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2006 (7) TMI 333 - HC - Companies Law

Issues:
Prayer for employment in State Government or Public Undertaking; Non-absorption of applicants despite sending names multiple times; Discriminatory act by State Government violating articles 14 and 21 of the Constitution of India.

Analysis:
The applicants sought direction from the court to compel the respondents to offer them employment in the State Government or Public Undertaking. They were employees of a corporation that was ordered to be wound up, with all employees to be absorbed in alternative jobs. However, the applicants alleged that despite their names being submitted for absorption on over 12 occasions, they were not provided with any alternative employment, unlike other employees of the corporation.

Upon reviewing the case, the court noted that a committee was formed in a meeting held on 23-7-1992 to determine the absorption/re-employment of surplus employees in public enterprises. Subsequently, some employees were absorbed in different entities. However, the services of the applicants were terminated under the Companies Act, while other employees were provided with alternative employment by the State Government. The court found this differential treatment to be discriminatory and in violation of articles 14 and 21 of the Constitution of India.

In light of the above, the court ruled in favor of the applicants, directing the Chief Secretary of the State of Rajasthan to provide them with employment in any department of the State Government or Public Undertaking. The State was ordered to ensure compliance with this directive within three months from the date of receiving the court's order.

 

 

 

 

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