IN THE HIGH COURT OF DELHI AT NEW DELHI
Mini Pushkarna, J.
Dharam Pal Dhall – Appellant
Versus
Union of India & Ors. – Respondents
W.P.(C) 2414 of 2011 & CM APPL. 36817 of 2022
Decided On : 10-07-2023
Ex Gratia Scheme - Employee Benefits - Indian Contract Act, 1872, Section 28 - The court discussed the Ex Gratia Scheme 'Bharat Petroleum Corporation Limited Monthly Ex Gratia Scheme' and its applicability to ex-employees, the conditions for eligibility, and the restrictions imposed on employees regarding pending litigations. The court highlighted the legal provisions of the Indian Contract Act, 1872, Section 28, and its interpretation in relation to the Scheme. The court found the conditions imposed by respondent No.2 to be arbitrary, unlawful, and in violation of the fundamental rights as enshrined in the Constitution of India. The court held that the conditions restricting employees from enforcing their legal rights before a court of law were illegal and unacceptable, and directed respondent No.2 to release the ex gratia amounts to the petitioner's wife.
Fact of the Case:
The petitioner, an ex-employee of respondent No.2, sought the benefit of the Ex Gratia Scheme after his superannuation. However, respondent No.2 denied the benefit citing pending litigation filed by the petitioner against them. The petitioner's legal representative, his wife, continued the petition after his demise. The court found that the conditions imposed by respondent No.2 were arbitrary and unlawful, and directed respondent No.2 to release the ex gratia amounts to the petitioner's wife.
Finding of the Court:
The court found the conditions imposed by respondent No.2 to be arbitrary, unlawful, and in violation of the fundamental rights as enshrined in the Constitution of India. The court held that the conditions restricting employees from enforcing their legal rights before a court of law were illegal and unacceptable, and directed respondent No.2 to release the ex gratia amounts to the petitioner's wife.
Issues: The issues involved the eligibility of the petitioner for the Ex Gratia Scheme, the legality of the conditions imposed by respondent No.2, and the territorial jurisdiction of the court.
Ratio Decidendi: The court held that the conditions imposed by respondent No.2 were illegal and unacceptable, as they restricted employees from enforcing their legal rights before a court of law. The court also established the territorial jurisdiction of the court to hear the matter.
Final Decision: The court allowed the writ petition and directed respondent No.2 to release the ex gratia amounts to the petitioner's wife, payable from the specified date and continuing till her lifetime in terms of the Scheme.
JUDGMENT
Mini Pushkarna, J. The present writ petition has been filed for directions to respondent No.2 to grant the benefit of the ex gratia Scheme to the petitioner, with further prayer for quashing and striking down Clauses 6(i), 6(xiv) and 6(xxii) of the said Scheme. Since the petitioner expired in the year 2016, the present petition has now been continued through his legal representative, i.e., wife of the deceased petitioner.
2. The respondent No.2 had introduced a Scheme effective from 01.04.2008, under which a monthly amount is paid to the retired and other ex-employees of respondent No.2. After the death of the retiree/ex-employee, his/her surviving spouse receives the said payment till his/her death. As per the said ex gratia Scheme known as "Bharat Petroleum Corporation Limited Monthly Ex Gratia Scheme" (Ex Gratia Scheme), the same is applicable to all the ex-employees who have completed minimum 15 years of continued service with the respondent and who had joined the service of the respondent No.2 on or before 31.03.2008.
3. Since the petitioner joined the service of respondent No.2 before 31.03.2008 and had superannuated in the year 2005 on 30.04.2005, the petitioner duly applied for availing benefit of the said Ex Gratia Scheme. However, respondent No.2 refused to extend the benefit of the said Scheme to the petitioner and insisted the petitioner to first withdraw the suit filed by the petitioner against respondent No.2, before his application under the said Scheme was considered. The petitioner received an email dated 25.03.2009 from respondent No.2, which reads as under:
[IMG]
4. The aforesaid email message dated 25.03.2009 was recalled by an email message dated 26.03.2009. Later on another email message dated 06.04.2009 was received by the petitioner from respondent No.2, wherein the petitioner was informed that ex-employees who have any litigation against the respondent No.2, are not eligible under the said Ex Gratia Scheme. The email dated 06.04.2009 sent by respondent No.2 to the petitioner is reproduced as below:
[IMG]
5. Since the benefit of the Ex Gratia Scheme was not extended to the petitioner, the present writ petition came to be filed.
6. On behalf of the petitioner, it is submitted that the Scheme stipulates that the same would not be applicable to an employee who had entered into litigation for pension or superannuation scheme. It is submitted that the petitioner had not initiated any litigation qua the pension or superannuation against respondent No.2. As such there was no embargo against the petitioner for his entitlement or eligibility for benefit under the Ex Gratia Scheme.
7. It is submitted that in the year 1994, petitioner was allotted a residential accommodation by respondent No.2 being property No. A-10, First Floor, South Extension-II, New Delhi, wherein the petitioner resided with his family till 25.10.2004. The said property was not owned by the respondent, but the same was taken on lease by respondent No.2 and was being allotted to employees of respondent No.2 from time to time. The respondent No.2 was also deducting occupancy charges from the monthly salary of petitioner in accordance with the Service Rules.
8. It is submitted that wife of the petitioner was a doctor, while son of the petitioner was studying Engineering at that point of time. As a result, nobody stayed in the said accommodation from morning till evening on working days.
9. When the petitioner and his family members returned home on 25.10.2004, they were shocked to see all their household goods strewn and dumped in heaps along the public road outside their residence. On making enquiries, it was revealed that the petitioner had been evicted from the said house under a Court decree of possession. The petitioner had no knowledge or notice of any litigation between the landlord of the said premises and respondent No.2 herein or of any decree directing eviction from the said property.
10. It is contended on behalf of th
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