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2014 Supreme(Del) 1258
High Court of Delhi
P.K. BHASIN & J.R. MIDHA, JJ.
P.P. Vaidya & Others
Versus
IFCI LTD & Others
LPA 786 of 2013 & CMs 16643 of 2013, 5110-5112 of 2014
Decided On : 06-05-2014
For the Appellants:Vishnu Mehra with Sakshi Mittal, Advocates.
For the Respondents:Dinkar Singh, Advocate.
Headnote:
The appellants, erstwhile officers of the respondent, opted for voluntary retirement under the Voluntary Retirement Scheme – 2008 dated 1st February, 2008 (hereinafter referred to as ‘VR Scheme’) on 25th February, 2008. Almost three years later, on 19th February, 2011, they filed a writ petition to claim an incentive under Scheme of Performance Linked Incentive (hereinafter referred to as ‘SPLI’) for the financial year 2007-08 which was dismissed by the learned Single Judge and is under challenge in this appeal.
Fact of the Case:
The appellants voluntarily opted for the voluntary retirement under the VR Scheme which was accepted by the respondent and resulted in a concluded contract. The terms and conditions of the VR Scheme are not governed by any statute. It is a matter of contract between the appellants and the respondent. It is not for the Court to rewrite the terms of the contract contained in the VR Scheme.
Finding of the Court:
The appellants are not entitled to the SPLI in view of the voluntary retirement and acceptance of all the benefits mentioned in Clause 7 of the VR Scheme in full and final settlement as back as on 25th February, 2008 which resulted in cessation of jural relationship. The principles of estoppel and waiver are applicable to the present case. There is no merit in the writ petition which has been rightly dismissed by the learned Single Judge.
Issues: Whether the appellants can maintain a claim after accepting the voluntary retirement under the VR Scheme and receiving payment under it?
Ratio Decidendi: An employee after taking the VRS, cannot raise claim for higher salary unless by reason of a statute he becomes entitled thereto.
Final Decision: Appeal dismissed with costs of Rs.25,000/-.
J.R. Midha, J.
1. The appellants are the erstwhile officers of the respondent who opted for voluntary retirement under the Voluntary Retirement Scheme – 2008 dated 1st February, 2008 (hereinafter referred to as ‘VR Scheme’) on 25th February, 2008.
2. On 19th February, 2011, i.e. almost three years of taking voluntary retirement, the appellants filed the writ petition to claim an incentive under Scheme of Performance Linked Incentive (hereinafter referred to as ‘SPLI’) for the financial year 2007-08 which was dismissed by the learned Single Judge and is under challenge in this appeal.
Factual matrix
3. The salient features of VR Scheme of the respondent are as under:-
3.1. The employees are entitled to the benefits mentioned in Clause 7 only.
3.2. SPLI is not mentioned in Clause 7 of VR Scheme.
3.3. Clause 7.7 clarifies that no other benefit shall be available to the employees opting for voluntary retirement under the VR Scheme.
3.4. Clause 9.4 further specifies that the benefits payable under the VR Scheme shall be in full and final settlement of all claims whatsoever arising under the Scheme or otherwise and the employee will not have any claim whatsoever against the respondent and no demand or dispute will be raised by him whether for re-employment or compensation or back wages.
3.5. Clause 9.12 further clarifies that there will be no revision of the voluntary retirement amount on account of pay revision or any other account in future.
3.6. Clause 9.13 further clarifies that the VR Scheme is not negotiable.
4. The relevant clauses of the VR Scheme are reproduced hereunder:-
“7. BENEFITS UNDER THE SCHEME An employee, whose application for voluntary retirement is accepted, shall be entitled to the following:-
7.1 The balance in Provident Fund Account of the employee, payable as per the IFCI Employees’Provident Fund Regulations.
7.2 (i) Pension as per the IFCI Pension Regulations to those employees who have already opted for pension.
(ii) Pension as per the IFCI Pension Regulations to employees (in case they are not pension optees) who opt for VRS and seek pensionary benefits in lieu of contributor Provident Fund.
7.3 Payment of lumpsum amount equivalent to Pay plus allowances for the unavailed Ordinary Leave, as on the date of relieving on voluntary retirement subject to a maximum of ten months, as per rules of the IFCI.
7.4 Gratuity as admissible under the Rules of the IFCI.
7.5 Voluntary retirement amount equivalent to two months salary for each completed year of service rendered or the monthly salary at the time of relieving on voluntary retirement multiplied by the balance complete calendar months of service left or Rs.15 lakhs whichever is less. Service rendered by an employee prior to joining the service of the IFCI shall not be reckoned for the purpose of calculating the voluntary retirement amount (Fraction of service of six months and above will be reckoned as one year and fraction of service of less than six months will be ignored for the purpose of calculating years of service rendered in IFCI).
7.6 Retirement Fare Concession on the same basis as applicable on normal retirement.
7.7 No other benefit, including the post retirement medical benefits under the Voluntary Welfare Scheme and Medical Scheme of the IFCI shall be available to the employee opting for Voluntary Retirement under the Scheme. The total amount, without interest, contributed by an employee under IFCI Voluntary Welfare Scheme shall be refunded to him.”
“9.4 The benefits payable under the scheme shall be in full and final settlement of all claims whatsoever, whether arising under the scheme or otherwise to the employee (or to his nominee in case of death). An employee, who is voluntarily retired under the scheme, will not have any claim against the IFCI whatsoever and no demand or dispute will be raised by him or on his behalf, whether for re-employment or compensation or back wages.”
“9.12 There will be no revision in the Volunt
