Holding

A Board may lay down service conditions, including compulsory retirement, by administrative order or resolution when regulations are not yet framed, and adoption of the government memorandum gave MSEB the power to retire employees under FR 57(b).

Summary

The Meghalaya State Electricity Board (MSEB) adopted a Government of Meghalaya memorandum on premature retirement of employees under Fundamental Rule 57(b) by passing Resolution No. 6 on 10 May 1989 and later issued an order compulsorily retiring Jagadindra Arjun. The employee challenged the order, and while a Single Judge of the Gauhati High Court dismissed the petition, the Division Bench reversed, holding that MSEB lacked authority to retire staff before the MSEB Discipline and Appeal Regulations 1996 were framed. On appeal, the Supreme Court held that, under Sections 15, 78A and 79(c) of the Electricity (Supply) Act, 1948, a Board may prescribe service conditions, including compulsory retirement, by administrative orders or resolutions when regulations are not yet in force. By adopting the government memorandum, MSEB lawfully acquired the power to retire employees under FR 57(b). Consequently, the Court allowed the appeal, set aside the High Court’s order, and affirmed the validity of the compulsory retirement order.

Issues considered

Whether the Meghalaya State Electricity Board can prescribe service conditions, including compulsory retirement, by resolution in the absence of regulations under Section 79(c) of the Electricity (Supply) Act, 1948.
Whether the adoption of the Government of Meghalaya’s memorandum on premature retirement confers on MSEB the power to retire employees under Fundamental Rule 57(b).
Whether MSEB had authority to issue a compulsory retirement order before the MSEB Discipline and Appeal Regulations, 1996 were framed.

Legislation cited

Electricity (Supply) Act, 1948s. 15, s. 5, s. 78A, s. 79

Subjects

Electricity Boardservice conditionscompulsory retirementadministrative orderSection 79resolutionstatutory corporationservice law

Judgment

THE MEGHALA YA STATE ELECTRICITY BOARD AND ANR. A
V.

SHRI JAGADINDRA ARJUN

AUGUST 2, 2001

[M.B. SHAH AND DORAISWAMY RAJU, JJ.] B

Electricity (Supply) Act, I 948: Sections 5, I 5, 78A and 79.

Electricity Board-Employee-Service conditions-Absence of
Regulations-Board can prescribe service conditions by Administrative order C
and resolution.

Service law-Compulsory retirement-Electricity Board-Adoption of
Government memo prescribing procedure and provision of compulsory
retirement-Held valid-Order of compulsory retirement-Held valid.
D
Pursuant to a Resolution passed on 10.5.1989, the Appellant-Electricity
Board adopted office Memorandum No. PER. 218n5/106 dated 21.7.1988 of
the Government of Meghalaya concerning the premature retirement of
Government servants. An order passed by the Appellant-Board compulsorily
retiring the respondent from service was unsuccessfully challenged by the E
latter before a Single Judge of the Gauhati High Court. On appeal, the
Division Bench of the High Court reversed the judgment of Single Judge. It
held that the resolution dated 10.5.1989 passed by Appellant-Board only
adopts the procedure prescribed by the Government of Meghalaya in its
Memorandum dated 21.7.1988 and that the Appell~nt-Board has not adopted
the power of compulsory retirement by passing the aforesaid resolution. F
In appeal to this Court it was contended on behalf of the respondent
that in the absence of any Regulation framed by the Electricity Board under
Section 79(c) of the Electricity (Supply) Act, 1948 governing the service
conditions of its employees or for compulsory retirement before
superannuation it was not open to the Appellant Board to issue the impugned G
order; and that service conditions could not be prescribed by the Board by
passing a resolution.

