J B KAPOOR Vs. BHARAT HEAVY ELECTRICALS LTD

JUDGEMENT

(1.) The petitioner has sought various directions in this writ proceedings but in the course of hearing, he made submissions regarding delay in the payment of pension amounts. In his written submissions he has also claimed directions for refund of Rs.24,429/- with interest, towards wrongful withholding or deduction of income tax amounts.

(2.) The petitioner was working with the respondent (hereafter referred to as BHEL). He had opted for benefit of voluntary retirement, pursuant to a Scheme (hereafter referred to as VRS) formulated by BHEL in the year 2000. The petitioner was relieved from duties in January, 2001. As per terms of the VRS, inter alia, the optee "employee was entitled to, inter alia, statutory benefits and an ex gratia lump sum one time payment equivalent to 60 days salary, for each completed year of service or monthly salary multiplied by number of months of service before normal date of retirement whichever was less. The relevant clause, i.e. para 8 reads as follows: -

(3.) So far as first claim is concerned the pleadings disclose that the petitioner was entitled to an amount of Rs.12 Lakhs. However, the BHEL took the position that income tax was payable and had to be deducted from the lump sum payment. The averments and submissions of the Petitioner also are to the effect that he opted to receive the lumpsum payment in three equated annual instalments. The grievance on this score is that in spite of having opted not to receive the entire amount, the BHEL arbitrarily deducted tax while making the payment; it is alleged that Rupees Five Lakhs out of the amount was non-taxable.