{"id":106057,"date":"1999-08-13T00:00:00","date_gmt":"1999-08-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/nagpur-improvement-trust-vs-yadaorao-jagannath-kumbhare-10-on-13-august-1999"},"modified":"2018-09-30T14:17:00","modified_gmt":"2018-09-30T08:47:00","slug":"nagpur-improvement-trust-vs-yadaorao-jagannath-kumbhare-10-on-13-august-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/nagpur-improvement-trust-vs-yadaorao-jagannath-kumbhare-10-on-13-august-1999","title":{"rendered":"Nagpur Improvement Trust vs Yadaorao Jagannath Kumbhare &amp; 10 &#8230; on 13 August, 1999"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Nagpur Improvement Trust vs Yadaorao Jagannath Kumbhare &amp; 10 &#8230; on 13 August, 1999<\/div>\n<div class=\"doc_author\">Author: Pattanaik<\/div>\n<div class=\"doc_bench\">Bench: S.Saghir Ahmad, G.B.Pattanaik<\/div>\n<pre>           PETITIONER:\nNAGPUR IMPROVEMENT TRUST\n\n\tVs.\n\nRESPONDENT:\nYADAORAO JAGANNATH KUMBHARE &amp; 10 ORS.\n\nDATE OF JUDGMENT:\t13\/08\/1999\n\nBENCH:\nS.Saghir Ahmad, G.B.Pattanaik\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p>PATTANAIK, J.\n<\/p>\n<p>      These  appeals  by  the Nagpur Improvement  Trust\t are<br \/>\ndirected  against the judgment of the Division Bench, Bombay<br \/>\nHigh  Court  in\t Writ  Petition No.  781 of  1988  and\tWrit<br \/>\nPetition  No.\t1945  of 1989.\tBy the said  judgment  under<br \/>\nchallenge,  the High Court has quashed the promotion of\t the<br \/>\nprivate\t   respondents\t to    the    post   of\t   Assistant<br \/>\nEngineer(Civil),  inter-alia,  on the ground that there\t has<br \/>\nbeen  no  rules\t framed by the State Government\t to  promote<br \/>\npeople\tin  the\t technical line and in the absence  of\tsuch<br \/>\nrule,  it  is  not possible for the Trust\/Board\t to  appoint<br \/>\npeople\teither on the basis of any decision of the Board  or<br \/>\nunder any executive instructions evolved by the Board.\n<\/p>\n<p>      The  private  respondents moved the High\tCourt  under<br \/>\nArticle\t 226N of the Constitution alleging that the posts of<br \/>\nEngineering  Supervisor\t and  Assistant Engineer  under\t the<br \/>\nBoard  are required to be filled up by promotion from  among<br \/>\nthe  Junior  Engineers.\t It was also alleged that the  Trust<br \/>\nhad  issued  an\t advertisement\tin the\tyear  1981  inviting<br \/>\napplications  for the post of Assistant Engineer laying down<br \/>\nDegree\tin Civil Engineering with three years&#8217; experience as<br \/>\nthe eligibility criteria.  This eligibility clause was later<br \/>\non  dispensed with by subsequent advertisement dated 1st  of<br \/>\nAugust\t1982  and people could be appointed with  sufficient<br \/>\nexperience.   It  was alleged that there being no  statutory<br \/>\nrules providing the criteria for promotion, appointments are<br \/>\nbeing  made on the whims of the Trust and such appointments,<br \/>\ntherefore,  need not be sustained.  A further grievance\t had<br \/>\nbeen  made that the draughtsmen who were not eligible to  be<br \/>\npromoted to the post of Assistant Engineer, the Trust by its<br \/>\nresolution  dated 30th of December 1986 equated the post  of<br \/>\nDraughtsman  with  the Engineering Supervisor and made\tthem<br \/>\neligible  for  promotion and such resolution  was  motivated<br \/>\none,  designed to confer benefit to some particular  persons<br \/>\nand  as\t such  should  be quashed by the  High\tCourt.\t The<br \/>\nTrust\/Board  entered  appearance in the High Court and\ttook<br \/>\nthe  stand that when the State Government has not framed any<br \/>\nrules in exercise of power under Section 21 of the Act, then<br \/>\nthe  Trust\/Board on whom the control and management entirely<br \/>\nvests  can  certainly  make appointments and  promotions  to<br \/>\ndifferent  posts  and as such appointments  bonafidely\tmade<br \/>\ncannot\tbe  interfered\twith by the High  Court.   