This writ petition has been instituted seeking a writ of mandamus directing the respondents to forthwith restore and pay the benefits of wage revision with effect from 01-01-1997 in conformity with the final settlement of the petitioners’ accounts by taking their total length of service and to declare the consequential deductions made, as illegal.

Both the writ petitioners were working with the 1st respondent Bharat Heavy Electricals Limited (henceforth referred to as ‘the BHEL’) at the relevant point of time. BHEL by a notification issued through their personnel department on 01-07-1999 announced “BHEL Voluntary Retirement Scheme”. The Scheme was kept in operation for a period of four months commencing from 01-07-1999, i.e., up to 31-10-1999. Annexure-1 thereof contained the various terms and conditions forming part of the said Scheme. Paragraph No.4 of Annexure-1 spelt out the eligibility norms of the Scheme. Any employee, who has either crossed the age of fifty years or has served the Company (BHEL) continuously as a regular employee for a minimum period of twenty years, is eligible to opt under this Scheme. The length service would also include the training period spent in the Company. Paragraph No.8 spelt out the benefits that will become admissible under this Scheme. It is specifically made clear that employees, who availed Voluntary Retirement Scheme (for short ‘VRS’) will be entitled to the benefits of wage revision due from 01-01-1997, as and when the same is implemented. Both the petitioners have opted for this VRS and their offer has been accepted by the BHEL and accordingly, the 1st petitioner was relieved from service with effect from 23-10-1999 A.N., while the 2nd petitioner has been relieved on 24-08-1999.

In terms of Paragraph No.8 of Annexure to the VRS 1999, employees seeking voluntary retirement were also offered a lump sum one-time payment-VRS compensation-equivalent to one and half months salary for each completed year of service or the monthly salary at the time of voluntary retirement multiplied by the remaining number of months of service left before normal date of retirement, whichever is less. Therefore, the leftover period of service for each optee for normal retirement has to be computed first and then, the number of years of service put in by him has to becalculated to be multiplied by one and half times and in between these two benefits whichever is less the same will be multiplied by the monthly salary and paid as compensation.

The petitioners assert that several clarifications with regards the terms and conditions of Voluntary Retirement Scheme (VRS) are sought for, and at one such meeting that took place on 17-07-1999, at 2 PM at the Corporate Office of BHEL, it has been specifically spelt out that service rendered on Nominal Muster Roll basis (NMR) and service rendered on Work-charged basis (WC) also should be counted towards the total length of service and the period of apprenticeship spent, in terms of the Apprenticeship Act, alone will not be counted towards the length of service. According to the 1st petitioner, he joined the BHEL at its Bhopal Unit on 25-03-1963 and worked as such till 11-05-1965 and thereafter, he joined Work charged establishment of BHEL at Ramachandrapuram on 14-05-1965 and thereafter he has become a regular employee with effect from 28-01-1967. Thus, computed, from 1963, he has rendered 36 years and 7 months of service by October, 1999. He would have attained the age of superannuation of 60 years during October 2004. Therefore, by October, 2009, he has a balance of 60 months of service leftover for his retirement. Since, he has completed more than 36 years of service, when computed from 25-03-1963 and when the same is multiplied by one and half times, it comes to 54 months. Between 54 and 60 months, 54 months being the lesser period, VRS compensation payable would, therefore, works out to 54 months of salary. Accordingly, he has been paid, the VRS compensatio