Important point
So long Regulation 31 of U.P. Jal Nigam Engineers (Public Health Branch) Service Regulations was not amended, 60 years which was the age of superannuation of government servants employed under State of U.P. shall be applicable to employees of Jal Nigam.

Judgment

B.N. Agrawal, J.—Leave granted.

2. Question that arises in these batch of cases is as to whether amendment made in Rule 56(a) of Uttar Pradesh Fundamental Rules (in short ‘the Rules’) by Notification dated June 27, 2002 enhancing age of superannuation of government servants from 58 years to 60 years would be applicable to the employees of Uttar Pradesh Jal Nigam (hereinafter referred to as ‘the Nigam’).

3. Appellants of these appeals as well as petitioners in the Writ Petitions were employed in the Local Self Government Engineering Department of the Government of Uttar Pradesh. In the year 1975, the State Legislature promulgated an Act, viz., Uttar Pradesh Water Supply & Sewerage Act, 1975 (hereinafter referred to as ‘the Act’), under Section 3 whereof, the State Government was empowered to issue notification to constitute a corporation by the name of the Uttar Pradesh Jal Nigam pursuant to which a notification was issued establishing the same with effect from 18th June, 1975. From the date of the establishment of the Nigam, which is the appointed date as enumerated in Section 31 of the Act, all properties and assets which immediately before the appointed date were vested in the State Government for the purposes of Local Self Government Engineering Department shall vest in and stand transferred to the Nigam and all rights, liabilities and obligations of the State Government pertaining to the said Department shall be the rights, liabilities and obligations of the Nigam. Under Section 37 of the Act, every person who was employed in the Local Self Government Engineering Department of the State of Uttar Pradesh shall on and from the appointed date, i.e., 18th June, 1975 would become employee of the Nigam and shall hold his office or service therein by the same tenure, at the same remuneration and upon same other terms and conditions and with the same rights and privileges as to pension, gratuity and other matters as he would have held the same on the appointed date if this Act had not come into force and shall continue to do so until his remuneration or other terms and conditions of service are revised or altered by the Nigam under or in pursuance of any law or in accordance with any provision which for the time being governed his service. Before the appointed date, i.e., 18th June, 1975, the age of superannuation of these employees under Rule 56(a) of the Rules was 58 years which could be extended in exceptional circumstances up to the age of 60 years. Thereafter, the State Government issued order to the Nigam under its letter dated October 31, 1975 wherein it was clearly stated that in accordance with Section 37 of the Act the service conditions of such employees of the Nigam would continue to remain the same so long the same are not altered by the Nigam in accordance with law. Thereupon, Nigam took a decision on 4th April, 1977 in conformity with the provisions of Section 37 of the Act wherein specifically it was mentioned that the rights and responsibilities as were enjoyed by the officers of the then Local Self Government Engineering Department under the Financial Hand Book, PWD Manuals, Manual of Government Orders, Civil Services Regulations, Government Conduct Rules and other Manuals of Government Orders that have been passed or shall be passed by the Government from time to time shall be deemed to be applicable to the officers of the Nigam provided any other order in this regard is not passed by the Nigam.

4. Section 97(2)(c) confers power upon the Nigam to make regulations with the previous approval of the State Government on matters, inter alia, the salaries and allowances and other conditions of service of employees of the Nigam. In exercise of the aforesaid powers under Section 97 of the Act, regulations were framed by the Nigam on 1st September, 1978 as Uttar Pradesh Jal Nigam Engineers (Public Health Branch) Service Regulations, 1978 (hereinafter referred to as ‘the Regulations’) which came into force with immed