Corporate Executive Association ... vs Union Of India And Ors.
1991 Latest Caselaw 653 Del

JUDGMENT

P.N. Nag, J.

(1) By this application, respondent No. 3, National Power Transmission Corporation Ltd. (N.P.T.C.), have sought modification/variation of the order passed by this Court on 14.081991, in terms of the undertaking given by the Attorney General on behalf of the Government of India, and also on behalf of the N.P.T.C. The relevant extract is reproduced below:- We have heard the parties Counsel and the Attorney General wishes to make a statement giving an undertaking on behalf of the National Power Transmission Corporation. He states by way of undertaking as follows : - The services of the above employees shall not be deemed to be interrupted by National Power Transmission Corporation consequent on such transfer and absorption. The terms and conditions of service applicable to these employees after transfer and absorption shall not, in any way, be less favorable than those applicable to them immediately before the transfer. In the event of retrenchment of any employee who i(r) a workman as defined in the Industrial "Disputes Act, 1947, the National Power Transmission Corporation shall be legally liable to pay compensation on the basis of that his service is continuous and has not been interrupted by the transfer. That if the writ petitioners succeed in the writ petition, the entire position shall be reversed, as per directions, order and any interim order, and all interim orders as agreed to will be subject to the result of the writ petition. That during the pendency of the writ petition, the National Power Transmission Corporation shall not recruit persons from any source other than the National Thermal Power Corporation without the permission of the Court. We have heard the undertaking of the Attorney General given on behalf of the Union of India and on behalf of National Power Transmission Corporation. The words in the undertaking to the effect that transfer and absorption of employees of the National Thermal Power Corporation in the National Power Transmission Corporation shall, however, be the matter 497 of final adjudication of the writ petition, and be subject thereto. Liberty is given to both the parties to mention the matter incase of difficulty and incase of any changed situation. No action be taken unilaterally affecting the rights of the parties and the questions which are subject matter of this writ petition without permission of this Court. If the assets of the National Thermal Power Corporation are to be transferred to the National Power Transmission Corporation, then prior to taking such action, the Court be approached.

(2) The above orders were passed on the interim application filed by the petitioner, whereby the petitioners had sought an order from this Court restraining the respondents from effecting transfer and absorption of the respondents employees into the new company.

(3) In the writ petition, the petitioner which is an Association of Corporate Executives of N.T.P.C., has challenged the action of the respondents of transfer of employees from the services of respondent No. 2, i.e. National Thermal Power Corporation (N.T.P.C.) to respondent No. 3, National Power Transmission Corporation Ltd. (N.P.T.C.). It appears that 2509 employees have already been transferred to the new company i.e. N.P.T.C. w.e f. 16.08.1991. The challenge to such transfer substantially has been made on the ground that they have been arbitrarily transferred to the new Corporation, without their consent and their services in fact have been terminated arbitrarily without affording them an opportunity.

(4) In the aforementioned order of this Court dated 14.08.1991, one of the undertakings given by the learned Attorney General in Court is that, "during the pendency of the writ petition, the National Power Transmission Corporation shall not recruit persons from any source other than the National Thermal Power Corporation without the permission of the Court". Respondent No. 3 has been set up by the Government of India, with its main object to promote and develop efficient power transmission system and National Grid system in the country so that the electric power could be transmitted from various Power Generating Stations to Load dispatch Centres situated in different parts of the country with economy, safety and reliability and that the surplus power in any area could flow to the power deficit areas in the country, as surplus electric power cannot be stored even for a minute and it must not be wasted when there is crying need for it for the industrial development and agricultural growth in the country. At present various transmission lines are owned by the Generating Companies/Organisations, namely. National Thermal Power Corporation Ltd. (N.T.P.C.), Nuclear Power Corporation of India Ltd. (N.P.C ). National Hydroelectric Power Corporation Ltd. (N.H.P.C), North Eastern Electric Power Corporation Ltd. (NEEPCO) Tehri Hydro Development Corporation Ltd. (THDC), Nayveli Lignite Corporation Ltd. (NLC), Damador Valley Corporation (DVC) and Bhakra Beas Management Board (BBMB), described in para 2 of the application. With a view for carrying out its business and objects, and as per the policy of the Government, respondent No. 3 wants to take over the staff associated with the transmission lines of different Corporations, aforementioned. However, respondent No. 3 has experienced some difficulty in taking over the staff because of the aforesaid undertaking given by the Attorney General, i.e. during the pendency of the writ petition, the National Power Transmission Corporation a ball not recruit persons from any source other than the National Thermal Power Corporation without the permission of the Court, as transfer of the aforementioned Corporations to respondent No. 3, along with their employees might be construed recruitment of such employees by respondent No. 3, and, therefore, might result in breach of undertaking. That is why this application has been moved for clarification that the word "recruitment" used in the undertaking should not be construed to mean and include transfer of employees of various Corporations, referred to above, so as to prohibit such transfers to respondent No. 3.

(5) The learned Attorney General who appeared for respondent No. 3 and the Union of India, submitted that there was no injunction order passed by this Court, nor was there any undertaking given by him to the effect that respondent No. 3 could not take over various Corporations mentioned in para 2 of the application, along with their staff by transfer. In fact, transfer does not amount to recruitment, but at any rate, in case if it is construed as recruitment, in that situation in the national and the public interest, they should be permitted to take over such employees by transfer, as necessarily by taking over such Corporations, such experienced employees who are working in the transmission wings of various Corporations, will inevitable have also to be transferred to N.T.P.C. Moreover, respondent No. 2 has also shown their inability to transfer any further employees to respondent No. 3.

(6) We have carefully considered the submissions of the learned Attorney General. At this stage, we may refer to the additional affidavit filed by Mr R K.. Narayan, Chairman & Managing Director, National Power Transmission Corporation, on behalf of respondent No. 3. It has been clearly stated in paras 5, 6, and 8, which are reproduced as under : That for carrying out its business and objects and as per the policy of the Government, the Note has to take over the staff associated with the transmission lines of different organisations. The Government is keen that Note should take over the transmission lines of Nhpc, Neepco and Thdc with effect from 01.10. 1991 along with the associated staff of transmission network which Is estimated as under Organisation