ORDER:

This Writ Petition is filed under Article 226 of the Constitution of India seeking a writ of mandamus declaring the action of the respondents in not paying the voluntary retirement benefits, such as, gratuity, ex-gratia and earned leave as per G.O.Ms.No.16, Public Enterprise (PZE.III) Department dated 22.03.2001, from the date of initial appointment on daily wage basis, as illegal, arbitrary and unconstitutional; and for a consequential direction to the respondents to pay the voluntary retirement benefits with interest @ 12% per annum from the date it is payable.

2. The husband of the petitioner herein, Sri B.Srinivasulu Reddy was appointed as Contract Labour/NMR/Daily Wage Worker in the Milk Products Factory, Chittoor, which is one of the unit of the 3rd respondent-organization on 11.05.1985 and his service was regularized on 20.04.1998 in the time scale pursuant to the direction given in W.A.Nos.1426, 1427 and 1525 of 1987 dated 31.10.1996 and W.A.No.15236 of 1994 dated 06.04.1998. While so, the Principal Secretary, Public Enterprise Department, Government of Andhra Pradesh issued G.O.Ms.No.16 dated 22.03.2001 framing consolidated guidelines to the employees of public sector undertakings/co-operative institution opting for voluntary retirement scheme and the said G.O. made applicable to the 3rd respondent-organization also and as per the said G.O., an employee opting for voluntary retirement is entitled for terminal benefits as specified in clause No.7 of the G.O., which is as follows:

TERMINAL BENEFITS: The terminal benefits as statutorily due will be paid as per the eligibility.

i) The balance in P.F. account payable as per the E.P.F.

Regulations.

ii) Cash Equivalent to of accumulated Earned Leave as per the Rules of the Enterprise.

iii) Gratuity as per the provisions of the Payment of Gratuity Act 1972 or other applicable Rules of the Organization.

EX-GRARTIA BENEFITS;-

1) An employee is regular or permanent, whose request for VRS is accepted would be entitled to an Ex-gratia payment equivalent to one and half months emoluments (Pay + DA) last drawn, for each completed year service or the monthly emoluments at the time of retirement multiplied by the balance months of service left before normal date of retirement whichever is less, subject to a minimum of Rs.30,000/- (Rupees thirty thousand only) months of service left before normal date of retirement whichever is less, subject to a minimum of Rs.30, 000/-

(Rupees thirty thousand only).

One month/3 months notice pay as per the service conditions applicable.

If the application of an employee opting for VRS is accepted instantaneously and payment is arranged by the management on the same, the concerned individual would be entitled for payment of Ex-gratia along with pay for notice period.

Payment of Ex-gratia for services rendered or left over service (Which ever is less), as well as the mount payable for notice period should, however, not exceed the basic pay + DA. That would have been paid to the employee who has opted for VRS till the date of his superannuation.

Where the management takes time to take a decision on the acceptance of application submitted by employees for VRS and allows the notice period to lapse or the employer concerned has drawn full salary during the notice period served by him, the pay for notice period would not be admissible as the employee has already drawn the salary for the notice period.

In addition the employee and his family would also be entitled to travel fare of the admissible class to the his native place within the state of Andhra Pradesh, which will be verified reference to his LT.C. file.

ii) For Calculation of EX-gratia under the scheme the fraction of the service, viz., 6 months and above will be treated as one year and service of less than 6 months will be ignored.

iii) E.O.L. up to a period of one year will be considered for calculation, of Ex-gratia benefits provided the service regulation of the concerned organization permit sanction of