The\tHigh<br \/>\nCourt,\thowever, on consideration of the submissions made by<br \/>\nthe  rival parties came to the conclusion that under Section<br \/>\n21  of\tthe  Act,  it is the mandatory\tduty  of  the  State<br \/>\nGovernment to frame rules prescribing conditions under which<br \/>\nappointments  can  be  made  to the  post  under  the  Trust<br \/>\nrequiring  professional\t skill\tand in the absence  of\tsuch<br \/>\nrules, the Trust is not empowered to make any appointment to<br \/>\nsuch  posts.   Since admittedly, no rules have been  framed,<br \/>\nthe  appointments to the post of Assistant Engineer made  by<br \/>\nthe Trust are invalid and accordingly such appointments were<br \/>\nquashed.\n<\/p>\n<p>      Learned\tcounsel\t appearing  for\t  the  appellant   &#8211;<br \/>\nTrust\/Board  contends that the view taken by the High  Court<br \/>\nin  interpreting  the provisions of the Trust Act is  wholly<br \/>\nunsustainable  and  such  interpretation   will\t create\t  an<br \/>\nadministrative\tchaos in managing the affairs of the  Trust.<br \/>\nHe, however, contended that in the service jurisprudence, it<br \/>\nis  an\taccepted rule that in the absence of  any  statutory<br \/>\nrules,\tthe administrative instructions operate in the field<br \/>\nand,  therefore, so long as there has been no rule framed by<br \/>\nthe  State Government in exercise of power under Section  21<br \/>\nof the Act, the Trust\/Board would be fully empowered to make<br \/>\nappointments to different posts by the decision of the Board<br \/>\nand  such decisions cannot be found fault with.\t The learned<br \/>\ncounsel\t further contended that there has been no finding by<br \/>\nthe  High  Court that the resolution of the Board  providing<br \/>\ncriteria  for appointment to the post of Assistant  Engineer<br \/>\nand  the ultimate decision of the Board appointing Assistant<br \/>\nEngineer  are either for an extraneous consideration or have<br \/>\nbeen  malafidely taken and in that view of the matter,\tsuch<br \/>\ndecision  should operate and the appointments made  pursuant<br \/>\nto such decision should not have been interfered with by the<br \/>\nHigh  Court  in exercise of its\t discretionary\tjurisdiction<br \/>\nunder Article 226 of the Constitution of India.\n<\/p>\n<p>      Learned  counsel for the respondents on the other hand<br \/>\nargued\twith  vehemence that so long as no rules  have\tbeen<br \/>\nframed\tby the State Government under Section 21 of the Act,<br \/>\nit  was\t not  possible\tfor  the  Trust\/Board  to  make\t any<br \/>\nappointment  to\t different  posts and, therefore,  the\tHigh<br \/>\nCourt was fully justified in quashing such appointments.\n<\/p>\n<p>      To   appreciate\tthe  correctness    of\t the   rival<br \/>\nsubmissions,  it would be necessary to examine the  relevant<br \/>\nprovisions  of\tthe  Trust Act and to find out\twhether\t the<br \/>\nconclusion  arrived  at by the High Court is  in  accordance<br \/>\nwith  law.   The  Nagpur Improvement Trust Act, 1936  is  in<br \/>\noperation ever since its promulgation and has been operative<br \/>\nin  the field for more than 60 years.  Section 21 of the Act<br \/>\nconferring the power on the State Government to frame rules,<br \/>\nreads thus:\n<\/p>\n<p>      &#8220;1(1)  Subject to rules as the [State] Government may<br \/>\nmake  prescribing the conditions under which members of\t the<br \/>\nstaff\tappointed   by\tthe   Trust  to\t offices   requiring<br \/>\nprofessional skill may be appointed, suspended or dismissed,<br \/>\nthe  Trust may from time to time fix the number and salaries<br \/>\nof  such  permanent servants as it may think  necessary\t and<br \/>\nproper to assist in carrying out the purposes of this Act:\n<\/p>\n<p>      Provided\tthat  the  Trust   may,\t with  the  previous<br \/>\nsanction   of  the  [State]   Government  appoint  a  person<br \/>\npossessing professional skill on a short term contract for a<br \/>\nperiod not exceeding five years.