Supreme Court of India

N. Lakshmana Rao & Ors. Etc vs State Of Karnataka & Ors. Etc on 29 April, 1975

Supreme Court of India
N. Lakshmana Rao & Ors. Etc vs State Of Karnataka & Ors. Etc on 29 April, 1975
Equivalent citations: 1975 AIR 1646, 1975 SCR 328
Author: A Ray
Bench: Ray, A.N. (Cj)
           PETITIONER:
N.   LAKSHMANA RAO & ORS.  ETC.

	Vs.

RESPONDENT:
STATE OF KARNATAKA & ORS.  ETC.

DATE OF JUDGMENT29/04/1975

BENCH:
RAY, A.N. (CJ)
BENCH:
RAY, A.N. (CJ)
MATHEW, KUTTYIL KURIEN
KRISHNAIYER, V.R.
GUPTA, A.C.

CITATION:
 1975 AIR 1646		  1975 SCR  328
 1976 SCC  (2) 502


ACT:
Karnataka State Civil Service (Age of Compulsory Retirement)
Rules, 1974 and Constitution of India, 1950, Article 309 and
311-Reduction	of the age of compulsory retirement from  58
to 55 years- prescribing age of superannuation if amounts to
removal or termination.
Mysore	Compulsory  primary  Education	Act,  1969,  Section
14(b)-Teachers	of  primary schools  becoming  employees  of
State  Government Conditions of service to  continue  "until
other  provision  is made"-Section 14(b), if  temporary	 and
transitional-Conditions, if can be altered by the Governor.