Allowing the appeal of the Electricity Board and setting aside the
impugned order, the Court
f
1
233
H
234 SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A HELD .:.1 !~]lie reason given by the High Court that the appellant-
Board has not adbpted the power of compulsory retirement by passing the
resolution is without referring to the resolution passed by the Board and the
office memo issued by the government. The Government Memorandum dated
21.7.1988 begins with the subject 'Premature retirement of Government
B servants under FR S7(b)' of the Meghalaya Fundamental and Subsidiary
Rules, 1984. By passing a resolution, Appellant-Board has adopted the said
Memo. Thus, it has adopted power and procedure for compulsory retirement.
Further, the government Memo itself provides that where appointing
authority is satisfied that a Government servant who has attained SO years
of age or has completed 25 years' service and has ceased to take any interest
C in his work or has become ineffective or inefficient or whose physical or mental
condition is such as to make him incapable of further service or whose integiry
is in doubt, such person should be considered for premature retirement under
FR S7(b). Once that part of the Government Memo is adopted by the Board,
it would be totally unjustifiable to hold that it has not adopted the power of
compulsory retirement as provided in FR S7(b). (240-C-Fl
D
2. Further, in its meeting held on 21.3.1975 the Board decided to adopt
A.S.E.B. (General Conditions of Service) Regulations, 1960 of the old Assam
State Electricity Board. It means the Board has not framed its regulations
but by passing a resolution it had adopted the regulations framed by the
E A.S.E.B. The said Regulatiims admittedly did not contain provision for
compulsory retirement of its employees at the age of 50 years or after
completion of 25 years of service. Hence, the Board by passing a resolution
dated IO.S.1989 has adopted the powers of pre-mature retirement of its
employees. Therefore, it cannot be said that the Board has framed any
regulation which is contrary to regulations framed under Section 79 of the
F Act. (240-G-H; 241-A-BI

3. The Electricity Board which is empowered to make appointment of
its officers and employees 11nd frame statutory regulations laying down its
service conditions; has power until the regulations are framed, to lay down
G service conditions in exercise of its administrative power by passing resolution.
(244-AI

Mysore Stale Road Transport Corporation v. Gopinath Gundachar Char,
(19681 I SCR 767; UP. State Electricity Board. Lucknow etc. v. City Boara
MussoorieandOrs., (1985( 2 SCC 16 and V Balasubramaniam and Ors. v. Tamil
H Nadu Housing Board and Ors., 1198714SCC738, referred to.
MEGHALA YA STA TE ELECTRICITY BOARD v. JAGADINDRA ARJUN [SHAH, J.] 23 5
4. Section 79(c) of the Electricity (Supply) Act, 1948 is an enabling A
provision. The Electricity Board may frame regulations as provided in section
79(c) of the Act, but in the absence ofany regulations, the Board can lay down
service conditions by administrative order/instructions. Section 15 of the Act
empowen the Board to appoint its employees as may be required to enable
the Board to carry out its functions under the Act except the Secretary who B
is to be appointed with previous approval of the State Government. The power
to lay down service conditions by regulations is. expressly conferred upon the
Board, so it has power to prescribe service conditions. Section 78A also
provides that except on question of policy for which the State Government
has issued directions the Board is entitled to discharge its functions prescribed
under the Act which would include appointment of staff to enable it to carry C
out its functions and also lay down service conditions. Hence if there are no
rules or regulations pertaining to service conditions of its employees, same
could be prescribed by administrative order and such power of the employer
which is a statutory corporation would be implied. (242,.B-DI

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4992 of 0
2001.

From the Judgment and Order dated 22.7.99 of the Calcutta High Court
in W.A. No. 19 of 1998.

P.K. Goswami, Rajiv Mehta and Rauf Rahim for the Appellants.
• r - ,

Avijit Bhatacharjee and Ms. Madhumita Bhattacharjee for the
Respondent.

The Judgment-of the Court was delivered by
F
SHAH, J. Leave granted.

This appeal has been filed by the Meghalaya State Electricity Board
('MSEB' for short), a board duly constituted under Section 5 of the Electricity
(Supply) Act, 1948, (hereinafter referred to as the "Electricity Act") challenging G
t~e judgment and order dated 22. 7 .1999 passed by the Division Bench of
High Court of Gauhati, Bench at Shillong· in Writ Appe<il No.19. (SH) of
1998. By the impugned judgment, the High Court set aside the judgment of
· learned Single Judge dismissing the writ petition filed by the respondent
employee challenging an order .dated 24.1.1997 of compulsory retirement
from service. The learned Single Judge dismissed the writ petition filed by H
236 SUPREME COURT REPORTS (2001) SUPP. 1 S.C.R.

