STATE OF U P Vs. DASRATH PRASAD YADAV

JUDGEMENT

(1.) -This appeal has been preferred against the judgment and order dated 7.5.2002 passed by a learned Judge of this Court in Civil Misc. Writ Petition No. 20562 of 1999. The writ petition was filed by 105 retrenched employees of Institute of Engineering and Rural Technology (for short IERT), Allahabad, against the State of U. P. and its officers as well as the IERT, praying for quashing the Government order dated 24.3.1999 by which it was decided that the Training -cum-Production Centre of the IERT be closed down with effect from 31.3.1999 and the workmen employed at the Centre be retrenched after being paid retrenchment compensation. The consequent notice/declaration dated 31.3.1999 issued by the IERT for closure of the Centre had also been challenged. A further prayer for mandamus directing the State-respondents to absorb the writ-petitioners in an alternative employment of the State Government or organizations under the State Government had also been made.

(2.) WHILE allowing the writ petition the learned Judge gave the following directions :

(3.) IN the year 1969, a Training-cum-Production Centre was established in the INstitute for imparting practical studies to the students and the same was to be a self-financing Centre. The State Government vide its order dated 18.10.1969, while granting permission to establish the Centre, had made it clear that the Government would not give any grant for running the Centre and the INstitute itself shall be liable to bear its expenses. The State Government in the years 1972 and 1973 granted certain short-term loans for the purpose of running the Centre, which had been repaid. Since the Centre was a self-financing unit of the INstitute and it was unable to meet its expenses, the Board of Management of IERT took a decision on 19.4.1987, to close it down due to financial constraints. The Centre remained closed for about three months but thereafter, with the efforts of the State Government and the Deputy Labour Commissioner, Allahabad, it was again re-opened on 17.7.1987. The State Government constituted a Five-Members Committee, which was to submit its report regarding the functioning of the Centre. Vide its report dated 13.9.1996, the Committee recommended that the Centre may not be closed down and further that the State Government may sanction grants for running it. However, the report was not accepted and no action was taken on the same and considering the non-viability of running the Centre as a self-financing unit, the State Government issued a Government order on 24.3.1999, notifying its decision to close down the Training-cum-Production Centre with effect from 31.3.1999. A sum of Rs. 1,42,41,908 was sanctioned for disbursement of arrears of salary and payment of retrenchment compensation to the employees of the Centre. Consequently the Authorised Controller of IERT issued a notice/ declaration on 31.3.1999, notifying the closure of the Training-cum-Production Centre of the INstitute.