HEADNOTE:
The  new State of Mysore came into existence on 1  November,
1956,  consequent upon the reorganization of States  brought
about	by  the	 states	 Reorganization	 Act,	1956.	 The
reorganized  new  State	 consisted of the  former  Suite  of
Mysore,	 part  of the former State of Bombay,  part  of	 the
former Stat of Hyderabad, part of the former State of Madras
and  the centrally administered territory of  Coorg.   There
are  three categories of teachers "who are parties to  these
appeals.  One group consists of primary and secondary school
teachers  in  Government  schools of  the  former  State  of
Mysore.	  The  second  group consists  of  teachers  in	 the
schools	 belonging to various local authorities situated  in
the area of the former State of Mysore.	 These teachers were
absorbed  in Government service of the new State  of  Mysore
when  the  said schools were taken over by  the	 Government.
'The third group consists of teachers in the schools of	 the
School Boards in the Bombay area and Madras area of the	 new
State.	 They were absorbed in Government service under	 the
mysore Compulsory Primary  Education Act, 1969.
On 24 February, 1974, the Karnataka State Civil Service (Age
of  Compulsorily Retirement Rules, 1974 came into  existence
in exercise of powers under Article 309 of the Constitution.
These  rules  provided that nowithstanding anything  to	 the
contrary contained in any law, rule, notification, order  or
,agreement every Government servant referred to in  sub-rule
(4)  who,@ t,,e of compulsory retirement is 58	years  shall
retire	on  attaining  the age of 55  years.   It  was	also
provided by those Rules that those who continued in  service
after  attaining the age of 55 years on the date of the	 pi-
promulgation of the Rules would retire on the date on  which
they  attained	the  age of or 1 April,	 1974  whichever  is
earlier.   It  is also stated that those  who  continued  in
services  after	   attain  the age of  55  years  after	 the
commencement of these Rules. but on or before 1 April,	1974
would  retire  on 1 April, 1974.  Those who will  attain  55
years after 1 April, 1974 shall retire on ,attaining the age
of  55 years,.	The Government servant was defined  in	1974
Age  of Compulsory Retirement Rules to mean six	 classes  of
Government  servants.  The three categories of teachers	 who
are parties to these appeals are all covered by The rules.
It  was	 contended on behalf of the  Ex-Mysore	Primary	 and
Secondary  School  teachers  that  they	 had  their  age  of
retirement  at	58 years and they were protected  under	 the
proviso	 to  sub-section (7) of section 115  of	 the  States
Reorganisation	Act.   It  was contended on  behalf  of	 the
teachers  of  Ex-Municipal High Schools that  their  age  of
retirement  which  was applicable to  the  Municipal  Blight
School	Teachers  before  the (late of take  over  N@@is  58
years,	and  therefore,	 they  were  protected	Linder	 the
agreements dated 30th April, 1971.  The contention on behalf
of the teachers of elementary ,schools which were under	 the
management of local bodies and which were
329
taken  over  by	 the  State Government	that  their  age  of
retirement  was 58 years before the schools were taken	over
by  the State Government under the provisions  of  Karnataka
Compulsory  Primary Education (Amendment  and  Miscellaneous
Provisions)  Act, 1969 and their conditions  would  continue
until other condition was made.	 The principal contention of
the  teachers of the Municipal and Taluk  Development  Board
High  Schools which were taken over by the State  Government
under written agreements made by the relevant local body was
that  the condition which was offered by the Government	 and
accepted  by these teachers "shall not be altered  to  their
disadvantage"  by'  virtue of section 14(b)  of	 the  Mysore
Compulsory  Primary  Education	Act,  1969.   One  of  their
conditions of service before the schools were taken over  by
the  State Government was the age of retirement of  teachers
at 58 years.
Rejecting the contentions and dismissing the appeals
HELD  : (i) This Court has held that prescribing an  age  of
superannuation	does not amount to an action  under  Article
311  of the Constitution.  Article 309	confers	 legislative
power to provide conditions of service.	 The legislature can
regulate  conditions  of  service by law  which	 can  impair
conditions or terms of service.	 It, therefore, follows that
teachers  who exercised the form of option were	 subject  to
change in the conditions of service under Rules framed under
Article	 309.	There  is no  constitutional  limitation  to
reduce	the age of retirement.	A Government servant  enjoys
the  status of a Government servant.  He cannot	 be  removed
and  his services cannot be terminated except in  accordance
with the provisions of the Constitution.  Fixing ,in age  of
retirement does not amount to removal of termination. [333H,
334 & 335A]
Roshan	Lal Tandon v. Union of India [1968]1 S.C.R. 185;  B.
S.  Vadera v. Union of India & Ors. [1968] 3 S.C.R. 575	 and
Bishun	Narain	Mishra v. State of Uttar  Pradesh  &  Others
[1965] 1 S.C.R. 693, relied on
Gurdev	Sinqh  Sidhu v. State of Punjab &  Others  [1964]  7
S.C.R. 587 and State of Mysore v. Padmanabhacharya [1966]  1
S.C.R. 994, referred to,
(ii) The 1969 Act provided in section 14 transfer of primary
schools managed	    by the municipal councils and panchayats
in the Madras area and Bellary	   District    before	 the
appointed  day.	 Teachers of those schools became  employees
of the State Government.  The provision contained in section
14(b)  of  the	1969 Act is  a	temporary  and	transitional
provision  which  continues until other provision  is  made.
The  Legislature does not say until other provision is	made
because	 the legislature is always free to  legislate.	 The
words  "until other provision is made" mean provision  which
can  be	 made by the legislature or by the Governor  or	 the
executive.  The words "until other provision is made" do not
exclusively  limit  to legislate.  If  the  legislature	 has
occupied  the  field the Governor has co-equal	power.	 The
power  of the Governor is co-extensive with the	 legislative
power. [335 BCDH]
B.   S. Vadera v. Union of India & Ors. [1968] 3 S.C.R. 575,
referred to.
Section	 14(b)	of  the 1969 Act is  not  a  law  regulating
recruitment  and  conditions of service under  Article	309.
Assuming   it  is,  Article  309  does	not   preclude	 the
legislature from making provision prescribing conditions  or
recruitment  and  conditions  of service by  Rules.   It  is
equally	 open to the legislature to provide that in  certain
conditions  the Governor acting under the proviso  may	make
appropriate  rules.   The  power under the  proviso  is	 co-
extensive with the power under the main part. [335F-H]



JUDGMENT:

CIVIL APPELLATE JURISDICTION Civil Appeals Nos. 1919, 1931,
1932-34, 1959-84, 1985, 1986, 1987-89, 1991-2007 & 2043 of
1974.

