Employees who superannuate in the normal course of service are not eligible for compensation under a Voluntary Retirement Scheme (VRS) designed for those foregoing their service, particularly when the administrative orders clarifying this ineligibility remain unchallenged.

ORDER:

Aggrieved by the action of the respondents in having accepted the voluntary retirement applications and relieving the petitioners on 01.11.2016 and not paying the voluntary retirement benefits on par with other employees, the present writ petition is filed.

2) Heard S. Ajay Kumar, learned counsel, representing Sri A.K. Jayaprakash Rao, learned counsel for the petitioners, Sri N.Bhujang Rao, learned Deputy Solicitor General, appearing for respondent No.1 and Sri B. Shiva Kumar, learned Standing Counsel, appearing for respondent Nos.2 and 3.

3) The case of the petitioner, in brief, is that consequent to closure of the Company, as approved by the Union Cabinet on 28.09.2016, respondents 2 and 3 have issued the notice dated 03.10.2016 opening Voluntary Retirement Scheme, for which, the petitioners have responded and submitted applications for voluntary retirement and the same were accepted by respondent No.3 and the petitioners were also relieved on 01.11.2016. However, the petitioners were not paid the benefits payable under the Voluntary Retirement Scheme. Hence, the present writ petition.

4) Learned counsel for the petitioners submits that the petitioners were paid only retirement amounts whereas the other employees were paid voluntary retirement benefits in addition to the retirement benefits. The other employees were paid amounts under Voluntary Retirement Scheme based on the 2007 Revised Pay Scales whereas the petitioners were paid only retirement benefits under 1997 Pay Scales, which is arbitrary and discriminatory. Further, the respondents have obtained undertaking from the petitioners that Voluntary Retirement Scheme amounts will be payable as and when they receive the amounts from respondent No.1. Out of 417 employees opted for Voluntary Retirement Scheme, the respondents have paid voluntary retirement benefits to 400 employees, 2 employees died and the amounts were not paid to the petitioners numbering 15 for the reasons best known to them and the said action of the respondents amounts to arbitrary, discriminatory and unfair labour practice. Learned counsel further submits that as per the notice dated 03.10.2016, the Voluntary Retirement Scheme will be paid to the existing employees of the Company at notionally fixed pay in 2007 pay scales and gratuity and leave encashment also shall be in 2007 pay scales in relaxation of Department Public Enterprises guidelines inclusive of TA to employees for settling at Home Town. The petitioners are eligible for VRS benefits as the respondents have accepted their applications and relieved the petitioners on acceptance of voluntary retirement vide proceedings dated 01.11.2016. Therefore, the learned counsel contends that withholding the amounts payable to the petitioners by the respondents in the revised pay scales of 2007 is arbitrary and discriminatory.

5) Learned Deputy Solicitor General submits that based on the Cabinet decision and on the advice of respondent No.1, the Company has implemented VRS/VSS to all the existing regular employees vide circular dated 03.10.2016 requesting to submit their VRS application on or before 31.10.2016 and relieved all the employees w.e.f. 31.01.2017 except 125 employees of Naini Unit Allahabad, who were transferred to subsidiary of Hindustan Aeronautics limited (HAL) as per Cabinet approval. Further, the Cabinet Committee on Economic Affairs has taken a decision to close some other sick CPSEs under the Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises such as HMT Watches Ltd