AHMEDABAD EDUCATION SOCIETY versus GILBER B. SHAH AND ORS

Citation: [2003] SUPP. 6 S.C.R. 500 · Decided: 08-12-2003 · Supreme Court of India · Bench: S. RAJENDRA BABU · Disposal: Dismissed
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Judgment (excerpt)

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AHMEDABAD EDUCATION SOCIETY 
v. 
GILBER B. SHAH AND ORS~ 
DECEMBER 8, 2003 
[S. RAJENDRA BABU AND RUMA PAL, JJ.] 
Service Law: 
Leave Rules of Ahmedabad Education Society-Rule 29-Bombay 
Primary Education (Gujarat Amendme11t) Rules, 1978-Schedule F, Rules 
34(1) and 34(3)-Teachers in private Primary Schools-Retirement Age--
Teachers claiming continuance in service till the age-of 60 as per Rule 29 
of the Leave Rules-Society maintaining that teachers are to be retired at 
the age of 58 in accordance with Rule 34(1) of the Amendment Rules--
Held, Leave Rules ji·amed by Society are terms of the contract of service 
D applicable fO the teachers-Teachers being appointed on contractual terms 
for a definite period have a right to continue till the age of 60 by virtue 
of the Leave Rules-Amended Rules also exempt those persons who are 
'appointed for a definite period' from its ambit. 
A teacher in a Primary School owned by the Appellant Sodely 
E was informed by the appellant that he would be retiring from service 
on completion of 58 years in accordance with Rule 34(1) in Schedule 
F of the Bombay Primary Education (Gujarat Amendment) Rules, 
1978. He filed a civil suit in the City Civil Court mainly seeking a 
declaration that his age of retirement was 60 as per Rule 29 of the 
F Leave Rules of Appellant Society and also prayed for other consequential 
relief. Some of the respondents herein impleaded themselves as partfos 
in the said suit. The City Civil Court allowed the suit thereby holdi111g 
that the respondents were entitled to continue in service up to the age 
of 60. Appeal filed before the High Court, was dismissed by a Division 
G Bench. Hence the present appeal. 
Dismissing the appeal, the Court 
HELD : l. The Leave Rules framed by the appellant-Society are 
the applicable terms of the contract of service in case of the respond-
H en ts-teachers. As per the original terms and conditions of the contract 
500 
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AHMEDABAD EDUCATION SOCY. v. G.B. SHAH (RAJENDRA BABU, J.] 50 I 
they were appointed up to a particular age; that is, up to the age of 60. A 
As a result, they could be considered as appointed for a definite period. 
If they were appointed on contractual terms for a definite period, then 
they coul~ continue in service in accordance with the terms of the 
original contract, which, by virtue of Rule 29 of the Leave Rules, allow 
them to continue in service till the age of 60. Further, Sub-rule (3) of B 
Rule 34 of the Amended Rules exempted those person who are 'appointed 
for a definite period' from its ambit. [505-C; 504-F-G; 505-D) 
Jayantilal Ratilal Thakkar v. State of Gujarat and Ors., (1976) 17 
GLR 461, referred. 
State of J & K v. Shiv Ram Sharma & Others, JT (1999) 2 SCC 483; 
B. Narayana Murthy v. State of A.P., (1971) 2 SCC 425 and Roshan Lal 
Tandon v. Union of India, (1968) 1 SCR 185, held inapplicable. 
c 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7097-7098 
of 1998. 
D 
From the Judgment and Order dated 29.12.98 of the Gujarat High 
Court at Ahmedabad in F.A. Nos. 1871 and 2140 of 1985. 
Mahendra Anand, Raj iv Mehta and Rauf Rahim for the Appellant. E 
Raju Ramachandran Mrs. S.H. Raichura, H.A. Raichura and Shailendra 
Singh for the Respondents. 
The Judgment of the Court was delivered by 
RAJENDRA BABU, J. The basic issue raised for consideration in F 
these appeals is the retirement age of the respondents, who were teachers 
with the Appellant Society. According to the appellant, the retirement age 
of teachers in their school is 5 8 in accordance with the Sub-Rule (I) of 
the Rule 34 in Schedule-F of the Bombay Primary Education (Gujarat 
Amendment) Rules, 1978. (Hereinafter, Amendment Rules). Respondents G 
- teachers claimed that they could continue in service till the age of 60 
as per the Rule 29 of the Leave Rules of the Appellant Society, which is 
applicable in their case. It is also their case that the applicability of Leave 
Rules is saved by virtue o( Sub-Rule (3) of the Rule 34 in Schedule-F of 
the Amendment Rules. 
. 
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·. 
502 
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SUPREME COURT REPORTS (2003) SUPP. 6 S.C.R. 
The relevant Rules are extracted hereunder : 
Sub-Rules 1 and 3 of Rule 34 in Schedule-F of the Amendment 
Rules: 
"34. Age of superannuation of Teacher: (I) An employee shall 
retire at the age of 58 years. However, a review of the work will 
be undertaken at the age of 55 years for deciding whether he 
deserves to be continued beyond the age 55. 
(2). * 
* 
* 
(3). The rules sh
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