Case Note & Summary
The dispute arose from the transfer of Dr. Subhas Chandra Yadav, a Sub-Charge at the Cantonment General Hospital, Lucknow, to another hospital in Varanasi under Rule 5-C of the Cantonment Funds Servants Rules, 1937. The respondent challenged the transfer in the Allahabad High Court, arguing that Rule 5-C was ultra vires the Cantonments Act, 1924. The High Court agreed, stating that the services of Cantonment Board employees were not centralized and that the rule exceeded the Central Government's authority. The appellants contended that the amended clause (c) of Section 280 conferred the necessary power to make such rules. However, the Supreme Court upheld the High Court's ruling, emphasizing that rules must conform to the statute and that the transfer constituted a termination of service and a new appointment, which was not permissible between autonomous bodies. The court affirmed the High Court's decision, dismissing the appeal without costs.
Headnote
A) Administrative Law - Rule Making Power - Validity of Rule 5-C - Cantonments Act, 1924, Section 280(2)(c) - Rule 5-C was struck down as it exceeded the rule making power of the Central Government under the Cantonments Act, as it allowed transfers between autonomous bodies without a centralized service framework. The court held that rules must conform to the statute and fall within the authority's power to be valid. (Paras 69-72).
Issue of Consideration
Whether Rule 5-C of the Cantonment Funds Servants Rules, 1937, is valid under the Cantonments Act, 1924.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's decision to strike down Rule 5-C and quash the transfer order.
Law Points
- Rule making power
- Transfer of employees
- Statutory rules
- Autonomous bodies
- Conditions of service



