MADHYA PRADESH STATE ROAD TRANSPORT CORPORATION Vs. K W KELKAR

JUDGEMENT

(1.) THE Madhya Pradesh State Road Transport Corporation (hereinafter called 'the Transport Corporation') desired to have a Central Workshop at Gwalior. The Gwalior Engineering Works belongs to the M. P. State 'industries Corporation' (hereinafter called the 'industries corporation'.) In a meeting held on January 6, 1970, it was settled between the Industries Corporation and the Transport Corporation that the Gwalior Engineering Works would be taken over by the Transport corporation (vide minutes, annexure P-1 ). It was agreed inter alia that the transport Corporation would purchase tools and plant on cash payment at book value; that stores articles, stocks, material relating to works in progress and finished products available at the Gwalior Engineering Works would be purchased by the Transport Corporation to the extent required by them at book value; that no cash amount was required to be paid for the machinery and buildings and the then depreciated value of the machinery and buildings might be added as additional share capital of the Transport Corporation, and that the Transport Corporation would not take over debts and liabilities of the concern as on the date of transfer, nor would it take over any dues or payments to be received by the concern as on the date of transfer. It was also agreed :-

(2.) BY order (annexure P-2) dated April 9, 1970, the State Government accorded sanction to the transfer of the Gwalior Engineering Works to the transport Corporation on the 12 conditions stated in it. Paragraph 11 relates to surplus staff. Paragraph 12 is in these words:-<IMG>np_590_mplj_1976.jpg</IMG> When rendered into English, it would read thus :-"with the transfer, the services of the employees to be absorbed in the M. P. State road Transport Corporation shall be treated as transferred to the Corporation on their existing conditions of service and the conditions of service available will, not be less favourable than the conditions of service available on the date of transfer. "

(3.) THE Transport Corporation issued the following letter of appointment (annexure P-4) to K. W. Kelkar, non-applicant No. 1 in this petition (hereinafter called the 'employee' ). It reads as follows :-