Petitioners no. 1 to 37 and the husbands of the petitioners no. 38 and 39 joined M/s. Indian Iron and Steel Company Limited (IISCO, for short) at Kulti in October 1971 as workmen. In the year 1972, it became a subsidiary of Steel Authority of India and a Government of India enterprise.

2. The petitioners state that all the workmen were employed as dependent members of the family of the existing employees. After appointment they were posted as unskilled labourer in different departments. Their names were notified in the notice board without, however, any separate letters of appointment. But they were given separate identity cards. The petitioners submitted the relevant forms under the Payment of Gratuity Act nominating the person for getting gratuity in the event of their death.

3. By an order dated January 1, 2003, IISCO circulated a Voluntary Retirement Scheme (VRS, for short) for the employees at the Kulti works. Subsequently by another circular time to file applications for voluntary retirement was extended up to March 31, 2003. It was further notified that employees who would not opt for voluntary retirement by the last date would be eligible only for the retrenchment c