JUDGMENT

C.K. Thakker, J. —

1. Leave granted.

2. The present appeal is directed against the judgment and final order dated July 14, 2006 passed by the High Court of judicature at Allahabad, (Lucknow Bench) in Writ Petition No. 338 (S/B) of 1997. By the said order, the writ petition filed by Uttar Pradesh Rajya Khanij Vikas Nigam Sangharsh Samiti (‘Samiti’ for short) and Others against the U.P. State Mineral Development Corporation Ltd. and the State of U.P. was allowed and a writ of mandamus was issued to the respondents to absorb the employees of the Corporation in various organizations of State Government/ Public Sector Undertakings and to pay compensation in accordance with law.

3. The case has a chequered history and it is necessary to highlight it to understand the controversy raised in the present proceedings.

4. On March 23, 1974, U.P. State Mineral Development Corporation Ltd. (‘Corporation’ for short) was incorporated as a Government Company under Section 617 of the Companies Act, 1956. The Corporation was established with a view to provide acceleration in the field of mining and other incidental activities. Initially, the Corporation was floated with authorized share capi