JUDGMENT

A.K. Sikri, J.

Leave granted in the special leave petitions.

2) The appellant Madhya Pradesh State Road Transport Corporation (for short, the 'Corporation') is a public sector undertaking of the State of Madhya Pradesh and undertakes the work of carrying passengers from one place to another within and outside the State of Madhya Pradesh. As the appellant Corporation was running into losses, the State Government obtained permission from the Department of Road Transport & Highways of the Ministry of Shipping, Road Transport & Highways, Government of India for winding up of the appellant Corporation. This permission was given by the Government of India on March 23, 2005 with the following directions:

“The State Government shall ensure and be fully responsible for ensuring compliance of any existing/future orders passed by various court including Tribunal in any/all matters relating to MPSRTC. The State Government is also advised to safe guard the interest of employees of MPSRTC.”

3) Considering the closure of the Corporation, the Managing Director, vide S.No. 1452 (Karmik-2)Stha-B/2005, Order No. 28, introduced a Scheme called as Voluntary Retirement from Service (for short, 'VRS'