- (1.) S. U. Khan, J. The employees whose cause is being espoused by the petitioner Union, were working as unskilled labourers of erstwhile Banaras/varanasi Electric Supply Company since before 1-4-1969. Through U. P. Ordinance No. 37 of 1975 Section 6-A was added to Indian Electricity Act, 1910. Through the said section Banaras Electric Supply Company and some other similar undertakings were acquired by the State Government from midnight of 5/6 February 1975. The said Ordinance was replaced by U. P. Act No. 14 of 1976 effective from 27-11-1975, the date on which Ordinance was promulgated. Consequences of taking over and revocation of licence of Undertakings have been provided in Section 6-A (3 ). Clauses (a), (b) and g (i) of the said sub-section are quoted below : "6-A (3) On revocation of the licence under sub-section (2) the following provisions shall have effect, namely : (a) Every undertaking the licence, in respect of which stands revoked shall virtue of this section stand and be deemed to have stood transferred to and vest and be deemed to have vested in the State Electricity Board, hereinafter in this section called 'the Board' free from any debt, mortgage or similar obligation of the licence attaching to the undertaking : Provided that any such debt, mortgage or similar obligation shall attach to the amount payable for the undertaking as mentioned in clause (h); (b) the rights, powers, authorities, duties and obligations of the licence under his licence shall stand transferred to the Board and the licence shall cease to have further operation; (g) the following provisions shall govern the working in the undertaking immediately before the appointed day : (i) Every person who has been immediately before the appointed day in the employment of the licensee shall become on and from the appointed day an employee of the Board on the same terms and conditions and with the same rights as to pension, gratuity and other matters as would have been admissible to him if the undertaking had not been transferred to and vested in the Board and continue to do so unless and until his employment under the Board is germinated or until his remuneration or other terms and conditions of employment are duly alter by the Board. . . "
(2.) IN 1969 Central Wage Board for Electricity Undertakings was constituted. The Wage Board gave its report on 19-12-1969. The Government of INdia accepted the same by resolution dated 13-7-1970. Afterwards Government of Uttar Pradesh enforced the said recommendations under Section 3 of U. P. INdustrial Disputes Act through notification dated 11-2-1971, as amended on 18-6-1971. Through the said notifications the recommendations of the Wage Board were made effective from 1-4-1969. At that time, the Banaras Electric Light and Power Company, which was having the licence for generation and supply of electricity in Varanasi area, was the employer of the concerned employees. They were working as unskilled labourers. The said Company was taken over by U. P. State Electricity Board on 5/6th February, 1975 and consequences of taking over were provided through the aforesaid ordinance of 1975 and Act of 1976. This writ petition is directed against the Award dated 16-3-1984 given by Industrial Tribunal 1st U. P. at Allahabad in Adjudication Case No. 2 of 1984. The dispute which was referred to the Industrial Tribunal was to the effect that as to whether fitment of unskilled Labourers who were working in the pay scale of Rs. 30-40 in the pay scale of Rs. 55-90 with effect from 1-4-1969 was proper and legal or not.
(3.) THE Electricity Board granted the pay-scale etc. as recommended by the Wage Board and applied by the U. P. Government w. e. f. 5/6th February, 1975. However, the Electricity Board did not grant the benefit of the period of service from 1-4-1969 till 5/6-2-1975 on the ground that till the latter date there was no relationship of Master and servant between them and the employees concerned. This is the bone of contention between the parties. Benefit of past service from 1-4-1969 till 5/6th February, 1975 would have resulted in grant of further increments etc. It was admitted by the Electricity Board that apart from unskilled labourers the benefit of the wage board recommendations was extended to all other employees of ex-licensee Company taking in to account their past services from 1-4-1969 till 5/6th February, 1975. It does not appeal to reason as to why the employees who were at the lowest level of the wage structure were denied the benefit and were singled out for the said purpose. There might be some rationale in denying such benefits to those who were getting higher pay. However, there cannot be any possible reason for denying this benefit only to those who were getting lowest wages. People getting lowest wages deserve financial assistance more than those who get more wages. The action of the Electricity Board was utterly arbitrary. Electricity Board being a Government Instrumentality cannot act in an arbitrary manner. Denying the benefit to those who deserve it most and extending the benefits to those who deserve it less than the persons who have been denied the benefits is clearly arbitrary.;