, 2004.
In each of these cases, the Court laid down that the
repatriated workers have never lost their lien on
their original posts in the different Government
Departments and, as such their repatriation could
not be challenged on any ground. It was held that
they were doing the work as Gram Panchayat Vikas
Adhikaris no more than as the deputationists.
These decisions are binding decisions on us and we
cannot in any manner decide differently on a point
of law from the decisions given in these cases, we
being also a Division Bench of two Judges.
Having noticed as above, the learned Division Bench took
a turn and set at naught the order passed by the Co-ordinate
Bench on the ground that the facts are different.
We do not see any new facts that had arisen to enable
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 15
the learned Division Bench to do so.
JUDICIAL DISCIPLINE
Judicial discipline is self discipline. It is an inbuilt
mechanism in the system itself. Judicial discipline demands
that when the decision of a co-ordinate Bench of the same
High Court is brought to the notice of the Bench, it is
respected and is binding, subject of course, to the right to take
a different view or to doubt the correctness of the decision and
the permissible course then often is to refer the question or
the case to a larger Bench. This is the minimum discipline
and decorum to be maintained by judicial fraternity.
The doctrine of judicial discipline has been succinctly
enunciated by the three Judge Bench of this Court in Kalyan
Chandra Sarkar v. Rajesh Ranjan @ Pappu Yadav & Anr.
(2005) 2 SCC 42 in paragraph 19 SCC as under:
"The principles of res judicata and such analogous
principles although are not applicable in a criminal
proceeding, still the courts are bound by the
doctrine of judicial discipline having regard to the
hierarchical system prevailing in our country. The
findings of a higher court or a coordinate Bench
must receive serious consideration at the hands of
the court entertaining a bail application at a later
stage when the same had been rejected earlier. In
such an event, the courts must give due weight to
the grounds which weighed with the former or
higher court in rejecting the bail application.
Ordinarily, the issues which had been canvassed
earlier would not be permitted to be reagitated on
the same grounds, as the same would lead to a
speculation and uncertainty in the administration of
justice and may lead to forum hunting."
We have been taken through the entire impugned
judgment of the High Court. The judgment is full of
inconsistencies. The Division Bench of the High Court held
that under Section 25 of the Act, there is no provision for
creation of posts. In the same breadth the High Court also
held that paragraph 4 of the G.O. dated 20.7.2004 created a
new cadre and revived a cadre in the Panchayat. By the same
breadth, the High Court blew hot and cold.
There is yet another reason as to why the impugned
decision of the Division Bench of the High Court is
unsustainable. Civil Appeal No. 1900 of 2006 was filed by the
employees of Social Welfare Department against the judgment.
They wanted to go back to their Parent Department. Civil
Appeal No. 1901 of 2006 was filed by Tube-well Operators
against the same judgment. They also wanted to go back to
their Parent Department, namely, Irrigation Department. By
the impugned order, the High Court set aside the order of
repatriation adversely affecting them without their being
brought on record as party respondents. They were neither a
party before the Single Bench nor before the Division Bench.
Mr. Ashok H. Desai, learned Senior counsel appearing for
the appellants in C.A. Nos. 1900 and 1901 of 2006 contended
that in these cases the High Court has flouted the settled
principles of natural justice by passing an order adversely
affecting the appellants without hearing them.
In Ishwar Singh Ajai Kumar & Ors. v. Kuldeep Singh
and Ors. 1995 Supp (1) SCC 179, this Court held as under:
"It is not disputed by the learned counsel for the
parties that except Ishwar Singh, no other selected
candidate was impleaded before the High Court.
The selection and the appointments have been
quashed entirely at their back. It is further stated
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 15
that even Ishwar Singh, one of the selected
candidates, who was a party, had not been served
and as such was not heard by the High Court. We
are of the view that the High Court was not justified
in hearing the Writ Petition in the absence of the
selected candidates especially when they had
already been appointed. We, therefore, set aside the
judgment of the High Court dated December 8,
1992 and send the case back for fresh decision after
notice to the parties. The appeals are allowed in the
above terms. No costs."
