IMPORTANT POINT
When under the Voluntary Retirement Scheme for the Port Trusts and the Dock Labour Boards, the Chairman of the Port Trust has absolute power either to accept or not to accept the applications filed by the employees for retirement under the scheme, the Court can only direct the Port Trust to consider their applications and pass appropriate orders. Directions cannot be issued to the Department to accept the Voluntary Retirement of the petitioners.

Headnote:LABOUR LAW—Voluntary Retirement—Scheme for Port Trusts and Dock Labour Boards—Chairman of the Port Trust has absolute right either to accept or not to accept the applications filed by employees for retirement under the Voluntary Retirement Scheme—Scheme of Voluntary Retirement was introduced in appellant Port Trust pursuant to direction of the Ministry of Surface Transport dated 29-8-1991—Respondent No. 1 applied for Voluntary Retirement on 16-8-1999 but withdrew his application—He again applied for VRS on 27-4-2000—Respondent No. 2 applied for VRS on 28-4-2000—Non-consideration of their cases as several applications were pending—A review made by the Chairman on implementation of Voluntary Retirement under the scheme—It had been decided that Voluntary Retirement Scheme should be considered in cases of those employees who are below the age of 58 years—Writ petitions—Whether High Court was justified in directing appellant Port Trust to consider and accept VRS of respondents—(No)—Process of acceptance of an offer made by an employee was in the discretion of the Port Trust.
       Held : In our opinion, the Chairman is competent to frame the Scheme having regard to the exigencies of work and no one can claim voluntary retirement as of right. The learned Judges of the High Court have also not seen that the respondents application for voluntary retirement cannot be considered in view of the seniority of service of the employees concerned. (Para 34)
       In our opinion, the request of the employees seeking voluntary retirement was not to take effect until and unless it was accepted in writing by the Port Trust Authorities. The Port Trust Authorities had the absolute discretion whether to accept or reject the request of the employee seeking voluntary retirement under the scheme. There is no assurance that such an application would be accepted without any consideration. The process of acceptance of an offer made by an employee was in the discretion of the Port Trust. We, therefore, have no hesitation in coming to the conclusion that the VRS was not a proposal or an offer but merely an invitation to treat and the applications filed by the employees constituted an offer.(Para 35)
       The reasons assigned by the learned single Judge and the learned Judges of the Division Bench in the orders are erroneous and unsound and, therefore, they are set aside.(Para 36)

JUDGMENT

Dr. AR. Lakshmanan, J.—Leave granted.

2. The Board of Trustees, Visakhapatnam Port Trust and others are the appellants before us and the respondents are employees of the said Port Trust.

3. The matter arises out of an insistence of two employees of the Visakhapatnam Port Trust (in short the VPT) to seek retirement under a voluntary retirement scheme, even though, according to the employer Port Trust they are not entitled to avail the benefit of the scheme because they have attained the cut off age of 58 years before their cases could be considered.

4. The learned single Judge allowed the writ petition filed by the respondents and directed the Port Trust to consider and accept the voluntary retirement scheme (hereinafter called VRS) of the respondents as on their date of application and pass appropriate orders and pay all the benefits thereunder. However, the learned single Judge held that the respondents are not entitled for pension on the ground that they have retired on attaining the age of superannuation at the age of 60 years and they shall be entitled for pension as per the date of retirement under the VRS to be extended to the respondents. The learned Single Judge further held that the salaries received by the respondents till their age of superannuation shall not be recovered if paid as they have worked. The learned Judges of the Division Bench, by their order dated 21.11.2005 dismissed the appeal filed by the VPT and directed the VPT to pass orders on the applications of the respondents for voluntary retirement within a period of one month from the date of judgment.

5. According to the VPT, both the learned single Judge and the Judges of the Division Bench of the High Court have mis-read the applicability of the Scheme and directed the VPT to consider and accept the case of the respondents and that such a direction is unsustainable in law and is likely to have a cascading effect. Therefore, the VPT have come before this Court through the above civil appeals arising out of Special Leave Petition Nos. 26322-26323 of 2005.

6. The short facts relevant to the issue in dispute are as follows:

With a view to reduce surplus manpower, the Union Ministry of Surface Transport (now called the Ministry of Shipping, Road Transport and Highways - Department of Shipping) came out with a scheme of voluntary retirement. This was made applicable to all the Ports. The scheme of voluntary retirement was introduced in the appellant-VPT pursuant to the direction of the Ministry of Surface Transport contained in its letter No. LB-16016/7/88-L.II dated 29.08.1991. The said scheme is annexed as Annexure-P1 which reads as under:

"GOVERNMENT OF INDIA

MINISTRY OF SURFACE TRANSPORT

(LABOUR DIVISION)

No. LB-16016/7/88-L.II

New Delhi, 29th August, 1991

Shri P.V.R.K. Prasad

Chairman,

Vishakhapatnam Port Trust,

Vishakhapatnam-530035

Subject:–Voluntary Retirement Scheme for Port Trusts and Dock Labour Boards

Sir,

I am directed to say that the matter regarding introduction of a uniform Voluntary Retirement Scheme for officers, employees and workers of Port Trusts and Dock Labour Board has been under consideration of the Government. After careful consideration it has been decided that Port Trusts and Dock Labour Boards can introduce Voluntary Retirement Scheme with a view to reducing surplus manpower subject to the following terms and conditions:-

2. (a) An employee who has completed 10 years of services or completed 40 years of age may seek voluntary retirement by a written request.

(b) The Port Trust and Dock Labour Board will have the right not to grant voluntary retirement for reasons to be recorded in writing.

i.the balance in his Provident Fund Account payable as per the GPF/CPF regulations applicable to him;

ii.cash equivalent of accumulated earned leave as per the rules of the Port Trust/Dock Labour Board;

iii.gratuity as per Gratuity Act or the Gratuity

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