IMPORTANT POINT
Members of the erstwhile Punjab State Electricity Board could not claim deemed absorption under this section merely because on the date the successor States were formed, they were working within the geographical limits of the Union Territory of Chandigarh.

JUDGMENT

Phukan, J.-These three appeals are directed against the judgment dated 17th July, 1995 of the Central Administrative Tribunal, Chandigarh. Three applications filed before the Tribunal by the Electricity Employment Union, Shri Bai Krishan and Shri Harjinder Singh Brar were disposed of by the common judgment as the question of fact and law were same. The Tribunal dismissed all the three applications and hence these appeals.

2. By the Punjab Reorganization Act, 1966 (for short the Act ) the erstwhile State of Punjab was reorganised and the successor States were States of Punjab and Haryana, Union Territories of Chandigarh and Himachal Pradesh, which subsequently became a State. The erstwhile Punjab State Electricity Board continued to function in the areas in which it was functioning before the reorganisation of the State of Punjab. Subsequently a new State Electricity Board (for short Board ) was constituted by the successor State of Punjab and it is not disputed that the members of the appellant Electricity Employment Union and other two appellants were employees of the erstwhile Board. The claim of the present appellants is that as on the date the successor State of Punjab was formed they were working within the geographical limits of the Union Territory of Chandigarh, their services were deemed to have been allotted to the said Union Territory by operation of the provisions of the Act. It may be stated that Union Territory of Chandigarh did not constitute a separate Board under the Electricity Supply Act of 1948 and functions of the Board were being carried on by the department of the administration. The Tribunal did not accept the said contentions and held that by virtue of the provisions of the Act, their services were allotted to the Board and were working on deputation under the Union Territory of Chandigarh.

3. We have heard Mr. P.P. Rao, learned senior counsel for the appellants and Ms. Kamini Jaiswal, learned counsel for the respondents.

4. For appreciating the contention of the parties, we may refer to the relevant provisions of the Act. For the present purpose, parts VI, VII and IX of the Act are relevant.

5. Part VI of the Act deals with apportionment of assets and liabilities of the erstwhile State of Punjab.

Part VII deals with certain Corporations. Section 67 which is relevant for our purpose and is quoted below :-

"67. Provisions as to certain Corporations.-(1) The following bodies corporate constituted for the existing State of Punjab, namely :-

(a) the State Electricity Board constituted under the Electricity Supply Act, 1948; and

(b) the State Warehousing Corporation established under the Warehousing Corporations Act, 1962.

shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day subject to the provisions of this section and to such directions as may, from time to time, be issued by the Central Government.

(2) Any directions issued by the Central Government under sub-section (1) in respect of the Board or the Corporation may, include a direction that the Act under which the Board or the Corporation was constituted shall, in its application to that Board or Corporation, have effect subject to such exceptions and modifications as the Central Government thinks fit.

(3) The Board or the Corporation referred to in sub-section (1) shall cease to function as from, and shall be deemed to be dissolved on, the 1st day of November, 1967, or such earlier date as the Central Government may, by order, appoint, and upon such dissolution, its assets, rights and liabilities shall be apportioned between the successor States in such manner as may be agreed upon among them within one year of the dissolution of the Board or the Corporation, as the case may be, or if no agreement is reached, in such manner as the Central Government may, by order, determine.

(emphasis supplied)

(4) Nothing in the proceeding provi