From the judgment dated 18-10-1974 of the High Court of
Bangalore in Writ Petitions Nos. 1019, 865, 1118, 1157,
1197, 2522,
330
2584, 2904, 3576, 4029, 5662, 1170 & 3204 of 1974.
A. K. Sen (In C. A. No. 1919 of 1974) Rama Jois, (In C. As.
1919-31) & (W.P. No. 249/74), P. R. Ramasesh (In C.As. Nos.
1919-31) and R. B. Datat, for the appellants (In C.As. Nos
1919-31, 1987, 1988, 1991-2007, 2043) & petitioner (In W.P’
No. 249 of 1974).

S. Lakshminarasu, for the petitioners (In C.As. Nos. 1932-

34).’
Rama Joie and S. S. Khanduja, for the appellants (In C.As.
Nos. 1959-84/74).

Narayan Nettar, for the appellants (In C. As. Nos. 1985-86/
1974).

V. J. Francis, for respondents Nos. 4-8 & 10 (In C.A.
1983).

F. S. Nariman, Additional Solicitor General, (In C.A. No.
1919)
K. S. Puttaswamy, (In C.A. No. 1919/74) & (W.P. No.
249/74)
and M. Veerappa, for State of Karnataka in all the matters.
A. R. Sommnath Iyer, N. D. Kurlarni (In W.P. No. 21/75) and
Rama Jois and R. B. Datar, for applicant/Intervener/Writ
Petitioner.

The Judgment of the Court was delivered by
RAY, C.J.-These appeals by certificate turn on the question
as to whether the Karnataka State Civil Services (Age of
Compulsory Retirement) Rules, 1974 are valid.
These cases may be broadly classified into three categories.
One group consists of primary and secondary school teachers
in Government schools of the former State of Mysore. The
second group consists of teachers in the schools belonging
to various local authorities situate in the area of the
former State of Mysore. These teachers were absorbed in
Government service of the new State of Mysore when the said
schools were taken over by the Government. The third group
consists of teachers in the schools of the School Boards in
the Bombay area and the Madras- area of the new State. They
were absorbed in Government service under the Mysore
Compulsory Primary Education Act, 1969.

The new State of Mysore came into existence on 1 November,
1956 consequent upon the reor-anisation of States brought
about by the States Reorganisation Act, 1956. The
reorganised new State consisted of the former State of
Mysore part of the former State of Bombay, part of the
former State of Hyderabad, part of the former State of
Madras and the centrally administered territory of Coorg.
Sections 114 and 115 of the States Reorganisation Act deal
with
allotment and transfer of State Services of the merged parts
of the new State.

331

The School teachers of the former State of Mysore were
allotted to the new State of Mysore with effect from 1
January, 1956. Their age of retirement under the Mysore
Services Regulations was, 58 years. Some time in the year
1957 the State Government reduced their age of retirement to
55 years. The teachers challenged the reduced age of
retirement. This Court in State of Mysore v.
Padmnabhacharya (1966) 1 S.C.R. 994 upheld the contention of
the teachers that the age of retirement as fixed by the
State was illegal. It may be stated here that the State did
not obtain the prior approval of the Central Government
under section 115(7) of the States Reorganisation Act in
regard to the reduction of the age of compulsory retirement.
By notification dated 14 April,’ 1966 the age of retirement
of primary and secondary school teachers in the new State
was fixed at 58 years with effect from 5 April, 1966. The
age of retirement of teachers who were allotted from other
integrated areas was 55 years. By notification dated 15
April, 1966 a uniform treatment was given to all the Primary
and Secondary School Teachers of the new State of Mysore by
fixing their age of retirement at 58 years.
By notification dated 10 July, 1970 the age of retirement of
teachers in the Collegiate and Technical Education
Department was raised to 5 8 years.

