S.B.SINHA, J. - (1.) LEAVE granted.
(2.) FOOD Corporation of India constituted and incorporated under the FOOD Corporations Act, 1964 (for short "the Act") is before us questioning the correctness of a judgment and order dated 29.11.2006 passed by a Division Bench of the Calcutta High Court in KM.A. No. 356 of 2002 directing it to grant advance increments to 57 deputationist employees. The services of the employees of the Food Department of the Central Government as also the State Government were initially taken for running the affairs of the Corporation. Respondents before us were employees of the State of West Bengal. They were on deputation to the Food Corporation of India from several States. The Act was enacted to provide for the establishment of Food Corporations for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto. The matter relating to recruitment of staff in the Food Corporation of India is governed by Section 12 of the Act, which reads as under: "12. Officers and other employees of Corporation - (1) The Central Government shall, after consultation with the Corporation, appoint a person to be the Secretary of the Corporation. (2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation may appoint such other officers and employees as it considers necessary for the efficient performance of its functions."
(3.) IN the year 1968, however, Section 12A was inserted in the Act so as to enable the Central Government to make an order directing its employees to be transferred to the services of the Food Corporation of INdia. Those employees who had been working as deputationists from the Central Government were absorbed. They admittedly were given one extra increment purported to be on the basis of a circular letter issued in this behalf. IN the year 1984, an option was given to the respondents herein for being absorbed in the Food Corporation of INdia upon tendering resignation in their parent cadre; pursuant to or in furtherance whereof the respondents herein opted to join the Food Corporation of INdia. They were so absorbed but were posted as Assistant Grade III. They filed a writ petition questioning their absorption in the said grade contending that they were entitled to be posted as Assistant Grade II. The said question came up before this Court in Food Corporation of INdia and Ors. v. F.C.I. Deputationists Assocn. and Ors. [SLP (C) No. 16416 of 1996] (Reported in 1996 AIR SCW 3752) and by a judgment and order dated 29.08.1996, it was opined that the respondents were entitled to the post of Assistant Grade II. Respondents thereafter filed a writ petition in the year 1997 inter alia contending that in terms of the proviso appended to Regulation 81 of the Food Corporation of India (Staff) Regulations, 1971 (for short "the Regulations"), they were entitled to grant of one additional increment. The said writ petition has been allowed by a learned Single Judge of the Calcutta High Court and affirmed by the Division Bench thereof on an intra-court appeal filed by the appellants herein.;