A the respondents by order dated I 0.8.1998 by holding that the MSEB had not
framed any regulations regulating the service conditions of its employees and
had instead adopted the Assam State Electricity Board (General Conditions
of Service) Regulations, 1960 by passing a resolution on 17.5.1975. Similarly,
it was also open to the Board to adopt the provisions of FR 57(b) of the
Meghalaya Fundamental Rules for compulsory retirement by passing
B resolution. He further held that it was clear in the Office Memorandum dated
6.10.1989 of the MSEB that the said Board has adopted the orders contained
in the Office Memorandum dated 21. 7.88 of the Government of Meghalaya,
Personnel & AR (A) Department, for compulsory retirement of its employees
in accordance with FR 57(b) of the FR & SR, 1984. The learned Judge also
C held that the respondent had not made out any case of ma/a fide and there
was no evidence of arbitrariness. For this he himself perused the service
records of the respondent herein and found that he had been given the lowest
grading of 'D', his performance had not been satisfactory and that he had
become a dead-wood for the organisation.

D In appeal, the Division Bench of the High Court reversed the judgment
by holding that MSEB had no authority or power to compulsorily retire its
employees prior to the coming into force of the MSEB (Discipline and Appeal)
Regulations 1996 which were published in the Gazette on 1.9.1997. The
Court held that prior to this date, there was no provision for compulsory
E retirement except by way of major punishment. The Court further held that
office memo of the MSEB dated I 0.5.1989 only adopts the procedure
prescribed by the Government ofMeghalaya by office memo dated 21.7.1988.
The said memo "does not vest any power in the Government to compulsory
retire its employees".

F Mr. Bhattacharjee, learned counsel appearing on behalf of the respondent
supported the impugned order passed by the High Court by submitting that
the MSEB has not adopted FR 57(b) which empowers the Government to
compulsorily retire its employees at the age of 50 years or after completion
of 25 years of service. He also submitted that without framing any regulations,
only by passing resolution, the MSEB cannot lay down the service conditions
G of its employees.

For appreciating this contention, we would first refer 'to the resolution
No. 6 dated I 0.5.1989 passed by the MSEB which reads thus:-

"Resolution No. 6 (10.5.1989)-The Board went through the Govt. 's
H O.M. No. PER. 218/75/106 dated 21.7.1988 concerning the premature
MEGHALA YA ST ATE ELECTRICITY BOARD v. JAGADINDRA ARJUN [SHAH, J.] 23 7
retirement of Govt. servants under F.R.57(b). All the members of the A
Board agreed that the Govt. 's order are based on sound policy and
felt that the same should be implemented in the MSEB. Accordingly,
the members decided to adopt the above O.M. with changes in the
names of the members of the Review Committee. The Board should
have its own Committee to be constituted by the Chairman of the B
Board.

The review should be carried out immediately. The Review
Committee is constituted."
Thereafter, Office Memo dated 6.10.89 was issued by the MSEB
adopting the Office Memo dated 21.7.88 of the Govt. ofMeghalaya which C
reads as under:-
"The question of retiring a Board's employee by giving him/her
notice not less than 3 months in writing or 3 months pay and
allowances in lieu of such notices after he/she has attained 50 years
of age or has completed 25 years of service, whichever is earlier, if D
it serves the interest of the Board has been under consideration for
some times. The Board in its meeting held on the 10th May, 1989
after a very careful consideration decided to adopt the orders contained
in the Govt. of Meghalaya, Personnel & A.R. (A) Department's Office
memorandum No. PER.218/75/106 dated 21.7.88, a copy of which is
enclosed and to come into force with immediate effect. E
In line with the orders above, a Review Committee is constituted to
consist of the following members:

I. Chairman, M.S.E.B. Chairman of the Committee
2. Chief Accounts Officer) F
3. Chief Engineer (E) ) Members. The Chief
4. Chief Engineer (C) ) Personnel Officers shall
also act as Member-Secy.
5. Chief Personnel Officer)
G
In order to ensure that the review is carried out regularly, all the
Heads of offices are required to maintain a register of the Board's
employees who are due to attain the age of 50 years or are due to
complete 25 years service, as the case may be. The register should be
scrutinised at the beginning of every quarter and the review undertaken
according to the following schedule: H
238 SUPREME COURT REPORTS [2001) SUPP. I S.C.R.

A Quarter in which review Cases of Govt. servants who have attained fifty
is to be mde years of age or completed twenty five years of
service, as the case may be, in the quarter
indicated below to be reviewed.

I. Jan.to March October to December of the previous year.

B 2. April to June January to March of the same year.

