When a statutory corporation's service regulations link employee conditions to state government rules, any amendment to those government rules (e.g., increasing retirement age) applies to the corporation's employees unless the corporation formally amends its regulations with the government's approval.

JUDGMENT:

(Arising out of SLP (Civil) No. 18579 of 2005)

Dr. ARIJIT PASAYAT, J.

Leave granted.

Challenge in this appeal is to the judgment rendered by a Division Bench of the Allahabad High Court questioning correctness of the order passed by a Division Bench in the Special Appeal filed by the appellant against an interim order passed by a learned Single Judge permitting the respondent No.1 to continue in service of the appellant No.1 till attaining the age of 60 years. The case of the appellant before both learned Single Judge and the Division Bench was that the standard age of retirement of its employees is 58 years and the writ petitioner i.e. respondent No.1 was no exception. The Special Appeal was filed stating that the interim order was contrary to the view taken by a Division Bench in Harwindra Kumar v. Chief Engineer Karmik, UP Jal, Nigam, Lakhnow and Ors. [2002 (2) UPLBEC 1511]. The Division Bench dismissed the appeal.

In support of the appeal learned counsel for the appellant submitted that the interim order was contrary to the view expressed by the Division Bench which was binding on a subsequent Division Bench and in any event on all learned Single Judges.

Learned counsel for respondent No.1 on the other hand stated that the controversy as to whether the age of the retirement of employees is 58 or 60 has already been settled by this Court.

In Harwindra Kumar v. Chief Engineer Karmik & Ors. [2005 (13) SCC 300) the question raised was whether the retirement age in terms of the Uttar Pradesh Fundamental Rules was applicable to the employees of the Jal Nigam.

Various provisions of Uttar Pradesh Water Supply and Sewerage Act, 1975 (in short the Act) and Uttar Pradesh Jal Nigam Engineers (Public Health Branch) Service Regulations, 1978 (in short the "Regulations") need to be noted.

To appreciate the point in issue, it would be necessary to refer to the relevant provisions of Sections 15, 31(1), 37, 89 and 97 of the Act and Regulation 31 of the Regulations which read thus:

"15. Powers of the Jal Nigam. (l) The Nigam shall, subject to the provisions of this Act have power to do anything which may be necessary or expedient for carrying out its functions under this Act. (2) Without prejudice to the generality of the foregoing provision, such power shall include the power (i) to inspect all water supply and sewerage facilities in the State by whomsoever they are operated;

(ii) to obtain such periodic or specific information from any local body and operating agency as it may deem necessary;

(iii) to provide training for its own personnel as well as employees of the local bodies;

(iv) to prepare and carry out schemes for water supply and sewerage;

(v) to lay down the schedule of fees for all services rendered by the Nigam to the State Government, local bodies, institutions or individuals;

(vi) to enter into contract or agreement with any person, firm or institution, as the Nigam may deem necessary, for performing its functions under this Act;

(vii) to adopt its own budget annually;

(viii) to approve tariffs for water supply and sewerage services applicable to respective local areas comprised within the jurisdiction of Jal Sansthans and such local bodies as have entered into an agreement a with the Nigam under Section 46;

(ix) to borrow money, issue debentures to obtain subventions and grants and manage its own funds;

(x) to disburse loans to local bodies for their water supply and sewerage schemes;

(xi) to incur expenditure and to grant loans and advances to such b persons or authorities as the Nigam may deem necessary for performing the functions under this Act.

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31. Vesting and transfer of property to Nigam. (1) As from June 18,1975, the date of establishment of the Nigam hereinafter in this Chapter referred to as the appointed date,

(a) all properties and assets (including waterworks, buildings, laboratories, stores, vehicles, furnitures and other furnishing) which immediately before the appointed date were vested in the State Governmen