In B. Ramanjini & Ors. v. State of U.P. & Ors. (2002)
5 SCC 533, this Court held in paragraph 19 SCC as under:
"19. Selection process had commenced long back as
early as in 1998 and it had been completed. The
persons selected were appointed pursuant to the
selections made and had been performing their
duties. However, the selected candidates had not
been impleaded as parties to the proceedings either
in their individual capacity or in any representative
capacity. In that view of the matter, the High Court
ought not to have examined any of the questions
raised before it in the proceedings initiated before it.
The writ petition filed by the respondents concerned
ought to have been dismissed which are more or
less in the nature of a public interest litigation. It is
not a case where those candidates who could not
take part in the examination had not challenged the
same nor was any public interest, as such, really
involved in this matter. It is only in the process of
selection and standardization of pass marks that
some relaxation had been given which was under
attack. Therefore, the High Court ought not to have
examined the matter at the instance of the
petitioners, particularly in the absence of the parties
before the Court whose substantial rights to hold
office came to be vitally affected."
The same decision was reiterated in Bhagwanti v.
Subordinate Services Selection Board 1995 Supp (2) SCC
663.
Another reason why the decision of the High Court is
unsustainable is that the High Court held that the Tube-well
Operators can legitimately expect to remain as multi-purpose
Gram Panchayat employees unless the whole concept is totally
done away with. There is no pleading in the original petition,
not even a whisper, about the legitimate expectation. It
appears that the High Court, at the appellate stage made
observations which induced some of the appellants at the last
minute to urge the ground of legitimate expectation which was
permitted and on the basis of it such finding has been
recorded. Such an approach is not permissible. See National
Building Construction Corporation v. S. Raghunathan &
Ors. (1998) 7 SCC 66.
The High Court has also directed that the part-time
Tube-well Operators shall be treated as permanent employees
under the same service conditions as the Tube-well Operators
as far as practicable. This direction runs in the teeth and the
guidelines of the Constitution Bench Judgment in Secretary,
State of Karnataka & Ors. v. UmaDevi (3) & Ors. (2006) 4
SCC 1. In fact, on this score alone the decision of the
Division Bench of the High Court deserves to be set aside.
We, now proceed to consider the contentions raised by
the respective parties:
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 15
The principle contention which appears to be common is
that the Tube-well Operators were transferred as a
consequence of transfer of Governmental functions inter-alia
relating to minor irrigation, water management and water-
shed development etc. as part of the Constitutional Scheme of
devolution of powers on Gram Panchyats by law as a
permanent measure in order to enable them to function as
units of self-government. It is argued that this is one of the
basic features of the Constitution of India. The transfer of
Government employees engaged in discharging the functions
along with the tube-wells was the necessary consequence of
the State Legislature transferring certain functions of the
Government permanently to the Gram Panchayats to achieve
the Constitutional goal. A sustained bureaucracy was sought
to be created. Such devolution of powers by law is irreversible.
In any event, it cannot be undone either directly or indirectly
by the Executive which has to function in accordance with the
law, namely the U.P. Panchayat Raj Act, 1947 as amended in
1994 and again in 1999.
This contention, in our view, is not tenable in law. We
have already said that the 73rd Amendment was brought into
force on 24.4.93 to give effect to one of the Directive Principles
of State Policy, namely, Article 40 of the Constitution.
Therefore, it cannot be said that the 73rd Amendment of the
Constitution is the basic feature of the Constitution. Article
40 cannot be said to qualify as the basic feature of the
Constitution. The 73rd Amendment came to the Constitution
by way of amendment under Article 368 and, therefore, it
cannot be said to be a basic feature of the Constitution. It is
an enabling provision and the State is empowered either to
eliminate, modify or cancel by exercising power under the
enabling provision. Article 243G is an enabling provision.
