IMPORTANT POINT
Equality cannot be applied in illegality.

JUDGMENT

S.B. Sinha, J.—

1. Leave granted.

2. Interpretation and/ or application of various circular letters issued by the State of Uttar Pradesh which have been adopted by the State of Uttarakhand after it was formed in terms of the U.P. State Reorganisation Act is in question in these appeals.

3. Two government companies being M/s. Teletronix Ltd. and Kumaon Television Ltd. were the subsidiary companies of Kumaon Mandal Vikas Nigam Ltd. The employees of the said government companies were retrenched. The State of Uttar Pradesh took a policy decision to appoint the employees of the said government companies. For the said purpose, it framed rules purported to be in exercise of its power under the proviso appended to Article 309 of the Constitution of India, known as the Uttar Pradesh Absorption of Retrenched Employees of Government of Public Corporations in Government Services Rules, 1991 (for short “the Rules”).

4. The term “retrenched employee” is defined in Rule 2(c) of the Rules as under:

“(c) “retrenched employee” means a person who was appointed on a post under the Government or a public corporation on or before October 1, 1986 in accordance with the procedure laid down for recruitment to the post and was continuously working in any post under the Government or such corporation upto the date of his retrenchment due to reduction in, or winding up of, any establishment of the Government or the public corporation, as the case may be and in respect of whom a certificate of being a retrenched employee has been issued by his appointing authority.”

The charging provision is contained in Rule 3(1) of the Rules, which reads as under:

“3(1) Notwithstanding anything to the contrary contained in any other service rules for the time being in force, the State Government may by notified order require the absorption of the retrenched employees in any post or service under the Government and may prescribe the procedure for such absorption including relaxation in various terms and conditions of recruitment in respect of such retrenched employees.”

5. Admittedly, except Karan Pal, respondent No. 1 in Civil Appeal arising out of SLP (C) No. 6451 of 2005 who was appointed in the month of January, 1980 and Vijay Kumar Joshi, respondent No. 1 in Civil Appeal arising out of SLP (C) No. 8239 of 2005 who was appointed on 1.07.1983 (they were absorbed in the services of the State on 14.12.2005), other respondents herein were appointed after the cut-off date provided for in the Rules, viz., 1.10.1986.

6. It also does not appear that pursuant to or in furtherance of the provisions contained in Rule 3(1) of the Rules, the State Government has issued any notified order requiring absorption of retrenched employees in any post or service under the Government or prescribed any procedure therefor including relaxation in various terms and conditions of recruitment in relation to the retrenched employees.

The State of Uttar Pradesh, however, issued a letter to the Managing Director of Kumaon Mandal Vikas Nigam Ltd on 30.12.1995. While informing that approval has been granted by the Governor for winding up of the aforementioned companies, it was stated:

“3. Order for adjustment of the employees retrenched in result of the winding up of the aforesaid units and relaxation in age will be issued separately by the Personnel Department.

4. Retrenched employees will be adjusted/ re-appointed on their equivalent posts in view of their qualification in Kumaun Mandal.”

7. It is contended that in terms of paragraph 3 of the said circular letter, no such order had been issued by the Personnel Department of the State of Uttar Pradesh. However, it appears that the Secretary to the Government of Uttar Pradesh issued a letter addressed to all Principal Secretaries /Secretaries of the Government of Uttar Pradesh, all Heads of the Departments and all Commissioners, Uttar Pradesh stating that on humanitarian ground a decision has been taken by the State for adjustment of the e