MOTOR TRANSPORT CONTROLLER MAHARASHTRA STATE BOMBAY 18 Vs. PROVINCIAL RASHTRIYA MOTOR KAMGAR UNION NAGPUR

JUDGEMENT

(1.) A short point arises for consideration in this appeal. But to understand how the point arises it is necessary to embark on a somewhat lengthy statement of facts.

(2.) Three Road Transport Corporations established under the Road Transport Corporation Act, 1950 were operating in the States of Bombay, Madhya Pradesh and Hyderabad in 1956 when the States Reorganisation Act, 1956 was enacted. These three corporations were known as the Bombay State Road Transport Corporation, the provincial Transport Service and the State Transport Marathewada respectively. As a result of the reorganisation of the States under the States Reorganisation Act, 1956 the former State of Bombay lost certain of its territories to the newly formed State of Mysore and some areas to the State of Rajasthan. On the other hand, the State of Bombay gained the Marathewada from the State of Hyderabad and the Vidharbha area from the State of Madhya Pradesh and certain other areas from the then existing State of Saurashtra and the State of Kutch. To meet the situation arising from these territorial changes, Parliament passed the Road Transport Corporation Am- endemnt Act. 1956 thus amending the Road Transport Corporation Act. 1950. Section 47-A which was introduced by the amending Act provides for the reconstitution, reorganisation and dissolution of the Corporation established under S. 3 of the Act. On December 21, 1956 an order was made by the Central Government under the provisions of this section approving a scheme for reorganisation submitted by the Government of Bombay. By this scheme those areas in which the Bombay State Road Transport Corporation had been operating but were transferred under the States Reorganisation Act to the States of Mysore and Rajasthan were excluded from the areas of the operation of the Bombay State Road Transport Corporation. This came into force from the 1st January 1957. Another consequence of the State Reorgnisation Act was that the two commercial undertakings which were known as the Provincial Transport Services, and the State Transport, Marathewada, became the commercial undertakings of the State of Bombay.Further, territorial changes occurred in the State of Bombay in the year 1960. By the Bombay Reorgansation Act, No. 11 of 1960, the State of Bombay was again divided; part of what was in the former State, was formed into a new State by the name of the State of Gujarat, while the remaining area was named, the State of Maharashtra. In consequence of this some other areas were excluded by an order under S.47A of the Act from the area of operation of the Bombay State Road Transport Corporation. The situation then was that the State Transport, Marathewada, was operating in the Marathewada area, the provincial Transport Services was operating in the Vidharbha areas while in the rest of the Maharashtra State the Bombay State Transport Corporation was operating. It was when things stood like this that the Central Government made an order on the 27th May 1961 under S. 47-A of the Amending Act. By this order it approvd a Scheme for the reorganisation of the Bombay State Road Transport Corporation and amalgamation with it of the two other transport undertakings of the State Government, viz., the Provincial Transport Services, and the State Transport, Marathewada. After the reorganisation the Corporation was to be known as the Maharashtra State Road Transport Corporation. Clause 9 (1) of this order provided for the abolition of all the posts in the two undertakings, the Provincial Transport Services, and the State Transport, Marathewada and for discharge of all persons holding such posts from service. There was a provision however, giving such people option either of taking terminal benefits such as compensation pension, or gratuity to which they may be entitled under the rules applicable to them or of continuings as from the 1st July 1961 in the service of the Maharashtra State Road Transport Corporation. Sub-clause 2 of Cl. 9 provided that every person who as a result of the exercise of such option is continued in the service of the Maharashtra State Transport Corporation shall be entitled to be employed by that Corporation on the same terms and conditions, including pay as were applicable to him immediately before the appointed day and to count his service under the previous corporations for all purposes. Sub-clause 3 of cl. 9 was in these words:

(3.) Three contentions were raised in support of these prayers. It was first urged that the order made on the 27th May violated the provisions of S. 47-A of the Act and was therefore bad in law. The second contention was that the proviso to sub-cl 3 of cl. 9 of the Order contravenes the provisions of S. 77 of the Bombay Reorganisation Act. Lastly, it was contended that the action taken by the Government in abolishing the posts and issuing notices of termination of services of the employees was bad - firstly because it contravened S. 25F (b) and (c) of the Industrial Disputes Act and secondly, because it contravened the provisions of S. 31 of the C. P. and Berar Industrial Disputes Settlement Act, 1947.