The employees of U. P. Jal Nigam are not automatically entitled to the enhanced age of superannuation at par with State Government employees based on the Government Order dated 28. 11. 2001, as the Act did not provide for automatic revision of their service conditions corresponding to changes made for State Government employees.

( 1 ) THE moot point for consideration in this bunch of writ petitions is whether the employees of the U. P. Jal Nigam are entitled to enhancement in their age of superannuation from 58 years to 60 years, at par with U. P. Government servants by virtue of Government Order No. 1098/ka-1/2001, Lucknow dated 28th November, 2001.

( 2 ) THE background of the controversy has its roots in the enactment of the U. P. Water Supply and Sewerage Act, 1975. The petitioners were employees in the Local Self Government engineering Department of the U. P. Government. On enactment of the U. P. Water Supply and sewerage Act, (U. P. Act No. 43 of 1975) as amended by U. P. Acts No. 10 of 1978, U. P. Act No. 28 of 1978 and U. P. Act No. 5 of 1984, the U. P. Jal Nigam came into existence and by virtue of section 3 of the Act, the Nigam is body corporate.

( 3 ) THE contentions of the petitioners are that :

(i) Under Section 37 of the U. P. Water Supply and Sewerage Act, 1975, the service conditions of the petitioners stood preserved as that of a Government servant subject to making of rules by the U. P. Jal Nigam.

(ii) Since neither the U. P. Jal Nigam has framed any rules nor rules have been framed by the state Government changing the service conditions of the petitioners, hence their service conditions remain the same as applicable to Government Employees, and they are to be retired at the enhanced age of superannuation, i. e. , 60 years and not 58 years.

(iii) The retirement of the petitioners had so far been governed by Rule 56a of U. P. Financial handbook and they were being retired at the age of 58 years as per unamended Rule 56a, but by virtue of Government order dated 28. 11. 2001 (supra), issued by the Governor of U. P. , the age of retirement of Government servants was enhanced from 58 years to 60 years. Hence their age of retirement is 60 years, even though necessary amendments in Rule 56a have to be carried out in due course of time.

( 4 ) TO resolve the controversy, we have to first consider the relevant provisions of the U. P. Water supply and Sewerage Act, 1975.

( 5 ) SECTION 8 provides for appointment of employees : (1) Subject to the provision of Sub-section (2), the Nigam may appoint such employees as it considers necessary on such terms and conditions as it thinks fit for the efficient performance of its functions : provided that the appointment of such employees as the State Government may, by General or special order, specify, shall be made in their terms and conditions, shall be determined with the approval of the State Government. (2 ). . . . . . . .

( 6 ) SECTION 37 (1) of the Act states :

"37. Transfer of employees of Nigam.-- (1) Save as otherwise provided In this section every person, who was employed in the Local Self Government Engineering Department of the State government shall on and from the appointed date become employee of the Nigam and shall hold his office or service therein by the same tenure, at the same remuneration and upon same other terms and conditions, and with the same rights and privileges as to pension, gratuity and other matters as he would have held the same on the appointed date if this Act has not come into force, and shall continue to do so until his employment in the Nigam is terminated or until his remuneration or other terms and conditions of services are revised or altered by the Nigam under or in pursuance of any law or in accordance with any provision which for the time being governs his service : provided that nothing contained in this sub-section shall apply to any such employee, who by notice in writing given to the State Government within such time as the State Government may, by general or special order, specify, intimates his intention of not becoming an employee of the nigam : provided further that the services of any employee referred to in the preceding proviso under the state Government shall stand terminated on account of abolition of the post held by him and he sha