Case: S.P. Dubey Vs. M.P.S.R.T. Corpn. And Anr

S. P. Dubey, employed with the Madhya Pradesh State Road Transport Corporation, was retired from service on his attaining the age of 58 years. He claims that the age of superannuation was 60 years and as such his retirement at 58 wasWe may state the necessary facts. Dubey joined service as a junior clerk with the Central Provinces Transport Services Limited (hereinafter called the company) in the year 1947. The Board of Directors of the company by a resolution dated July 30, 1954 fixed the age of superannuation of all its employees except the drivers as 60 years. The company was purchased and taken over by the State of Madhya Pradesh by a Notification dated August 31, 1955. The relevant part of the said notification is asundertaking will as from August 31, 1955 be entitled The Central Provinces Transport Services (Under Government Ownership). So far as the public is concerned there will be no change or interruption in the course of business and the continuity of operation will not be disturbed and the existing staff will not be adversely affected with regard to terms and conditions of their services. The statutory instrument to be made in due course will provide, among other things that all the rights and liabilities of the Central Provinces Transport Services Ltd. will become the rights and liabilities of the Central Provinces Transport Services (Under Government Ownership) and from a legal point of view the staff, customers and contractors can look to the Central Provinces Transport Services (Under Government Ownership) to discharge all the obligations and exercise all the rights that at present rest with the Central Provinces Transport Services Ltd. Rules for the conduct of business by the above constituted Board of Management are being published separately."It is thus obvious that the government continued to maintain the Central Provinces Transport Services as a separate entity. The conditions of service, of the staff of the taken-over company, were specificallyThe State of Madhya Pradesh was reorganised underthe States Reorganisation Act, 1956. The Central Government, by a Notification dated February 28, 1961, extended the provisions of Road Transport Corporation Act, 1950 (hereinafter called the Act) to the State of Madhya Pradesh with effect from April 1, 1961. Thereafter the Madhya Pradesh Government acting under Section 3 of the Act established the Madhya Pradesh State Road Transport Corporation (hereinafter called Corporation) with effect from May 21, 1962. The Madhya Pradesh Government issued two memoranda on May 4, 1962. By one memorandum the services of the concerned employees including Dubey were transferred to the Corporation and by the second it was clarified that the said transfer was subject to the conditions that their service would be treated as uninterrupted and their pay scales and conditions of service would not be affected. On the same day the Board of Directors of the Corporation passed a resolution to the followingthat the services of the employees employed under MBR and CPTB on May 31, 1962 are transferred to the Corporation temporarily until further orders from June 1, 1962 on the following conditions(1) The pay scale and conditions of service are not affected by the transfer(2) The transfer will not be considered as interruption of services(3) In case of employees coming under the category of workman as defined underthe Industrial Disputes Act, 1947, the Corporation in the event of retrenchment will pay compensation on the basis that the services had been continued and had not been affected by transfer."The State Government issued directions dated October 28, 1963 to the Corporation under Section 34 of the Act. Relevant part of the directions is asmembers of the staff of the Madhya Bharat Roadways and Central Provinces Transport Services, who have opted to serve under the Corporation in pursuance of the notices issued to them by the Commerce and Industry Department or any authority of the Madhya Bharat Roadways and Central Provinces Transport Service shall be employed by the Corporation subject to such regulations as may be made by it under Section 45(2)(c) ofthe Road Transport Corporation Act, 1950 (Central Act 64 of 1950), and subject to such assurance as may have been given to them by the State Government."The Corporation framed regulations called the "Madhya Pradesh State Road Transport Corporation Employees Service Regulations, 1964". Regulation 59 which provided the age of superannuation was asEmployees of the State Transport Corporation are liable to compulsory retirement on the date of their completion of 58 years of age unless specifically permitted by the Corporation to continue in service for a specified period thereafter, but he must not be retained after the age of 60 years, without the sanction of State Government."The Corporation issued a notice dated May 25, 1983 to Dubey informing him that he was due to retire from service on June 30, 1984 on attaining the age of 58 years. He challenged the said notice by way of a writ petition under Article 226/227 of the Constitution of India before the Madhya Pradesh High Court at Jabalpur. The High Court by its judgment dated April 26, 1985 dismissed the writ petition. The present appeal by way of special leave petition is against the judgment of the High Court

Court's reasoning:
11. The State Government and also the Corporation had given assurance to the appellant and other employees who were transferred to the Corporation that their conditions of service would not be adversely affected. The said assurance was incorporated in the directions issued under the Act. The Corporation cannot frame regulations contrary to the directions issued by the State Government under Section 34 of the Act. The age of superannuation which the appellant was enjoying under the State Government could not be altered to his disadvantage by the Corporation. We are, therefore, of the view that Regulation 59 framed by the Corporation was not applicable to the appellant. He was entitled to continue in service up to the age of 60 years