MURTHY V S R Vs. ENGINEER IN CHIEF

JUDGEMENT

(1.) The petitioners in these writ petitions were all employees who have put in 8 to 10 years of service in Hyderabad Allwyn Limited (for short 'HAL'), which is a State Government Public Sector Undertaking, who have been deployed in various Government Departments for the past three and half years in pursuance of a Scheme settled by the Board for Industrial and Financial Reconstruction (for short 'BIFR'). As the Supernumerary posts created in various Government Departments and Corporations wherein the petitioners were absorbed are abolished under G.O.Ms. No.192, Industries & Commerce (IFR.II) Department, dated 1-10-1996 some of the above writ petitions are filed questioning the said G.O. Later A.P. Ordinance No.25/96 was promulgated, followed by Act 14/97 for the same purpose which were also challenged in other writ petitions.

(2.) In the counter-affidavit filed by the Deputy Secretary to Government, Industries & Commerce Department, it is stated that M/s. Hyderabad Allwyn Limited (HAL) became sick, consequently, reference was made to the Board for Industrial & Financial Reconstruction (BIFR), under Section 15 of Sick Industrial Companies (Special Provisions) Act, 1985 'for short, "the Act", by the State Government. In fact the State Government was already on hunt for proper entrepreneur to take over the Company. A High Power Committee was constituted which negotiated with reputed industrial houses including M/s. Voltas Limited with whom fruitful settlement reached which resulted in arriving at a scheme, according to which M/s. Voltas agreed to take over two divisions, Refrigeration and Appliances out of four divisions and the other two divisions i.e., Watch and Auto Body Building had to be formed as separate Companies. During the preparation of the draft revival scheme for HAL for approval by BIFR, labour and employees unions were consulted and during negotiations, M/s. Voltas Limited agreed to take over 5000 employees working in Refrigeration and Appliances divisions. In this process 1486 employees of the erstwhile HAL were identified as surplus and out of these employees some were consolidated wage earners, others were drawing regular scale of pay in HAL. A Cabinet Sub-Committee was constituted, vide G.O.Rt. No.1210, Industries & Commerce (PE Cell) Department, dated 25-11-1992, to discuss with the Unions and to recommend the modalities for redeployment of these employees. Accordingly the Sub-Committee recommended redeployment of these 1486 surplus employees in Government Departments, Public Corporations and also suggested that the Government shall constitute a Committee to evolve methods for permanent absorption and rehabilitation of these employees, including setting up of a Voluntary Retirement Scheme. Government accepted the recommendations in G.O. Rt. No.383, Industries and Commerce (PE Cell) Department, dated 31-3-1993, and directed the Managing Director, HAL to identify the 1486 employees in terms of the guidelines set out in Annexure-I of the said G.O. for allotment to various Heads of Departments, and Corporations in accordance with the said G.O. It is further stated that suitable placement of the individuals taking into account their previous service, would be decided by a Committee constituted under G.O.Rt.No.383, dated 31-3-1993, who submitted a report on 7-4-1993 for redeployment of these employees in various Heads of Departments and Government Corporations in accordance with the guidelines, which was also accepted by the Government, and accordingly, Government issued G.O.Ms. No.180, Industries and Commerce (PE. Cell) Department dated 28-4-1993, creating supernumerary posts in Government Departments and temporary posts in Government Corporations/ Autonomous Bodies. It was further made clear in the said G.O. that final placement would be based on the recommendations of Empowered Committee constituted under G.O. Rt.No.399, Industries and Commerce (PE Cell) Department, dated 12-4-1993 which would go into the modalities of dovetailing the available man power against available vacancies and to find suitable placement for the 1486 employees and recommend accordingly. The Committee though held several meetings could not submit its report. Meanwhile several representations were received from various Unions like TNGOS Unions, JACE & T., A.P. Secretariat Employees Co-ordination Committee who requested the Government not to absorb the employees of Public Sector Undertakings in the districts of Hyderabad and Ranga Reddy, as it would violate the Presidential Order, popularly called "6-Point Formula'. Therefore, the Government constituted a Higher Power Committee under G.O.Ms. No.46, General Administration (SW) Department, dated 28-1-1994, to go into this question and the High Power Committee accordingly advised the Government against absorption of surplus staff of Public Sector Undertakings into Government service as the same would create unrest among Government employees who are already in service, besides creating service problems, and the Government, accordingly accepted the said recommendations on 25-8-1994. Since it is difficult to absorb these surplus employees in Government and Public Sector Undertakings where there are large number of surplus employees, these employees do not fit into the structure of Government establishments, and even the voluntary Retirement Scheme as an option, is also not found feasible, as some of the workers are on consolidated wages, while many have not completed the stipulated minimum qualifying service, or age to attract the scheme. Accordingly Government issued G.O.Ms. No.192, Industries & Commerce (IFR.II) Department, dated 1-10-1996 and ordered that all the supernumerary posts created under G.O.Ms. No.180, dated 28-4-1993 in various Government Departments and Corporations in which 1486 surplus employees of erstwhile HAL are working shall stand abolished with effect from November 30,1996, subject to the following conditions:

(3.) The tenor of the counter-affidavit further shows that the Cabinet Subcommittee while submitting its report in February, 1993 merely recommended re-deployment of 1486 surplus employees in Government Departments, Public Sector Undertakings as an interim measure and that the Government should constitute a committee to evolve methods for permanent absorption and rehabilitation of these employees, including feasibility of setting up a Voluntary Retirement Scheme. The High Power Committee recommended that these 1486 employees cannot be absorbed in Government Departments and Corporations for various reasons. Even under the Memorandum of Understanding reached between the Government of A.P., Voltas Limited and erstwhile HAL on 28-3-1993 all that is agreed is that with regard to employees numbering 1486, HAL will enter into satisfactory arrangement with the Government for their deployment elsewhere. Therefore, it is clear that the Government nowhere has agreed or undertaken to regularise/absorb permanently 1486 surplus employees of HAL.