Supreme Court Decision w.r.t. reemployment or deployment of retrenched employees.
BRAJENDRA SINGH
(Querist) 28 May 2008
This query is : Resolved
Recently Hon'ble Supreme Court through bench comprising of Justice C K Thakkar and Justice D K Jain has given a verdict w.r.t. redloyment of retrenshed state owned corporation i.e. U P Mineral Corporation in which Apex Court has turned down decision of High Court of U.P. in which the Hon'ble High Court has provided compensation of the retrenched employees along with order of re-employment.
Kindly provide me a copy of the same judgement.
BRAJENDRA SINGH
H. S. Thukral
(Expert) 28 May 2008
Dear Mr. Singh
You can help yourself by going to Supreme Court website in JUDIS to find the desired judgment. However without any obligation I am doing this for you.
CASE NO.:
Appeal (civil) 3202 of 2008
PETITIONER:
STATE OF U.P. & ANR.
RESPONDENT:
U.P. RAJYA KHANIJ VIKAS NIGAM S.S. & ORS
DATE OF JUDGMENT: 02/05/2008
BENCH:
C.K. THAKKER & D.K. JAIN
JUDGMENT:
J U D G M E N T
REPORTABLE
CIVIL APPEAL NO. 3202 OF 2008
ARISING OUT OF
SPECIAL LEAVE PETITION (CIVIL) NO. 20071 OF 2006
C.K. THAKKER, J.
1. Leave granted.
2. The present appeal is directed against
the judgment and final order dated July 14,
2006 passed by the High Court of judicature at
Allahabad, (Lucknow Bench) in Writ Petition No.
338 (S/B) of 1997. By the said order, the writ
petition filed by Uttar Pradesh Rajya Khanij
Vikas Nigam Sangharsh Samiti ('Samiti' for
short) and Others against the U.P. State
Mineral Development Corporation Ltd. and the
State of U.P. was allowed and a writ of
mandamus was issued to the respondents to
absorb the employees of the Corporation in
various organizations of State Government/
Public Sector Undertakings and to pay
compensation in accordance with law.
3. The case has a chequered history and
it is necessary to highlight it to understand
the controversy raised in the present
proceedings.
4. On March 23, 1974, U.P. State Mineral
Development Corporation Ltd. ('Corporation' for
short) was incorporated as a Government Company
under Section 617 of the Companies Act, 1956.
The Corporation was established with a view to
provide acceleration in the field of mining and
other incidental activities. Initially, the
Corporation was floated with authorized share
capital of Rs.20 crores which was subsequently
increased to Rs.60 crores. It was a Government
Company wherein 100% paid up share capital was
by the State. It was thus completely owned by
the Government. It was under the direct control
and supervision of the State Government. The
Corporation was thus an 'instrumentality' of
the State. In the beginning, the Corporation
showed profits. Subsequently, however, the
financial status was deteriorated and it
started incurring losses. The Board of
Directors, therefore, on December 19, 1996
decided to retrench 460 employees. The Board
was required to pay retrenchment compensation
to those employees. Accordingly, a request was
made to the State Government to advance loan of
Rs.5 crores to enable the Corporation to pay
retrenchment compensation to the employees. A
resolution to that effect was also passed by
the Board of Directors. In the resolution,
reasons were indicated which impelled the
Corporation to take a decision to retrench more
than 50% of its staff. There were 838 employees
out of which 744 were regular employees and 94
were on consolidated salary.
5. Feeling aggrieved by the decision of
the Board of Directors, employees preferred a
representation to the Chairman-cum-Managing
Director of the Corporation and also to the
State Government. In the representation,
grievance was made by them that the proposed
action was illegal and they should not be
retrenched. It was indicated that financial
position of the Corporation could be improved.
A prayer was also made to absorb employees of
the Corporation in other Departments of the
State or other Public Sector Undertakings if
they were to be relieved. No final order of
retrenchment was, however, passed. Since
neither the Corporation nor the Government gave
assurance with regard to continuation or
otherwise of the Corporation, nor as to
absorption of employees working in the
Corporation in the State Government or any
other Corporation, the Samiti was constrained
to file a writ petition in the High Court of
Judicature at Allahabad, (Lucknow Bench) in
1997 for the following reliefs;
Whereas, it is most respectfull
Guest
(Expert) 28 May 2008
Many thanks Harbhajan.
