KAILASH CHANDRA SHARMA Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) In these batch of writ petitions, we are mainly concerned with two notifications issued by the State of Madhya Pradesh through its Department of Labour, viz. Notification No.195-2014-,-16 dated 27.5.2014 published in Madhya Pradesh (Asadharan) Rajpatra dated 6.6.2014 and Notification No.1A- 06-14-B-16 dated 10.12.2014 published in Madhya Pradesh Rajpatra dated 19.12.2014 in purported exercise of the powers conferred by Section 5 of the Payment of Gratuity Act, 1972 (hereinafter referred to as '1972 Act'), which empowers the appropriate Government to exempt - any establishment, factory, mine, oilfield, plantation, port, railway company or shop; - any employee or class of employees employed in these establishment(s) from the operation of provisions of 1972 Act, if, in its opinion, these employees or class of employees employed in these establishment(s) are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under the 1972 Act.

(2.) The establishments, which we are concerned with, are the corporate entities brought in vogue vide Notification No.3679-,Q-vkj-,l-18-rsjg-2002 published in Madhya Pradesh Rajpatri (Asadharan) dated 31.5.2005; whereby, in exercise of the powers conferred under Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000; the Electricity Act, 2003 and Madhya Pradesh Electricity Reforms First Transfer Scheme Rules, 2003, the State Government restructured existing Madhya Pradesh State Electricity Board (earlier constituted under Section 58(4)(a) of Madhya Pradesh Reorganisation Act, 2000 by dissolving the then existing Madhya Pradesh Electricity Board which was constituted under the Indian Electricity (Supply) Act, 1948) into different corporate entities viz. Generating Company known as Madhya Pradesh Power Generating Company Limited, Transmission Company known as Madhya Pradesh Power Transmission Company Limited and three distribution companies viz. Madhya Pradesh Poorva Kshetra Vidyut Vitran Company Limited, Madhya Pradesh Madhya Kshetra Vidyut Vitran Company Limited and Madhya Pradesh Pashchim Kshetra Vidyut Vitran Company Limited. And, as evident from the Notification dated 31.5.2005, the restructuring of erstwhile Madhya Pradesh State Electricity Board is with effect from 1.6.2005. No such notification has been commended at to establish that any of these company owe an existence prior to 1.6.2005 (the relevancy of this observation will have the bearing when we will be dealing with the issues which are raised, at relevant stage).

(3.) That, prior to coming into existence of these five and W.P. No.17407/15 corporate entities, the establishments viz. Madhya Pradesh Electricity Board and Madhya Pradesh State Electricity Board had adopted Madhya Pradesh Civil Services (Pension) Rules, 1976. This fact would be evident from the contentions in paragraph 16 and 17 of the return filed by the respondents no.2 to 7 in Writ Petition No.573/2015 and adopted in Writ Petition No.2544/2015; wherein, it is stated that Madhya Pradesh Electricity Board in exercise of power conferred by clause (c) of Section 79 of the Electricity (Supply) Act, 1948 vide notification dated 19.10.1963 made applicable New Pension Rules, 1951 and vide notification dated 3.4.1978 applied the Madhya Pradesh Civil Services (Pension) Rules, 1976 w.e.f. 1.6.1976 to its employees. And, vide said notification (i.e. 3.4.1978) also applied the Madhya Pradesh Civil Pension (Commutation) Rules, 1976 w.e.f. 1.1.1976.