Case Note & Summary
The case involves appeals by the Andhra Pradesh State Road Transport Corporation (APSRTC) against a common judgment of the Andhra Pradesh High Court that dismissed writ appeals and upheld an order quashing repatriation orders of certain employees. The respondents were Class III and IV employees (conductors, drivers, shramiks) appointed between 2014 and 2017 in zones that became part of Telangana after the bifurcation of Andhra Pradesh under the Andhra Pradesh Reorganisation Act, 2014. They were temporarily deputed to zones in Andhra Pradesh. After the bifurcation of the corporations, APSRTC issued repatriation orders on 08.06.2017 directing them to return to their parent zones in Telangana. The respondents challenged these orders in writ petitions, which were allowed by a single judge on 10.11.2017 on the ground that guidelines for allocation of employees had not been finalized. APSRTC filed writ appeals, and during the pendency, the corporations jointly formulated guidelines (Agenda Note dated 16.08.2017) stating that Class III and IV employees are recruited at regional level and belong to the corporation where the region falls, so no allocation was needed. The division bench initially passed an interim order on 18.04.2018 suspending the single judge's order and directing respondents to report to their parent zones. However, in the final impugned order, the High Court took a different view, drawing an analogy with Section 77 of the Act (applicable to state government employees) and directed permanent allocation of respondents in their deputational posts in Andhra Pradesh, also ruling on seniority. The Supreme Court considered the issue of whether Section 77 or Section 82 of the Act applies to employees of public sector undertakings. The Court examined the provisions and held that Section 82 specifically governs employees of corporations like APSRTC, while Section 77 applies to state government employees. The Court noted that the guidelines jointly formulated by the corporations (Agenda Note) clearly provided that Class III and IV employees are recruited at regional level and belong to the corporation where the region falls, and thus no allocation was required. The Court found that the High Court erred in applying Section 77 by analogy. Consequently, the Supreme Court allowed the appeals, set aside the impugned order of the High Court, and upheld the repatriation orders. The Court directed that the respondents shall continue to serve in their parent zones under TSRTC as per the interim order dated 18.04.2018.
Headnote
A) Constitutional Law - State Reorganisation - Allocation of Employees - Section 82 of the Andhra Pradesh Reorganisation Act, 2014 - The issue was whether employees of a public sector undertaking (APSRTC) should be allocated under Section 77 (applicable to state government employees) or Section 82 (applicable to employees of public sector undertakings). The Supreme Court held that Section 82 governs the allocation of employees of corporations, and the High Court erred in drawing an analogy with Section 77. (Paras 9-11) B) Service Law - Repatriation - Zonal Cadre Employees - Section 82 of the Andhra Pradesh Reorganisation Act, 2014 - Class III and IV employees recruited at regional level belong to the corporation in which the region falls after bifurcation. The guidelines jointly formulated by APSRTC and TSRTC (Agenda Note dated 16.08.2017) provided that such employees are not required to be allocated between the two corporations, and repatriation to parent zones was valid. (Paras 3-4, 8, 11) C) Service Law - Permanent Allocation - Deemed Allocation - Section 77(2) of the Andhra Pradesh Reorganisation Act, 2014 - The High Court's direction for permanent allocation of respondents in their deputational posts based on the third proviso to Section 77(2) was incorrect as Section 77 does not apply to corporation employees. The Supreme Court set aside the impugned order and upheld the repatriation orders. (Paras 7, 11)
Issue of Consideration
Whether the High Court correctly applied Section 77 of the Andhra Pradesh Reorganisation Act, 2014 to employees of a public sector undertaking, and whether Section 82 governs the allocation of such employees
Final Decision
The Supreme Court allowed the appeals, set aside the impugned order of the High Court dated 21.11.2019, and upheld the repatriation orders dated 08.06.2017. The respondents shall continue to serve in their parent zones under TSRTC as per the interim order dated 18.04.2018.
Law Points
- Section 82 of the Andhra Pradesh Reorganisation Act
- 2014 governs allocation of employees of public sector undertakings
- not Section 77 which applies to state government employees
- Class III and IV employees of corporations are recruited at regional level and belong to the corporation where the region falls after bifurcation
- guidelines jointly formulated by corporations for allocation are binding and final
