Judgment

BARGAVA, J. (On behalf of Subba Rao. CJI., Shelat and Mitter, JJ.): The appellant in this appeal is Electricity Board of Rajasthan, Jaipur (hereinafter referred to as "the Board"), a body corporate constituted on 1st July 1957, under the Electricity (Supply) Act, 1948 (No. 54 of 1948). Before the constitution of the Board, the supply of electricity in the State of Rajasthan was being controlled directly by a department of the State Government named as the Electrical and Mechanical Department. Respondent No. 1, Mohan Lal, as well as respondents 4 to 14 were all permanent employees of the State Government holding posts of Foremen in the Electrical and Mechanical Department. On the constitution of the Board, the services of most of the employees, including all these respondents, were provisionally placed at the disposal of the Board by a notification issued by the Government on 12th February 1958, purporting to exercise its powers under S. 78-A of Act 54 of 1948. In this notification a direction was included that the Board was to frame its own new grades and service conditions under its regulations, and the employees, whose services were transferred to the Board, were to exerc