OM PRAKASH Vs. STATE OF H.P

JUDGEMENT

(1.) This case involves interpretation of Rules and requires to be heard by Division Bench. But there is no likelihood of constitution of D.B. in the absence of Judicial Member. The Honble Vice Chairman who is from Judicial side had remained associated with this case at he initial stage in his capacity as Additional Advocate General and cannot hear. In view of this and with the consent of the parties; this case was finally heard and order was reserved on March 17, 2004.

(2.) The facts of the case are that the applicant Sh. Om Prakash had been serving in the Erstwhile Nahan Foundry Ltd. and served there in various capacities. He joined services of the Foundry on 25.3.1952 and then he reached to the Grade of Assistant Manager and then took voluntary retirement w.e.f. 30.6.1990 after over 38 years of service.

(3.) In September 1988 the Government of H.P. in consultation with Board of the Nahan Foundry decided as a policy matter to transfer the Nahan Foundry to HPPWD/ I&PH department of H.P. Govt. as a workshop and process for the same was to be completed by 15th October 1988. It was decided that the employees of erstwhile Nahan Foundry shall be absorbed and their interest including seniority and salaries shall be safeguarded. The employees will be allowed to exercise option whether to opt for earlier pay scales or those after the merger vide Annexure A -1. Subsequent to this, vide Notification No. PBW (Spl. Coo)1 -A(1)1/89 dated 27.12.1989 of P.W.D., Govt. of H.P. (Annexure A -2) the Nahan Foundry was converted into State workshop for HPPWD & I&PH Department Although the services of the employees of the erstwhile Foundry were deemed to have been transferred to PWD Department w.e.f. 1.10.1988 but with the condition that their pay scale shall not be varied to their disadvantage. They were given the option to exercise either to retain their existing pay scales or to opt for corresponding pay scales of HP. Govt. They could exercise this option even at a later date. Further to this vide para 3.1 of the notification which is relevant to this case the employees were given option either to continue with (a) existing contributory provident Fund Scheme in which case they win not be entitled to pension or (b) to opt for G.P.F. -cum -Pension scheme (Annexure A -2). The applicant though in the beginning did not give any option and was thus deemed to have continued in the old central scale of Nahan Foundry and consequential benefits accordingly but subsequently he exercised his option vide letter dated 15.3.19% (Annexure R -3) to retain the old Contributory Fund Scheme of the erstwhile Nahan Foundry. He was, therefore, entitled for payment of DCRG in accordance with the terms and conditions of the erstwhile Nahan Foundry which was calculated to Rs. 80040/ - but was actually paid Rs. 50000/ - only in accordance with the "Payment of Gratuity Act 1972" providing the ceiling of Rs. 50000/ - as per averments made by the respondents. This amount was paid in two installments of Rs. 43065/ - and Rs. 6935/ -. The first installment was paid in the month of Nov. 1990 and second was paid on March 1992.