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2025 Supreme(Online)(MP) 2429

HIGH COURT OF MADHYA PRADESH
VIJAY KUMAR SHUKLA, GAJENDRA SINGH, JJ
MP ROAD TRANSPORT CORPORATION – Appellant
Versus
O.P. JAIN AND OTHERS – Respondent
WRIT APPEAL No. 723 of 2024 | WRIT APPEAL No. 1024 of 2023 | WRIT APPEAL No. 1025 of 2023 | WRIT APPEAL No. 1026 of 2023 | WRIT APPEAL No. 1027 of 2023 | WRIT APPEAL No. 1028 of 2023 | WRIT APPEAL No. 1029 of 2023 | WRIT APPEAL No. 1030 of 2023 | WRIT APPEAL No. 1031 of 2023 | WRIT APPEAL No. 1032 of 2023 | WRIT APPEAL No. 2773 of 2024 | WRIT APPEAL No. 2952 of 2024 | WRIT APPEAL No. 2953 of 2024 | WRIT APPEAL No. 2954 of 2024 | WRIT APPEAL No. 2964 of 2024 | WRIT APPEAL No. 2965 of 2024 | WRIT APPEAL No. 2981 of 2024 | WRIT APPEAL No. 2982 of 2024 | WRIT APPEAL No. 2987 of 2024 | WRIT APPEAL No. 2988 of 2024 | WRIT APPEAL No. 2990 of 2024



Advocates:
For the Appellants/Petitioners:Shri Girish Patwardhan - Sr. Advocate, Shri Mukul Bhutda - Advocate
For the Respondents:Shri C.M.Nair - Advocate

Employees opting for Voluntary Retirement are entitled to dearness allowance and consequential benefits, as established by prior court rulings.

Headnote:(A) Madhya Pradesh Uchcha Nyayalaya Khandpeeth Ko Appeal, Adhiniyam, 2005 - Appeal against order allowing writ petitions for gratuity, ex-gratia, and leave encashment - Employees entitled to dearness allowance and consequential benefits as per earlier judgments - Appeals dismissed with costs set aside. (Paras 1, 10)

(B) Employment Law - Voluntary Retirement Scheme - Employees opting for VRS entitled to benefits applicable to State Government employees - Previous court rulings establish precedence for entitlements. (Paras 2, 9)

(C) Judicial Review - Court does not interfere with lower court's decision in absence of merit; established rights of employees upheld. (Paras 8, 10)

Facts of the case:
The appellants, the Madhya Pradesh Road Transport Corporation, challenged a Single Judge's order directing payment of gratuity, ex-gratia, and leave encashment to employees who opted for Voluntary Retirement Scheme, claiming non-payment of dues.

Findings of Court:
The court upheld the Single Judge's ruling, confirming employees' entitlement to arrears and interest, as mandated by previous judgments.

Issues: The main issues included whether the appellants had adequately compensated employees as per the agreements and previous court orders.

Ratio Decidendi: The court emphasized that the employees' rights to dearness allowance and related benefits were established in earlier rulings, justifying the Single Judge's order for payment.

Result: Appeals dismissed.

Shri C.M.Nair - Advocate for respondents/writ petitioners.

ORDER Per: Justice Vijay Kumar Shukla The instant appeals have been filed under Section 2(1) of Madhya Pradesh Uchcha Nyayalaya Khandpeeth Ko Appeal, Adhiniyam, 2005 being aggrieved by the order dated 27.3.2023 against common order passed by Single Judge in batch of writ petitions whereby the writ petitions have been allowed and the respondents have been directed to be given the arrears of gratuity, ex-gratia, leave encashment with 6% interest from the date of Signature Not Verified Signed by: VARGHESE payment of dearness allowance till the date of actual payment. The appellants have further challenged the order passed by the Single Judge in Review Petition against the said order which was registered as RP No.944/2023 whereby the Review Petition has also been dismissed. Regard being had to the similitude of the facts, all the appeals are being disposed off by the common order.

2. The respondents are employees of the then Madhya Pradesh State Road Transport Corporation. They opted for Voluntary Retirement Scheme as per the memorandum of settlement. According to them, in terms of the aforesaid settlement, the benefit of dearness allowance was not given after pay fixation under 4th pay commission which resulted into payment of less amount of gratuity, ex-gratia and leave encashment. The similarly placed employees raised industrial disputes before the Labour Court, Ujjain which came to be allowed vide award dated 01.04.2013 in case no.72/08 ID Reference. The MPSRTC filed various writ petitions before this Court in W.P.No.8822/2013(S) and others. Vide order dated 09.03.2017 all the writ petitions were dismissed with a direction to the Madhya Pradesh State Road Transport Corporation that the employees shall be entitled for similar benefits which have been extended to the identically placed persons by Hon'ble the Supreme Court in Civil Appeal No.321/2013.

3. The respondents submits that after the aforesaid order, the benefit of dearness allowance has been granted to them but the consequential benefits like gratuity, ex-gratia and leave encashment have not been granted. According to the respondents, after grant of dearness allowance to Signature Not Verified Signed by: VARGHESE them it will increase the amount of gratuity, ex-gratia and leave encashment payable to them, but the said difference has not been granted to them till date.

4. The Association of the workmen employees raised a dispute and a reference was made whether the workmen have been paid the dues while granting voluntary retirement and in case, workmen have not been paid, the emoluments to what reliefs they are entitled ?.

5. The Labour Court has passed the award that workmen are entitled for pay scale on the basis of recommendation of 5th Pay Commission has held the workmen are entitled for higher amount as per the impugned award. The appellants challenged the said award in WP No.8822/2013(s). The said petition was disposed off in the light of the judgment passed by the Apex Court in the case of Ramesh Chandra Sankla Vs. Vikram Cement (2008) 14 SCC 58 and also the order passed by the Apex Court in Civil Appeal No.321/2013 holding that in the light of the judgment delivered by the Apex Court, the Corporation does not have any choice except to grant of dearness relief which was applicable at the time of VRS to the employees by the Corporation at par with the employees of the State Government (Scale of 4th Pay Commission) as the same has not been done. It was further directed that the respondents shall calculate the VRS amount by taking into account the pay scale of old 4th Central Pay Commission dearness allowance which was given to the employees of the State government at the time VRS was granted to the employees by the Corporation. The said order was challenged before the Apex Court in SLP(C) No.32869/2017 and the said SLP was Signature Not Verified Signed by: VARGHESE disposed off directing State government and M

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