Article 243G enables the Panchayats to function as
institutions of self-government and such law may contain
provisions for the devolution of powers and responsibilities
upon Panchayats, subject to such conditions as may be
specified therein, with respect to the implementation of
schemes for economic development and social justice as may
be entrusted to them including those in relation to the matters
listed in the Eleventh Schedule. The enabling provisions are
further subject to the conditions as may be specified.
Therefore, it is for the State Legislature to consider legal
conditions and make the law accordingly. The devolution of
exercise would also be open to the State to eliminate or
modify. See Constitution Bench Judgment in M. Nagaraj &
Ors. v. Union of India & Ors. (2006) 8 SCC 212. Also see
Akhil Bharat Goseva Sangh (3) v. State of A.P. & Ors.
(2006) 4 SCC 162 and Kuldip Nayar and Ors. v. Union of
India & Ors. (2006) 7 SCC 1. where a Constitution Bench of
this Court considered the basic structure theory in paragraph
107 of the Judgment and held as under:
"107. The basic structure theory imposes limitation
on the power of Parliament to amend the
Constitution. An amendment to the Constitution
under Article 368 could be challenged on the
ground of violation of basic structure of the
Constitution. An ordinary legislation cannot be so
challenged. The challenge to a law made, within its
legislative competence, by Parliament on the ground
of violation of the basic structure of the Constitution
is thus not available to the petitioners."
TRANSFER \026 LOCK, STOCK AND BARREL
The contention of the learned Senior counsel for the
respondent that the transfer of the Tube-well Operators from
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 15
Irrigation Department to the Gram Panchayat was lock, stock
and barrel and, therefore, it is a complete and permanent
transfer. This contention is factually incorrect and misplaced.
In fact, out of 26,117 operators in the Irrigation Department,
only 22329 were transferred and out of that 13,000/- joined
back the Irrigation Department pursuant to the G.O. dated
19.7.2005. This would also clearly show that they had a lien
with the Parent Department and they had gone back to the
Parent Department.
Mr. P.P. Rao learned senior counsel referred to the case
of State of Mysore Vs. R.S. Kasi, (1985) 2 SCC 110 where
this Court held that the constitutional scheme is irreversible.
He has also referred to the case of S.K. Saha vs. Prem
Prakash Agarwal, (1994) 1 SCC 431 where this Court held
that the transfer of entire department along with the posts to a
university is a complete transfer. He has also referred to the
cases of Bhim Singh vs. State of Haryana, (1981) 2 SCC
673 and Jawaharlal Nehru University Vs. Dr. K. S.
Jawatkar, 1989 Supp. (1) SCC 679. In our view, the
aforesaid decisions of this Court cited by learned Senior
counsel have no application in the facts and circumstances of
the case at hand.
Dr.Dhawan learned Senior counsel contended that the
power of the legislature is coupled with duty. They have a
duty to perform consistent with the constitutional goal. In this
connection, he has referred to the decisions of this Court in
the cases of Commissioner of Police vs. Gordhandas
Bhanji, 1952 SCR 135, Comptroller and Auditor General of
India vs. K.S. Jagannathan (1986) 2 SCC 679 and
Terioat Estates (P) Ltd. vs. U.T. Chandigarh (2004) 2 SCC
130. In the view that we have taken the aforesaid decisions
have also no application in the facts of the present
controversy.
PROPERTY VESTED IN THE GRAM PANCHAYAT
It is contended that under Section 34 of the Act, the
property, namely, the Tube-wells were vested in the Gram
Panchayat and by the impugned order the Tube-well
Operators were sought to be transferred back to the Irrigation
Department along with the Tube-wells, which is not
permissible. Section 34 is in the following terms:
"34. Property vested in [Gram Panchayat]. \026 (1)
Subject to any special reservation made by the State
Government, all public property situated within the
jurisdiction of a [Gram Panchayat] shall vest in and
belong to the [Gram Panchayat] and shall, with all
other property which may become vested in the
[Gram Panchayat], be under its direction,
management and control.
