( 1 ) A compulsory deduction of 5% amount out of the compensation awarded under the modified Voluntary Retirement Scheme is the subject matter of the challenge in the present petition. Some of the material facts of the present case briefly enumerated are as under:

( 2 ) SAVATRAM Ramprasad Spinning and Weaving Mills, Akola i. e. the 3rd respondent which was established 100 years back lost its glory and the consequent losses became inevitable. The textile mill became unviable and therefore, the respondent No. 4 National Textile Corporation under the provisions of the Sick Industrial Undertaking Act, 1957 took over the assets of the said 3rd respondent mill. Consequently, the liabilities of the workers was also taken over. After taking over the said textile mill it was not possible for National Textile corporation to run the said textile unit without reorganization of the work force. In the 3rd respondent mill, there were around 450 workers. Many of them formed a work force of badli workers and some were about to achieve the age of superannuation. In view of the nationalisation of the textile mills, the said textile mills was restarted and even on restarting, the textile mill work force was required to be reduced otherwise it was unviable unit and would have resulted in closing down of the said mill. In view thereof it became difficult and almost impossible to provide work for all the workers.

( 3 ) IN the aforesaid circumstances, a settlement was entered into by and between the respondent No. 3 and representative union introducing a scheme of voluntary retirement. The said voluntary retirement scheme was introduced under the negotiations of the Deputy Commissioner of Labour in the conciliation proceedings. The said settlement which was arrived at by a between the recognised union and the 3rd respondent mill. Clause 5 of the said voluntary retirement scheme stipulated as under : "this agreement dated 28-12-1992 shall be valid. Under the voluntary retirement scheme, 5% amount from the retirement benefits of the persons giving resignation shall be payable. This agreement is signed on 28-12-1992. Under the aforesaid clause, it was provided that under the voluntary retirement scheme those workers who avail of the benefit will be paid the amount after deduction of 5% to be contributed to the said recognised union. It seems that under the said scheme, large number of workers opted for voluntary retirement scheme.

( 4 ) THE matter did not end there. It seems that a further retrenchment by way of voluntary retirement became necessary for the purpose of running the said 3rd respondent mill and accordingly on 23rd January, 2002 a modified version of the voluntary retirement scheme was introduced. The said scheme is modified version of the original settlement which was arrived at on 28th December, 1992. Under the said modified version of the voluntary retirement scheme, a detail compensation package was provided for by the respondent Nos. 3 and 4 to the workers who avail of the said modified voluntary retirement scheme. On 24th march, 2004 the Central Government accepted the said scheme of voluntary retirement. The respondent No. 3 and 4 while paying compensation package under the modified voluntary retirement scheme continued to deduct 5% of the amount for contribution towards the union in accordance with the original settlement of 1992 arrived at by and between the company and the recognised union.

( 5 ) THIS deduction under the modified version of the voluntary retirement scheme has been the subject matter of challenge in the present petition. The present petition has been filed by few of the workers who availed of the said voluntary retirement scheme against the recognised union contending that the deduction of 5% under the settlement in favour of the union from the compensation package of the workers is illegal, unlawful and must be quashed and set aside and directions should be given to the respondent Nos. 3 and 4 to refund the