By notification dated 6 May, 1971 the retirement age of
teaching staff of the Medical and Dental Colleges and other
colleges under’ the Department of Health and Family Planning
Services was, raised to 58 years.

By another notification dated 24 June, 1971 the age of
retirement of the members of the teaching stain of the Law
Colleges was raised to 58 years.

By another notification dated 5 August, 1972 the age of
retirement of the members of the Judicial Service was raised
to 58 years.

The Karnataka Civil Services (Twenty-Second Amendment)
Rules, 1973 provided the age of retirement of all teachers
in all the Departments except Ex-Mysore Primary and
Secondary School Teachers at 55 years.

The teachers of the erstwhile local authorities were not
covered by the Karnataka Civil Services (Twenty-Second
Amendment) Rules, 1973 as they were governed either by
contract or by special laws. Their age of retirement was 58
years. They were asked to retire on attaining 55 years.
They filed writ petition challenging the reduction in age of
retirement.

The Mysore Service. (Amendment) Regulations 1974 were pro-
mulgated on 21 January, 1974 reducing the age of retirement
of Ex-Mysore teachers from 58 to 55 years.

332

The Mysore Civil Service Regulations 1974 were made in
exercise of the powers conferred by the, proviso to Article
309 of the Constitution and with the previous approval of
the Central Government under the proviso to subjection (7)
of section 115 of the States Reorganisation Act. These
Mysore Civil Service Regulations 1974 provided that every
Government servant governed by the provisions, of note 4
below clause (c). of Article 294 of the Mysore Civil Service
Regulations would retire on attaining the age of 55 years
and those who were continued in service after attaining the
age of 55 years on the date of the Regulations would retire
on attaining the age of 58 years or 1 March, 1974 whichever
is earlier.

The Mysore Civil Service- (Amendment), Regulations, 1974
thus reduced the age of retirement of Ex-Mysore teachers
also to 55 years.

On 24 February, 1974 the Karnataka State Civil Services.(Age
of Compulsory Retirement) Rules, 1974 came into existence in
exercise of powers under Article 309 of the Constitution.
The Karnataka State Civil Services (Age of Compulsory
Retirement) Rules, 1974 provided that notwithstanding
anything to the contrary contained in any law, rule,
notification, order or agreement, every Government servant
referred to in sub-rule (4) whose age of compulsory retire-
ment is 58 years shall retire on attaining the age of 55
years. It was also provided by those Rules that those who
continued in service after attaining the age of 55 years oh
the date of the promulgation of the Rules would retire on
the date on which they attained the age of 58 years or 1
April, 1974 whichever is earlier. It is also stated that
those who will attain the age of 55 years after the
commencement of these Rules, but on or before 1 April, 1974
would retire on 1 April, 1974. Those who will attain 55
years after 1 April, 1974 shall retire on attaining the age
of 55 years. The Government servant was defined in 1974 Age
of Compulsory Retirement Rules to mean six classes of
Government servants. The three categories of teachers who
are parties to these, appeals are all covered by the
Karnataka State Civil Service (Age of.Compulsory Retirement)
Rules., 1974 which are referred to as the impugned Rules.
The Ex-Mysore primary and secondary school teachers contend
that they had their age of retirement at 58 years and they
were protected under the proviso to sub-section (7) of
section 115 of the States Reorganisation Act. The teachers
of Ex-Municipal High School taken over under orders of the
Government and agreements made by the Government dated 30
April, 1971 contended that their age of retirement which was
applicable to the Municipal High School teachers before the
date of take over was 58 years, and, therefore, they were
protected under the agreements. The teachers of elementary
schools which were under the management of local bodies and
which were taken over by the State Government contended that
their age of retirement was 58 years before the schools were
taken over by the State Government under the provisions of
Karnataka Compulsory Primary Education (Amendment and
Miscellaneous Provisions) Art, 1969 and their conditions
would continue until other condition was made.

