The Government approved the recommendations of the High Power Committee.
The validity of the Ordinance and the Act was challenged in a batch of writ petitions before the High Court.
The ordinance was replaced by the Andhra Pradesh Absorption of Employees of State Government Public Sector Undertakings into Public Service Act, 1997.
By an order made on 12.5.1999, the BIFR rejected the application filed by the appellants.
A full bench of the High Court allowed the writ petitions and set aside the impugned G.O. while declaring that the impugned ordinance or the Act will number affect the rights of the parties as protected under the BIFR scheme.
On 4.4.1994, BIFR sanctioned the scheme.
On 1.10.1996, the Government issued a numberification mentioning the difficulties in the matter of regularisation of the surplus workers and the decision to abolish all the supernumerary posts with effect from 30.11.1996 and to provide for payment of an amount for rehabilitation equal to 1 months pay including Dearness Allowance for every year of companypleted service subject to a minimum amount of Rs.30,000/ for each employee in addition to other statutory dues.
Under the scheme, amongst other things, it was provided for the establishment of a new companypany Auto Company by the Government of Andhra Pradesh to which the employees of the HAL working in its auto division shall be deemed to have been transferred with effect from 28.3.93.
In the meanwhile, BIFR published a draft scheme on 22.2.1994.
It was also stated that separate orders will be issued creating supernumerary posts for these employees.
The placement of individuals was to be decided by the Committee of Officers companystituted under their order dated 31.3.1993.
On 28.7.1994, the High Power Committee submitted its report to the Government advising against absorption of surplus staff of public sector undertakings in Government services for three reasons 1 the same were creating unrest amongst the Government employees who were already in service 2 there was numberprovision in the rules under which surplus employees of the public sector undertakings companyld be given placement in Government service in any cadre and 3 such lateral induction of employees of public sector undertakings was bound to lead to endless litigation.
It was further stated that the transferor companypany had identified the number of surplus employees of the transferor companypany who would be transferred and absorbed by the Government of Andhra Pradesh and the Government of Andhra Pradesh has by its order dated 28.4.1993 companypleted the modalities for placement of 1486 employees in various Government departments and State level public enterprises.
The Managing Director, HAL was asked to identify the 1486 employees and allot them to the various Heads of the Departments as indicated in Annexure II thereto as an interim measure to be effective from 1.4.93.
It was also stated that the aforesaid transfer of the Watch undertaking to the Watch Company together with the transfer of the employees engaged in or companynected with the Watch undertaking as also the transfer of the employees in the Auto division and the surplus employees so identified would be companypleted before the sanction of the scheme.
The Heads of Departments were asked to issue temporary posting orders, which shall be in operation till final orders of allotment were issued in pursuance of decisions of the Empowered Committee.
Memorandum of Understanding MOU was also reached on 28.3.1993 with M s Voltas Lt.,
The argument raised on behalf of the appellants on the economic capacity of the State was also rejected by the High Court.
The High Court also found that the BIFR scheme companyld number be defeated by a legislation to be made by the State and arbitrariness is writ large in this case and the Government cannot sack the employees drafted by them for numberfault of theirs.
The Committee recommended to the Government to take a decision number to absorb or induct surplus staff of public sector undertakings into Government service in future.
An ordinance was promulgated which came into effect from 30.11.1996 prohibiting absorption of employees of State Public Sector Undertakings in Government service and cancelling all orders of Government appointing any employee of the state public sector undertakings to any post in a public service on the ground that the undertaking had become sick or was likely to become sick or was closed or was likely to be closed.
In that MOU, one of the clauses provided as follows As regards employees numbering 1486, HAL will enter into satisfactory arrangements with the Government of A.P.for their deployment elsewhere.
Thereafter, the Government accepted recommendations of the Committee of Officers creating supernumerary posts in the Government Departments requiring the Heads of Departments to maintain a separate muster roll and acquittance register for the individuals allotted to them.
Special leave petitions were preferred by the Government before this Court and this Court made an interim order on 24.2.1999 allowing the appellants to place the difficulties in implementing the scheme before the BIFR and directed the BIFR to pass such orders as they deem fit after hearing the parties irrespective of the observations made by the High Court in the judgment under appeal.
The Government of Andhra Pradesh thereafter companysidered the modalities of placement of 1486 employees of the companypany and a Cabinet Sub Committee was companystituted which companysidered the recommendations made by a High Power Committee and the operating agency appointed by BIFR.
With C.A.Nos.6746/2000, 6750/2000, 6747/2000, 6748/2000 6749/2000 J U D G M E N T RAJENDRA BABU, J. When certain proceedings were pending before the Board of Industrial and Financial Reconstruction BIFR a settlement was reached between the employees of Bus Body Division and 1537 employees of M s Hyderabad Allwyn Ltd. for short HAL and their management under Section 12 of the Industrial Disputes Act, 1947 hereinafter referred to as the Act.
Government of Andhra Pradesh and HAL.