(emphasis supplied)
(2) All markets and fairs or such portion thereof as
are held upon public land shall be managed and
regulated by the [Gram Panchayat] and the [Gram
Panchayat] shall receive to the credit of the Gaon
Fund all dues levied or imposed in respect thereof."
Firstly, vesting of the property in the Gram Panchayat
employed in Section 34 would mean the property vested for
the purpose of management and control. Not that the
property so vested is fastened to the Panchayat and remains
as its property. Secondly, public property has been defined
under Section 2(mm) of the Act as under:
"Public Property" and "Public Land" mean any
public building, park or garden or other place to
which for the time being the public have or are
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 15
permitted to have access whether on payment or
otherwise."
Public property, as defined under Section 2(mm) shows it
is referable to public building, park or garden or other place to
which for the time being public have or are permitted to have
free access.
It is common knowledge that a tube-well is handled by a
technician \026 an expert hand. General public does not have
free access to the tube-well. They can only have free access to
the water drawn from the tube-well. In our opinion, therefore,
tube-well does not fall within the scope of public property
referred to in Section 34 of the Act.
THE BASIC QUESTION FOR CONSIDERATION
The basic question that calls for consideration is the
import and intent of Section 25 of the Act which substituted
the original Section 25 by the U.P. Act No. 27 of 1999 w.e.f.
27.6.1999.
Section 25, as amended in 1999, was in the following
terms:
"25. Staff \026 (1) Notwithstanding anything contained
in any other provisions of this Act, any Uttar
Pradesh Act, rules, regulations, or bye-laws or in
any judgment, decree or order of any Court,-
(a) the State Government may, by general or special
order, transfer any employee or class of
employees serving in connection with the affairs
of the State to serve under Gram Panchayats
with such designation as may be specified in the
order and thereupon posting of such employee or
employees in Gram Panchayats of a district shall
be made by such authority in such manner as
may be notified by the State Government;
(b) the employee or employees on being so
transferred and posted in a Gram Panchayat,
shall serve under the supervision and control of
the Gram Panchayat on the same terms and
conditions and with the same rights and
privileges as to retirement benefits and other
matters including promotion as would have been
applicable to him immediately before such
transfer and shall perform such duties as may
be specified from time to time by the State
Government.
(2) Subject to the provisions of sub-section (1) a
Gram Panchayat may, after prior approval of the
prescribed authority, appoint from time to time
such employees as may be considered necessary for
efficient discharge of its functions under this Act in
accordance with such procedure as may be
prescribed:
Provided that the Gram Panchayat shall not create
any post except with the previous approval of the
prescribed authority.
(3) The Gram Panchayat shall have power to impose
punishment of any description upon the employees
appointed under sub-section (2) subject to such
conditions and restrictions and in accordance with
such procedure as may be prescribed.
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 12 of 15
(4) The Gram Panchayat may delegate to the
Pradhan or to any of its Committees, subject to
such conditions and restrictions as may be
prescribed, the power to impose any minor
punishment upon the employees appointed under
sub-section (2).
(5) An appeal from an order imposing any
punishment on an employee under sub-section (3)
shall lie to such officer or committee as may be
specified by the State Government by notification.
(6)The prescribed authority may, subject to such
conditions as may be prescribed, transfer any
employee referred to in clause (b) of sub-section (1)
from one Gram Panchayat to any other Gram
Panchayat within the same district and the State
Government or such other officer as may be
empowered in this behalf by the State Government
may similarly transfer any such employee from one
district to another.
(7) A Nyaya Panchayat may, with the previous
approval of the prescribed authority, appoint any
person on its staff in the manner prescribed. The
person so appointed shall be under the
administrative control of the prescribed authority
who shall have power to transfer, punish, suspend,
discharge or dismiss him.