333

The teachers of the Municipal and Taluk Development Board
High Schools which were taken over by the State Government
under written agreements made by the relevant local body
contended that they &came Government servants by the
exercise of option form accepting the terms and conditions
offered by the Government in their order. dated 30 April,
1971. These teachers also contended that the option was
incorporated in the agreement between the State Government
and the relevant local body under whom they were, employed.
The principal contention of these teachers was that the
condition which was offered by the Government and accepted
by these teachers of the relevant local body was that the
conditions of service of these teachers ” shall not be
altered to their disadvantage”. One of their conditions of
service before the schools were taken over by the State
Government was the age of retirement of teachers at 58
years. Under the impugned Rules these teachers were
requited to retire at, the age of 55 years, notwithstanding
the fact that their age of retirement under the agreement
was 58 years.

The Government Order dated 30 April, 1971’stated that all
employees of the Local Authorities would become Government
servants with effect from the date of transfer and their
conditions of service would not be varied to their
disadvantage. consequent on their transfer to Government
control. The Government order dated 30 April, 1971 further
provided that the employees of local bodies and Secondary
schools would be absorbed in Government service only if they
agreed in writing to the forms. By the form is meant the,
form of option. The, form of option contained two forms.
One was whereby the teachers agreed to be absorbed in
Government service and the other where the teachers did not
agree to be absorbed in Government service. Those who
agreed to be absorbed in Government service stated that the
terms and conditions laid down by Government regarding
absorption of the members of the staff of local body in
Government service consequent on the take over of the local
body to the control of Government were gone through and they
agreed to be absorbed in Government service. The agreement
between the Government and the relevant school of the local
body provided that the service condition,, of teaching and
non-teaching employees of the local bodies shall not be
varied to their disadvantage consequent on their transfer to
Government control.

As a result of the exercise of option by the teachers of the
local bodies they became Government servants. The term that
the service conditions would not be varied to their
disadvantage would mean that they would be like all other
Government servants subject to Article 310(1) of the
Constitution. This could mean that under the law these
teachers would be entitled to continue in service up to the
age of superannuation. The exercise of option does not mean
that there was a contract whereby a limitation was put on
prescribing an age of superannuation. It has been held by
this Court that prescribing an age of superannuation does
not amount to an action under Article 311 of the
Constitution. Article 309 ‘confers legislative power to
provide conditions of service. The Legislature can regulate
conditions of service by law which can impair conditions or
terms of service.

334

This Court in Roshan Lal Tandon v. Union of India (1968) 1
S.C.R. 185 said that there is no vested contractual right in
regard to the terms of service. The legal position of a
Government servant is one of status than of contract. The
duties of status are fixed by law. The terms of service are
governed by statute or statutory rules which may be
unilaterally altered by the Government without the consent
of the employee.

The form of option is the contract. This exercise of
option is itself the contract. The option is to be absorbed
or not to be absorbed. The contractual term is that the
teacher will be absorbed as a Government servant. The term
in the, agreement between the Government and the Local Body
that the conditions of service will not be varied to the
disadvantage of the teachers has been read by all teachers
who exercised the option to be absorbed. The conditions of
service referred to therein are the conditions of service of
the State of Mysore.

In B. S. Vadera v. Union of India & Ors. (1968) 3 S.C.R. 575
this Court held that if an appropriate legislature has
passed an Act under Article 309 the Rules framed under the
proviso to Article 309 would have effect subject to that
Act. In the absence of any Act of the appropriate
legislature the Rules made. by the President or such person
as he may direct, are to have full effect.

