RAMBIR PANCHAL Vs. UNION OF INDIA

JUDGEMENT

(1.) These four petitions, i.e. CWP-27483-2016, CWP-25068-2016, CWP-3828-2017 and CWP-3947-2017, are being disposed of by a common order because almost similar facts and the same preposition of law are involved in these matters. However, for the sake of brevity, the facts are being taken from CWP-27483-2016.

(2.) The facts, in brief as mentioned in the present case, are that the Hindustan Machine Tools Limited (for short, 'HMT Limited') is a Central Public Sector Enterprises, under the Ministry of Heavy Industries and Public Enterprises, Government of India. This Central Public Sector Enterprises was having a Tractor Manufacturing Unit at Pinjore. The said HMT Tractor Division happened to be in profit till the year 2002-2003. Thereafter, the HMT Tractor Division started incurring repeated losses. Efforts were made to revive the profits of the said HMT Tractor Division in the year 20072008. Accordingly, an amount of about Rs.1083.00 crores was infused in the operations of the said HMT Tractor Division in the year 2013. However, the revival of the said HMT Tractor Division could not fructify. Therefore, the proposal was made to initiate closure of the HMT Tractor Division situated at Pinjore. Since, the Central Government happens to be a majority stake share holder in the HMT Limited, therefore, any proposal to initiate the closure of any unit, has to be approved by the Central Government. Accordingly, the matter was put up before and was considered by the Cabinet of the Central Government, which vide decision dtd. 27/10/2016 approved the proposal of initiating closure of the HMT Tractor Division situated at Pinjore. Further, provisions of the funds for the retrenchment compensation or the Voluntary Retirement Scheme (for short, 'VRS'), as per the options of the concerned employees, was also approved. After the approval was granted by the Union Cabinet, the statutory proceedings were initiated by the management of the company under Sec. 25(O) of the Industrial Disputes Act, 1947 (herein after referred to as, 'the Act') for closure of the unit. After undergoing the statutory procedure, the appropriate Government, in exercise of its statutory powers, approved the closure of the said HMT Tractor Division, Pinjore, vide order dtd. 14/2/2017. In the process, 850 employees had opted the VRS offered by the company even before the formal closure order could be passed and the rest of the employees were paid the retrenchment compensation at the time of closure. The petitioners in the present set of petitions have challenged the order of closure of the HMT Tractor Division at Pinjore, as such. Still further the petitioners had not opted for the VRS offered by the Government of India on their perception that it is not framed in reasonable terms.

(3.) However, during the pendency of the present petitions, all the petitioners herein have been paid the retrenchment compensation, as stated by the learned counsel for respondents No.3 and 4. It is in this gamut of facts that this Court is called upon to adjudicate upon the issues raised by the learned counsel.