JUDGMENT

SABYASACHI MUKHARJI, J.

( 1 ) THIS is an application for leave to appeal under Art. 136 of the Constitution, directed against the judgment and order of the Central Administrative Tribunal, Calcutta Bench (Justice Ashamukul Pal and Mr. B. Mukhopadhyay) dated 8th Dec. ,1986. The Tribunal had dismissed the challenge made by the petitioners herein to the memorandum of 1979 declaring that the posts in Production Control Organisation (for short PCO) in Kharagpur would be treated as ex cadre.

( 2 ) THERE are 75 applicants in this case. At the relevant time they all were employees of the PCO at Kharagpur Railway Workshop of South Eastern Railway. The petitioners contend that these posts could not be declared as ex cadre posts because vested rights of the petitioners could not be affected. Secondly, it was contended that they were treated differently from those of the Integral Coach Factory on the Southern Railway and the employees of PCO there continued to hold the cadre posts. This is hostile discrimination and amounts to violation of the rights of the petitioners. The Tribunal by its impugned order rejected both the contentions.

( 3 ) THE PCO was in existence from the time of the B. N. Railway. The staff of the PCO were either directly recruited or drafted from different shops of the workshop. In 1958 the PCO was considerably expanded. After considering the question the Railway Board brought out a circular dated 22-4-1963 laying down the rules for determination of seniority of workshop staff employed in the PCO. It was laid down in the Circular that all posts in the PCO should be treated as ex cadre posts. This is Annexure b to the writ application which was ultimately disposed of by the Tribunal. The Circular, however, could not be implemented in the Kharagpur workshop on account of the stiff opposition of organised labour. In the premises the local authorities could not implement the Circular of 1963. The question was discussed with the organised labour in a meeting held on 4/06/1973 and in pursuance of the decision taken in that meeting the memorandum dated 21/07/1973 which is also Annexure b was issued by the Suprintendent. It was evidently stated that all posts in PCO would be cadre posts.

( 4 ) IT may, however, be reiterated that this was in violation of the order of 1963. Another memorandum was issued by the same authority on 15th Dec. 1973 which not only declared all posts in PCO to be cadre posts but also laid down that an option would be given to the persons already working in the PCO to revert to the shops. It appears that the question of having incentive schemes for the staff of the PCO was under consideration of the Railway Board and by a Circular dated 9-7-1978 the Railway Board declared that the staff from shop-floors posted in the PCO would receive special pay of 10 Per Cent of their pay but this would not be available to the staff who were permanently absorbed in the PCO or directly recruited in the PCO. It appears that this brought a change in the attitude of the labour and representations were made to the Railway Board for implementing its circular dated 22-4-1963 so that the staff of the PCO would be eligible for the special pay. Joint meetings were held with the labour on 4th and 22nd Sept. 1979 and in pursuance of the decisions taken in these meetings the memorandum dated 4-5/10/79 at Annexure (I) was issued which declared that the Railway Boards Circular of 1963 would be implemented in the PCO and that all posts would be treated as ex-cadre posts. This was impugned before the Tribunal.

( 5 ) IT was contended that the vested rights which accrued in favour of the petitioners by the operation of the memoranda dated 21st July and 15th Dec. 1973 were issued declaring that the posts in PCO would be on cadre basis. These were issued, it appears, in violation of the clear directives of 1963 of the Railway Board. Hence, these Circulars were in violation of Rule 158 of the Indian Railway Establishment Code, Vol.