RAMJANAM CHOUDHURY Vs. STATE OF NAGALAND

JUDGEMENT

(1.) TWO groups of Seasonal Employees of Nagaland Sugar Mills Company Limited (for short 'nsmc') (now defunct) have approached this Court for judicial reprieve to get their retiral benefits from the aforesaid Company. The first writ petition has been filed by as many as 30 persons; whereas 21 employees are the applicants in the next writ petition.

(2.) ALL the aforesaid writ petitioners were seasonal employees of NSMC, Dimapur. The said Company was a Government Undertaking. The sugar mill was closed in the year 2001. Thereafter the seasonal employees and the State of Nagaland came to an understanding that the employees will be treated to have gone on Voluntary Retirement. Accordingly, a Memorandum of Understanding was signed between the leaders of the seasonal employees and the representatives of the NSMC. It was followed by issuance of order No. NSMC/md/gen-1/2002 dated 4. 12. 2002 by the Managing Director of NSMC Ltd. , ordering that the employees will be covered by Voluntary Retirement Scheme (for short 'vrs' ). The negotiated settlement was approved by the Cabinet on 30. 5. 2002 after final closure of the NSMC on 30. 9. 2001. By virtue of this order the employees were deemed to have released from service with effect from 30. 9. 2001.

(3.) AFTER the winding-up of the NSMC, the entire liability to pay arrear salary, bonus and benefits under VRS Scheme came upon the State of Nagaland. However, the State failed to fulfill its obligation by way of redeeming its liability. After great persuasion and strenuous efforts, the seasonal employees could obtain sanction of a sum of Rs. 1,23,03,580/- (Rupees one crore twenty three lakhs three thousand and five hundred eighty ). This amount was released by the Director, Industries and Commerce, Nagaland, Kohima vide Cheque No. 331998 dated 23. 4. 2004 drawn on State Bank of India, Lerie Branch, Kohima. The peculiar feature of this cheque was that it was issued in the name of Shri Shihovi Sumi, who represented the seasonal employees as the Ex-Chairman of an ad hoc committee constituted for limited purpose to get release of the retiral benefits. The other special feature of the cheque was that it was a bearer cheque and the cheque was encashed directly, allegedly by the said Shihovi Sumi on 26. 4. 2004. Out of this total amount of Rs. 1,23,03,580/- only a small amount was disbursed to few seasonal employees and that too through the underground extremists. Major chunk of seasonal employees, who were non-locals, did not get their share of retiral benefits. After unsuccessfully raising their voice before the concerned officers of the State, the aforesaid two writ petitions have been filed before this Court under Article 226 of the Constitution of India. Basically in both the writ petitions an order in the nature of Mandamus has been sought for so as to direct the respondents to pay the arrear amounts due to the petitioners.