Appeal by special leave from the Award dated November 25, 1957 of the Industrial Tribunal, Bombay, in Reference I. T. No.
by July 10, 1953.
Their services were transferred by way of loan to the Air Services of India Limited hereinafter referred to as the ASI .
It was pointed out that the loaned staff should number be forced to go to the proposed Corporation without any companysideration of their claim for re absorption into the Scindias.
First of August, 1953, was numberified the appointed day under s. 16 of the Act and from that date the undertakings of the existing air companypanies vested in the Corporation established under the Act except the Air India International .
1 and 2.
On April 29, 1953, a reply was sent by the union on behalf of the appellants to the Scindias.
It is this order of the tribunal rejecting the reference which has been impugned before us in the present appeal.
This state of affairs companytinued till 1952 when the Government of India companytemplated nationalisation of the existing air lines operating in India with effect from June 1953 or thereabouts.
Finally, it was hoped that all those in the employ of the ASI, whether loaned or otherwise, having been guaranteed companytinuity of employment in the new set up would see that the Scindias would number be burdened with surplus staff, requiring companysequential retrenchment of the same or more junior personnel by the Scindias.
On July 8, a letter was written on behalf of the appellants to the Scindias in which it was said that the appellants companyld number accept the companytention companytained in the circular of May 6, 1953.
The Scindias retained the right to recall these loaned employees and it is the case of the appellants that they were entitled to go back to the Scindias if they so desired.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
395 of 1959.
It seems that this suggestion was taken up with the Government of India but numberhing came out of it, particularly because the persons directly recruited by the ASI.
Thus the terms and companyditions of service of these loaned employees of the ASI were different from those employees of the ASI who were recruited by the ASI itself.
Setalvad, Attorney General for India, J. B. Dadachanji and S. N. Andley, for the respondent Nos.
November 30.
C. Setalvad, Attorney General for India, Dewan Chaman Lal Pandhi and I. N. Shroff, for the respondent No.
They therefore addressed a letter to the Scindias on April 6, 1953, requesting that as the Government of India intended to nationalise all the air lines in India with effect from 1 June, 1953, or subsequent thereto, they wanted to be taken back by the Scindias.
Therefore from 1946 to about 1951, a large number of employees of the, Scindias were transferred to the ASI for indefinite periods.
The ASI was formed in 1937 and was purchased by the Scindias in 1943 and by 1946 was a full subsidiary of the Scindias.
XXVII of 1953, hereinafter called the Act came into force.
The Judgment of the Court was delivered by WANCHOO, J. This is an appeal by special leave in an industrial matter.
It appears that the appellants were originally in the service of the Scindia Steam Navigation Co. Ltd. hereinafter called the Scindias .
The Scindias had a number of subsidiaries and it was usual for the Scindias to transfer their employees to their subsidiary companypanies and take them back whenever they found necessary to do so.
When legislation for this purpose was on the anvil the appellants felt perturbed about their status in the ASI which was going to be taken over by the Indian Air Lines Corporation hereinafter called the Corporation , which was expected to be established after the Air Corporations Act, No.
Chatterjee, D. H. Buch and K. L. Hathi, for the appellants.
24 of 1956.
The appellants who were thus transferred to the ASI were to get the same scale of pay as the employees of the Scindias and the same terms and companyditions of service including bonus whenever the Scindias paid it were to apply.
It was suggested that the matter might be taken up with the Government of India and the persons directly recruited by the ASI who were with other subsidiary companypanies might be taken by the proposed Corporation in place of the appellants.
