THE STATE TRADING CORPORATION OF INDIA LTD. AND ORS. Vs. ALOK KUMAR GHOSAL AND ORS.
LAWS(CAL)-2015-4-92
HIGH COURT OF CALCUTTA
Decided on April 27,2015

The State Trading Corporation Of India Ltd. And Ors. Appellant
VERSUS
Alok Kumar Ghosal And Ors. Respondents

JUDGEMENT

- (1.) Three appeals were filed by three different respondents challenging the order passed by the learned Single Judge of this Court on 14th May, 2013 in W.P. No.881 of 2007.
(2.) The appeal which was filed by the State Trading Corporation of India Limited and Another was registered as A.P.O No.322 of 2013. The appeal which was filed by the Projects & Equipments Corporation of India Limited and Another was registered as A.P.O No.327 of 2013. The other appeal which was filed by the Union of India was registered as A.P.O No.350 of 2014. A cross-objection has also been filed by the writ petitioner in connection with those appeals by challenging the self-same order passed by the learned Single Judge of this Court as mentioned above. Since all these appeals and the cross-objection arise out of a common judgment passed by a learned Single Judge of this Court in the writ petition, we heard all these three appeals and the cross-objection simultaneously and proposed to dispose of those appeals and the cross-objection by a common judgment. Let us narrate the brief facts of the case leading to filing of the writ petition and ultimately these appeals and the cross-objection. The writ petitioners were employees under the Tea Trading Corporation of India Limited which was established as a Government of India Enterprise under the Ministry of Commerce and Industry. The said company is hereinafter referred to as TTCIL. The State Trading Corporation of India Limited is another Government company under the Ministry of Commerce and Industry. The Projects & Equipments Corporation of India Limited is another Government Company under the Ministry of Commerce and Industry. The State Trading Corporation of India Limited is hereinafter referred to as "STC" and the Projects & Equipments Corporation of India Limited is hereinafter referred to as "PEC".
(3.) TTCIL, wherein the petitioners were employed, became a losing concern as it had accumulated losses of Rs.12.95 crores as on 31st March, 1985. With a view to revive the said company, the Government of India through its Ministry of Industry and Commerce, New Delhi took various measures so that the employment of the then existing employees of TTCIL could be protected on the existing terms and conditions of their services. On 21st November, 1985 the Government had approved the conversion of TTCIL into a subsidiary of STC on certain terms and conditions. Thus, TTCIL was made a subsidiary of STC by transfer of shares held by the Government in favour of STC for a token consideration of Re. 1/-. The Board of Directors of TTCIL, as a subsidiary of STC, comprises of Chief Executive and three functional Directors in addition to five part-time Directors from STC, Tea Board and Ministry of Commerce. Though certain measures were taken by STC, the holding company, for revival of the subsidiary company TTCIL but ultimately the subsidiary company could not be revived. The salaries and wages of the employees of the TTCIL were paid by STC in a most irregular manner from August, 1996 to May 1997 and since June 1997 no payment was made to the employees of TTCIL either on account of salary and/or wages and/or on account of any other perks.;


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