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

JUDGEMENT

(1.) THIS appeal under Clause 10 of the Letters Patent is directed against an order of a learned Single Judge of this Court, dated 25th of September, 1970, whereby the validity of the award of the industrial Tribunal, Punjab (Chandigarh), dated 12th of September, 1966, has been upheld.

(2.) TO appreciate, the controversy that has arisen before lis it is necessary to briefly state the facts leading to this litigation. The dispute which has ultimately lead to this appeal is between the workmen of the Ambala Cantonment Electric Supply Corporation Ltd., Ambala Cantonment, and the management of that Corporation. In the year 1935, the Punjab Government granted a licence for generation and distribution of electric energy within the limits of Amabala Cantonment to Messrs. B.R. Harman and Mohatta Ltd., The Mall, Lahore, for a period of 30 years. Under Section 6 of the Indian Electricity Act, 1910, the State Government had the option to purchase the undertaking on the expiry of this term or later on the expiry of every subsequent period which in this case was fixed at 20 years. Later by the amendment of the Indian Electricity Act after the partition of the country, the Punjab State Electricity Board (hereinafter referred to as the Board) was given the first option to purchase the said undertaking instead of the State Government. Before this option could be exercised, in the year 1946, the Appellant -Corporation (known as the Ambala Cantonment Electric Supply Corporation Ltd), purchased the undertaking from the original licensee. Some years later on the 24th of September, 1963, the Respondent -Board in exercise of its option to purchase the undertaking served the requisite notice under Section 6(1) of the Indian Electricity Act, 1910, read with Clause 9 of the licence, to hand over the undertaking on the midnight between the 23rd and 24th of April, 1965.

(3.) THE Board did not accept the employees' demands and refusing to take in its service all the employees of the Corporation as a part of the purchase called upon the employees to appear for interview, so that offers of appointment be made to such workmen as the Board considered fit for employment under it. As a result, of various employees of the Corporation were taken over, but treating their service by the Board as fresh entrants. Thus, the demands of the workmen for continuity of their service and protection of the pay, etc., drawn by them were virtually turned down.