Judgement Key Points

B. SUDERSHAN REDDY, J.

( 1 ) SINCE in all these writ appeals and writ petitions, the subject matter and the questions that arise for consideration are inter-related, they may be disposed of by this common judgment. W. A. No. 1039 of 2002:

( 2 ) THE unsuccessful writ petitioners are the appellants in this writ appeal preferred against the order passed in W. P. No. 24647 of 2001 dated 4-6-2002 holding that g. O. Ms. No. 50, Public Enterprises (II) department, dated 15-11-2001, does not suffer from any illegality or legal infirmity.

( 3 ) THE appellants herein filed the writ petition invoking the extraordinary jurisdiction of this court under Article 226 of the Constitution of Inida, with a prayer to issue a writ in the nature of Mandamus declaring G. O. Ms. No. 50, Public Enterprises (II) Department, dated 15-11-2001, as illegal and void.

( 4 ) THE appellants represent the employees working in various categories in the A. P. State Irrigation Development corporation Limited (for short the corporation ). The Corporation is one of the state Level Public Enterprises and it is a wholly owned A. P. Government Company, registered under the provisions of the companies Act, 1956. The primary objects of the Corporation are to survey, investigate, construct, execute and carry-out schemes and works of all kinds for the exploitation of irrigation potential in the State and for maximum utilisation of available water resources, to create irrigation facilities to the upland areas through lift irrigation and ground water schemes. The paid up share capital of the Corporation was at rs. 117. 22 crores as on 31-3-2001. The company is being managed by its Board of directors. Almost all the shares are held by the State Government except rs. 95,00,000/- of share money held by the government of India. The State Government is the only shareholder in the company. Article 90 of the Articles of Association of the company enables the Government to issue directions and instructions from time to time. Article 90 reads thus:"notwithstanding anything contained in any of these articles, the Government may from time to time issue such directives or instructions as they may think fit in regard to the finances and the conduct of the business and affairs of the Company and the Directors shall duly comply with and give effect to such directives or instructions. In particular the Government will have the following powers. To call any information, approve plans, Budgets, foreign collaborations, new business and activity, new projects over and above the limits specified by the government. Further the following powers/acts are vested only in the government to approve the staffing pattern, rules for recruitment, promotions, pay scales, allowances and all other payments. "

( 5 ) THE Government of Andhra Padesh having decided to review the performance of state Level Public Enterprises and in order to initiate necessary corrective measures to improve their performance in the light of the changed policy perspectives constituted a committee with Sri K. Subrahmanyam, i. A. S. (Retired), as Chairman. The committee examined the details of the working of State Level Public Enterprises including the working of the 3rd respondent corporation and submitted its recommendations. The Government constituted a Cabinet Sub-Committee to examine in detail the recommendations of the Committee after duly obtaining the views of the administrative departments concerned. The Cabinet Sub-Committee having considered the issue made its own recommendations in respect of the 3rd respondent Corporation. The full details thereof are not required to be noticed.

( 6 ) THE Corporation originally had 2541 employees. In the light of the recommendations of the Subrahmanyam committee and in order to implement the recommendations of the Subrahmanyam committee, a decision has been taken to downsize the cadre strength. The corporation has implemented Voluntary retirement Scheme (for short vr Scheme ) in three ph

Click Here to Read the rest of this document