Rajendra Babu, J. - (1.) When certain proceedings were pending before the Board of Industrial and Financial Reconstruction (BIFR) a settlement was reached between the employees of Bus Body Division and 1537 employees of M/s. Hyderabad Allwyn Ltd. (for short 'HAL') and their Management under S. 12 of the Industrial Disputes Act, 1947 (hereinafter referred to as 'the Act'). Memorandum of Understanding (MOU) was also reached on 28-3-1193 with M/s. Voltas Ltd., Government of Andhra Pradesh and HAL. In that MOU, one of the clauses provided as follows :"As regards employees numbering 1486, HAL will enter into satisfactory arrangements with the Government of A. P. for their deployment elsewhere."
(2.) The Government of Andhra Pradesh thereafter considered the modalities of placement of 1486 employees of the company and a Cabinet Sub-Committee was constituted which considered the recommendations made by a High Power Committee and the operating agency appointed by BIFR. The Managing Director, Hal was asked to identify the 1486 employees and allot them to the various Heads of the Departments as indicated in Annexure II thereto as an interim measure to be effective from 1-4-1993. The placement of individuals was to be decided by the Committee of Officers constituted under their order dated 31-3-1993. It was also stated that separate orders will be issued creating supernumerary posts for these employees.
(3.) Thereafter, the Government accepted recommendations of the Committee of Officers creating supernumerary posts in the Government Departments requiring the Heads of Departments to maintain a separate muster roll and acquittance register for the individuals allotted to them. The Heads of Departments were asked to issue temporary posting orders, which shall be in operation till final orders of allotment were issued in pursuance of decisions of the Empowered Committee. In the meanwhile, BIFR published a draft scheme on 22-2-1994. Under the scheme, amongst other things, it was provided for the establishment of a new company "Auto Company" by the Government of Andhra Pradesh to which the employees of the Hal working in its auto division shall be deemed to have been transferred with effect from 28-3-1993. It was further stated that the transferor company had identified the number of surplus employees of the transferor company who would be transferred and absorbed by the Government of Andhra Pradesh and the Government of Andhra Pradesh has by its order dated 28-4-1993 completed the modalities for placement of 1486 employees in various Government departments and State level public enterprises. It was also stated that the aforesaid transfer of the watch undertaking to the Watch Company together with the transfer of the employees engaged in or connected with the watch undertaking as also the transfer of the employees in the Auto Division and the surplus employees so identified would be completed before the sanction of the scheme. On 4-4-1994, BIFR sanctioned the scheme.;