(8) Appeal shall lie from an order of the prescribed
authority punishing suspending, discharging or
dismissing a person under sub-section (7) to an
authority appointed in this behalf by the State
Government."
Section 25, thus, clearly discloses that the transfer shall
be made with such designation as may be specified in the
Government Order; transfer and posting in Gram Panchayat
shall be made by such authority in such manner, as may be
notified by the State Government; the transferred employee to
the Gram Panchayat shall be under the supervision and
control of the Gram Panchayat; the service conditions of the
employee shall be on the same terms and conditions and with
the same rights and privileges as to retirement benefits and
other matters, including promotion, as would have been
applicable to him immediately before such transfer; while in
service in Gram Panchayat, they shall perform such duties as
may be specified from time to time by the State Government.
WHETHER IT IS DEPUTATION SIMPLICITER OR
TRANSFER
Apart from the provisions contained in Section 25,
paragraph 9 of the Government Order dated 1.7.1999 further
clarifies the position. Paragraph 9 as translated (which is
stated to be a correct translation) reads:-
"9. Disbursement of salary of all the employees
referred to in Para 4 & 6 and working under the
control of Gram Panchayat would be done by the
departments in the same manner as is being done
at present, but the salary of the next month would
be disbursed on the basis of attendance verification
and monthly report of the Gram Panchayat
Committee concerned. Deductions would be made
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 13 of 15
from the salary of employees who are
unauthorizedly absent."
There is no dispute that while working under Gram
Panchayats, the Tube-well Operators were continued to be
paid salaries by the Irrigation Department. They were under
the disciplinary control of the Irrigation Department and also
got promotions in the Irrigation Department. There is also no
dispute that their service conditions were governed by the
Service Rules framed under Article 309 of the Constitution.
The expression "Supervision and Control of the Gram
Panchayat" only means to the extent of transfer of supervision
to the Gram Panchayat. The expression "shall serve under the
supervision and control of the Gram Panchayat" would only
mean supervisory powers and control of the Gram Panchayat.
The overall control of the employee was still with the
Government when Section 25(1)(b) unequivocally provides that
they shall perform such duties as may be specified form time
to time by the State Government. This would clearly show
that they were working under the supervisory control of Gram
Panchayat keeping lien with the Parent Department, which is
the Irrigation Department. It is clear that they were sent on
deputation.
Section 25(1)(b) was clearly intended to safeguard the
service conditions of the employees working under Gram
Panchayats.
WHETHER IT IS TRANSFER?
The next question to be considered is whether they were
under transfer as visualized under Section 1(a) of Section 25 of
the Act.
It is contended by Senior counsel for the respondents
that it cannot be termed as deputation, because, to be on
deputation, tri-partite consent is necessary, namely, that of
the lending Department, the borrowing Department and the
employees.
We are unable to accept this contention for more reasons
than one. Firstly, the respondents (writ petitioners) did not
protest on their being sent to the Gram Panchayats. They
accepted the transfer with conditions without demur knowing
fully well their rights and obligations. They also accepted the
terms and conditions of Section 25 of the Act, as quoted
above. No protest, whatsoever, was raised either by the
employees or by Gram Panchayats. It is not the case of the
respondents nor of the Gram Panchayats that the transfers
were made against their consent despite protests. It is, in
these circumstances, that the consent is implied. The
expression "Transfer" employed in Section 25, in our view, is a
misnomer.
It is true that the language used in Section 25 is
"Transfer", but one has to read the Section as a whole, to get
the real meaning. The pay and allowances are paid by the
parent department. Their service conditions are governed by
the Service Rules in their respective Parent Departments
framed under Article 309 of the Constitution. The over all
control was vested in the respective Departments. It is also
true that in the Govt. Order various expressions have been
used like transfer, repatriation, dead cadre etc., which have
been subsequently clarified in the counter of the Government.
