U.P. STATE ELECTRICITY BOARD THROUGH ITS CHAIRMAN AND ORS. versus SRI RADHEY MOHAN VERMA

Citation: [1994] 3 S.C.R. 294 · Decided: 31-03-1994 · Supreme Court of India · Bench: K. RAMASWAMY, N. VENKATACHALA · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
U.P. STATE ELECTRICITY BOARD THROUGH ITS 
' 
-..~ 
CHAIRMAN AND ORS. 
v. 
SRI RADHEY MOHAN VERMA 
B 
MARCH 31, 1994 
[K. RAMASWAMY AND N. VENKATACHALA, JJ.] 
Indian Electricity (Uttar Pradesh Second Amendment) Ordinance, 
c 
1975-Ss.6A(2), 6A(3)(i}-Suspended employee of erstwhile company claim-
ing after takeover to be deemed employee of Board-Held, takeover under 
memorandum· of understanding having taken place even before Ordinance 
came into force, S.6 A(2) was not applicable-Respondent not a deemed 
employee of Board. 
D 
The Respondent was a suspended employee of the Mirzapur 
Electricity Supply Company. Under a memorandum of understanding the 
company's licence was revoked on September 1, 1975 and the Appellant 
Board took over the company. One of the terms of takeover was that the 
Board will not take any employee against whom disciplinary proceedings 
. • 
E 
were pending. 
Under S.6A(2) of the Indian Electricity (Uttar Pradesh Second 
Aniendment) Ordinance, 1975, which came into force on November 27, 
1975, the licence of every undertaking shall stand revoked from that date 
unless revoked earlier. Thereupon under S. 6A(3) (i) every employee of the 
.. ,r 
F licensee shall become an employee of the Board. The Respondent's writ 
petition claiming reinstatement on the basis of the above provisions was 
.... 
allowed by the High Court. The Board appealed to this Court. 
Allowing the Appeal, this Court 
G 
HELD : The Respondent was not a deemed employee by operation 
of law. The Ordinance had come into force on November 27, 1975. Much 
prior to the Ordinance coming into force, the licence of the company stood 
revoked on September 1, 1975. The consequence was that S. 6A(2) became 
inapplicable and it not being a statutory revocation, operation of sub-sec-
............. 
H lion (3) was not extended. [297-D-F] 
294 
• 
U.P. STATE ELECTRICITY BOARD v. R.M. VERMA 
295 
CIVIL APPELLATE JURISDICTION : Civil appeal No. 4317 of A 
1994. 
From the Judgment and Order dated 9.9.91 of the Allahabad High 
Court in C.M.W.P. No. 12217 of 1983. 
B. Sen and Pradeep Misra for the Appellants. 
Bharat Sangal for the Respondent. 
The following Order of the Court was delivered : 
Leave granted. 
B 
c 
The appeal· is directed against the order of the High Court of 
Allahabad in CM.W.P. No. 12217183. The respondent was admittedly a 
suspended employee of Mirzapur Electricity Supply Co. (for short 'Com-
pany) against whom disciplinary proceedings were pending. On September 
1, 1975, under s.4(i) of the Indian Electricity Act, 1910, for short 'the Act', D 
the licence of the Company was revoked under a memorandum of under-
standing and an agreement reached with the appellant. One of the terms 
thereof was that the appellant will not take any employee against whom 
disciplinary proceedings were pending. The appellant took over the Com-
pany. Eight years thereafter, the respondent filed the writ petition placing E 
reliance on Section 6-A of the Act as amended by an U.P. Act and 
contended that the respodent was entitled to be taken into service, but was 
unlawfully prevented from discharging his duties. The High Court accepted 
the contention and issued the mandamus as prayed for with consequential 
reliefs. 
The only question that arises in this case is whether the respondent 
is entitled to the relief under section 6-A(3) of the Act. Sub-section 2 of s. 
6-A reads thus : 
F 
"6-A(2) Notwithstanding anything contained in sections 4, 4-A, G 
5 and 6, the licence of every undertaking, unless revoked before 
the commencement of the Indian Electricity (Uttar Pradesh 
Second Amendment) Ordinance, 1975, shall stand revoked with 
effect from the appointed day." 
Sub-section (3) of s. 6-A says that on revocation of the licence under H 
296 
SUPREME COURT REPORTS 
[1994] 3 S.C.R. 
A 
sub-section (2) the following provisions shall have effect, namely : 
B 
c 
D 
E 
F 
G 
(a) every undertaking the licence in respect of which stand revoked 
shall by virture of this section stand and be deemed to have stood 
transferred to and vest and be deemed to have vested in the State 
Electricity Board, hereinafter in this section called 'the Board', 
free from any debt., motgage of similar obligation of any licence 
attaching to the undertaking; 
Provided that any such debt, mortgage or similar obligation 
shall attach to the amount payable for the undertaking as men-
tioned in Cl.(h). 
(b) the rights, powers, authorities, duties and obligations of the 
lic

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