\n<\/p>\n<p>      (2)  The\tChairman may in cases of  emergency  appoint<br \/>\nsuch  temporary\t servants as may in his opinion be  required<br \/>\nfor  the  purposes  of\tthis Act, and may  direct  that\t the<br \/>\nsalaries  of such temporary servants fixed as the  emergency<br \/>\nmay require shall be paid from the Trust fund:\n<\/p>\n<p>      Provided that<\/p>\n<p>      (i)  He  shall  not  act under this  sub-\t section  in<br \/>\ncontravention  of  any\torder of the Trust  prohibiting\t the<br \/>\nemployment  of\ttemporary servants for any particular  work,<br \/>\nand<\/p>\n<p>      (ii)  every  appointment made under  this\t sub-section<br \/>\nshall  be  reported  at the next following  meeting  of\t the<br \/>\nTrust.&#8221;\n<\/p>\n<p>      Section 22 conferring the power on the Chairman of the<br \/>\nBoard in certain cases and in the Trust\/Board itself in some<br \/>\nother  cases  is  quoted  herein  below\t in  extenso:\t&#8220;2.<br \/>\nSubject to the provisions of Section 21 and to any rules for<br \/>\nthe  time being in force, the power of appointing, promoting<br \/>\nand  granting  leave to officers and servants of the  Trust,<br \/>\nand  reducing, suspending or dismissing them for misconduct,<br \/>\nand dispensing with their services for any reason other than<br \/>\nmisconduct, shall be vested &#8221;\n<\/p>\n<p>      (a) in the case of officers and servants whose monthly<br \/>\nsalary\tdoes not exceed one hundred and fifty rupees, in the<br \/>\nChairman, and<\/p>\n<p>      (B) in other cases, in the Trust:\n<\/p>\n<p>      Provided\tthat any officer or servant in receipt of  a<br \/>\nmonthly\t salary\t exceeding  fifty  rupees  who\tis  reduced,<br \/>\nsuspended,  or\tdismissed by the Chairman may appeal to\t the<br \/>\nTrust, whose decision shall be final.&#8221;\n<\/p>\n<p>      The  management  of  the\tTrust itself  vests  on\t the<br \/>\nTrust\/Board.   Various provisions in the Act, however,\tmake<br \/>\nit  clear  that\t the State  Government\texercises  effective<br \/>\ncontrol\t over  the affairs of the Trust\/Board.\tThe  control<br \/>\nwhich the State Government exercises over the affairs of the<br \/>\nTrust\/Board  is\t apparent from the provisions of Section  25<br \/>\nitself,\t which reads as under:\t&#8220;25.  (1) The Chairman shall<br \/>\nforward\t to  the [State]Government a copy of the minutes  of<br \/>\nthe proceedings of each meeting of the Trust within ten days<br \/>\nfrom  the  date on which the minutes of the  proceedings  of<br \/>\nsuch  meeting  were signed, as prescribed in clause  (g)  of<br \/>\nsub-section (1) of Section 16.\n<\/p>\n<p>      (2)  If the [State] Government so directs in any case,<br \/>\nthe  Chairman shall forward to it a copy of all papers which<br \/>\nwere laid before the Trust for consideration at any meeting.\n<\/p>\n<p>      (3) The [State] Government may require the Chairman to<br \/>\nfurnish with<\/p>\n<p>      (a)  any\treturn, statement, estimate,  statistics  or<br \/>\nother  information regarding any matter under the control of<br \/>\nthe Trust, or<\/p>\n<p>      (b) a report on any such matter, or<\/p>\n<p>      (c)  a  copy  of\tany document in the  charge  of\t the<br \/>\nChairman.\n<\/p>\n<p>      The  Chairman shall comply with every such requisition<br \/>\nwithout unreasonable delay.