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37. Section 95 of the Act of 1961 confers power upon the State Government to make rules in respect of qualification, recruitment, appointment, leave, scale of pay and other service conditions for Municipal employees other than a member of the State Municipal Service. Similarly, Section 355 also confers power upon the State Government, in addition to any power specially conferred by this Act, to prescribe forms and make rules generally for the purpose of carrying into effect the provisions of this Act. By virtue of Section 355(2)(iv)(a), the State Government may make rules for constitution of Municipal service for the State and recruitments and appointments thereto.

38. The Chhattisgarh Municipal Service (Executive) Rules, 1973 38.1) In exercise of the powers conferred by sub-section (1) and item

(b) of clauses (iv) and (v) of sub-section (2) of Section 355 read with Section 86 of the Act of 1961, the State Government had framed the rules known as the Chhattisgarh Municipal Service (Executive) Rules, 1973 for constitution of Municipal service for the State and the State Municipal Service (Executive) shall consist of Four Classes, namely, Select Grade, Class I, II and III. Rule 5 of the Rules of 1973 provides Method of recruitment. Clause (c) of sub-rule (1) of Rule 5 provides that the filling up of vacancies in all classes of Municipal Councils by direct recruitment and by promotion shall be as shown (WPS No.3793/2018) in the Second Schedule. The Second Schedule of the Rules of 1973 states that the post of Chief Municipal Officer Class II and Class III will be filled 50% by direct recruitment and 50% by promotion, however, Select Grade and Class I posts shall be filled 100% by promotion.

"By promotion of CMOs of Class C Municipal Councils, Revenue Inspectors of Select Grade, Class I and Class II MCs, having experience of at least 7 years of the respective posts of CMO/Revenue Inspector."

38.3) These Rules were repealed by the Rules of 2017, which came into force with effect from 10-10-2017.

The Chhattisgarh Municipal Services (Scale of Pay and Allowances) Rules, 1967

39. In exercise of the powers conferred by sub-section (1) and item (b) of clause (iv) of sub-section (2) of Section 355 read with Section 95 of (WPS No.3793/2018) the Act of 1961, the State Government has framed the rules known as the Chhattisgarh Municipal Services (Scale of Pay and Allowances) Rules, 1967 (for short, 'the Rules of 1967') which classify Municipal Councils as Class A, AA, B and C depending upon their annual income. Rule 7 of the Rules of 1967 provides for Equation of posts and it prescribes that the present posts in each Municipal Council will be equated with the posts mentioned in Schedule III as per Schedule IV and the State Government will have the power to add, delete or make any amendment in the equation of the post made and shown in Schedule IV after consulting the Municipal Council concerned.

The Chhattisgarh Municipal Employees (Recruitment and Conditions of Service) Rules, 1968

40. Thereafter, the State Government in exercise of the powers conferred by sub-section (1) of Section 355 read with Section 95 of the Act of 1961, has framed the rules known as the Chhattisgarh Municipal Employees (Recruitment and Conditions of Service) Rules, 1968, defining "Municipal Employee" means a person appointed to or borne on the cadre of the Municipal staff other than a member of the State Municipal Service (Executive) and "Municipal service" means the service or group of posts in connection with the affairs of the Municipality other than the State Municipal Service (Executive). The qualification required for appointment to the various categories of posts by direct recruitment or otherwise shall be as specified in Schedule III appended to the Rules of 1967.