H L TREHAN Vs. UNION OF INDIA

JUDGEMENT

(1.) This judgment will dispose of Civil Writs Nos. 217 and 426 of 1978 since common questions of law have been raised by the petitioners. The parties agree that the facts relating to Civil Writ No. 426 of 1978 should be gone into and the questions of law raised in this petition decided. It is also agreed that the judgment of this petition shall govern Civil Writ No. 217 of 1978.

(2.) The relevant facts of Civil Writ No. 426 of 1978 may now be noticed. The petitioners are some of the employees of erstwhile Caltex (India) Ltd. Petitioner No. 1 is also the Secretary of the Delhi Regional Committee of the Coril Management Staff Association (respondent No. 3) and a member of its Managing Committee. The third respondent is registered under the Trade Unions Act, 1926.

(3.) Caltex Petroleum Corporation (a foreign Company) has various subsidiaries. One of its subsidiaries, namely ,the Caltex Oil Refining (India) Ltd. (referred to as "CORIL" (an Indian Company) was carrying on the business of refining crude oil and producing petroleum products in India and another of its subsidiaries, namely, the Caltex (India) Ltd. (a foreign Company) was carrying on through its undertakings in India the business of marketing and distributing petroleum products. The President of India promulgated the Caltex (Acquisition of Shares of Caltex Oil Refining (India) Limited and of the Undertakings in India of Caltex (India) Ltd.) Ordinance, 1976 (15 of 1976), on Dec. 30, 1976. The Ordinance was replaced by Act No. 17 of 1977. This Act was given retrospective operation as it was "deemed to have come into force on the 30th day of Dec., 1976" (Sub-section (2) of Sec. 1). The right, title and interest of Caltex (India) Limited in relation to its undertakings in India stood transferred and vested in the Central Government on Dec. 30, 1976 (Section 5). Sub-section (1) of Sec. 9 empowers the Central Government to direct vesting of any of the undertakings of Caltex (India) Limited in a Government company. Pursuant to these powers the Central Government issued a notification dated Dec. 30,1976 directing that" the right, title and interest and the liabilities of Caltex (India) Limited in relation to its under-takings in India, shall, instead of continuing to vest in the Central Government, vest with effect from the thirtieth day of Dec., 1976 in Caltex Oil Refining (India) Limited." By Sub-section (1) of Sec. 11 services of employees of Caltex (India) Limited stood transferred on the existing terms and conditions of service to the Government company, i.e., CORIL Sec. 15(1) preserves the contracts entered into by Caltex (India) Limited for any service, sale or supply in India, and in force immediately before Dec. 30 1976.