Judgment

KULDIP SINGH, J.- The Tamil Nadu Government decided in March 1972 to form a government company with a view to take over the entire business activity of the Dairy Development Department of the State Government. As a consequence the Tamil Nadu Dairy Development Corporation Limited (the Corporation) was incorporated on 4-5-1972. The objects of the Corporation were to carry on the business of production, collection and distribution of milk throughout the State of Tamil Nadu. The Tamil Nadu Government by the order dated 29-6-1972 directed the transfer of 431 posts in various cadres of the Dairy Development Department to the Corporation with effect from 1-7-1972. 296 posts were transferred along with the incumbents of the said posts and the remaining transferred posts were vacant. Subsequently, by another order 331 posts - 217 with incumbents - were further transferred to the Corporation with effect from 1-7-1974. The incumbents of the posts were to be treated on deputation/foreign service to the Corporation.

2. While the question of absorbing about 500 employees on deputation/foreign service serving the Corporation was under consideration, the Tamil Nadu Government came to be sei