IMPORTANT POINT
Meghalaya State Electricity Board which is empowered by Sections 15 r/w 78 and 79 of Electricity (Supply) Act, 1948 to make appointment of its officers and employees and frame statutory regulations laying down its service conditions, has power until the regulations are framed, to lay down service conditions in exercise of its administrative power by passing resolution.

JUDGMENT

Shah, J.-Leave granted.

2. This appeal has been filed by the Meghalaya State Electricity Board ( MSEB for short), a board duly constituted under Section 5 of the Electricity (Supply) Act, 1948, (hereinafter referred to as the Electricity Act") challenging the judgment and order dated 22.7.1999 passed by the Division Bench of High Court of Gauhati, Bench at Shillong in Writ Appeal No. 19 (SH) of 1998. By the impugned judgment, the High Court set aside the judgment of learned Single Judge dismissing the writ petition filed by the respondent employee challenging an order dated 24.7.1997 of compulsory retirement from service. The learned Single Judge dismissed the writ petition filed by the respondents by order dated 10.8.1998 by holding that the MSEB had not framed any regulations regulating the service conditions of its employees and had instead adopted the Assam State Electricity Board (General Conditions of Service) Regulations, 1960 by passing a resolution on 17.5.1975. Similarly, it was also open to the Board to adopt the provisions of FR 57(b) of the Meghalaya Fundamental Rules for compulsory retirement by passing resolution. He further held that it was clear in the Office Memorandum dated 6.10.1989 of the MSEB that the said Board has adopted the orders contained in the Office Memorandum dated 21.7.88 of the Government of Meghalaya, Personnel & AR (A) Department, for compulsory retirement of its employees in accordance with FR 57(b) of the FR & SR, 1984. The learned Judge also held that the respondent had not made out any case of mala fide and there was no evidence of arbitrariness. For this he himself perused the service records of the respondent herein and found that he had been given the lowest grading of "D", his performance had not been satisfactory and that he had become a dead-wood for the organisation.

2. In appeal, the Division Bench of the High Court reversed the judgment by holding that MSEB had no authority or power to compulsorily retire its employees prior to the coming into force of the MSEB (Discipline and Appeal) Regulations 1996 which were published in the Gazette on 1.9.1997. The Court held that prior to this date, there was no provision for compulsory retirement except by way of major punishment. The Court further held that office memo of the MSEB dated 10.5.1989 only adopts the procedure prescribed by the Government of Meghalaya by office memo dated 21.7.1988. The said memo "does not vest any power in the Government to compulsory retire its employees".

4. Mr. Bhattacharjee, learned counsel appearing on behalf of the respondent supported the impugned order passed by the High Court by submitting that the MSEB has not adopted FR 57(b) which empowers the Government to compulsorily retire its employees at the age of 50 years or after completion of 25 years of service. He also submitted that without framing any regulations, only by passing resolution, the MSEB cannot lay down the service conditions of its employees.

5. For appreciating this contention, we would first refer to the resolution No.6 dated 10.5.1989 passed by the MSEB which reads thus:-

"Resolution No.6 (10.5.1989)-The Board went through the Govt./s O.M. No. PER. 218/75/106 dated 21-7-1988 concerning the premature retirement of Govt. servants under F.R. 57(b). All the members of the Board agreed that the Govt. s order are based on sound policy and felt that the same should be implemented in the MSEB. Accordingly, the members decided to adopt the above O.M. with changes in the names of the members of the Review Committee. The Board should have its own Committee to be constituted by the Chairman of the Board.

The review should be carried out immediately. The Review Committee is constituted."

6. Thereafter, Office Memo dated 6.10.89 was issued by the MSEB adopting the Office Memo dated 21.7.88 of the Govt. of Meghalaya which reads as under:-

"The question of retiring a Board s employee by giving him/her notice not less than 3 months in writing or