The government's failure to specifically mention the absorption of retrenched employees on posts within the purview of the Public Service Commission in the relevant government order was an accidental omission and that the government had taken a policy decision to absorb such employees.

S. H. A. RAZA AND BHAGWAN DIN, JJ.

( 1 ) BEFORE the closure of the Auto Tractors Ltd. , Pratapgarh a Public Undertaking--the petitioner was working therein as an Assistant Manager (Personnel and Administration) at a Basic Pay of rs. 1,770 per month in the pay scale of Rs. 1. 350-2,100 which was revised to Rs. 3,100-4. 500 with effect from 1. 1. 1986 and the same was approved by the Board of Directors for its implementation. However, as the Auto Tractors Ltd. , closed down, the revised pay scale of the petitioner could not be implemented.

( 2 ) AFTER the closure of the Auto Tractors Ltd. , a retrenchment certificate was issued to the petitioner on 24. 3. 1994. According to the retrenchment certificate, the petitioner worked in the auto Tractors Ltd. , from 17. 5. 1980 to 20. 11. 1980. The petitioner was retrenched on 21. 11. 1990. At the time of retrenchment, the petitioner was drawing the pay scale which has been indicated in the foregoing paragraph.

( 3 ) THE Auto Tractors Ltd. , Pratapgarh, was closed down by the State Government as it was running into deficit and was sold/transferred to some private entrepreneurs.

( 4 ) IN the year 1991, the Governor of Uttar Pradesh in exercise of its powers conferred under article 309 of the Constitution framed the Rules known as the Uttar Pradesh Absorption of retrenched Employees of Government or Public Corporations in Government Service Rules. 1991. Rule 3 of the aforesaid Rules reads as under:

"3. (1) Notwithstanding anything to the contrary in any other service rules for the time being in force, the State Government may by notified order require the absorption of the retrenched employees in any post or service under the Government and may prescribe the procedure for such absorption including relaxation in various terms and conditions of recruitment In respect of such retrenched employees. (2) The provisions contained in relevant service rules shall be deemed to have been modified to the extent of their inconsistency with the provisions made in the notified order referred to in sub-rule (1 ). "

The aforesaid Rules define "retrenched employee" in Section 2 (c) and the petitioner undoubtedly comes within the said definition.

( 5 ) ON 21. 12. 1992, the State Government issued Government Order in continuation to the earlier government Orders, dated 16. 4. 1991 and 6. 3. 1990 and directed that reduction of post to the strength of 5% shall not be applicable in case of retrenched employees. On 12. 10. 1993, the State government further passed an order regarding retrenchment of employees of Auto Tractors Ltd. by means of which certain relaxation for retrenched employees of Auto Tractors Ltd. were made. The Government Order reads as under :

" (1) Only such retrenched employees would be entitled for absorption who were in the service of A. T. L. on or before 1. 10. 1986. (2) The retrenched employee of A. T. L. shall be provided equivalent posts in the State government on priority basis provided they hold the same qualifications which were required in the State Government. (3) The retrenched employee shall be provided relaxation in age and there would be no upper age limit for such retrenched employees. The retrenched employees after their absorption in Government Service shall get the starting salary which they had been drawing at the time of the closure meaning thereby their pay shall be protected. "

( 6 ) THE Government Order, dated 11. 11. 1993 further provided that on the posts which fall outside the purview of the Public Service Commission, the appointments would be made on the basis of eligibility. Later on the State Government received certain complaints that the appointments were not made in accordance with the Government Orders. Thereafter on 21. 1. 1994 another government Order was issued which provided that in spite of the Government Orders the absorption of the retrenched employees were not made, hence in the context of the retrenched employees all those vacancies would be filled up in

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