MANAGEMENT OF THE AMBALA CANTONMENT ELECTRIC SUPPLY CORPORATION LTD Vs. WORKMEN OF THE AMBALA CANTONMENT ELECTRIC SUPPLY CORPN LTD

JUDGEMENT

(1.) THE Punjab Government granted a licence to M/s. B. R. Harman and Mohatta Ltd. , The Mall Lahore, for the generation and distribution of electric energy in certain areas within the limits of Ambala Cantt. For a period of 30 years in 1935. Under Section 6 of the Indian Electricity Act, 1910, the State Government had the option to purchase the undertaking on the expiry of the period of licence and if the option was not exercised on the expiry of the first period of 30 years, it could be exercised at the expiry of every 20 years thereafter. By a subsequent amendment of the Indian Electricity Board was given the option to purchase the undertaking instead of the State Government. In 1946, the present petitioner, which is a company incorporated under the Indian Companies Act purchased the undertaking from the original licensees. According to the terms of the licence the Punjab State Electricity Board, respondent 2 (hereinafter referred to as the Board), gave a notice to the petitioner-Company on December 24, 1963, exercising the option for the purchase of the undertaking given to it under Section 6 (1) of the Indian Electricity Act, 1910 read with clause (9) of the licence. By this notice, respondent 2 required the petitioner-company to sell the undertaking covered by its licence to the Board on the expiry of the period of licence on April 23, 1965 (mid-night between the 23rd and 24th April, 1965. The petitioner-company was further required to deliver its undertaking including lands, buildings works, materials, equipment, machinery and plant etc. suitable to and used by the Company for the purposes of its undertaking to the Board on the expiration of the period given above, pending determination and payment of the purchase-price of the aforesaid undertaking in accordance with the law. The petitioner Company was further informed that from the date of taking over, as mentioned above, the Company's undertaking would vest in the Board as its absolute property as laid down in Section 6 of the Indian Electricity Act, 1910 (as amended) and the Company's licence would cease to have further operation.

(2.) THE Chief Engineer of the Board, by Memo, dated June 1, 1964, requested the Company to supply the service particulars of the staff in its employ at that time in the form indicated. On receipt of this Memo, from the Board, the Company issued a notice to its employees on June 11, 1964, informing them that the Company's undertaking would be taken over by the Board on the mid-night of 23rd/24th April, 1965, and asking them to furnish the particulars of their service as desired by the Board. These particulars were in due course, forwarded by the Company to the Board. Since the Board did not take any decision with regard to the employees of the petitioner-Company, that is, whether they were to be taken over by the Board or not, the workmen of the petitioner-Company on February 24, 1965, in which the following demands were made:-

(3.) IT was further stated in the letter that- "you will certainly appreciate that the instant problems should be desirably settled amicably at this stage so that happy and healthier relations may prevail. We are confident that a better counsel shall prevail and we shall be favoured with your most justified and conscientious agreement to the aforesaid demands at an early date. "