, 3. July to September April to June of the same year

4. Oct. to December July to September of the same year.

All the Heads of Offices are also required to ensure a regular
c submission of a quarterly report of cases requiring decision in the
matter of premature retirement to the Member Secretary of the Review
Committee with a copy to his superior Officer and the Head of the
Department concerned. Even if there is no case for consideration of
such employees, a Nil report should be submitted.
D The above instructions should be strictly adhered to.
Sd/-
(Smt. L. Phookan)
Secretary, 6.10.89."

E It is thus clear that what has been adopted in connection with compulsory
retirement is the Office Memo dated 21.7.88 of the Govt. of Meghalaya.
1984. A close reading of the Office Memo dated 21. 7 .88 indicates that in the
light of the power vested in the Government under F.R. 57(b) of the Meghalaya
FSR, 1984, the Government constituted a Revie\V Committee to consider the
F cases of premature retirement of Govt. servants under F.R. 57(b). Relevant
part of the Office Memo dated 21. 7.88 reads as under:-

"Sub: Premature retirement of Government servants under FR. 57(b).

The undersigned is directed to say that under F.R. 57(b) of the
G Meghalaya Fundamental & Subsidiary ~ules, 1984, the 'appropriate
authority' may, if he is of the opinion that it is in the public interest
to do so, retire a Government servant by giving him notice of not less
than three months in writing or three months pay and allowances in
lieu of such notice after he has attained fifty years of age or has
completed twenty-five years of service, whichever is earlier. The
H term 'appropriate authority' referred to above means the authority
MEGHALAYA STATE ELECTRICITY BOARDv. JAGADINDRA ARJUN [SHAH, i.J 239

which has the power to make substantive appointment to the post or A·
service from which the Government servant is required to retire.

The above rule, commonly referred to as the rule of premature
retirement, is based on sound policy and is meant to subserve public
interest. The object of the above rule is to weed out (I) Govt. servants
of doubtful integrity; (2) Govt. servants who have outlived their utility B
and have become inefficient or ineffective; and (3) Govt. servants
whose physical and mental condition is such as to make them incapable
of further satisfactory service.

In order to achieve the objective mentioned above, the State Govt.
is pleased to constitute a Review Committee for each and every C
department of the Govt. to consider the cases of premature retirement
of Govt. servants under FR 57(b) as recommended by the Appointing
Authority on the basis of C.R. dossiers and other reports/documents
made available to it, and consisting of the following officers:

I. Shri J.M. Phira, 1.A.S. Chairman D

2. Shri H.N. Mookherjee, l.A.S. Member

3. Shri W.M.S. Pariat, IAS Member.

4. Special Secretary/Secretary/, E
Addi. Secretary of the Deptt.
Concerned.

Where the appointing authority is satisfied that a Govt. servant
who has attained fifty years of age or has completed twenty-five
years service has ceased to take any interest in his work or has become F

- ineffective or inefficient or whose physical or mental condition is
such as to make him incapable offurther service or whose integrity
is in doubt, such persons should be considered for premature
retirement under F.R. 57(b). A list of such persons with their service

- records and character Rolls together with the recommendation of the
Appointing Authority that they may be prematurely retired under
F.R. 57(b) should be sent to the Member Secretary of the Review
Committee of the Department for the purpose of placing of such
G

cases for consideration of the Review Committee. The Special
Secretary/ Secretary/Addi. Secretary of the respective Deptt. (in his
capacity as Member Secretary) should ensure that such cases are H
240 SUPREME COURT REPORTS (2001] SUPP. I S.C.R.

A placed before the Review Committee for consideration as early as
possible. Since premature retirement is sought to be made purely in
public interest, the Review Committee should not have any hesitation
in deciding such cases on merits.

