S.K.DAS, J.

(1) THESE two appeals, brought on certificates granted by the High court of Bombay, raise common questions of law and for that reason, have been heard together. This judgment will govern them both.

(2) IN Civil Appeal No. 105 of 1956 the main appellant is the Barsi Light Railway Company Limited, Kurduwadi, within the State of Bombay (hereinafter called the Railway Company). The principal respondent is the President of the Barsi Light Railwaymens Union, respondent No. 1 to the appeal. The General Manager, central Railway, Bombay, and the secretary, Railway Board, New Delhi, are respondents Nos. 4 and 5. The facts, so far as they are relevant for our purpose, are these. Under an agreement dated August 1, 1895, between the secretary of State for India in council and the Railway Company, the latter constructed, maintained and worked a light railway between Barsi Town and Barsi Road Station on the railway system, known then as the Great Indian Peninsular Railway. It is not necessary to state here the various clauses of the aforesaid indenture of agreement except to mention that it contained a clause under which the secretary of State could purcha