H P SHARMA Vs. MAHANAGAR TELEPHONE NIGAM LTD

JUDGEMENT

(1.) -The petitioners in these proceedings under Article 226 of the Constitution have questioned the MTNL Executive Voluntary Retirement Scheme (the Scheme ) formulated on 18.5.2005.

(2.) The respondent (hereafter called MTNL ) formulated the Scheme with a view to optimising or right sizing its man power, by providing attractive terminal benefits to eligible employees, and enable them to retire voluntarily before the actual date of superannuation. As per Clause 5 of the Scheme, the employee is entitled to normal retirement benefits; in addition the Scheme entitles the optee to payment of compensation equivalent to 60 days salary (Basic+DA) for each completed year of service or salary for the number of years /months left till the date of superannuation whichever is less. This compensation is payable as per a formula indicated in that regard.

(3.) Clause 4 of the Scheme prescribes the eligibility; it entitles employees who had completed 50 years and had served MTNL/DOT continuously as regular employees for 25 years. As per Clause 4.4 the benefits of the Scheme were inadmissible if the optee has filed a case against MTNL and the same is pending.