TAMIL NADU KHADI AND VILLAGE INDUSTRIES BOARD versus M.S. KRISHNASWAMY AND ORS.

Citation: [2001] SUPP. 1 S.C.R. 445 · Decided: 13-08-2001 · Supreme Court of India · Bench: S. RAJENDRA BABU · Disposal: Dismissed
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Judgment (excerpt)

TAMIL NADU KHADI AND VILLAGE INDUSTRIES BOARD 
A 
v. 
c 
M.S. KRISHNASWAMY AND ORS. 
AUGUST 13, 2001 
[S. RAJENDRA BABU AND DORAISWAMY RAJU, JJ.] 
Service Law : 
Tamil Nadu Khadi and Village Industries Board Act, 1959 : 
Transfer of Staff-From one department to another-Seniority-Fixation 
of-Extension Officers (Khadi) transferred from Government Department to 
Khadi Board-Held: Services rendered as Extension Officers (Khadi) should 
be reckoned while fu:ing their seniority in the Khadi Board 
Constitution of India, 1950: 
B 
c 
D 
Article 226-Writ petition-Equities-Adjustment of-Extension Officers 
(Khadi) transferred from Government Department to Khadi Board-Services 
reiiaered as Extension Officers (Khadi) counted towards seniority in Khadi 
Board-Financial benefits-Entitlement to-Held: Khadi Board directed to 
work out notional benefits-However, financial benefits to be limited to a E 
period of three years prior to the date of High Court's order. 
The respondents were Extension Officers (Khadi) in the Khadi 
Department and Village Industries wing of the Department of Industries and 
Commerce, which stood abolished, and the respondents were absorbed in the 
Khadi & Village Industries Board constituted under the Tamil Nadu Khadl F 
& Village Industries Board Act, 1959. The respondents made a representation 
that their services under the government as Extension Officers (Khadl) 
should be reckoned while fitting them in the seniority list of Upper Division 
Clerks in the Khadl Board, which was accepted. Certain aggrieved persons 
filed writ petitions before the High Court challenging the aforesaid order on G 
the ground that they were senior to the respondents, which were dismissed. 
Hence this appeal. 
Dismissing the appeal, the Court 
HELP : I. It is clear that the question was examined by the High Court H 
445 
446 
SUPREME COURT REPORTS [2001) SUPP. I S.C.R. 
A on an earlier occasion, which was decided a fairly long time back and that 
decision was accepted by the Khadi Board itself. Having accepted that dec~on 
and the same had been acted upon and the benefit of seniority had been 
extended to others and that decision having become final, the High Court was 
justified in allowing the claim of the respondents. (448-G, H; 449-A) 
B 
2.1. In working out the various benefits arising to each one of the 
parties, the entire set up will have to be taken note of and not merely the 
three respondents as in one establishment there cannot be two classes of 
employees-those covered under the writ appeals and others who are not so 
covered. Such a result would lead to invidious situation, which should at all 
C cost be avoided. [449-E, F) 
2.2. The appellant Board is directed to give effect to the order made 
by the High Court by working out in such a way that the notional benefits 
arising by way of giving effect to the order made in the writ appeals by the 
D High Court shall be worked out. However, the financial benefits shall be 
limited to a period of three years prior to the date of the judgment of the High 
Court, i.e. from the last date of the financial year prior to the date of the 
order. (449-G, H) 
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 6752-6754 
E of 1996. 
From the Judgment and Order dated 3 .2.1995 of the Madras High Court 
in Writ Appeal Nos. 210 and 769 of 1992 and W.P. No. 16190 of 199 l. 
F 
C.S. Vaidyanathan, K.V. Viswanathan, Atul Kumar Sinha, K.V. 
Venkataraman and Vijaynarayan for the Appellant. 
K. Madhava Reddy, T. Raja, Ms. T.S. Shanthi, A. Mariarputham and P.N. 
Ramalingam for the Respondents. 
G 
The Judgment of the Court was delivered by 
RAJENDRA BABU, J. On the constitution of the Tamil Nadu Khadi & 
Village Industries Board [for short 'the Board') under the Tamil Nadu Khadi 
& Village Industries Board Act, 1959 [hereinafter referred to as 'the Act'], the 
H Khadi Department and Village Industries wing of the Department of the 
TN. KHADI AND VILLAGE INDUSTRIES BOARD" M.S. KRISHNASWAMY [RAJENDRA BABU. J.] 447 
Industries and Commerce stood abolished and those working either in the A 
Khadi Department or the Village Industries wing were absorbed in the services 
of the Board giving an option to such persons either to work under the Board 
without any lien in the Government or to accept the terminal benefits and put 
an end to 'the service. The Government by order made on 26.12.1961 requested 
the Board to absorb the Extension Officers and Spinning Organisers and to 
. allot them to the
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