IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE CHIEF JUSTICE MR.J.CHELAMESWAR & THE HONOURABLE MR. JUSTICE K.BALAKRISHNAN NAIR MONDAY, THE 29TH MARCH 2010 / 8TH CHAITHRA 1932 WP(C).No. 5872 of 2009(S) ------------------------- PETITIONER(S): --------------- V.T. THOMAS, AGED 57 YEARS, S/O. THOMAS, RTD. HIGH SCHOOL HEADMASTER, AND 148,IRITTY BLOCK PANCHAYATH MEMEBER, P.O. VELIMANAM, KANNUR DIST. BY ADV. SRI.M.A.FIROZ SRI.V.C.JAMES SRI.GEORGE MECHERIL RESPONDENT(S): --------------- 1. THE STATE OF KERALA, REP. BY ITS CHIEF SECRETARY TO GOVERNMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE PRINCIPAL SECRETARY TO GOVT. SCHEDULED CASTES/SCHEDULED TRIBES DEVELOPMENT (D) DEPARTMENT, SCRETARIT, THIRUVNANTHAPURAM. 3. THE DIRECTOR, SCHEDULED TRIBE DEVELOPMENT DEPARTMENT, VIKAS BHAVAN, THIRUVANANTHAPURAM. 4. THE REGISTRAR OF COMPANIES, KERALA STATE , KAKKANAD, ERNAKULAM. ADV. SRI.P.PARAMESWARAN NAIR,ASST.SOLICITOR FOR R4 GOVERNMENT PLEADER SRI.P.SANTHOSHKUMAR. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 29/03/2010, ALONG WITH W.P.C.NO.22346/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.C.NO.5872/2009 A P P E N D I X PETITIONER'S EXHIBITS : EXT.P1 : TRUE COPY OF AGREEMENT DT. 21.6.2004. EXT.P2 : TRUE COPY OF G.O.(MS) NO.82/2007/SCSTDD DT. 29.12.2007. EXT.P3 : TRUE COPY OF THE COMMUNICATION NO.3666/D2/08/SCSTDD DT. 5.2.2009. EXT.P4 : TRUE COPY OF G.O.(MS) NO.22/05 SCSTDD DT. 6.6.2005. EXT.P5 : TRUE COPY OF THE REPORT OF THE SPECIAL OFFICER DT. 15.5.2004. J.CHELAMESWAR, C.J. & K.BALAKRISHNAN NAIR , J. ---------------------------------------------- W.P.(C) Nos.5872 & 22346 of 2009 ---------------------------------------------- Dated 29th March, 2010. J U D G M E N T J.Chelameswar, C.J. These two Writ Petitions are in-a-way, interconnected. The issues in these Writ Petitions revolve around a piece of land (Aralam Farm), measuring 3060 hectares, which was initially acquired by the State of Kerala. The land is located in Kannur District. It was handed over to a Corporation, controlled by the Government of India, namely, State Farms Corporation of India (hereinafter referred to as 'the Corporation'). It may not be necessary to go into the history of the Corporation. But, admittedly, by a tripartite agreement dated 21.6.2004, between the Government of India, the Corporation and the State of Kerala, the above-mentioned property came to be transferred to the State of Kerala, for a consideration of Rs.42.09 crores. 2. By a Government Order, G.O.(Rt)No.105/2003/ SCSTDD dated 4.2.2003, the State of Kerala decided to set apart half of the above mentioned extent of land (1530 hectares) to re- WP(C) NO.5872 & 22346/09 2 settle the landless Tribals and retain the other half, for the purpose of farming activities. It is further stipulated in the said Government Order that, of the 50% of the land meant for the distribution among Tribals, 1/3 was earmarked for distribution among the Tribals of Kannur District and the remaining 2/3, for distribution among the Tribals of Wayanad District. 3. The first petitioner in W.P.(C)No.22346/2009 is a Union of the employees working in the Farm, as on the date of transfer of the property from the Corporation to the State of Kerala. Aggrieved by the subsequent change in the status of the land and the decision of the State to part with half of the property, the said Writ Petition is filed with various prayers. In substance, the petitioners suspect that in view of the altered policy of the State, their service and livelihood would be prejudiced. 4. A counter affidavit is filed on behalf of the first respondent/State. At paragraphs 2, 3 and 4, it is stated as follows :- WP(C) NO.5872 & 22346/09 3 “2. It is respectfully submitted that Government of Kerala purchased 3060 hectares of land from the State Farms Corporation of India and that tripartite agreement was concluded with the State Farms Corporation of India and Government of Kerala. Accordingly, the land in question was transferred to Government of Kerala on 21.6.2004. It is submitted that 1530 hectares of the land was set apart for rehabilitation of landless tribals and the remaining land is retained as farm land. As par the tripartite agreement, the employees/Agricultural workers/Awardee workers shall continue to be the staff of Aralam Farm after take over the Farm by the State Government. The State Government can retain the said staff in the Aralam Farm itself for absorption in other similar Farms or the Government departments as the case may be. It is submitted that the service conditions of the employees are government by the Staff Regulations of the erstwhile State Farms Corporation of India even after its transfer to State Government. 3. It is admitted that the service conditions of the employees of Aralam Farm are still governed by the Staff Regulations of the erstwhile State Farms Corporation of India even after transfer of the employees and workers. The terms and conditions of service of the employees of the Farm after its transfer to the State Government remain unchanged. 