STATE OF TAMIL NADU T N COOPERATIVE MILK PRODUCERS FEDERATION MADRAS Vs. V S BALAKRISHNAN:V S BALAKRISHNAN
SUPREME COURT OF INDIA (FROM: MADRAS)
State Of Tamil Nadu T N Cooperative Milk Producers Federation Madras
V S Balakrishnan:V S Balakrishnan
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Kuldip Singh, J. -
(1.)The Tamil Nadu Government decided in March, 1972 to form a Government Company with a view to take over the entire business activity of the Dairy Development Department of the State Government. As a consequence the Tamil Nadu Dairy Development Corporation Limited (the Corporation) was incorporated on May 4, 1972. The objects of the Corporation were to carry on the business of production, collection and distribution of milk throughout the State of Tamil Nadu. The Tamil Nadu Government by the Order dated June 29, 1972 directed the transfer of 431 posts in various cadres of the Dairy Development Department to the Corporation with effect from July 1, 1972. 296 posts were transferred along with the incumbents of the said posts and the remaining transferred posts were vacant. Subsequently, by another Order 331 posts - 217 with incumbents - were further transferred to the Corporation with effect from July 1, 1974. The incumbents of the posts were to be treated on deputation/foreign service to the Corporation.
(2.)While the question of absorbing about 500 employees on deputation/ foreign service serving the Corporation was under consideration, the Tamil Nadu Government came to be seized of another similar situation pertaining to the deputationists with the Small scale Industries Development Corporation Limited (the Industries Corporation). The Government issued Government Order (GO) No. 731 dated May 21, 1973 wherein the terminal benefits to be given to the employees who opted to join the service of the Industries Corporation were provided. The benefits included the payment of pension/ gratuity earned by the employees for the period they remained in government service. They were also allowed to have the full pension commuted or to draw the same simultaneously along with the salary they were to get from the Industries Corporation.
(3.)The Tamil Nadu Government by GO 378 dated April 18, 1975 decided to extend the benefits of GO 731 - meant for Industries Corporation employees - to all government servants who were permanently absorbed in any of the public sector undertakings.
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