TMI Blog2010 (12) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... claims under Rule 148(2) of the Company (Court) Rules, 1959 ( the Rules ,). The claim made by the appellants before the Liquidator was that they had not been paid retirement benefits/compensation in accordance with the Office Memorandum dated 5-5-2000 issued by Government of India, Ministry of Heavy Industries and Public Enterprises modelled on the scheme which existed in the State of Gujarat. As per the Gujarat pattern scheme ex gratia compensation is to be calculated on the basis of 26 days month instead of 30 days month which was adopted and applied by IRCC. By the impugned Order dated 18-4-2006, the Liquidator had rejected the claim of the appellants for the following reasons : "1. As the methodology under Gujarat Pattern for calculation of VRS on the basis of 26 days a month instead of 30 days a month, which you are claiming, is not applicable to you as this pattern was not adopted by the IRCC Limited while calculating the VRS compensation. 2. As per the Supreme Court decision, after the payment of VRS compensation, there is a complete cessation of the relationship between IRCC and you. So, you have no right for agitating any kind of past rights." 2. There are several r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratia payment of only 12 months emoluments and not 36 months emoluments. (vi)The employee and his family would also be entitled to travel by the entitled class to the place where he intends settling down. (vii)The voluntary retirement scheme would be applicable to all employees, workers and executives except Chief Executives and Executive Directors." 4. Government of India, Ministry of Heavy Industries and Public Enterprises Ltd., had issued an Office Memorandum dated 5-5-2000. The said Office Memorandum records that the Government of India had earlier announced voluntary retirement scheme dated 5-10-1988 and that the said Scheme had been revised to make it more efficacious having regard to the interest of the employees and to enable Public Sector Enterprises to rationalize their surplus manpower. For the sake of convenience, paragraphs 2, 3 and 5 of the Office Memorandum dated 5-5-2000 are reproduced below : "2. Enterprises which are financially sound and can sustain a scheme of VRS on their own surplus resources may devise and implement variants of the existing VRS cited in para 1 above. However, in no case shall the compensation exceed 60 days salary for each completed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent variants of the existing VRS but in no case should the compensation exceed 60 days salary for each completed year of service or the salary for the number of months of service left, whichever was less. Para 3 of the said Office Memorandum, unlike para 2 which dealt with financially sound enterprises that could sustain a scheme of VRS, applied to enterprises that were making marginal profits or were loss-making enterprises and such enterprises were given an option to adopt the revised scheme of VRS that existed in the State of Gujarat. Under clause (i) of para 3, compensation was to consist of 35 days for every completed year of service and 25 days for the balance of service left until superannuation. There were certain other stipulations. 6. Paragraph 5, on the other hand, applied to sick and unviable units like IRCC. VRS package for retirement of employees of heavy industries was to be adopted in such cases. Paragraph 5 stipulated that the VRS "may be modelled" on the Gujarat pattern and made applicable. The words "may be modelled" in paragraph 5 show an element of discretion. Another requirement was that employees must opt for VRS within three months of offer, failing they w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir letter dated 22-9-2000 conveyed their approval to the proposal for enhancing compensation package from 45 days emoluments to 60 days emoluments for each completed year of service. Financial implications were to be met by IRCC from their own resources/assets. 10. It is clear from the aforesaid facts that what was adopted and made applicable to the employees of IRCC, who were opting for VRS, was different and in variation of clause 5 of the aforesaid memorandum dated 5-5-2000. Benefits and advantages over and above envisaged in and distinct from paragraph 5 were given to the employees of IRCC opting for VRS. Ex gratia payment was enhanced from 45 days to 60 days emoluments for each completed year of service. The requirement to opt for VRS within three months was also done away with. In these circumstances, it is not correct for the appellants to contend that they were entitled to ex gratia compensation by calculating their past service by treating each month as 26 days and not 30 days. What was made applicable and paid to the appellants was a special package. Specific approval was sought and granted by the Ministry of Surface Transport for payment in terms of the package. Parag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge deal of give and take. That is why in the business world it is known as "golden handshake". The main purpose of paying this amount is to bring about a complete cessation of the jural relationship between the employer and the employee. After the amount is paid and the employee ceases to be under the employment of the company or the undertaking, he leaves with all his rights and there is no question of his again agitating for any kind of his past rights with his erstwhile employer including making any claim with regard to enhancement of pay scale for an earlier period. If the employee is still permitted to raise a grievance regarding enhancement of pay scale from a retrospective date, even after he has opted for Voluntary Retirement Scheme and has accepted the amount paid to him, the whole purpose of introducing the Scheme would be totally frustrated. 35. The contention that the employees opted for VRS under any kind of compulsion is not worthy of acceptance. The petitioners are officers of the two Companies and are mature enough to weigh the pros and cons of the options which were available to them. They could have waited and pursued their claim for revision of pay scale withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
