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MOHD RASHID AHMAD ETC. versus STATE OF U.P. & ANR.

Citation: [1979] 2 S.C.R. 826 · Decided: 15-12-1978 · Supreme Court of India · Bench: R.S. SARKARIA · Disposal: Disposed off

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Judgment (excerpt)

A 
B 
c 
826 
MOHD RASHID AHMAD ETC. 
v. 
STATE OF U.P. & ANR. 
December 15, 1978 
[R. S. SARKARIA, V. D. TuLZAPURKAR AND A. P. SEN, JJ.J 
lj.P. Nagar Mahapalika Adhiniyam, 1959-Act abolished 
all 
niunicipal 
boards and other local authorities-Empowered State Government to constitute 
Centralised Palika Ser1:ices prescribing method of recruitlnent and conditions 
o; service of persons appointed to services-Rule 6-Scope of-Rule 6(2)(iv) 
provided tlzar if no orders of final absorption passed before a certain date the 
officer or seri,.ant concerned deemed to have been finally absorbed-Rule re-
trospectively amended from time to time on two occasions extending the date 
of final absorption to rectify mistakres in dates-State Legislature, if had power 
to confer power on State Government to amend rule retrospectively. 
&le 6(2) (iii)-lf imposed a duty on State Government to act in a quasi-
D 
iudicial mpnner. Rules of natural iustice-Applicability of. 
E 
F 
G 
H 
The U.P. Nagar Mahapalika Adhiniyam 1959 as well as the U.P. Munici-
palities Act, 1916 empowered local bodies in the State to appoint their em-
ployees subject to certain regulatory control by the State Government. 
Jn 
1964 s. 112A was added to the 1959 Adbiniyam empowering the State Govern-
ment to make rules for the creation of one or more service,s to be known 
as Centralised Palika Services common to all the municipal corporations and 
municipal boards and prescribe the method for recruitment and conditions of 
service of persons appointed to any such service. Section 69B which was added 
to the U.P. Municipalities Act, 1916 was in identical terms as s. 112A. Section 
577(e) of the Adhiniyam provided for provisional absorption of officers and 
servants of the erstwhile municipalities till they were finally absorbed in any 
centralised services created under the Act. 
By s. 577 ( ee) the Administrators 
of Boards etc., were authorised to make temporary appointments of officers 
and &ervants till substantive appointments, were made and such officers and 
servants were treated as on deputation with the municipal corporations. 
In exercise of the powers conferred under s. 112A the State Government 
made the U.P. Palika (Centralised) Service Rules, 
1966 which came 
into 
force on July 9, 1966. 
Since r. 6 of the Rules was found to be contrary 
to the provisions of s. 112A and s. 69B, the U.P. Local Self-Governtnent 
(Amendment) Ordinance, 1966 (which later became an Act) was promulgated to 
validate the 1966 Rules.1 Section 19 of the Act provided that the amendn1ents 
made to the Rules might be given retrospective effect, limited to a 
period 
of one year from the commencement of the Ordinance. Thereafter the U. P. 
Palika (Centralised) Services (Amendment) Rules, 1966 were passed by which 
r. 6 was repealed and re-enacted with retrospective effect from July 9, 1966. 
Clause (ii) of r. 6(2) empowered the State Government to pass a final order 
of absorption in respect of particular officers and servants of the erstwhile 
municipal boards if they were found suitable. Clause (iii) provided that such 
orders had to be made on or before March 31, 1967. 
/ 
{ 
• 
' 
• 
• ' 
-~ 
• 
RASHID AHMAD V. U.P. 
827 
Since the work of final absorption could not be completed by March 31, 
A 
1967, r. 6(2) (iii) was amended shifting the date to June 30, 1967. 
But this 
amendmeat having been made to come into effect from April 1, 1967 the legal 
fiction created by cl. (iv) of r. 6 that if no orders of final absorption were 
passed till ~1arch 31, 1967 the officer or servant concerned was to be deemed 
to have been finally absorbed, came into play. Clause (ill) was, 
therefore, 
again amended shifting the date of passing the order from March 31, 1967 to 
August 31, 1967. 
The rule was made with retrospective effect from July 9, 
B 
1966 . 
For the purpose of final absorption of all officers and servants who were 
found suitable in the two categories viz., those appointed under s. 577{e) 
ands. 577(ee) of the Adhiniyam, the State Government laid down a procedure. 
It constituted Divisional Committees for making necessary recommendations to 
the Stote Government. 
On January 11, 1967 the State Government issued the 
C 
first Circular stating that all officers and servants whose services were proposed 
to b_e determined on the ground of unsuitability might be given an opportunity 
of personal interview by the Divisional Committees. 
The Government Jivided 
the officers and serv

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