(1.) Petitioner was appointed as the Chairman of the Orissa State Road Transport Corporation on 24th June, 1978 and he assumed charge of the said office on 28th June, 1978. The tenure of office of the Chairman was three years from the date of appointment as provided under Rule 4 of the Orissa State Road Transport Corporation Rules, 1967. On 18th April, 1980, the Government of Orissa amended the said rule by the Orissa State Road Transport Corporation (Amendment) Rules, 1980 which reduced the tenure of office from three years to one year and as a result, appointment of the petitioner stood terminated on 25th April, 1980. The petitioner's contention is that the amended rule is retrospective in effect and the State Government was not competent to make a rule with retrospective effect. He seeks issuance of an appropriate writ quashing the Orissa State Road Transport Corporation (Amendment) Rules, 1980 -- Annexure 3.
(2.) The stand taken by the State Government is that the amended rule has no retrospective effect and has not retrospectively affected any vested right of the petitioner.
(3.) Section 5 (1) of the Road Transport Corporations Act, 1950 provides that subject to rules made under the Act, a Corporation shall consist of a Chairman and such number of other members as the State Government may think fit to appoint. Sub-section (4) of that Section provides that the term of office of, and the manner of filling casual vacancies among, members of the Corporation shall be such as may be prescribed. Section 44 of the Act authorises the State Govt. to make rules regarding the term of office of and the manner of filling casual vacancies among members of the Corporation. In exercise of the powers conferred by that Section, the State Government made the Orissa State Road Transport Corporation Rules, 1967. According to Rule 4 (i) of the said Rules the term of office of a member including the Chairman and Vice-Chairman shall be three years from the date of his appointment and he shall be eligible for reappointment. On 18th April. 1980 the State Government amended Rule 4 (i) as follows: