K K PURI Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are retired employees of the Oriental Insurance Co. Ltd.-respondent No.2, National Insurance Co. Ltd.- respondent No.3, the New India Assurance Co. Ltd.-respondent No.4 and United India Insurance Co. Ltd.-respondent No.5. These companies were established by an Act of Parliament known as the General Insurance Business (Nationalisation) Act of 1972 (for brevity 'the Nationalisation Act). These are wholly owned by the Central Government, which has powers to lay down service conditions for their employees of the aforesaid companies by virtue of provisions made under Section 17-A of the Nationalisation Act.

(2.) In pursuance of power conferred under Section 17-A of the Act, the Central Government notified a Special Voluntary Retirement Scheme (for short 'the SVRS') to downsize the manpower in those companies. The Scheme made separate provisions for officers and staff (Annexure P-1 and P-2). It was to remain in force for 60 days, unless it was closed prematurely. Two separate gazette notifications with almost identical terms, conditions and contents were published on 1.1.2004.

(3.) The petitioners opted for Special Voluntary Retirement Scheme and were paid numerous benefits such as Ex-gratia, Gratuity, Provident Fund, Leave Encashment and Pension etc. The Scheme came into force w.e.f. 1.8.2002 and the petitioners were relieved on 31.03.2004. The petitioners are aggrieved by proviso to Sub Para 3 of Para 1 of the Scheme which provides that the officers whose resignation have been accepted or whose services had been terminated during the period of 1.8.2002 and the date of publication of this Scheme i.e. 22.12.2005 were not to be eligible for the arrears on account of revision under the Scheme. The other proviso further stipulated that the officers were not eligible for any benefit arising from the Scheme other than that provided for by paragraph 5 (2) of the Scheme. The petitioners having sought voluntary retirement under the aforesaid Scheme have approached this Court with a prayer that they should be paid arrears of the salary with effect from the date this Scheme has come into operation till the date of their relieving i.e. 1.8.2002 to 31.3.2004. They have submitted that once the Rule provides that those who had already sought voluntary retirement before issuance of notification of the Scheme then such Officers were entitled to benefit of revised pay except for the purpose of payment of Ex-gratia. Accordingly, the petitioners have approached this Court with a prayer for declaring the proviso II, Sub Para 3 of Para 1 of the Scheme as ultra vires of the Constitution claiming that the petitioners have actually rendered service during that period and they cannot be excluded for grant of benefit of revision of pay-scale and arrears from that date.