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1969 Supreme(J&K) 20

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
S. Murtaza Fazl Ali,Jaswant Singh, JJ.
Sheikh Gh. Qadir & Ors. - Appellant
Versus
State Of J&K & Ors. - Respondent
Writ Petition No. 143/1968
Decided On : 02 May, 1969

Advocates Appeared:
Advocate For Appellant: A.K. Sen
Advocate For Appellant: D.N. Mahajan
Advocate For Respondent: M.C. Chagla
Advocate For Respondent:Advocate General

Headnote:

CONSTITUTIONAL LAW - Jammu and Kashmir Civil Services Rules - Notification altering service conditions of petitioners - Validity - Petitioners were permanent employees of Sericulture Department of Government - Department was abolished and petitioners' services were transferred to company - Notification provided that petitioners would be treated as employees of company and their pension would be shared by Government and company - Petitioners challenged notification as violative of Section 126 of State Constitution and Article 16 of Constitution of India - Court held that notification was invalid as it amounted to termination of service or reduction in rank of petitioners without complying with Section 126 of State Constitution - Court also held that notification was discriminatory as it selected only petitioners for hostile discrimination and violated Article 16 of Constitution of India.

Fact of the Case:

Petitioners were permanent employees of Sericulture Department of Government. Department was abolished and petitioners' services were transferred to company. Notification provided that petitioners would be treated as employees of company and their pension would be shared by Government and company. Petitioners challenged notification as violative of Section 126 of State Constitution and Article 16 of Constitution of India.

Finding of the Court:

Court held that notification was invalid as it amounted to termination of service or reduction in rank of petitioners without complying with Section 126 of State Constitution. Court also held that notification was discriminatory as it selected only petitioners for hostile discrimination and violated Article 16 of Constitution of India.

Issues: Whether the notification altering the service conditions of the petitioners was valid.

Ratio Decidendi: The court held that the notification was invalid as it amounted to termination of service or reduction in rank of the petitioners without complying with Section 126 of the State Constitution. The court also held that the notification was discriminatory as it selected only the petitioners for hostile discrimination and violated Article 16 of the Constitution of India.

Final Decision: Petition allowed.

ALI, C. J.: - This petition for an appropriate writ arises in the following circumstances.

2. According to the petitioners, two of them, namely petitioners 1 and 2 were gazetted employees and the others non-gazetted employees in the Department of Sericulture of the Government of Jammu and Kashmir. The petitioners further aver that the Sericulture Department is just like other Department of the Government consisting of gazetted and non-gazetted members of the staff and they were and are governed by the Jammu and Kashmir Civil Services Rules and Regulations in all matters and possess the facilities and the safeguards afforded to all Government servants of other departments. The petitioners further allege that they have always been treated as Government servants and their posts have been shown in the civil list and the budgets of the Departments concerned. In order, however, to stream-line the administration and to give it a commercial colour the Government on 3rd October 1963 constituted a Board called the Jammu and Kashmir Industries which was a State Government undertaking and which had a Memorandum and Articles of Association. After this undertaking came into existence, the then Sadar-i-Riyasat of Jammu and Kashmir (new Governor) issued instructions by which 21 industrial undertakings were entrusted to the Jammu and Kashmir Industries Ltd. The newly formed Jammu and Kashmir Industries was governed by a Board of Directors set up under the Memorandum of Association and was entrusted with several types of responsibilities like management, corporate organization, personnel and financial responsibilities and functions. The instructions further ordained that under the personnel responsibility of the Board the administration of the servants of the company was to be governed by the provisions of the Jammu and Kashmir Civil Services (Classification, Control & Appeal) Rules etc. from time to time. After the issue of the aforesaid instructions on 3-10-63 the petitioners who were permanent employees of the Sericulture Department started working under the Board of J & K Industries on the same terms and conditions as applied to them before and they were treated to be as on deputation from the State Government to this Government undertaking.

Subsequently by a notification No. SRO 36 D/- 11-2-66, note 6 was added to rule 52 of the KCSR which provided that service in the companies owned by the Government should not be treated as foreign service for the purpose of grant of deputation allowance. It was further stipulated that those employees of the Industrial concerns who were entitled to pensionary benefits should be treated as employees of the J & K Industries and the pension of the employees of Sericulture Department entitled to pensionary benefits should be shared by the Government and the company under the rule of proportion but no deputation allowance would be admissible. A particular set of Government servants, however, who had been deputed to the Government undertaking would continue to receive deputation allowance. Lastly it was provided that in future individual cases for grant of deputation allowance were to be considered on their merits. We shall refer to the broad details of this notification a little later when we discuss the arguments advanced before us by the learned counsel for the parties.

3. In short the notification finally provided that henceforward the employees of the erstwhile Sericulture Department who were entitled to pensionary benefits should be treated as employees of the J & K Industries. It is this notification which has been assailed before us by the petitioners on various grounds. In the first place it was contended before us that the petitioners were only entrusted to the company that is to say they were directed to work under the company on the same terms and conditions which they had enjoyed as Government servants. Thus by asking the petitioners to work under the J & K Industries no change in their status, emo
































































































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