In order................................ quarter.
B
Sd/-
V. Ramakrishnan Chief
Secretary to the
Govt. of Meghalaya"
The aforesaid Government Memorandum begins with the subject
C 'Premature retirement of Government servants under FR 57(b)'. By passing
a resolution, MSEB has adopted the said Memo. This would mean that MSEB
has adopted power and procedure for compulsory retirement. Further, the
Government Memo itself provides that where appointing authority is satisfied
that a Government servant who has attained 50 years of age or has completed
D 25 years' service and has ceased to take any interest in his work or has
become ineffective or inefficient or whose physical or mental condition is
such as to make him incapable of further service or whose integrity is in
doubt, such person shou Id be considered for premature retirement under FR
57(b). Once that part of the Government Memo is adopted by the MSEB, it
would be totally unjustifiable to hold that the MSEB has not adopted the
E power of compulsory retirement as p~ovided in FR 57(b). It appears that the
High Court has not completely referred to the aforesaid Government Memo.
Further, the resolution no. 6 quoted above specifically mentions that all the
members of the Boarc\ agreed that the Government's order concerning the
pre-mature retirement of Government servants under F.R.57 (b) is based on
F sound principles and felt that the same should be implemented in the MSEB

-
and it was decided to issue office memo accordingly and to constitute a
review committee. Hence, in our view, the reason given by the High Court
that the MSEB has not adopted the power of compulsory retirement by passing
the aforesaid resolution is without referring the resolution passed by the
Board and the office memo issued by the government.
G
Further, it is to be stated that MSEB in its meeting held on 21.3.1975
decided to adopt A.S.E.B. (General Conditions of Service) Regulations, 1960
of the old Assam State Electricity Board. That would mean that MSEB has
-
not framed its regulations but by passing a resolution it had adopted the
regulations framed by the ASEB. The said Regulations admittedly did not
H contain provision for compulsory retirement of its employees at the age of 50
MEGHALA YA STATE ELECTRICITY BOARD v. JAGADINDRA ARJUN [SHAH, J.] 241
years or after completion of 25 years of service. Hence, the Board by passing A
a resolution no.6 has. adopted the powers of pre-mature retirement of its
employees. Adoption of the regulations framed by the ASEB containing other
service conditions was by passing a resolution by the Board. Same procedure
was adopted by the Board in adopting the provisjons for compulsory
retirement. Therefore, it cannot be said that the Board has framed any
regulation which is contrary to regulations framed under Section 79 of the B
Act.

Learned counsel Mr. Bhattacharjee next contended that in absence of
any regulation framed by the MSEB under Section 79(c) of the Electricity
Supply Act governing the service conditions of its employees or for C
compulsory retirement before superannuation, it was not open to the MSEB
to issue the impugned order and that service conditions could not be prescribed
by the Board by passing resolution. For appreciating this contention, we
would refer to Sections 15 of the Electricity Act which reads as under:-

15. Appointment of staff-The Board may appoint a Secretary D
and such other officers and employees as may be required to enable
the Board to carry out its functions under this Act:

Provided that the appointment or'the Secretary shall be subject to
the approval of the State Government."
E
Further, Section 78 (A) provides that in discharge of its function, the Board
shall be guided by such directions on questions of policy as may be given to
it by the State Government. Section 79 empowers the Board to make
regulations. Relevant part of Section 79 reads thus:

"79. Power to make regulations-The Board may by notification in F
the Official Gazette make regulations not inconsistent with this Act
and the rules made thereunder to provide for all or any of the following
matters, namely:-

(a) - (b)

(c) the duties of officers and other employees of the Board, and their
G
salaries, allowances and other conditions of service;
(d) - (k)

Provided that regulations under clauses (a) (d) and (jj) shall be
made only with the previous approval of the State Government and H
242 SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A regulations under clauses (h) and (i) shall be made with the concurrence
of the Authority."

