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2021 Supreme(SC) 556

SUPREME COURT OF INDIA
SANJAY KISHAN KAUL, M.M. SUNDRESH, JJ.
The State of Uttar Pradesh & Ors. - Appellants
Versus
Principal Abhay Nandan Inter College & Ors. - Respondents
Civil Appeal No. 865 of 2021 With C.A. No. 2816 of 2021, C.A. No. 2817 of 2021, C.A. No. 2753 of 2021, C.A. No. 866 of 2021, C.A. No. 2754 of 2021, C.A. No. 2819 of 2021, C.A. No. 2820 of 2021, C.A. No. 2818 of 2021, C.A. No. 2815 of 2021
Decided On : 27-09-2021

Advocates appeared:
For the Appellant(s) : Mr. Sanjay Kumar Tyagi, AOR Mr. Kameshwar Nath Mishra, Adv. Mr.Raghwendra Singh, Sr. Adv./Adv. Gen. Ms. Aishwarya Bhati, Dl. ASG Mr. Harish Pandey, AOR Ms. Kirti Khangarot, Adv.
For the Respondent(s): Mr. V.N. Raghupathy, AOR Mr.Rajat Singh, AOR Mr. Samarth Mohanty, Adv. Ms. Shilpa Singh, AOR Mr. E.C. Vidya Sagar, AOR Mr. Anilendra Kant Srivastava, Adv. Mr. Kumar Rajeev, Adv. Mr. N.D. Arya, Adv. Mr. M.P. Singh, Adv. Mr. Keshav Rai, Adv. Mr. Amrendra Kumar Singh, Adv. Mr. Neeraj Srivastava, Adv. Mr. Narender Kumar Verma, AOR Mr. Praveen Agrawal, AOR Mr. V.K. Shukla, Sr. Adv. Ms. Parul Shukla, AOR Mr. Saket Gogia, Adv. Mr. Dhawesh Pahuja, Adv. Mr. Prateek Bhandari, Adv. Mr. Manish Kumar Gupta, AOR Mr. D.K. Garg, Adv. Mr. Abhishek Garg, Adv. Mr. Dhananjay Garg, AOR Mr. Abhay Kumar, AOR Mr. Rajat Khattry, Adv. Mr. Siddharth Iyer, Adv. Mr. Sriharsh Nahush Bundela, Adv. Mr. Saurabh Mishra, Adv. Mr. Kumar Milind, Adv. Mr. Shagun Ruhil, Adv. Mr. Vishal Nautiyal, Adv. Mr. Sunny Choudhary, AOR Mr. Udayaditya Banerjee, AOR Mr. Ajay Kumar Pandey, Adv. Mr. Santosh Kumar Pandey, AOR Mr. Danish Zubair Khan, AOR Ms. Preetika Dwivedi, AOR Mr. Naveen Kumar Tripathi, Adv. Mr. Abhishek Kumar Singh, Adv. Mr. Udayan Pratap Singh, Adv. Ms. Saroj Tripathi, AOR Mr. Kabir Dixit, AOR Mr. Anand Varma, AOR Mr. Manoj K. Mishra, AOR Mr. R.K. Singh Kaosik, Adv. Mr. Umesh Dubey, Adv. Mr. D.N. Dubey, Adv. Mr. Alok Pandey, Adv. Mr. Sudhir S Rawat, Adv. Dr. Bheem Pratap Singh, Adv. Ms. Divya Roy, AOR

Headnote:

