HARIPRASAD SHIVSHANKER SHUKIA AND ANOTHOR BARSI LIGHT RAILWAY COMPANY LIMITED Vs. A D DIVELKAR:K N JOGLEKAR

JUDGEMENT

(1.) These two appeals, brought on certificates granted by the High Court of Bombay, raise common questions of law and for that reason, have been heard together. This judgement will govern them both.

(2.) In Civil Appeal No. 105 of 1956 the main appellant is the Barsi Light Railway Company Limited, Kurduwadi within the State of Bombay (hereinafter called the Railway Company). The principal respondent is the President of the Barsi Light Rail waymens Union, respondent No. 1 to the appeal. The General Manager, Central Railway, Bombay, and the Secretary, Railway Board, New Delhi, are respondents Nos. 4 and 5. The facts, so far as they are relevant for our purpose, are these. Under an agreement dated 1 st August 1895, between the Secretary of State for India in Council and the Railway Company, the latter constructed, maintained and worked a light railway between Barsi Town and Barsi Road Station on the railway system, known then as the Great Indian Peninsular Railway. It is not necessary to state here the various clauses of the aforesaid indenture of agreement except to mention that it contained a clause under which the Secretary of State could purchase and take over the undertaking after giving the Railway Company not less than twelve calendar months' notice in writing of the intention so to do. On 19th December 1952 a notice was given to the Railway Company, for and on behalf of the President of India, by the Director of the Railway Board to the effect that the undertaking of the Railway Company would be purchased and taken over as from 1st January 1954. The notice stated inter alia:

(3.) On 11th November 1953, the Railway Company served a notice on its workmen intimating that as a result of the Government of India's decision to terminate the contract of the Railway Company and take over the railway from 1st January 1954, the services of all the workmen of the Railway Company would be terminated with effect from the afternoon of 31st December 1953. The notice further stated that the Government of India intended to employ such of the staff of the Company as would be willing to serve on the railway on terms and conditions which were to be notified later. On 15th December 1953, the Railway Board intimated the terms and conditions on which the staff of the Railway Company would be taken over and employed by Government. The letter by which the terms and conditions were communicated enclosed three forms- one for clerical and like categories, a second for categories of staff needing training or refresher course, and a third for workshop staff and other tradesmen requiring tradetesting. In substance, the new terms and conditions as embodied in the letter and the three forms stated that the service of the staff employed by Government would be treated as continuous for certain specific purposes only, such as, contribution to provident fund, leave, passes and privilege ticket orders, educational and medical facilities etc. It was made clear, however, that the Government Railway rules applicable to other staff appointed on the same day would be applicable to the staff of the Railway Company and previous service under the Railway Company would not count for the purpose of seniority. It appears from the statement of respondents 4 and 5 that when the undertaking was actually taken over on 1st January 1954, about 77 percent of the staff of the Railway Company were re-employed in the same scales of pay, about 23 percent were re-employed on somewhat lower scales of pay though the pay they actually drew at the time of re-employment was not affected; only about 24 of the former employees of the Railway Company declined service under the Government.