TMI Blog2004 (3) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... The erstwhile Electricity Board framed regulations in the year 1952 under Section 79(c) of the Act known as General Service Conditions of Board Servants. In the year 1957, the respondent-Board came into existence on re-organisation of the State. The State of Madhya Pradesh enacted the Madhya Pradesh Industrial Relations Act, 1960 (for short 'the 1960 Act') with a view to regulate the relations of employers and employees in certain matters, to make provisions for settlement of industrial disputes and to provide for matters connected therewith. In the year 1961, the State of Madhya Pradesh also enacted Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (for short 'the 1961 Act') to provide for rules defining with sufficient precision of certain matters relating to the conditions of employment of employees in the State of Madhya pradesh. The Schedule appended to the 1961 Act provided for the standard standing orders and item No. XV thereof relates to 'age of retirement'. On or about 19.10.1963, the Board purported to have adopted fundamental rules, supplementary rules and other service conditions as in force in Madhya Pradesh Civil Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of the 1961 Act by the State Government in the official gazette, the Act would apply to the parties to the lis. However, as the said notification has been published on 26.12.2000, it became a part of the Board's regulations and as such the conditions of service of the employees of the Board would be governed thereby. (ii) Rule 14-A was brought into animation in the year 1973 but it was brought into existence the amendment after a period of 8 years in the year 1981. The intention is writ large that proviso carves out an exception to enable the employer granting freedom, independence and liberty to enter into an agreement/settlement to confer more benefit to an employee which is in tune with the Industrial Law. (iii) As the Board is empowered to make regulation in exercise of its power under Section 79(c) of the Act, it is also entitled to issue administrative instructions in absence of the regulation holding the field. As after 1984 the Board could not have passed any administrative order without amending the regulation and having regard to the fact that the relevant notifications were not published in the official gazettee, they would be non est in law. As by reason o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter no notification altering the terms and conditions of service could be validly issued in derogation of the terms of the said agreement having regard to the provisions contained in Rule 14A of the Rules. Mr. P.P. Rao, learned senior counsel appearing on behalf of the respondent, on the other hand, would submit that the decision of this Court in Hari Shankar Jain (supra) cannot be said to have laid down good law inasmuch as therein it had not been considered that the Electricity (Supply) Act, 1948 is a law relatable to Entry 38 of List III of Constitution of India; and the 1960 Act and the 1961 Act having been made in terms of Entries 22, 23 and 24 of List III, Article 254 (2) of the Constitution of India would not have any application and in that view of the matter the agreement dated 10.6.1960 cannot override the statutory power conferred upon the Board under Section 79 (c) of the Act in terms whereof the Board can make regulations laying down duties of its officers and other employees and fixing their salaries, allowances and other conditions of service. For enforcing the 1963 Regulations, Mr. Rao would urge, there was no statutory requirement to notify the same in the ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such further period as may be agreed upon by the parties; or (b) *** (c) within two months from the completion of conciliation proceedings: Provided that the Registrar shall not register an agreement which on enquiry he is satisfied is in contravention of the provisions of this Act or was the result of mistake, misrepresentation, fraud, undue influence, coercion or threat. (3) An appeal shall lie to the Industrial Court against an order of the Registrar refusing to register an agreement under sub-section (2). The provisions of section 22 shall apply to such appeal. (4) An agreement registered under this section shall come into operation on the date specified therein or if no date is so specified on its being recorded by the Registrar. 99. Agreements etc., when to case to have effect:- (1) A registered agreement or a settlement or award shall cease to have effect on the date specified therein or if no such date is specified therein on the expiry of the period of two months from the date on which notice in writing to terminate such agreement, settlement or award, as the case may be, is given in the prescribed manner by any of the parties thereto to the other parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... othing in this clause shall adversely affect the operation of the terms of any contract, agreement, settlement, or award on this subject, if the age of retirement is not less than 58 years. Issues : (i) Whether the regulations made under Section 79 (c) of the Act would prevail over the Standing Order framed under the 1961 Act. (ii) Whether regulation dated 19.10.1963 issued by the Board adopting fundamental and supplementary rules for its employees except those in work-charged establishment and