G.V. Srinivasa Murthy 8 Ors. vs Secy., Dept. Of Heavy Inds., New Delhi 2 Ors.

In  both  the  writ  petitions,  all  the  petitioners  are employees of the 3rd respondent organization and are seeking the same relief of writ of Mandamus declaring that the petitioners are entitled to protection of their service by way of absorption into the service of any of the Central Public Sector Enterprises/Central Government Service on par with the employees of the organisation at Naini Unit/3rd respondent, Allahabad, State of Uttar Pradesh and consequently to direct the respondents 1 and 2 to protect the services of the petitioners by absorbing them in the service of any of the Central Public Sector Enterprises/Central Government Service duly protecting their service benefits on par with the employees of the 3rd respondent at Naini Unit, Allahabad, State of Uttar Pradesh, and grant such other relief as it deems fit in the circumstances of the case.

Learned counsel appearing for the petitioners submits that all the petitioners are employees of the 3rd respondent-organisation i.e., Hindustan Cables Limited. The 3rd respondent organization has three units. One at Roop Narayanapur, State of West Bengal, 2nd Unit at Hyderabad and 3rd unit at Naini, Allahabad, State of Uttar Pradesh. According to the petitioners, all the three units are to be reckoned as one legal entity. Since the 3rd respondent organization had become a sick company, it had applied for a rehabilitation package before the Board for Industrial and Finance Reconstruction (BIFR). The Central Government had taken a decision to close the organisation by relieving all of its employees from all the three units except for transferring certain assets and liabilities of Naini unit along with the remaining employees to a wholly owned subsidiary of HAL. The Union Cabinet, in its meeting held on 29.11.2016 had taken a decision to the above effect and accordingly, except for some of the employees of Naini unit who did not opt for VRS, all the other employees of Naini Unit, Hyderabad Unit as well as Roop Narayanapur Unit were relieved from service by paying the retirement benefits. It is the case of the writ petitioners that since they did not have any other option, they have opted for the VRS offered by the Central Government. But later on, on coming to know about the transfer of some of the employees to HAL, they have filed these writ petitions seeking similar treatment as given to the employees at Naini Unit and absorption to any other department of Central Government Service and submitted that they are ready to return the retirement benefits received by them if they are absorbed into any other department of Central Government.

Sri Vedula Venkata Ramana, learned Senior Counsel appearing for the petitioners strongly contended that discriminatory treatment has been meted out to the employees of Hyderabad Unit when compared to the employees of Naini Unit, and therefore, the cases of writ petitioners has to be directed to be considered by the Central Government. It is further submitted that the petitioners had reached the age of 40 to 45 years at the time of VRS offered by the Central Government and they are not in a position to find any employment in any other organization and the VRS amount paid by the Government is not sufficient for them to meet their day-to-day sustenance as well as providing education to their children and medical facilities etc. It is further submitted that HAL which has absorbed some of the employees of Naini Unit is also a unit of Central Government and therefore, it is for the Central Government only to take a decision on the absorption of the petitioners into service of any other central Government enterprises.

Learned counsel for respondents 1 and 2 submitted that after the respondent No.3 became a sick company, a proposal was made to handover HCL to the Ordinance Factory Board under Department of Defence Production (DDP), Ministry of Defence, but the proposal did not find favour with the MOD. Thereafter, DDP, vide OM dated 24.02.2016, intimated that Hindustan Aeronautics Limited (HAL) has proposed to take over the Naini Unit of HCL located at Allahabad, UP and accordingly, the said unit along with the remaining employees who have not opted for VRS were transferred to HAL. It is submitted that it is not Central Government which has absorbed some of the personnel of Naini Unit to HAL but it was HAL which has taken over the said unit and the writ petitioners cannot allege discrimination against them.

Learned counsel for respondent No.3 has also filed a counter affidavit and also submitted that the employees of the Hyderabad Unit were put on notice before offering the VRS scheme and after taking into consideration their opinion and also consent for VRS only, they were relieved from service. It is submitted that at this stage, they cannot turn around and say that they should be absorbed into any other Central Public Sector Enterprises/Central Government Service.

Having considered the rival contentions, this court finds that the 3rd respondent as well as the HAL are all Central Government undertakings which are independent in conducting their businesses. Since the 3rd respondent organization became a sick industry, a decision was taken to close the company and all the petitioners herein have been put on notice and after obtaining their consent only, they were relieved under the voluntary retirement scheme. It is the contention of the petitioners that they were not aware of the HAL taking over the unit at Naini. Therefore, they have opted for VRS and they are willing to return the amount that they have received provided, they are considered for absorption into any of the other organizations of Central Government. Though the petitioners have no legal right to claim absorption into other organizations of the Central Government, their request also cannot be said to be unreasonable, because the petitioners being in their middle age, cannot find any suitable employment and their families are likely to suffer from their being unemployed.

In view thereof, this court deems fit and proper to direct the respondents 1 & 2 to consider the cases of the petitioners for absorption into any other Central Government Enterprise or Department provided there are regular vacancies and the petitioners are qualified for the same. If any of the petitioner is found suitable for any of the posts, they shall be absorbed and the said absorption shall be considered as a fresh appointment for all purposes such as seniority and retirement benefits etc.

With the above direction, both the Writ Petitions are disposed of. No costs.

Miscellaneous petitions, if any, pending shall stand closed.