4. It is submitted that the State Farm Corporation of India Service Rules and Conditions are applicable to the employees of the Aralam Farm. Rules applicable to the State WP(C) NO.5872 & 22346/09 4 Government employees have not been made applicable to the employees/workers of the Farm, including holidays, grade, pay, scale, D.A. etc. However, bonus is also being disbursed as per Payment of Minimum Bonus Act, as amended from time to time, as has been following in the erstwhile State Farm (a unit of SFCI). Now that the Farm has come under the control of State Government, their service conditions have to be determined based on the service condition of their counterpart in the State Government Service.” The substance of the above-mentioned three paragraphs is that the employees of the members of the petitioner-Union would, in no way be prejudiced by the change in the status of the property. The State, in its counter affidavit, categorically stated that the service conditions of the employees of the Farm would at least, remain the same, as if they were in the employment of the Corporation. It is categorically mentioned at paragraph 4 of the counter affidavit that the service conditions of the employees of the Farm would be re-determined, based on the service conditions of their counterpart in the State Government Service. We make it clear that such an exercise shall not result in any detriment to the service conditions of the employees of the Farm. WP(C) NO.5872 & 22346/09 5 5. In view of our conclusion recorded above, the other prayers sought in the Writ Petition are not pressed by the petitioners. Accordingly, W.P.(C) No.22346/2009 is disposed of. 6. W.P.(C) No.5872/2009 is filed in public interest, by a Block Panchayat member. The grievance raised in this Writ Petition is essentially in the realm of procedural irregularity of the Government action. After the landed property was transferred from the Corporation to the State of Kerala, initially, the State of Kerala took a decision to form a Public Limited Company, to manage the property, as per Government Order (G.O.(MS)No.22/ 2005/SCSTDD) dated 6.6.2005. Subsequently, in G.O.(MS) No.82/2007/ SCSTDD dated 29.12.2007, the Government of Kerala had also approved the Memorandum of Association and the Articles of Association, for the registration of the Public Limited Company, contemplated under G.O.(MS) No.22/2005/SCSTDD dated 6.6.2005. The complaint in the Writ Petition is against Ext.P3 document dated 5.2.2009. It is a letter from the Principal Secretary to the Government in the WP(C) NO.5872 & 22346/09 6 Department of SC/ST Development, addressed to the Director of Scheduled Tribe Development Department. The relevant portion of the order reads as follows :- “I am to invite your attention to the subject cited above and to convey the following tentative decisions of the Government in the matter : The Aralam Farm Company may be registered as a Private Ltd.Company under Companies Act 1956 instead of as a Public Ltd.Company. The shares of the company may be held in the name of the Section Officer and the Joint Secretary to Government. The Registered office of the company may be fixed Aralam Farm PO via Peravoor, Kannur District.” From the tenor of the said letter, it appears that there was a tentative decision of the Government to register a Private Limited Company, instead of a Public Limited Company, for managing the affairs of the landed property (Aralam Farm) mentioned above. 7. The learned counsel for the petitioner submits that in view of the fact that the earlier decision to form a Public Limited Company, was taken in exercise of the powers vested in WP(C) NO.5872 & 22346/09 7 the Government under Article 162 of the Constitution of India, such a decision cannot be altered, except by a subsequent decision of the Cabinet. 8. When the matter was taken up, Sri.P.Santhosh Kumar, learned Special Government Pleader, placed before us, another Government Order, G.O.(MS)No.65/2009/SCSTDD dated 21.8.2009, by which the Government decided to form a Private Limited Company, in the place of a Public Limited Company, referred to in G.O.(MS) No.22/2005/SCSTDD dated 6.7.2005. The relevant portion of the order reads as follows :- “Government have examined the matter in detail and after having found that registration of the entity as a Private Limited Company would be more effective and less time- consuming, sanction is accorded for the registration of a Private Limited Company, fully owned by Government, for the protection and administrative control of half of Aralam Farm (1530 Hectares) which is proposed to be retained as farm itself, subject to the condition that the actual registration of the Company shall be made only after obtaining orders from the Hon'ble High Court.” Such a decision of the Government is in the realm of the policy of the State and in the absence of any constitutional prohibition for WP(C) NO.5872 & 22346/09 8 altering a policy decision, we do not find any substance in the contentions raised in the Writ Petition. Therefore, W.P.(C) No.5872/2009 is dismissed. SD/- J.CHELAMESWAR, CHIEF JUSTICE. SD/- K.BALAKRISHNAN NAIR, JUDGE. tgs J.CHELAMESWAR, C.J. & K.BALAKRISHNAN NAIR J. ---------------------------------------------- W.P.(C) Nos.5872 & 22346 of 2009 ---------------------------------------------- J U D G M E N T Dated 29th March, 2010.