HINDUSTHAN SHIPYARD LTD Vs. S NAGABHUSHANA RAO

JUDGEMENT

(1.) These two writ appeals are brought against the common order passed by our learned Brother T.N.C. Rangarajan, J., in W.P.Nos.8952 and 20689 of 1995 by which the plea of the respondent-workmen that the appellant - Hindusthan Ship Yard Limited - has no power to deduct the three months' notice pay paid to them under the voluntary retirement scheme by deducting the same from the wage revision arrears was accepted and a consequential direction was issued that they are entitled to the notice pay with interest under the terms and conditions of the voluntary retirement scheme.

(2.) The voluntary retirement scheme was introduced by the appellant for the purpose of achieving optimum man power utilisation and for improving the over-all performance levels of the organisation. An employee coming within the scheme will be entitled to the following benefits:

(3.) In respect of the respondents in these writ appeals, who are officers, they are entitled to three month's notice pay on their option to retire voluntarily from service. In the beginning, when the scheme was introduced, there was no time lag between the expiry of the notice period and the date of acceptance of the request of the employee for voluntary retirement. Subsequently, a stage was reached, very understandably, as large amounts had to be paid to these employees, when the Hindusthan Ship Yard Ltd., felt that approval could not be accorded due to paucity of funds. Ultimately, when funds could be generated, it was found in some cases that there was considerable interregnum between the end of the notice period and the acceptance of the request of the concerned officer for voluntary retirement. It must be mentioned in this context that after giving the notice, every employee was required to work until the request for voluntary retirement was accepted. So, during the interregnum between the expiry of the notice period and the date of acceptance of the request, the employees who were working had to be paid salary for the period during which they worked. After the acceptance of the request for voluntary retirement, the employees were relieved and when they made claims in consequence of revision in the pay scales for payment of arrears, the management with-held the amount equivalent to the notice pay period on the ground that payment of such amount was not permissible under the voluntary retirement scheme. It appears there was an objection by the Audit Department and, therefore, the Management had to resort to this course of action. Amounts ranging, we are told, from Rs. 3,000/- to Rs. 10,000/- due to each of the respondent officers were with held.