&#8221;\n<\/p>\n<p>      Even  under  Section  24(c) of the Act, if  the  State<br \/>\nGovernment  is of the opinion that the duties imposed on the<br \/>\nTrust  has  not been performed or has been performed  in  an<br \/>\nMmperfect  manner, then the State Government may direct\t the<br \/>\nTrust to make arrangements for the proper performance of the<br \/>\nduties\tor  to take such measure as may be specified by\t the<br \/>\nState  Government.   In view of the aforesaid provisions  in<br \/>\nthe  Act,  the\tconclusion is irresistible  that  the  State<br \/>\nGovernment  exercises effective control over the affairs  of<br \/>\nthe  Board  including  in  the\tmatter\tof  appointments  to<br \/>\ndifferent  posts, if made by the Board under its resolution.<br \/>\nIt  is, no doubt, true that under Section 21 of the Act, the<br \/>\nState  Government is required to make rules prescribing\t the<br \/>\nconditions  under  which  members  of  the  staff  requiring<br \/>\nprofessional  skill  could be appointed by the\tTrust.\t But<br \/>\nwhen  the State Government has not made any such rules\teven<br \/>\nif  the\t rules can be held to be of mandatory nature as\t has<br \/>\nbeen  held  by\tthe  High Court, then  it  is  difficult  to<br \/>\ncomprehend that the Board is denuded of its general power of<br \/>\nappointing  and\t promoting  people  to\tdifferent  posts  as<br \/>\nprovided  under\t Section 22 of the Act.\t If the view of\t the<br \/>\nHigh  Court  under  the\t impugned judgment is  taken  to  be<br \/>\ncorrect\t then all appointments to different posts ever since<br \/>\n1936 have to be held to be invalid inasmuch as no rules have<br \/>\nbeen framed by the State Government in exercise of the power<br \/>\nunder  Section\t21  of\tthe  Act.   While  interpreting\t the<br \/>\nprovisions of Section 21 of the Act, the High Court has lost<br \/>\nsight of the general principle of service jurisprudence that<br \/>\nin  the absence of any statutory rules governing the service<br \/>\nconditions  of\tthe  employees, the  executive\tinstructions<br \/>\nand\/or decisions taken administratively would operate in the<br \/>\nfield  and appointments\/promotions can be made in accordance<br \/>\nwith  such executive instructions\/administrative directions.<br \/>\nIn  this view of the matter and concededly, no rules  having<br \/>\nbeen  framed  by the State Government in exercise  of  power<br \/>\nunder  Section\t21  of the Act, the  Trust\/Board  was  fully<br \/>\nempowered  to take administrative decisions in the matter of<br \/>\nappointments and promotions to different posts including the<br \/>\nposts  requiring  professional\tskill and  consequently\t the<br \/>\nresolution of the Board taken in accordance with sub-section<br \/>\n(2)  of\t Section  22  of the Act  deciding  to\tpromote\t the<br \/>\nemployees  to the post of Assistant Engineer cannot be\tsaid<br \/>\nto be invalid or inoperative.  The High Court, therefore, in<br \/>\nour view fell in error to hold that the appointments made to<br \/>\nthe  posts of Assistant Engineer are invalid in law.  It was<br \/>\nalso  brought  to our notice that by notification dated\t 3rd<br \/>\nAugust\t1937,  a rule had been framed in exercise  of  power<br \/>\nunder  Section 89(1)(c) of the Nagpur Improvement Trust\t Act<br \/>\nwhich  clearly\tindicated  that\t except\t  for  the  post  of<br \/>\nExecutive  Officer,  Trust Engineer, Valuation Officer,\t the<br \/>\npower  of Trust under Section 22 to appoint persons to posts<br \/>\nrequiring  professional\t skill remain unaffected.  The\tsaid<br \/>\nnotification is quoted in extenso:- &#8220;No.  7600-1302-M-XIII.-<br \/>\nIn  exercise  of  the  powers conferred\t by  clause  (c)  of<br \/>\nsub-section  (1)  of  Section 89 of the\t Nagpur\t Improvement<br \/>\nTrust  Act, 1936 (C.P.