Vineet Saran, J. - (1.) -This appeal has been preferred against the judgment and order dated 7.5.2002 passed by a learned Judge of this Court in Civil Misc. Writ Petition No. 20562 of 1999. The writ petition was filed by 105 retrenched employees of Institute of Engineering and Rural Technology (for short IERT), Allahabad, against the State of U. P. and its officers as well as the IERT, praying for quashing the Government order dated 24.3.1999 by which it was decided that the Training -cum-Production Centre of the IERT be closed down with effect from 31.3.1999 and the workmen employed at the Centre be retrenched after being paid retrenchment compensation. The consequent notice/declaration dated 31.3.1999 issued by the IERT for closure of the Centre had also been challenged. A further prayer for mandamus directing the State-respondents to absorb the writ-petitioners in an alternative employment of the State Government or organizations under the State Government had also been made.
(2.) WHILE allowing the writ petition the learned Judge gave the following directions : ".... The respondents are directed to prepare a list of the employees who were appointed prior to 1.10.1986 in the production-cum-training centre of IERT, and were working continuously till the date of their retrenchment, i.e. 31.3.1999 by excluding those who have retired, or have not given their option for absorption, to be absorbed in the vacancies in other polytechnics of the State Government, which are recognized and funded or in any other technical institution, or any post which it may deem to be fit, in accordance with their eligibility and after relaxing age and other terms and conditions of recruitment. As and when petitioners are offered absorption on any equivalent post, they will vacate the quarters occupied by some of them in the premises of IERT. Since petitioners have accepted retrenchment compensation, no direction with regard to payment of salary is required to be given. The State Government is directed to draw the list, prepare the scheme and to offer appointment by absorption, preferably within a period of four months. There is no order as to cost." Aggrieved by the judgment and order of the writ court, this appeal has been preferred by the State of U. P. and its officers as well as the Institute-IERT. The facts, in brief, giving rise to this appeal are that IERT, Allahabad, is a society registered under the Societies Registration Act. The members of the society, as per its bye-laws, are certain Government officials who are mentioned by their designation, Executive President (Technical) of Triveni Engineering Works as well as Managing Director of Bharat Heavy Electricals Limited and three Professors of Curriculum Development Centre. The object of the society is to conduct development courses in various branches and to hold examinations conducted by the Board of Technology Education. Allegedly the total funding of the academic side is borne by the State Government and that the State Government exercises all pervasive control and issues directions for management and control of the society. The IERT is also recognized under the provisions of the U. P. Pravidhik Shiksha Adhiniyam, 1962 and receives grant-in-aid from the State Government.
(3.) IN the year 1969, a Training-cum-Production Centre was established in the INstitute for imparting practical studies to the students and the same was to be a self-financing Centre. The State Government vide its order dated 18.10.1969, while granting permission to establish the Centre, had made it clear that the Government would not give any grant for running the Centre and the INstitute itself shall be liable to bear its expenses. The State Government in the years 1972 and 1973 granted certain short-term loans for the purpose of running the Centre, which had been repaid. Since the Centre was a self-financing unit of the INstitute and it was unable to meet its expenses, the Board of Management of IERT took a decision on 19.4.1987, to close it down due to financial constraints. The Centre remained closed for about three months but thereafter, with the efforts of the State Government and the Deputy Labour Commissioner, Allahabad, it was again re-opened on 17.7.1987. The State Government constituted a Five-Members Committee, which was to submit its report regarding the functioning of the Centre. Vide its report dated 13.9.1996, the Committee recommended that the Centre may not be closed down and further that the State Government may sanction grants for running it. However, the report was not accepted and no action was taken on the same and considering the non-viability of running the Centre as a self-financing unit, the State Government issued a Government order on 24.3.1999, notifying its decision to close down the Training-cum-Production Centre with effect from 31.3.1999. A sum of Rs. 1,42,41,908 was sanctioned for disbursement of arrears of salary and payment of retrenchment compensation to the employees of the Centre. Consequently the Authorised Controller of IERT issued a notice/ declaration on 31.3.1999, notifying the closure of the Training-cum-Production Centre of the INstitute. The writ petition challenging the said orders has been allowed by the learned Judge by directing the State Government to absorb the retrenched employees of the Centre, after holding that the Institute IERT is a society which is managed and controlled by the State Government ; and that the Centre had been established as an integral part of the Society to carry out its function and thus it was an instrumentality of the State Government within the meaning of Article 12 of the Constitution of India. It was also held that the petitioners were entitled to the benefit of the U. P. Absorption of Retrenched Employees of Government or Public Corporation in Government Service Rules, 1991 (hereinafter referred to as the "Rules of 1991") and as such a direction was issued to absorb the petitioners in the vacancies in other Polytechnics of the State Government which are recognized and funded ; or in any technical institute or on any post which it may deem to be fit in accordance with their eligibility and after relaxing the age and other terms and conditions of recruitment.;