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1994 Supreme(MP) 822

1998 (1) JLJ 326
(FULL BENCH)
A.K. Mathur C.J., D.K. Jain and M.S.A. Siddiqui, JJ.
Indore Nagar Nigam Karamchari Congress and another v. State of M.P. and another
M.P. No. 1801 of 1989; Decided on 29.9.1994

Advocates:
V.K. Tankha for petitiners;
Anoop Choudhary for respondents.

Headnote:(1) Municipal Corporation Act, 1956 (M.P.) -- S. 58 (5) and (6) -provisions under -- not ultra virest to Arts. 14 and 16 of Constitution. 1986 JLJ 115 confirmed. AIR 1980 SC 643 followed. AIR] 1988 SC 876, AIR 1989 SC 1577 and M.P. No. 387/79 distinguished. [Para 10

        (2) Municipal Corporation Act, 1956 (M.P.) -- Chap. XXXVI -- State Government has extensive controlling powers over working of Corporation -may transfer its employees from one Corporation to another. [Para 10 (a)

        (3) Statute -- conferring discretionary powers upon executive or administrative authority -- validity of statute cannot be judged on assumption of misusing the powers -- if action is arbitrary that is liable to be quashed and not statute itself. AIR 1986 SC 1323 and AIR 1988 SC 1451 followed. [Para 10 (a)

        (4) Municipal Corporation Act, 1956 (M.P.) -- Ss. 58 (5) and 58 (6) (as amended in 1988) -- are valid -- power to transfer the municipal employee on deputation -- should be exercised in rare of the rarest cases. 1986 JLJ 115 confirmed AIR 1980 SC 643 followed. [Para 11

       ¼1½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-ç-½ & /kkjk 58¼5½ rFkk ¼6½ & mica/k & lafo/kku ds vuq-14 rFkk 16 ds vf/kdkjkrhr ugha gSaA 1986 ts ,y ts 115 iq"VA , vkb vkj 1980 ,l lh 643 vuqlfjrA , vkb vkj 1988 ,l lh 876] , vkb vkj 1989 ,l lh 1577 rFkk ç-;k- Ø-387@79 çHksfnrA ¿iSjk 10

       ¼2½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-ç-½ & v/;k; 36 & jkT; ljdkj dks fuxe ds dk;Z ij fu;a=.k ds O;kid vf/kdkj gSa & blds deZpkfj;ksa dks vU; fuxeksa dks LFkkukarfjr dj ldrh gSaA ¿iSjk 10¼d½

       ¼3½ dkuwu & dk;Zikyd vFkok ç‘kklfud çkf/kdj.k dks oSosfdd ‘kfDr;k¡ çnÙk fd;k tkuk & dkuwu dh fof/kekU;rk dk fu.kZ; ‘kfDr;ksa dk nq#i;ksx fd, tkus dh /kkj.kk ij ls ugha fd;k tk ldrk & ;fn dkjZokbZ euekuh gks rc ogh vfHk[kafMr fd, tkus ;ksX; gSa] Lo;a dkuwu ughaA , vkb vkj 1986 ,l lh 1323 rFkk , vkb vkj 1988 ,l lh 1451 vuqlfjrA ¿iSjk 10¼d½

       ¼4½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-ç-½ & /kkjk 58¼5½ rFkk 58¼6½ ¼1988 esa ;Fkk la‘kksf/kr½ & fof/kekU; gSa & uxjikfyd deZpkjh dks çfrfu;qfDr ij LFkkukarfjr fd, tkus dh ‘kfDr & fojyre esa ls fojy ekeys esa ç;qDr dh tkuk pkfg,A 1986 ts ,y ts 115 iq"VA , vkb vkj 1980 ,l lh 643 vuqlfjrA ¿iSjk 11

OPINION

Mathur, C.J. -- 1. All these batch of petitions mentioned in the schedule annexed herewith shall stand disposed of by this common opinion.

2. A reference has been made by the Chief Justice of this Court to this Full Bench to answer the question that whether the law laid down in the case of Dr. Vasant v. State of M.P. (1986 JLJ 115) is correct law or not. In Misc. Petition No. 180/89, it was prayed that section 58 (5) and (6) of the Madhya Pradesh Municipal Corporation Act, 1956, as amended by the Madhya Pradesh Municipal Corporation (Amendment) Act, 1982 (Act. No.5 of 1982) and the Madhya Pradesh Municipal Laws (Amendment) Act, 1988 (Act. No.7 of 1988) may be declared ultra-vires of Articles 14 and 16 of the Constitution of India.

3. The petitioner-Indore Nagar Nigam Karamchari Congress, a registered representative body, has challenged the validity of the aforesaid provisions that an employee of the Municipal Corporation cannot be transferred from one to another Municipal Corporation, therefore, a validity of the aforesaid provision of M.P. Municipal Corporation Act, 1956 (hereinafter referred to as the' Act') has been challanged.


4. In order to appreciate the controversy it would be relevant to mention the relevant provisions of the Municipal Corporation Act. Sub-section (5) and (6) of section 58 of the M.P. Municipal Corporation (Amendment) Act, 1982, read as under :-

"Sub-section (5) -- Notwithstanding anything contained in this Act or any rules or bye-laws made thereunder, the State Government may, subject to the conditions specified in sub-section (6), transfer on deputation any officer or servant of a Municipal Corporation carrying a maximum scale of pay exceeding Rs. 400/- to any other Municipal Corporation and it shall not be necessary for the State Government to consult either the Corporation or the officer or servant concerned before passing an order of transfer on deputation under this sub-section."

"Sub-section (6) – The officer or servant transferred under sub-section (5) shall- (a) has his lien on the post held in the parent Corporation.

(b) not be put to disadvantageous position in respect of any allowance which he would have been entitled to, had he continued in the parent Corporation;

(c) be entitled to deputation allowance at such rate as the State Government by general order specify, and

(d) be governed by such other terms and conditions including disciplinary control as the State Government may, by general or special order, specify."

Thereafter, it was further amended by the Municipal Corporation Act, 1988. Sub-sections (5) and (6) of section 58 of the Act, 1988, which reads as under : --

"S.58. Appointment and Salary of Corporation Officers and Servants : --

(1)xxxxxxxxx

(2)xxxxxxxxx

(3)xxxxxxxxx

(4 )xxxxxxxxx

(5) Notwithstanding anything contained in this Act or any rules or bye laws made thereunder, the State Government may, subject to the conditions specified in sub-section (6), transfer on deputation any officer or servant of a Municipal Corporation to any other Municipal Corporation and it shall not be necessary for the State Government to consult either the Corporation or the officer or servant concerned before passing an order of transfer on deputation under this sub-section.

(6) The officer or servant transferred under sub-section (5) shall –

(a) have his lien on the post held in the parent Corporation;

(b) not be put to disadvantageous position in respect of any allowances which he would have been entitled to, had he continued in the parent Corporation;

(c) be entitled to deputation allowance at such rate as the State Government may by general order specify, and (d) be governed by such other terms and conditions including disciplinary control as the State Government may, by general or special order specify."

Prior to this, it was also amended by the Act No. 5/82. Since we are concerned with Amending Act of 7/88 by which these two provisions sub-section (5) and (6) were subst












































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