TMI Blog2010 (3) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... At the time of joining, the respondents executed bonds to serve in TANMAG for a minimum period of three years. The TANMAG confirmed the services of the respondents through its proceedings dated 25.10.1985, 30.4.1991 and 24.8.1989 respectively. The respondents were paid the revised pay by the TANMAG as per the Pay Commission's recommendations made by the Government of Tamil Nadu. 4. In the year 1990, through G.O.Ms.No.855 Industries (MME.II) Department, dated 16.8.1990 the Government of Tamil Nadu decided to implement the Chemical Beneficiation Project in joint venture with M/s. Kaitan Supermag Limited. The share holding pattern of the joint venture was as follows: TANMAG: 26% M/s. Kaitan Supermag Ltd.: 25% General public: 49% Therefore, TANMAG had control over JVC. 5. The appellant through letter dated 18.3.1991 conveyed to the respondents that they are in excess of the cadre strength in TANMAG and called upon them to express their willingness to work in the Joint Venture Company with the then existing pay and other facilities without any disadvantage. It was also mentioned in the said communication that if no option is given, the appellant will have no optio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck to TANMAG. The action of TANMAG in not re-transferring the respondents to its service is erroneous. They, therefore, prayed for quashing the said order dated 26.11.1998 with a consequential direction to TANMAG to re-transfer/absorb the respondents in the service of TANMAG with all benefits such as seniority on par with their immediate juniors, arrears of pay and allowances with service benefits that would have been accrued in favour of the respondents if they had continued in the service of TANMAG. 9. The TANMAG resisted the writ petitions by filing counter affidavit by contending that TANMAG is a separate entity and no writ is maintainable against it. It was pleaded that even though the Board of Directors are named by the Government, the Company is managed by the Managing Director under the control and superintendence of the Board of Directors. It is also stated in the counter affidavit that the respondents were recruited for the project as per the advertisement. Thereafter the respondents were transferred to the JVC on the basis of the advance notice dated 18.3.1991. It was made clear that their services were permanently transferred and they were relieved from TANMAG from 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be retransferred. The assurance given in the letter dated 11.5.1991 clearly states that the transfer of service is without any disadvantage. It was, therefore, held that the stand taken by TANMAG is contrary to the assurance given to the respondents when they were compulsorily transferred to the JVC. It is noticed that all the assets of JVC on its closure have been taken over by TANMAG. There is no justification in denying absorption of the respondents who are unable to seek any other employment at this age of above 50 years. It is held that TANMAG is bound by the assurance given to the respondents while seeking their consent for transfer to JVC. This is particularly so, as it was stated that the terms and conditions of employment enjoyed by them in TANMAG are protected. It is further held that since JVC was closed at the instance of TANMAG, the appellant has put the respondents in a disadvantageous position. Therefore, TANMAG is estopped from contending that the respondents will not be absorbed. With these observations the judgment of the learned Single judge has been set aside. The appellant has been directed to absorb the respondents with continuity of service and other at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... length of service for all purposes including the payment of gratuity. Therefore, it becomes quite evident that the appellant as well as the respondents were well aware about the nature of terms and conditions which were protected. After the permanent transfer fresh letter of appointment dated 25.7.1991 was served upon the respondents. Therefore, it is clear that the services of the Respondents having been terminated, their lien in TANMAG, also stood terminated. 17. It was only when the respondent No.1 S. Manickam, petitioner in Writ Petition No.3707/2001 became apprehensive about the closure of the unit, he submitted a representation on 21.6.1996 to the respondents seeking re-absorption in TANMAG. In this letter, the respondent narrated the entire history of his services with TANMAG. It is emphasized that his services were transferred to the JVC under compelling circumstances. At that time, he had been assured that there will not be any change in the terms and conditions of employment as stipulated in TANMAG. It is stated that he had accepted the transfer under compelling circumstances and joined JVC on the clear understanding that all privileges, perquisites and other facilitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come to the rescue of those who are victims of injustice, but not at the cost of well established legal principles. The circumstances in which a High Court could issue an appropriate writ under these articles was delineated by a constitution bench of this Court in the case of State of Orissa Vs. Ram Chandra Dev, AIR 1964 SC 685 wherein Gajendragadkar, J. speaking for the court observed as follows: Under Article 226 of the Constitution, the jurisdiction of the High Court is undoubtedly very wide. Appropriate writs can be issued by the High Court under the said article even for purposes other than the enforcement of the fundamental rights and in that sense, a party who invokes the special jurisdiction of the High Court under Article 226 is not confined to cases of illegal invasion of his fundamental rights alone. But though the jurisdiction of the High Court under Article 226 is wide in that sense, the concluding words of the article clearly indicate that before a writ or an appropriate order can be issued in favour of a party, it must be established that the party has a right and the said right is illegally invaded or threatened. The existence of a right is thus the foundation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g regard to the dealings, which have taken place or are intended to take place between the parties. In our opinion, on the basis of facts on record in this case, the claim of the respondents would not be covered by the principles enunciated above. In view of the facts narrated above, the Division Bench clearly committed an error of law in concluding that there has been a breach of principles of promissory/ equitable estoppel. Therefore, the High Court erred in issuing the direction/writ in the nature of mandamus directing the appellants to reabsorb the appellants in the service of TANMAG. 20. Before we part with the judgment, it would be appropriate to notice that during the hearing of these appeals, the respondents had been permitted to make the representation to the appellants for reconsideration of their request. The respondents had, therefore, submitted a representation on 15.2.2010. Learned counsel for the appellant, however, stated that it was not possible for the appellant to accommodate the respondents, however, in case in future any vacancy arises, the request of the respondents may be considered. 21. In view of the above, the appeals are allowed. The impugned ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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