SRI PRADIP KUMAR SARMA Vs. STATE OF ASSAM

JUDGEMENT

(1.) All the petitioners were employees of Mandya National Paper Mills (for short 'MNPM'). It was a company incorporated under the provisions of the Companies Act. It suffered huge loss. In order to extend certain benefits to employees working therein, Central Government issued official memorandum dated 05.05.2000 vide Annexure-B. This was a voluntary retirement scheme applicable to all sick units. The said scheme was by way of an amendment to the earlier scheme dated 05.10.1988. The Government had kept in mind interest of both employees and the need to enable public sector enterprises to rationalise their surplus manpower.

(2.) Relevant clause in the said scheme (Annexure-B) for the Purpose of this case is Clause (5). It states that for sick and unviable units, the VSS package of the department of heavy industry would be adopted. As a corollary, the VSS scheme was modeled on Gujarat pattern. However, employees were required to opt for VSS within three months from the date of offer failing which they would be eligible only for retrenchment compensation.

(3.) As this scheme was made applicable to 3rd respondent-Company, all employees either through their representative union or on their own sought for benefit of voluntary retirement by applying within three months from 05.05.2000. It thus follows that on or before 05.08.2000, all employees of MNPM sought benefit of the scheme. They were indeed paid monetary benefit as per the scheme.