There is legislative power under Entry 41, List 11 to
legislate for State public services. There is no fetter on
the legislative power to legislate with regard to service or
with regard to any other matter mentioned in the Legislative
List. In Gurdev Singh Sidhu v. State of Punjab & Anr.

(1964) 7 S.C.R. 587 this Court stated that there were two
exceptions to the protection afforded by Article 311. One
is where a permanent public servant is asked to retire on
the ground that be has reached the age of superannuation
which is reasonably fixed. The other is where a public
servant is compulsorily retired under the Rules which
prescribe the normal age of superannuation and provide
reasonably long period of qualified service after which
compulsory retirement could be valid. It is only when a
rule is framed prescribing a proper age of superannuation
and another rule is framed giving power to the State to
retire a permanent public servant compulsorily at the end of
10 years of his service that this Court has apprehended such
cases to be not within the protection of Article 311.
The question of retirement- age was considered by this Court
in Bishun Narain Mishra v. State of Uttar Pradesh & Ors.
(1965) 1 S.C.R. 693. The State Government in that case
raised the age of superannuation from 55 to 58 years and
again reduced the age to 55 years. It was held that there
is no provision which takes away power of the Government to
increase or reduce the age of superannuation. When the rule
only deals with the age of superannuation and the
Government servant had to retire because of the reduction in
the age of superannuation it cannot be said that the
termination of the service amounts to removal within the
meaning of Article 311.

It, therefore, follows that teachers who exercised the form
of option were subject to change in the conditions of
service under Rules framed
335
under Article 309. There is no constitutional limitation to
reduce the age of retirement. A Government servant enjoys
the status of a Government servant. He cannot be removed
and his services cannot be terminated except in accordance
with the provisions of the Constitution. Fixing an age of
retirement does not amount to removal or termination.
The teachers of primary schools contended that their terms
of service were continued by Mysore Compulsory Primary
Education Act, 1969, and, therefore, their age of retirement
could not be altered by rules made by the Governor under
Article 309. The 1969 Act provided in section 14 transfer
of primary schools managed by the municipal councils and
panchayats in the Madras area and Bellary District before
the appointed day. Teachers of those schools became
employees of the State ‘Government. The crucial words in
section 14(b) of the 1969 Act on which the teachers relied
are these : “AR primary school teachers………………
shall, until other provision is made, receive the salary and
allowances and be subject to the condition of service to
which they were entitled immediately before the appointed
day”. The words “other provision is made” were construed by
the teachers to mean an act of legislature.
The provision contained in section 14(b) of the 1969 Act is
a temporary and transitional provision which continues until
other pro-vision is made. The Legislature does not say
until other provision is made because the Legislature is
always free to legislate. The words ” until other provision
is made” mean provision which can be made by the legislature
or by the Governor or the executive. The words “until other
provision is made” do not exclusively limit to legislate.
If the legislature has occupied the field the Governor has
co-equal power. The power of the Governor is co-extensive
with the legislative power (See B. S. Vadera’s case (supra)
at page 583).

Section 14(b) of the 1969 Act is not a law regulating
recruitment and conditions of service under Article 309.
Assuming it is, Article 309 does not preclude the
legislature from making provision for prescribing conditions
of recruitment and conditions of service by Rules. The
proviso to Article 309 contemplates that Rules regulating
conditions of service may be made under aft enactment. Just
as it is open to the appropriate legislature to provide for
rules to be framed for regulating recruitment and conditions
of service under Article 309, it is equally open to the
legislature to provide that in certain conditions the
Governor acting under the proviso may make appropriate
rules. The power under the proviso is co-extensive with the
power under the main part. (See B. S. Vadera’s case (supra)
at pp. 585586).

For these reasons, the contentions of the teachers fail.
The impugned legislation is constitutionally valid. The
appeals are dismissed. Parties will pay and bear their own
costs.

Appeals dismissed.

V.M.K.

336