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The Supreme Court has held that the Railways is not bound by the memorandum issued by the Department of Personnel and Training (DoPT) and are allowed to frame its own rules for the laying down of the service conditions of the employees. The three Judge Bench held that the Indian Railways Establishment Manual (IREM) has statutory force and has been issued in exercise of powers vested under the proviso to Article 309 of the constitution.
The Bench said that the Railways is specifically excluded from the ambit of the scope of business allocated to the DoPT whether it be classification of posts, recruitment of ministerial staff, appointment of non-Indians to civil posts, fixing of service conditions etc. and as such the DoPt cannot issue binding circulars to railways.
Taking note of various communications with regard to the IREM, the bench observed that all of them make a mention that they have been issued in exercise of powers conferred by proviso to Article 309 of the Constitution.
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