Point of Law: Service Law - Applicability of Government Order - State Government has power to issue orders such as Government Order in order to fill in void pertaining to service conditions of employees of Government Order and also in view of paragraph 2(9) of Government Order, it is clear that the Rules of 1974 would be applicable upon employees of DRDA.

JUDGMENT :

1. This Full Bench has been constituted upon orders of Hon’ble the Chief Justice pursuant to order dated 28.08.2017 passed by learned Single Judge in Writ Petition No.14930(S/S) of 2017 whereby the following two questions have been referred to this Bench:-

(i) Whether in view of the provisions of Government Order dated 17.3.1994, particularly clause 9 thereof, the provisions of the Rules of 1974 would be application upon the employees of DRDA?

(ii) Whether the judgment of Division Bench in State of U.P. vs. Ajeet Kumar Shahi, Special Appeal No.714 of 2015, requires reconsideration in light of the Government Orders dated 17.3.1994 and 18.7.2016?

2. The writ petitioner had challenged an order dated 22.05.2017 whereby claim for grant of compassionate appointment under the U.P. Recruitment of Dependents of Government Servant Dying in Harness Rules, 1974 (hereinafter referred to as 1974 Rules') was rejected on the ground that the same are inapplicable in the case of employees, such as mother of the writ petitioner, who was employed in the District Rural Development Agency (hereinafter referred to as DRDA) since the same is a Society registered under the Societies Registration Act, 1860.

3. The learned Single Judge has noticed that a Division Bench of this Court in State of U.P. & others v. Pitamber [Special Appeal (Defective) No.687 of 2010] had by its judgment and order dated 19.8.2010 held the DRDA to be 'State' within meaning of Article 12 of the Constitution of India but at the same time has also held that the employees of DRDA do not hold any civil post either under the State or the Central Government and do not, therefore, come within purview of the definition ‘government employees’.

4. In the referral order, it has also been noticed that another Division Bench of this Court in State of U.P. & others v. Ajeet Kumar Shahi [Special Appeal No.714 of 2015] while following the judgment in Pitamber (supra), rejected the claim for compassionate appointment on the ground that the 1974 Rules are inapplicable upon employees of DRDA since they do not come within definition of ‘government employees’.

5. However, learned Single Judge thereafter referred the matter to a larger Bench while posing the question whether the judgment rendered in Ajeet Kumar Shahi (Supra) required reconsideration.

6. The reference was made upon consideration by the learned Single Judge that the Division Bench in the case of Ajeet Kumar Shahi (Supra) was apparently not made aware with regard to Government Order dated 17.3.1994, which provided that in respect of matters of employment of DRDA employees, for which there is no specific provision in the said Government Order, such employees would ordinarily be governed by provisions as are applicable upon employees of the State Government. The relevant portion of the order dated 28.08.2017 by learned Single Judge is as follows:-

“7. The reason assigned to hold that Rules of 1974 would not apply upon employees of DRDA is that employee of DRDA are not the Government Servant. However, while holding the provision of 1974 Rules to be inapplicable upon the employees of DRDA, attention of the Division Bench apparently was not invited to the Government Order dated 17.3.1994, which clearly records that in respect of matters of employment of DRDA employees, which are not covered by the Government Order dated 17.3.1994, the persons employed in DRDA would ordinarily be governed by such provisions, as are applicable upon the employees of the State Government. The provisions contained in para 6 to 13 of the Government Order dated 17.3.1994 clearly contemplates that in the matter of such employees, relevant provisions relating to determination of seniority, application of reservation rules, transfer etc. would all be applicable as are applicable upon the employees of the State Government. Once such is the position, the Rules of 1974, which are applicable upon the employees of the State Government, would also be applicable upon t