KARNATAKA AGRO INDUSTRIES CORPORATION VOLUNTARILY RETIRED EMPLOYEES WELFARE ASSOCIATION REGD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The Appellant No. 1 is the Karnataka Agro Industries Corporation Voluntarily Retired Employees Welfare Association (Registered) represented by its President and Appellant Nos. 2 to 25 are the Voluntarily Retired Employees of the second Respondent- Karnataka Agro Industries Corporation Limited (for short 'Corporation'). The Appellants, assailing the correctness of the order dated 8th March 2006 passed in W.P. No. 171/2001 by the learned Single Judge, have presented these writ appeals.

(2.) The Appellants herein have filed a writ petition before the learned Single Judge, seeking a mandamus directing the Corporation to refix their compensatory allowance and other emoluments to all the employees who have opted for voluntary retirement as per the Circular dated 27.5.1999, contending that, they were the employees of the Corporation and it has introduced a Voluntary Retirement Scheme to reduce the surplus staff and to make the Organisation viable. The Appellants have submitted their application opting for voluntary retirement under the said scheme. The Corporation has accepted their applications and relieved them from duty between June 1999 to November 1999 and the Appellants- 2 to 25 have accepted the compensatory benefits under the scheme. Be that as it may. The Government of Karnataka revised the pay scales under the Karnataka Civil Services (Revised pay) Rules, 1999, retrospectively from 1.4.1998. Pursuant to introduction of the said pay scale with retrospective effect, the Appellants who have retired under the Voluntary Retirement Scheme, claimed that they are entitle for re-fixation of their compensatory allowance w.e.f. 1.4.1998 and when their claim is not considered by the Corporation, Appellants have filed the writ petition invoking the extra ordinary jurisdiction under Article 226 of the Constitution of India, seeking a mandamus to direct the Corporation to refix their compensatory allowance as per Karnataka Civil Services (revised pay) Rules, 1999 and to release the amount with interest.

(3.) The said writ petition had come up for consideration before the learned Single Judge on 8th March 2006. The learned Single Judge, after hearing learned Counsel for both the parties and after careful perusal of the terms and conditions of the Voluntary Retirement Scheme introduced by the Corporation and by following the judgment of the Apex Court in the case of A.K. Bindal and Anr. v. Union of India and Ors., 2003 5 SCC 163 has observed that, voluntary retirement scheme is a package deal of give and take. The jural relationship between the employer and employee will come to an end on relieving the employee from duty. Further, the learned Single Judge has observed that, Appellant Nos. 2 to 25 by accepting the terms of the Scheme, opted for voluntary retirement and Clause- 5 of the said Scheme specifies that, any employee retiring under the Scheme shall not have any claim against the company on any account except for the amount payable under the said Scheme and therefore, the revision of pay scales made by the Government of Karnataka as per notification issued in the month of January 1999 by giving retrospective effect from 1.4.1998 will not be extended to the employees who have retired from service and since the Appellants are retired under the voluntary retirement Scheme which is a package by itself, and declined to consider the prayer sought by the Appellants and dismissed the said writ petition.