Hundred errors do not make one right. By reading Section 25
as a whole and understanding the language employed therein,
it is clear that the employees of various Departments were sent
to gram-panchayats on deputation pure and simple. They
kept their lien in their respective Departments. This is the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 14 of 15
correct reading of the Section and nothing more. This is also
true to their own knowledge when they were sent to Gram
Panchayats. This is the reason why the employees of five
Departments were sent back to their Departments and they
joined their own Department without any protest. This is also
the reason why even a section of Tube-well operators would
like to go back to the Parent Department, the Irrigation
Department. They are equally aggrieved by the impugned
order of the High Court and have preferred Civil Appeal No.
10091 of 2006.
That they were sent to Gram Panchayats purely
temporarily and on deputation till the Gram Panchayats
themselves make appointments is also clear from the language
employed in Section 25(2) of the Act.
We, accordingly, hold that the expression ’Transfer’ is
used in Section 25 loosely. They were actually sent on
deputation keeping their lien with their Parent Departments.
Once we hold that the respondents were on deputation to
Gram Panchayats, the position of deputation in service is well
settled by a catena of decisions of this Court. Avoiding
multiplicity, we refer to Kunal Nanda v. Union of India and
another (2005) 5 SCC 362 as under:
"The basic principle underlying deputation itself is
that the person concerned can always and at any
time be repatriated to his parent department to
serve in his substantive position therein at the
instance of either of the departments and there is
no vested right in such a person to continue for long
on deputation or get absorbed in the department to
which he had gone on deputation."
We may also dispose off one contention of Dr. Rajiv
Dhawan, learned Senior counsel despite our holding that the
respondents were sent on deputation and not on transfer.
According to Dr. Dhawan, reading Section 25(a) and Sections
25(6) conjunctively, the State Government is empowered to
transfer any such employee only from one District to another
or from one Panchayat to another. According to him,
therefore, the State is incompetent to pass an order to transfer
them back to the Irrigation Department. We are unable to
accept this submission. Sub-section 6 does not take away the
general power of transfer as it is understood in the language
used. What is intended by sub-section (b) is that apart from
the general power of transfer as visualized in Section 25(a), the
State Govt. will also be empowered to transfer the employee
from one District to another District so long as he remains
under the control of Panchayat. Sub-section(6), therefore,
does not take away the general power of the Government of
transfer/repatriation of the respondents from Gram
Panchayats to the Parent Departments.
In the view that we have taken, the judgment and order
of the Division Bench dated 8.2.2006 is not sustainable in law.
The judgment and order of the Division Bench quashing G.O.
dated 19.7.2005, 25.1.2006 and 8.9.2005; the direction that
the Tube-well Operators and part-time Tube-well Operators
are inextricably connected with the cadre of Gram Panchayat
Vikas Adhikari; the direction that the Part-time Tube-well
Operators shall be treated as permanent employees are all
hereby, set aside. The order of the learned Single Judge dated
11.8.2005 is restored. The C.W.P. No. 53127 of 2005 stands
dismissed. The Government Order dated 19.7.2005 with all
consequential orders passed thereunder is restored.
We also noticed that the Division Bench of the High
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 15 of 15
Court has quashed the Orders dated 8.9.2005 and 25.1.2006,
which are not the subject matter of the writ petition. The High
Court order to that effect is also set aside. The Government
Orders dated 8.9.2005 and 25.1.2006 are restored.
The employees are directed to go back to their Parent
Department and resume duties within two weeks from today.
The net result is Civil Appeal Nos. 1895/06, 1896/06,
1897/06, 1898/06, 1899/06, 1900/06, 1901/06, 1902/06,
3455/06, 3523/06 are allowed. Civil Appeal Nos. 8302-
8313/04, 8314-8315/04, 8316/04, 8317-8319/04, 1083/05,
1084/05, 2920/05, 680/05 and 6090/01 are dismissed.
Contempt Petition Nos. 114 & 141 of 2006 are
discharged.
No order as to costs.