High CourtsSingle Bench(2004) 11 MAD CK 0025

C. Soundarajan and Others vs The Hindustan Steel Works Construction Ltd. and Another

Madras High Court · Decided on 18 November 2004 · Citation: (2005) 1 CTC 654

HON’BLE JUDGES
A.K. Rajan, J
RESULT
Allowed
CASE NUMBER
Writ Petition No. 6193 of 2002

AI Structured Summary

Not yet generated for this judgment

Judgment

38 paragraphs · 813 words

A.K. Rajan, J.—This writ petition has been filed for the issuance of a writ of Certiorarified Mandamus, to call for the records of the first

respondent in circular No. PER/RR/531/2000/3007 DATED 28.08.2000 quash the same as illegal and consequently direct the second respondent

to pay the arrears as well as the other retirement benefits as per the VRS Scheme applicable to the petitioners.

2.

There was V.R.S. Scheme framed by the company on various dates, the last of which on 18.11.1993 and thereafter on 28.8.2000. The

petitioners No. 14 to 16 have filed their application for V.R.S. prior to 28.8.2000. All other petitioners have filed their application only after

28.8.2000. As per the V.R.S Scheme dated 18.11.1993, persons opting for V.R.S. were given number of benefits as specified in the Scheme.

Some of the benefits were taken away by circular dated 28.8.2000. The question here is as to whether the persons who opted to go on V.R.S.

after 28.8.2000 are also entitled to get the same benefits under the V.R.S. scheme framed on 18.11.1993.

3.

Mr. Raghavachari, learned counsel appearing for the petitioners submitted that since it is a V.R.S. scheme, in order to attract persons go out of

employment certain benefits were conferred. Those benefits were not conferred retrospectively. According to the learned counsel, the circular

dated 18.8.2000 amounts to retrospective operation of the rules.

4.

The learned counsel for the respondents stated except Petitioners No. 14 to 16, all others filed their application subsequent to 28.8.2000.

Therefore they are not entitled to get the benefits as found in the circular dated 28.8.2000. They are not eligible to get the benefit under the earlier

circular. Further, he contended none of the provisions are retrospective in operation. If any person is not inclined to accept the scheme or benefits

conferred by the circular, they are not bound to go on V.R.S. They can be continued in service. According to him, there is no retrospective

operation of any of the rules.

5.

According to the scheme dated 18.11.1993, as found in the typed set attached to the writ petition, the employees going on V.R.S. were given

number of benefits viz., Travelling allowance and Transportation expenses, even without the production of any vouchers and also they were given

half day earned leave and other benefits. All these benefits available to those persons who availed this scheme as long as it was in operation.

Admittedly, on 28.8.2000 another circular has been issued. According to that circular, some of the benefits conferred by the earlier circular were

withdrawn. One such benefit is encashing of additional leave prior 1.10.1989. This according to the counsel for the petitioner amounts to

retrospective operation of the circular. This argument of the learned counsel for the petitioners is not acceptable for the reason that the circular

does not act retrospectively. It applies only prospective and this will apply to those person or all persons to go on V.R.S. after 28.8.2000.

Admittedly, Petitioners 1 to 13, 15 and 17 to 20 applied for V.R.S. Scheme after 28.8.2000. Therefore, they are eligible to get only those benefits

provided under the Circular dated 28.8.2000. They cannot claim the benefits conferred earlier to other persons who went on V.R.S. and got

benefits under 18.11.1993 circular. The arguments of the learned counsel for the petitioners that there cannot be any discriminatory treatment to go

on V.R.S. earlier and on subsequent dates. When there is a specific circular conferring benefit and that benefit is taken away by the subsequent

circular, there cannot be said to be any violation of principles of equality. It is with open eyes the employees take the V.R.S. scheme. No

employee was compelled to go on V.R.S. Therefore, the question of discriminatory treatment does not arise. Inasmuch the circular dated

28.8.2000 is not retrospective in nature, the prayer in the writ petition cannot be granted. Except with respect to respondents 14 and 16, since

they filed application to go on V.R.S. before 28.8.2000, they are eligible to get all benefits as per the scheme under circular dated 18.11.1993.

With respect to others, the writ petition is dismissed.

6.

The learned counsel Mr. Raghavachari brought to the notice of this Court that even in the counter in Para 14, it has been stated that ""none of the

working employees or employees separated by way of superannuation or by way of V.R.S. or due to death or otherwise, have been paid such

alleged benefits so far and as such, the claims of the petitioners are premature and not tenable at this stage."" They were promised of certain benefits

and hence those persons who opted for V.R.S. are entitled to get those benefits and such benefits shall be given to those persons within two

months from the date of receipt of a copy of this Order.

7.

In the result, the writ petition is allowed. No costs.