As per section 79(c), MSEB may frame regulations not inconsistent
with the provisions of the Act and the Rules providing for the duties of
officers and other employees of the Board and their salary, allowances and
B other conditions of service. It is to be stated that this is an enabling provision.
The MSEB may frame regulations as provided in section 79 (c) of the Act,
but in the absence of any regulations, the MSEB can lay down service
conditions by administrative order/instructions. Section 15 of the Act empowers
the Board to appoint its employees as may be required to enable the MSEB
C to carry out its functions under the Act except the Secretary who is to be
appointed with previous approval of the State Government. The power to lay
down service conditions by regulations is expressly conferred upon the MSEB,
so it has power to prescribe service conditions. Section 78A also provides
that except on question of policy for which the State Government has issued
directions, the Board is entitled to discharge its functions prescribed under
D the Act which would include appointment of staff to enable it to carry out its
functions and also lay down service conditions. Hence, if there are no rules
or regulations pertaining to service conditions of its employees, same could
be prescribed by administrative order and such power of the employer which
is a statutory corporation would be implied.
E
Dealing with the similar provisions, this Court in Mysore State Road
Transport Corporation v. Gopinath Gundachar Char, (1968] I SCR 767,
U.P. State Electricity Board, Lucknow etc. v. City Board, Mussoorie and
Ors., (1985] 2 SCC 16 and V. Balasubramaniam and Ors. v. Tamil Nadu
Housing Board and Ors., [ 1987] 4 SCC 738 rejected the contention that the
F Board/Corporation has no such power to lay down conditions of service by
passing a resolution. In the case of U.P. State Electricity Board (supra), the
Court dealt with a contention that in the absence of any regulation framed by
the Electricity Board under Section 79(h) of the Act regarding the principles
governing the fixing of Grid Tariffs, it would not be open to the board to
G issue the notification fixing the grid tariffs. Section 46 of the Act provides
that a tariff to be known as the Grid Tariff shall in accordance with any
regulations made in this behalf be fixed from time to time by the Board in
respect of each area for which a scheme is in force. The Court observed that
Section 46 does not say that no Grid Tariff can be fixed until such regulations
are made. It only provides that the Grid Tariff shall be in accordance with
H any regulations made in this behalf and if there were any regulations, the
MEGHALA YA STATE ELECTRICITY BOARDv. JAGADINDRA ARJUN [SHAH, J.] 243

Grid Tariff should be fixed in accordance with such regulations and nothing A
more. Framing of regulations under Section 79(h) of the Act cannot be a
condition precedent for fixing the Grid Tariff. The Court also referred to the
ciecision in Gopintith Gundachar Char (supra) which was a case arising
under the Road Transport Corporation Act, 1950. Under Section 14 of that
Act a Road Transport Corporation was entitled to appoint officers and servants
as it considered necessary for the efficient performance of its functions. B
Under Section 34(1) of the Road Transport Corporation Act, 1950 the State
Government had been empowered inter alia to issue directions to the Road
Transport Corporation regarding recruitment, conditions of service and training
of its employees. Under Section 45(2)(c) of that Act, the Road Transport
Corporation·was empowered to make regulations regarding the conditions of C
appointment and service and the scales of pay of officers and servants of the
Corporation other than the Chief f:xecutive Officer, General Manager and the
Chief Accounts Officer. No regulations were framed under Section 45(2)(c)
of that Act. It was contended that the Corporation could not appoint officers
and servants referred to therein or make any provision regarding their
conditions of servjce until such regulations were made. This Court rejected· D
the said plea by holding that:
" ...... until such. regulations are framed or directions are given, the
Corporation may appoint such officers or servants as may be necessary
for the efficient performance of its duties on such terms and conditions
as it thinks fit." E
In case of V. Balasubramaniam (supra) the Court considered similar
provisions ofT.N. State Housing Board Act, 1961. Section 16 of the said Act
empowered the Board to appoint a Secretary, a Housing Board Engineer and
such other officers and servants as it considers necessary for the efficient
performance of its functions. Section 17 of the Act provided that the F
remuneration and other conditions of service of the said officers and servants
of the Board shall be such as may be prescribed by regulations and Section
161 provided that the Board may by notification make regulations not
inconsistent with the Act and the rules made thereunder, for the purpose of
giving effect to the provisions of the Act. After referring to the decision in G
Mysore State Road Transport Corporation (Supra), the Court held that until
appropriate regulations were published by the Board in accordance with Section
161 of the Act, power could be exercised by the Board in accordance with
its own resolution. The Court further held that in the absence of clear words,
it is difficult to impute to the legislature the intention that the Corporation
would have no power to appoint officers and servants and fix the conditions H
244 SUPREME COURT REPORTS (2001] SUPP. I S.C.R.
A of service unless the regulations under Section 45(2)(c) are framed.
In view of this settled legal position, MSEB which is empowered to
make appointment of its officers and employees and frame s,tatutory regulations
laying down its service conditions, has power until the regulations are framed,
to lay down service conditions in exercise of its administrative power by
B passing resolution.

In the result, the appeal is allowed and the impugned order passed by
the High Court in Writ Appeal No. 19(SH) of 1998 is quashed and set aside.
There shall be no order as to costs.

T.N.A. Appeal allowed.