JUDGMENT

PATNAIK,J.:- SpecialLeavegranted.

2. On 23rd October, 1989 was incorporated National Power Transmission Corporation (NPTC) with the object of developing a power system network in all its aspects including planning, investigation, research, design and engineering preparation and construction of sub-stations, load despatch stations and communication facilities, coordination of regional and national grid system, providing consultancy, execution of turnkey jobs and purchase and sale of power. To achieve these objectives, it was decided to transfer its transmission lines and substations of the various generating organisations and sub-stations of the various generating orgnisations namely (a) National Thermal Power Corporation (NTPC), (b) Nuclear Power Corporation of India Ltd. (NPC), (c) North Eastern Electric Power Corporation Ltd. (NEEPCO), (d) National Hydro-Electric Power Corportion (NHPC), (e) Neyveli Lignite Corporation Ltd. (NLC), (f) Tehri Hydro Development Corporation Ltd. (THDC), (g) Damodar Valley Corporation (DVC), (h) Bhakra Beas Management Board (BBMB).

3. On 12th July, 1991, the Ministry of Power and Non-Conventional Energy Sources, Department of Power, Government of India issued instructions to NTPC and NPTC by way of follow-up measure pertaining to transfer of assets, service conditions of employees, their absorption etc. The NTPC issued circular dated 18-7-1991 in conformity with the aforesaid instructions of the Government of India.

4. The respondent No. 1, an Association f Corporate Executive of NTPC filed a writ application in the High Court of Delhi for invalidating the aforesaid instructions of the Government of India and the circular issued by the NTPC as violative of Articles 14, 16(1), 21 and 23 of the Constitution of India and for an appropriate order, direction or writ in the nature of Mandamus, restraining the respondents from giving effect to Paragraph 2(1)(b) of the instructions issued in letter dated 12-71991 and the entire circular dated 18-7-1991. It also moved an application for interim directions. By then, 2509 employees had already been transferred to NPTC. At the nearing of the said interlocutory application, the learned Attorney General appearing on behalf of the Government of India and also on behalf of the NPTC gave an undertaking in terms whereof an order was passed by the High Court on 14-8-1991. The order so far as is relevant is extracted herein below:-

"We have heard the parties counsel and the Attorney General wishes to make a statement giving an undertaking on behalf of the National Power Transmission Corporation. He states by way of undertaking as follows :-

The services of the above employees shall not be deemed to be interrupted by National Power Transmission Corporation consequent on such transfer and absorption.

The terms and conditions of service applicable to these employees after transfer and absorption shall not, in any wav, be less favourable than those applicable to them immediately before the transfer.

In the event of retrenchment, of any employee who is a workman as defined in the Industrial Disputes Act, 1947, the National Power Transmission Corporation shall be legally liable to pay compensation on the basis of that his service is continuous and has not been interrupted by the transfer.

That if the writ petitioners succeed in the writ petition, the entire position shall be reversed, as per directions, order and any interim order, and all interim orders as agreed to will be subject to the result of the writ petition.

That during the pendency of the writ petition, the National Power Transmission Corporation shall not recruit persons from any source other than the National Thermal Power Corporation without the permission of the Court.

We have heard the undertaking of the Attorney General given on behalf of the Union of India and on behalf of National Power Transmission Corporation. The words in the undertaking to the effect that transfer and absorption of employees of the N