published in gazette on 26.12.2000 the application of the 1961 Act by reason of Section 2(2) thereof stand excluded. (iii) Whether the respondent Board acted illegally and without jurisdiction in issuing the notification dated 26.12.2000 reducing the age of Class III employees to 58 years. FINDINGS: It is trite that India being a Union of State both the Parliament and the State Legislature can frame laws having regard to their respective legislative competence enumerated in the three Lists contained in the Seventh Schedule of the Constitution of India. Before analyzing the relevant provisions of the State Acts vis-`-vis 'the Act', we may have an overview of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy required. In terms of clause 2 of Article 254 of the Constitution of India where a law made by the legislature of a State with respect to one of the matters enumerated in the Concurrent List contains any provisions repugnant to the provisions of an earlier law made by the Parliament or an existing law with respect to the matters, then the law so made by the Legislature of such State shall, if it has been reserved for consideration of the President and has received its assent, prevail in that State. It is not in dispute that the 1961 Act has received the assent of the President of India and, thus, would prevail over any parliamentary law governing the same field. It is no doubt true that the entire field relating to 'Electricity' is covered under Entry 38 of List III pursuant whereto the Indian Electricity Act and Electricity (Supply) Act, 1948 were enacted but thereby the State's legislative competence to exercise its legislative power under Entries 22, 23 and 24 was not taken away. Section 79 (c) of the Electricity (Supply) Act provides for an incidental power upon the Board. The same would, therefore, not prevail over the specific legislative competence gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any day during the twelve months preceding or on the day the said Act came into force or any day thereafter was or is more than twenty and such other class or classes of undertakings as the State Government may, from time to time, by notification, specify in this behalf. The undertaking of the Board indisputably was in existence in 1961. Per se, therefore, the provisions of the 1961 Act shall apply to the undertakings of the Board. Sub-Section (2) of Section 2 of the 1961 Act makes an exception to the applicability of the Act stating that nothing therein shall apply to the employees of an undertaking to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations or any other rules or regulations that may be notified in this behalf the State Government in the official gazette apply. For excluding the operation of the 1961 Act, it is imperative that an appropriate notification in terms of Section 2(2) of the 1961 Act is issued. The Board adopted Fundamental and Supplementary Rules which per se were not applicable to the employees of their undertakin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of the Rule 14A vis-a-vis the agreement/ settlement entered into by and between the parties dated 10.6.1996. In terms of Rule 14A of the 1973 Rules the age of superannuation was fixed at 58 years. The proviso appended to Rule 14A of the 1973 Rules, however, postulates that nothing therein shall adversely affect the operation of the term of any agreement on the subject if the age of retirement is not less than 58 years. We have noticed that Clause (S) (9) of the settlement refers to the age of retirement which was registered in terms of Section 33 of the 1960 Act. The said agreement, keeping in view of the proviso appended to Rule 14A and having been issued in compliance of the requirements of the Act will operate in the field. In terms of the said agreement the age of retirement was to be the same as that of the employees of the Central Government on acceptance of the recommendations of the Fifth Pay Commission. The Central Government in exercise of its power conferred by the proviso to Article 309 of the Constitution and Clause (5) of Article 148 made rules known as Fundamental (Amendment) Rules, 1998 in terms whereof Clause (a) was amended in the following terms: (a) Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all continue to be binding despite expiry thereof until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other party or parties to the settlement. The decisions of this Court in South Indian Bank Ltd. Vs. A.R. Chacko [1964 (5) SCR 625], Life Insurance Corporation and Others Vs. D.J. Bahadur [(1981) 1 SCC 315] and Karnataka State Road Transport Corporation vs. Vs. KSRTC Staff and Workers' Federation and Another [(1999) 2 SCC 687] which have been rendered having regard to the phraseology used in Sub-Section (2) of Section 2 of the 1961 Act will thus have no application to the fact of the present case. The proviso appended to Rule 14A of the 1973 Rules would, thus, operate provided there exists a valid agreement. Furthermore, the terms and conditions laid down in the certified order may have the force of law but they by themselves do not constitute statutory provisions. [See Rajasthan State Road Transport Corporation and Another Vs. Krishna Kant and Others, [ (1995) 5 SCC 75]. Rule 14A of the 1973 Rules prescribes the age of superannuation to 58 years. It can be enhanced u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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