Constitution of India,1950 - Articles 14, 226 , 162 and 30(1) - UP Act, 1971 - Sections 16G and 9(4) - Suspension and termination of service - Grant of leave and Provident Fund and other benefits - Maintenance of record of work and service - Intermediate Education Act, 1921 is of vintage origin having its existence prior to independence and surviving to date - Object of enactment is to regulate and supervise high schools and intermediate education - Sub-Section 4 of Section 9 of Act speaks of powers of State Government and facilitates State Government to pass appropriate orders or to take adequate action consistent with the provisions of Act and State Government may modify or rescind or make any regulation - Opinion of State Government, it is necessary or expedient to take immediate action, it may, without making any reference to Board under foregoing provisions, pass such order or take such other action consistent with provisions of this Act as it deems necessary, and in particular, may by such order modify or rescind or make any regulation in respect of any matter and shall forthwith inform Board - Section 16G of Act deals with conditions of service of head of institutions, teachers and other employees - Sub-section (2) facilitates introduction of regulation which could be extended to various activities such as probation, scale of pay, transfer of service, grant of leave - Needless to state that this provision speaks of conditions of service of person employed in such institutions - Appointing authority shall not fill any vacancy of non-teaching staff of recognised aided institutions, except with the approval of Inspector, subject to a restriction that District Inspector of Schools shall make available total number of vacancies to Director of Education (Secondary Education), and showing number of students put forth justification for the filling of vacancies. On receipt of order from the Director of Education - District Inspector of Schools shall, for filling said vacancies, give permission to appointing authority - giving such permission he shall ensure to follow the reservation rules specified by government and the prescribed norms in justification for the posts – Held, Court have one more issue to be considered before our conclusion - Whether institutions should be held responsible, with respect to the interest of those who were recruited though contrary to the Impugned Regulation or not - These persons are innocent civilians who got embroiled in the legal battle initiated by management and made to fight as front-line soldiers. It is the management which found these persons suitable to hold the post - Court will have to apply theory of justice and adopt a problem-solving approach - Having appointed persons and found them suitable, while creating a situation which could have been avoided, the managements will have to take up their responsibility - If imparting education is seen to be in public interest, such institutions have duties to their employees as well. Certainly, the appellants cannot be made to continue them by making a contribution towards their salary by way of aid – Court may also note that even the Division Bench in its own wisdom has observed that the impugned Regulation can only be applied to the aided institutions alone - Finding has not been challenged seriously before us – Court are conscious of the legal position governing equity when pitted against law - Court would also like to observe that the appellants will have to seriously consider paragraph 3.72 and 3.83 of Seventh Central Pay Commission – Court expect the appellants to create an adequate mechanism to see to it that the persons employed by the process of “Outsourcing” are not exploited in any manner - Court have no difficulty in setting aside the judgment of the Division Bench consequential orders passed while upholding impugned Regulation - Appeals are allowed.

JUDGMENT :

M.M. SUNDRESH, J.

1. Heard learned counsel for the parties.

2. We have also perused the documents filed and carefully considered the affidavits of the parties along with the written arguments filed.

3. Appeals have been preferred by the State of Uttar Pradesh laying a challenge to the judgment of the Division Bench of the Allahabad High Court dated 19.11.2018 holding that Regulation 101 framed under The Intermediate Education Act, 1921 (hereinafter referred to as “the Act”) as amended is unconstitutional. Incidentally, few other appeals were disposed of by taking note of the aforesaid decision. Applications have also been filed to intervene/implead by such of those persons who are also appointed by these institutions as Class “IV” employees. Thus, appositely all these appeals are disposed of by a common order.

THE ACT:-

4. The Intermediate Education Act, 1921 is of vintage origin having its existence prior to independence and surviving to date. The object of the enactment is to regulate and supervise high schools and intermediate education. Sub-Section 4 of Section 9 of the Act speaks of the powers of the State Government and facilitates the State Government to pass appropriate orders or to take adequate action consistent with the provisions of the Act and the State Government may modify or rescind or make any regulation in respect of any matter:

    “Section 9- Power of State Government

    … (4) Whenever, in the opinion of the State Government, it is necessary or expedient to take immediate action, it may, without making any reference to the Board under the foregoing provisions, pass such order or take such other action consistent with the provisions of this Act as it deems necessary, and in particular, may by such order modify or rescind or make any regulation in respect of any matter and shall forthwith inform the Board accordingly.”

5. Section 16G of the Act deals with conditions of service of the head of institutions, teachers and other employees. Sub-section (2) facilitates the introduction of regulation which could be extended to various activities such as probation, scale of pay, transfer of service, grant of leave etc. Needless to state that this provision speaks of the conditions of service of the person employed in such institutions:

    “Section 16G-Conditions of Service of Head of Institutions, teachers and other employees

    (1) Every person employed in a recognized institution shall be governed by such conditions of service as may be prescribed by regulations and any agreement between the management and such employee insofar as it is inconsistent with the provisions of this Act or with the regulations shall be void.

    (2) Without prejudice to the generality of the powers conferred by sub-section (1), regulations may provide for-

    (a) the period of probation, the conditions of confirmation and the procedure and conditions for promotion and punishment 2[(including suspension pending or in contemplation of inquiry or during the pendency of investigation, inquiry or trial in any criminal case for an offence involving moral turpitude)] and the emoluments for the period of suspension and termination of service with notice;

    (b) the scales of pay and payment of salaries;

    (c) transfer of service from one recognized institution to another;

    (d) grant of leave and Provident Fund and other benefits; and

    (e) maintenance of record of work and service.”

6. Regulations have been framed under the Act dealing with various subjects, however, for the present case only Chapter III of the said regulations is relevant, which deals with “conditions of service”.

REGULATION 101:-

7. Regulation 101 was inserted vide Parishad 9/592 dated 28.08.1992 and was notified by way of Govt. Notification No. 400/15-7-2(1)-90 dated 30.07.1992 in the following manner:

    “Appointing Authority except with prior approval of Inspector shall not fill up any vacancy of non-teaching post of any recognized aided institution.”

8. It was substituted through the Notification No. 300/XV-7-2(1)/

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