\tAct XXXVI of 1936), the Governor  of<br \/>\nthe  Central  Provinces\t and Berar is pleased  to  make\t the<br \/>\nfollowing  rules as to the conditions on which officers\t and<br \/>\nservants  of  the  Trust   appointed  to  offices  requiring<br \/>\nprofessional skill may be appointed, suspended or dismissed:\n<\/p>\n<p>&#8211; RULES<\/p>\n<p>      1.   In  the case of the officers specified  below  no<br \/>\npost shall be created or abolished, and no alteration in the<br \/>\nemoluments thereof shall be made without the approval of the<br \/>\nProvincial Government, and every appointment to or dismissal<br \/>\nfrom  any  of the undermentioned posts shall be\t subject  to<br \/>\nconfirmation by the Provincial Government:-\n<\/p>\n<p>      (1)  Executive  Officer.\t (2)  Trust  Engineer.\t (3)<br \/>\nValuation Officer.\n<\/p>\n<p>      2.   Subject  to the provisions of section 22  of\t the<br \/>\nAct,  the  power  of  appointment  to  dismissal  from,\t and<br \/>\nfixation  of  the  emoluments of all other  posts  requiring<br \/>\nprofessional skill shall be vested in the Trust.&#8221;\n<\/p>\n<p>      The  aforesaid notification fully supports our earlier<br \/>\nconclusion  that Trust Board would appoint persons to  posts<br \/>\nrequiring  professional\t skill by evolving principle  or  by<br \/>\nspecific  resolution.  Besides, notwithstanding power having<br \/>\nbeen   conferred   upon\t the   State  Government  to   issue<br \/>\nappointments  direction on getting the copy of resolution by<br \/>\nthe  Board, no such direction having been given, it must  be<br \/>\nassumed\t that  the  State Government also  never  found\t the<br \/>\nresolution  promoting respondent No.  3 and 5 to the post of<br \/>\nAssistant  Engineer  to be invalid in any manner.   In\tthis<br \/>\nview  of the matter, the part of the direction quashing\t the<br \/>\nappointments  made  in\tfavour of the respondents  3  and  5<br \/>\nbefore\tthe  High  Court is set aside and we hold  that\t the<br \/>\nappointments  of  those\t two  respondents  to  the  post  of<br \/>\nAssistant  engineer  made by the Board by its resolution  is<br \/>\nvalid  in law.\tThe direction of the High Court to the State<br \/>\nGovernment to frame rules in exercise of power under Section<br \/>\n21  of the Act, however, is not being interfered with and is<br \/>\nupheld.\t We make it clear that until rules are framed by the<br \/>\nState  Government  there would be no fetter on the power  of<br \/>\nthe  Board  to make appointments in accordance with  law  by<br \/>\ntaking\tappropriate decisions.\tBut this conclusion of\tours<br \/>\ndoes  not,  in any manner, dilute the direction of the\tHigh<br \/>\nCourt to State Government to frame rules under Section 21 of<br \/>\nthe  Act.  The appeals are accordingly allowed to the extent<br \/>\nindicated above.  There will be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Nagpur Improvement Trust vs Yadaorao Jagannath Kumbhare &amp; 10 &#8230; on 13 August, 1999 Author: Pattanaik Bench: S.Saghir Ahmad, G.B.Pattanaik PETITIONER: NAGPUR IMPROVEMENT TRUST Vs. RESPONDENT: YADAORAO JAGANNATH KUMBHARE &amp; 10 ORS. DATE OF JUDGMENT: 13\/08\/1999 BENCH: S.Saghir Ahmad, G.B.Pattanaik JUDGMENT: PATTANAIK, J. These appeals by the Nagpur Improvement Trust are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-106057","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Nagpur Improvement Trust vs Yadaorao Jagannath Kumbhare &amp; 10 ... on 13 August, 1999 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/nagpur-improvement-trust-vs-yadaorao-jagannath-kumbhare-10-on-13-august-1999\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nagpur Improvement Trust vs Yadaorao Jagannath Kumbhare &amp; 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