2000 Supreme(Guj) 515
Gujarat High Court
Judgename :K.M.MEHTA
NAGENDRA KUMAR BRIJRAJ SINGH - Appellant
Versus
HINDUSTAN SALTS LIMITED - Respondent
S.C.A. 3476 of 1986
Decided On : 07/03/2000
Headnote:
Constitution of India - Articles 226 and 227 - Indian Contract Act, 1872 - Section 62 - Novation of contract - Petition filed against the action of respondent-Company herein in appointing and absorbing the petitioner in the pay scale - Held, Principle of novation as contained under section 62 of the Contract Act is clearly applicable as the original contract between the petitioner and the respondent-company has been altered by introduction of terms and conditions - New contract is inconsistent with the terms and conditions of the old contract. Substitution of new contract is the essence of novation - It is essential feature is that the right under the original contract is relinquished or replaced by the new contract and now the petitioner cannot base his relief on the basis of old contract - Court does not decide the contention raised by the petitioner regarding promissory estoppel as well as whether the action of respondent is illegal, invalid or violative of Article 14 and 16 of the Constitution of India - In view of the above said, the submission made by the respondent-company in the affidavit-in-reply and the submission made at the time of hearing of the petition that the petitioner is not entitled to any relief on the ground that he entered into new contract is required to be accepted - Petition dismissed. (Paras 15, 16)
( 1 ) IN the present case, originally petitioners No. 1-Nagendrakumar Brijraj Singh, petitioner No. 2-Krishan Gopal Bharadwaj and the petitioner No. 3-S. Laxmipati and the petitioner No. 4-Veerpal Singh have filed this petition in the year 1986. However, when the matter reached this court, the Ld. counsel for the petitioners has submitted that only the petitioner No. 3, i. e. S. Laxmipati is interested in prosecuting the present petition and, therefore, this court confines the case to the petitioner No. 3-S. Laxmipati only.
( 2 ) THE petitioner has filed this petition under Articles 226 and 227 of the Constitution of India against the action of Hindustan Salts Ltd-the respondent-Company herein in appointing and absorbing the petitioner in the payscale of Rs. 425-800 instead of 550-900/ -. The petitioner prayed that the action of the respondents in appointing and absorbing the petitioner in the payscale of Rs. 425-800. 00 be declared illegal, arbitrary, irrational and violative of Articles 14 and 16 of the Constitution of India and further prayed to direct the respondent-Company to appoint the petitioner in the payscale of Rs. 550-900. 00 instead of Rs. 425-800 with effect from the date from which the petitioner was appointed from 1. 12. 1985 (petitioner No. 3 only ).
( 3 ) RELEVANT facts giving rise to this petition are as under: (i) s. Laxmipati-petitioner No. 3 herein is a diplomaholder in Chemical Engineering with first class and worked as Technical Apprentice in Hindustan Polymers Ltd, Visakhapatnam (A) and Coramandal Agro-Products and Oils Ltd, Chirala (AP) for 6 months each. (ii) the petitioner has filed this petition contending interalia that the respondent-company issued an advertisement in the Hindustan Times dated 23. 7. 83 inviting applications for two categories of Management Trainees. The qualifications were also prescribed in the advertisement. It was also pointed out that the selected candidates would undergo two years training and during the two years they would also be given stipends. It was also mentioned that on successful completion of the training, the candidates will be absorbed in the grades of Rs. 700-1300 and 550-900 respectively. (iii) pursuant to the aforesaid advertisement the petitioner applied for the same and he was thereafter called for interview and interviewed on 3. 10. 83 at Jaipur. The petitioner contended that thereafter the petitioner was issued an appointment letter appointing him as Management Trainee in the respondent-Company. The petitioner has pointed out that in pursuance to the same the respondent-company has issued the appointment letter. The appointment order contains various terms and conditions of appointment. It says that the petitioner would be paid stipend of Rs. 700. 00p. m. in the first year, Rs. 800. 00p. m. during the second year and period of training was for two years and the petitioner was required to pass various tests and if in case of trainees not passing the test and not satisfactorily carrying out different assignments, the management may extend the training period. Clause 3 clearly provided that on satsifactory completion of training the tranees will be absorbed in the scale of Rs. 550-25-750-30-900 + other allowances. (iv) the petitioner contended that he has joined the respondent-company as Management Trainee on 1. 12. 1983 and started undergoing training. The petitioner was also required to enter into a service agreement and to give a surety bond to serve the respondent-organisation for a period of five years. The petitioner entered into such service agreement with the respondent-organisation. (v) the petitioner contended that the petitioner has completed training period and the company has given absorption order on 17. 12. 1995. Accordingly the petitioner was appointed as Inspector in the same scale with effect from 1. 12. 1985. (vi) it was further stated by the petitioner that when the petitioner was issued absorption order appointing him in t