JUDGEMENT
S.M.MODAK, J. -
(1.)In this writ petition the issue involved is whether the respondent no.2 Unit Trust of India Asset Management Company Ltd. Falls within the meaning of 'State ' under Article 12 of Constitution of India? If answer to this issue is yes, whether the respondent no.2 can be directed to frame transfer policy for its officers and employees? Further issue involved is when the constitution of respondent no.2 has changed, still whether the petitioners can claim protection of Sec. 6 of Union Trust of India (Transfer of undertaking and Repeal) Act 2002. There are various issues pending between the UTI AMC officers association and respondents no.2. But we are deciding this issue only in context of 'right of petitioners to insist for framing of transfer policy '. The present petitioners are the officers of respondent no.2. They were officers of erstwhile Unit Trust of India. Respondent no.2 was formed after bifurcation of erstwhile Unit Trust of India in the year 2002. After formation of respondent no.2, they have exercised the option of joining Respondent No.2.
(2.)Their grievance is even though assured the management of respondent no.2 have abruptly transferred them to various part of India without framing transfer policy. That is why they have challenged the officer order dtd. 1/10/2021 thereby transferring them. Before going into the contentious issue, it will be relevant to know the background of formation of respondent no.2. BACKGROUND
(3.)Unit Trust of India was created as per the provisions of Unit Trust of India Act 1963. It was statutory corporation. It has got the business of accepting the investment from the public in mutual funds. It has floated various schemes. However, the Government of India has decided to bifurcate the business, assets and liabilities of UTI into two separate entities called as 'specified company ' and 'specified undertaking '. Parliament has enacted Unit Trust of India (Transfer of Undertaking and Repeal) Act 2002. The main features of Repeal Act are as follow: --
a. Transfer of initial capital - on the appointed day initial capital of the Trust (contributed by the Development Bank, LIC, SBI and subsidiaries) shall be refunded to the Central Government (Sec. 3).
b. Specified Company - is a company formed and registered as per Companies Act 1956 and whose entire capital is subscribed by financial institutions specified by the Central Government (sec. 2[h]).
c. Specified Undertaking -includes all business, assets, liabilities and properties of the Trust specified in the Schedule I (sec. 2[i]). d. Undertaking -- -includes all business, assets, liabilities and properties of the Trust specified in the Schedule II (sec. 2[i]). e. Administrator - means a person/body of persons appointed under sec. 7. f. Transfer and vesting of undertaking/specified undertaking - undertaking to be transferred and to be vested in favour of specified company (sec. 4[1(a)]). Specified undertaking to be transferred and to be vested in favour of Administrator (sec. 4[1(a)]). g. Officers/employees of the Trust - the officers and employees of Trust will become officers and employees of the specified company on same terms and conditions (sec. 6[1]). h. Appointment of Administrator - The central Government to appoint person or body of persons as Administrator for the purpose of taking over administration of the specified undertaking (sec. 7[1]).
i. Appointed day - means the date notified by the Central Government under sec. 4 (sec. 2[b]). As per notification dtd. 15/1/2003, 1/2/2003 is notified as appointed day (page no.73). j. Subscriber s - SBI, PUNJAB NATIONAL BANK, BANK OF BARODA AND LIC were notified as subscribers to the share capital of respondent no.2 to be contributed equally (page no. 72).
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