JUDGMENT :

Uday Umesh Lalit, J.

1. Leave granted.

2. These appeals challenge common judgment of the High Court of Gujarat dated 02.07.2009. As Letters Patent Appeal No.1522 of 2004 was considered as lead matter by the High Court, the appeal arising therefrom is also considered as lead matter by us. The facts giving rise to Letters Patent Appeal No.1522 of 2004 are dealt with in detail hereafter.

3. In terms of Gujarat Government Gazette dated 01.07.1961, the then Okha District Municipality got converted into Okha Gram and Nagar Panchayat on and w.e.f. 02.02.1962. Upon such conversion, the existing staff of municipality was allocated to Gram Panchayat and treated as part of Panchayat Service. Gujarat Panchayats Act, 1961 (hereinafter referred to as the “Act”) deals with Panchayat Service and various sets of Rules framed pursuant to the power conferred under the Act, deal with matters including classification of Panchayat Service and conditions of service as regards Panchayat Service.

4. Section 203 of the Act is to the following effect:

“203. Panchayat Service to be regulated by rules – (1) For this purpose of bringing about uniform scales of pay uniform conditions of service for per