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1964 (4) TMI 125

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..... and some areas to the State of Rajasthan. On the other hand, the State of Bombay gained the Marathewada from the State of Hyderabad and the Vidharbha area from the State of Madhva Pradesh and certain other areas from the then existing State of Saurashtra and the State of Kutch. To meet the situation arising from these territorial changes, Parliament passed the Road Transport Corporation Amendment Act, 1956, thus amending the Road Transport Corporation Act, 1950. Section 47-A which was introduced by the amending Act provides for the reconstitution, re-organisation and dissolution of the Corporations established under s. 3 of the Act. On December 31, 1956 an order was made by the Central Government under the provisions of this section approving a scheme for re-organisation submitted by the Government of Bombay. By this scheme those areas in which the Bombay State Road Transport Corporation had been operating but were transferred under the State Re-organisation Act to the States of Mysore and Rajasthan were excluded from the area of the operation of the Bombay State Road Transport Corporation. This came into force from the 1st January, 1957. Another consequence of the States Re-org .....

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..... e previous corporations for all purposes. Subclause 3 of cl. 9 was in these words: - Nothing in sub-paragraph )2) shall be deemed to affect the right of the Maharashtra State Road Transport Corporation, subject to the provisions of S. 77 of the Bombay Re-organisation Act, 1960 (11 of 1960) to determine or vary after the appointed day, the conditions of service of any person who is continued in the service of the Corporation . Provided that the conditions of service applicable immediately before the appointed day, to any such person shall not be varied to his disadvantage. except with the previous approval of the Central Government . Notices terminating the services of the employees employed by the Provincial Transport Services (operating in Vidharbha) were issued. On 12th June 1961 an application was made under Art. 226 and Art. 227 of the Constitution by two former, employees of the Provincial Transport Services and the Union of the workmen of that concern challenging the validity of the order of reorganisation made on the 27th May. 1961 and the notices of termination of service served on the employees. The following reliefs were prayed for: (a) that the notices .....

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..... n under the proviso to sub-paragraph (3) of paragraph 9 of the Order relating to varying the conditions of services to the disadvantage of any of the employees who were employees of the first respondent immediately before the appointed day, i.e., 1st July 1961. Against these orders of the High Court, the State of Mahrashtra, the Maharashtra State Road Transport Corporation and the Motor Transport Controller, Maharashtra, have appealed. At the hearing of the appeal nobody appeared before us on behalf of the petitioners in the High Court. The correctness of the High Court s decision that the order of the 27th May, 1961 did not violate s. 47-A of the Act was not challenged before us. Nor was the High Court s decision that the Government s action in abolishing posts and terminating services of employees was not bad because of contravention of s. 25F(b) and (c) of the Industrial Disputes Act. questioned before us. We have, therefore, not examined the correctness or otherwise of these conclusions and shall dispose of the appeal on the basis that the decision on these points are correct. The first contention urged in support of the appeal is that the High Court was wrong in thinkin .....

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..... e validity of the proviso to sub-cl. 3 of cl. 9 of the Order. As already indicated the workmen s contention was that the proviso contravened the provisions of s. 77 of the Bombay Re-organisation Act. That section contained a provision that on transfer or reemployment of any workman in consequence of reconstitution. Re-organisation, amalgamation or dissolution by any body corporate, cooperative society or any commercial undertaking or industrial undertaking the terms and conditions of service applicable to the workman after such transfer or reemployment shall not be less favourable to the workman than those applicable to him immediately before the transfer of reemployment. It was apparently apprehended by the workmen that though sub-cl. 3 of cl. 9 of the Order did state definitely that the right of the Maharashtra State Road Transport Corporation to determine or vary the conditions of service of any person who is continued in the service of the corporation was subject to the provisions of s.77 of the Bombay Re-organisation Act, advantage might be taken of the proviso to the sub-clause, which seems at least at first sight to suggest that with the approval of the Central Government th .....

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