Bhagwati, J. - (1.) This group of appeals raises a common question of law affecting Senior Health Inspectors on deputation with the Municipal Corporation of the City of Bangalore (hereinafter referred to as the Corporation). The facts giving rise to the appeals are identical and may be briefly stated as follows.
(2.) The appellants are Senior Health Inspectors in the Karnataka State Civil Service. It seems that prior to 3rd March, 1971, when the City of Bangalore Municipal Corporation Services (General) Cadre and Recruitment Regulations, 1971 (hereinafter referred to as the Cadre and Recruitment Regulations) came into force, the practice of the Corporation was to have one half of the cadre of Senior Health Inspectors manned by deputation of Senior Health Inspectors from the Karnataka State Civil Service and in accordance with this practice, the appellants were taken on deputation by the Corporation from the Karnataka State Civil Service. While the appellants were working as Senior Health Inspectors on deputation, the Corporation passed a resolution dated 30th December, 1974 approving the report of the Commissioner that sixteen Senior Health Inspectors, including the appellants, who were working under the Corporation on deputation should "be absorbed in the interest of work if they are willing on their own pay and accept their seniority as juniors to the Senior Health Inspectors of the Corporation". It is the case of the appellants that on the same day, immediately after the passing of this Resolution, they addressed a communication to the Mayor of the Corporation intimating to him that they were willing to be absorbed as Senior Health Inspectors under the Corporation on their own pay and with ranking below the Senior Health Inspectors of the Corporation. The factum of this communication was disputed by the Corporation as well as by the State Government, but in the view we are taking, it will not be necessary for us to examine this question. To continue further with the narration of facts, the Corporation sent the Resolution dated 30th December, 1974 to the State Government for according its sanction and the State Government by an order dated 6th May, 1975 accorded sanction "to the Corporation's resolution dated 30th December, 1974 regarding the absorption of the Senior Health Inspectors" mentioned in the Resolution under Section 89 of the City of Bangalore Municipal Corporation Act, 1949 (hereinafter referred to as the Act). The term of the Corporation in the meantime came to an end and since fresh elections were not held to elect the members of the Corporation, an administrator was appointed by the Government to manage the affairs of the Corporation. The administrator requested the State Government to defer implementation of the proposal contained in the Resolution dated 30th December, 1974 since the permanent officials of the Corporation were considerably disturbed by this proposal as it prejudicially affected their chances of promotion by reason of the absorption of sixteen deputationist Senior Health Inspectors from the Karnataka State Civil Service. The State Government on the basis of the communication addressed by the Administrator in this behalf passed another order dated 25th August, 1976 withdrawing the sanction accorded under the earlier order dated 6th May, 1975. The appellants being prejudicially affected by the withdrawal of the sanction preferred writ petitions in the High Court of Karnataka contending that as soon as the State Government gave its sanction on 6th May, 1975 to the Resolution of the Corporation dated 30th December, 1974, they were absorbed as permanent employees of the Corporation and they ceased to be Government servants and the State Government thereafter had no authority to withdraw the sanction granted by it under the earlier order dated 6th May, 1975 and the subsequent order dated 25th August 1975 was invalid and inoperative. These writ petitions came up for hearing before a single Judge of the High Court who rejected them by a judgment dated 22nd September, 1975. The appellants thereupon preferred appeals under Section 4 of the Karnataka High Court Act, 1961, but the appeals were unsuccessful and they were rejected by a Division Bench of the High Court by a judgment dated 28th May, 1976. Hence the present appeals by the appellants with special leave obtained from this Court.
(3.) The principal question which arises for determination in these appeals is whether the appellants who are Senior Health Inspectors mentioned in the Resolution of the Corporation dated 30th December, 1974 became permanent employees of the Corporation and ceased to be Government servants as soon as the State Government passed the order dated 6th May, 1975 according its sanction to the Resolution of the Corporation. There can be no doubt that if the effect of the Government order dated 6th May, 1975 was to snap the status of the appellants as Government servants and to absorb them as permanent employees of the Corporation, the State Government could not thereafter by its unilateral action reverse the process and annihilate the relationship of employer and employee between the Corporation and the appellants and restore their status as Government servants. The main issue which, therefore, falls for determination is as to what legal effect flowed from the Government order dated 6th May, 1975:did it have the effect of absorbing the appellants as permanent employees of the Corporation with simultaneous termination of their employment as Government servants To answer this issue it is necessary to refer to a few relevant provisions of the Act and the Cadre and Recruitment Regulations.;