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1970 Supreme(Del) 163

High Court Of Delhi
MOHAMMAD YAQUB - Appellant
Versus
UNION OF INDIA - Respondent
Civil 3 of 1969
Decided On : 08/05/1970

Advocates Appeared:
BAKSHI SITA RAM, CHABILDAS, H.K.BHARDVAJ, K.D.SUD, Sushil Malhotra

The term "liability" in sub-section (3) of Section 67 of the Punjab Reorganisation Act has a wide connotation and includes the obligation of an employer to keep its employees in employment.

Headnote:

PUNJAB REORGANISATION ACT - EMPLOYEES OF PUNJAB STATE ELECTRICITY BOARD - APPORTIONMENT OF ASSETS AND LIABILITIES - EMPLOYEES' EMPLOYMENT CONSTITUTED LIABILITY OF BOARD - APPORTIONABLE BETWEEN SUCCESSOR STATES.

Fact of the Case:

Petitioner, an employee of the Himachal Pradesh Public Works Department, challenged the allocation of respondents, employees of the Punjab State Electricity Board, to the Department of Multipurpose Projects and Power, Himachal Pradesh, and their subsequent promotion to Circle Superintendents, arguing that they ceased to be government servants when their services were terminated by the Punjab Government upon the constitution of the Electricity Board.

Finding of the Court:

The Court held that the employment of the employees of the Electricity Board constituted the liability of the Board and was liable to be apportioned between the successor States under sub-sections (3) and (4) of Section 67 of the Punjab Reorganisation Act.

Issues: 1. Whether the employees of the Punjab State Electricity Board were persons serving in connection with the affairs of the Punjab State who could be allocated to the successor States under Section 82 of the Punjab Reorganisation Act. 2. Whether the employees of the said Board constituted its assets or liabilities which were liable to be apportioned between the successor States under sub-sections (3) and (4) of Section 67 of the Punjab Reorganisation Act.

Ratio Decidendi: The Court interpreted the term "liability" in sub-section (3) of Section 67 of the Punjab Reorganisation Act to have a wide connotation, encompassing legal responsibility or obligation to do a thing. The Court reasoned that the employment of the employees of the Electricity Board created a corresponding liability of the Board to keep them in employment, which had to be apportioned between the successor States upon the dissolution of the Board.

Final Decision: The Court answered the second question in the affirmative, holding that the employment of the employees of the Electricity Board constituted the liability of the Board and was liable to be apportioned between the successor States under sub-sections (3) and (4) of Section 67 of the Punjab Reorganisation Act. The Court did not answer the first question in light of its answer to the second question.

H. R. KHANNA, C. J.

( 1 ) THE following two questions have been REFERRED TO the Full Bench in pursuance of an order made by 0m. Parkash and Ansari, JJ. :-

" (1) Whether the employees of the Punjab State Electricity Board are persons serving in connection with the affairs. of the Punjab State who could be allocated to the successor States under Section 82 of the Punjab Reorganisation Act.

(2) Whether the employees of the said Board constituted its assets or liabilities which were liable to be apportioned between the successor States under sub-sections (3) and

(4) of Section 67 of the Punjab Reorganisation Act. " The questions have arisen in a petition under Articles 226 and 227 of the Constitution of India filed by Mohd. Yaqub petitioner on January 3, 1969. The six respondents in the petition are (1) Union of India, (2) Himachal Pradesh Administration, (3) Secretary, Department of Multipurpose Projects and Power, Government of Himachal Pradesh, (4) D. C. Tandon, (5) Ramji Lal Kaistha and (6) Dunichand Bhandari. The petitioner has challenged the validity of-

(A) the allocation of respondents 4 to 6 to the Department of Multipurpose Projects and Power, Himachal Pradesh;

(B) the order of the Central Government equating the post of the Assistant of the Composite Punjab State Electricity Board with the post of the Assistant in the office of the Chief Engineer, Department of Multipurpose Projects and Power, Himachal Pradesh; and

(C) the promotion of respondents 4 to 6 as Circle Superintendents in the Department of Multipurpose Projects and Power, Himachal Pradesh.

( 2 ) THE petitioner joined service as a clerk in the Public Works Department of erstwhile Chamba State on June 29, 1946. The said State acceded to the Union of India in 1948 and later when the Himachal Pradesh came into being the petitioner worked as a clerk in Himachal Pradesh Public Works Department. The petitioner was promoted as a Head Clerk on December 4, 1958 in the grade of Rs. 150-10- 300. In April, 1964 the Electricity Branch of the Himachal Pradesh Public Works Department was put under the control of the Department of Multipurpose Projects and Power. The petitioner worked thereafter in various capacities in that Department. He was promoted as Assistant in that Department with effect from May 31. 1966 in the grade of Rs. 210-425. The conditions of service of the petitioner were governed by the rules known as the Himachal Pradesh Public Works Department Subordinate Class III (Clerical and Stenographers) Service Recruitment and Promotion Rules, 1960 made by the President under Article 309 of the Constitution. By virtue of those rules the petitioner was eligible for promotion to the post of Circle Scale Superintendent in the scale of Rs. 300-20-400 plus allowances,

( 3 ) THE generation, supply and maintenance of electricity in the erstwhile State of Punjab prior to 1959 was under the control of the Electricity Branch of the Punjab Public Works Department Respondents 4 to 6 were working as Assistants in that Department from October 19, 1957, June 14, 1958 and June 14, 1958 respectively. On February 1, 1959 the Punjab Government constituted the Punjab State Electricity Board (hereinafter REFERRED TO as the Electricity Board) under the provisions of the Electricity (Supply) Act, 1948 (Act No. 54 of 1948 ). The generation, supply and maintenance of electricity was thereupon entrusted to the said Board. Consequent upon the constitution of the Electricity Board the services of the employees of the Punjab Public Works Department were initially transferred to the Electricity Board on the terms and conditions set forth in a memorandum dated March 15, 1958. Later on this arrangement was, terminated and the posts held by the various employees were abolished and notices were served upon them to the effect that their services under the State Government were being dispensed with. The employees were asked to apply to the Electricity Board for employment under the said Board. The employe





























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