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2008 Supreme(SC) 761

C.K.THAKKER, D.K.JAIN
State of U. P. – Appellant
Versus
U. P. Rajya Khanij Vikas Nigam S. S. – Respondent


Judgement Key Points

Key Points: - The High Court entertained a writ petition under Article 226 despite disputed facts and availability of alternative remedy; judgment discusses whether this was appropriate and the role of alternative remedy (!) (!) . - Absorption of retrenched employees is governed by statutory rules framed under certain constitutional provisions; High Court was required to consider such rules before directing absorption (!) (!) . - The Court held that mandamus directing absorption or compensation must be grounded in law and implementable; blanket directions without statutory basis or implementability are vulnerable (!) (!) (!) . - Observations on whether the petition was premature due to lack of retrenchment and the proper forum for disputes (Industrial/Labour proceedings) (!) (!) . - The decision notes that where there is no enforceable right to absorption or where absorption is contingent on statutory rules, relief cannot be granted via writ mandamus (!) (!) . - The outcome sets aside the High Court’s mandamus directions and allows potential future relief only through appropriate legal channels (!) (!) .

What is the legality of entertaining a writ petition under Article 226 when there are disputed questions of fact and an available alternative remedy?

What is the extent of a High Court’s obligation to consider statutory absorption rules before issuing mandamus directing absorption of retrenched employees?

What are the limits of judicial review in mandamus regarding absorption and compensation when statutory rules govern absorption and the petitioner seeks relief under writ jurisdiction?


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



































































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