IN THE HIGH COURT OF KARNATAKA AT BENGALURU ON THE 22ND DAY OF OCTOBER 2019 BEFORE THE HON'BLE MR. JUSTICE RAVI MALIMATH AND THE HON'BLE MR. JUSTICE ASHOK S. KINAGI WRIT APPEAL No.1409 OF 2012(S-RES) BETWEEN 1. CHAIRMAN & MANAGING DIRECTOR BEML LIMITED CORPORATE OFFICE AT NO.23/1, 4TH MAIN ROAD, SAMPANGIRAMA NAGAR BENGALURU 560 027 2. THE DIRECTOR (HR) BEML LIMITED CORPORATE OFFICE AT NO.23/1, 4TH MAIN ROAD, SAMPANGIRAMA NAGAR BENGALURU - 560 027 3. THE CHIEF GENERAL MANAGER BEML LIMITED CORPORATE OFFICE AT NO.23/1, 4TH MAIN ROAD, SAMPANGIRAMA NAGAR BENGALURU - 560 027 NOW APPELLANTS No.1 TO 3 REPRESENTED BY SENIOR MANAGER (LEGAL) MR.VIDHYADHARAN ...APPELLANTS (BY SMT.SNEHA BALAKRISHNAN FOR M/S.SUNDARASWAMY & RAMADAS, ADVOCATES) AND 1. SRI T S BHAT S/O SRI SUBBARAYA BHAT AGED ABOUT 66 YEARS RESIDING AT NO.416, BEML LAYOUT BASAVESHWARANAGAR BENGALURU - 560 079 2. THE SECRETARY (DP & S) GOVERNMENT OF INDIA MINISTRY OF DEFENCE RAKSHA MANTHRALAYA SOUTH BLOCK NEW DELHI - 110 011 3. THE SECRETARY GOVERNMENT OF INDIA MINISTRY OF INDUSTRIES DEPARTMENT OF PUBLIC ENTERPRISES, BLOCK NO.14 C- 40 COMPLEX, LODI ROAD, NEW DELHI 110 003 …RESPONDENTS (BY SRI M.C.NARASIMHAN, ADVOCATE FOR RESPONDENT No.1, SRI C.SHASHIKANTHA, ADDITIONAL SOLICITOR GENERAL FOR RESPONDENT Nos.2 AND 3) THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER PASSED IN THE WRIT PETITION No.18712/2005(S-RES) DATED 15.02.2012.
THIS WRIT APPEAL COMING ON FOR HEARING THIS DAY, ASHOK S. KINAGI J., DELIVERED THE FOLLOWING:
JUDGMENT Aggrieved by the order dated 15.2.2012 passed by the learned Single Judge in W.P.No.18712 of 2005, the respondent- Company has preferred this appeal.
2. The parties are referred to as they are arrayed in the writ petition.
3. The Government of India introduced voluntary retirement scheme (hereinafter referred to as VRS) in the public sector enterprises and issued parameters on the basis of which VRS was formulated by the public sector enterprises for their employees. The petitioner was working as Grade-I officer in the respondent-company. On 15.11.2000, the petitioner submitted an application for VRS and the same was accepted on 30.1.2001. As on the date of submitting the application, he was drawing a provisional fixation of pay of Rs.6550-200-11350. In the month of January 2002, regular pay fixation was done and the petitioner was paid a difference of pay. But the respondents have not paid the VRS compensation. The petitioner requested the respondent to look into the matter and arrange for correction of pay-scale for calculation of VRS benefit and payment of VRS benefits arrears. The request of the petitioner came to be rejected vide Annexure-J. The petitioner aggrieved by the endorsement dt.24.11.2003 vide annexure-J filed W.P.No.18712 of 2005 before this Court. The learned Single Judge after hearing the arguments on both sides, allowed the writ petition, quashed Annexure-J dated 24.11.2003 and directed the respondents to extend the benefit of regular pay fixation, calculate VRS compensation and to pay the same to the petitioner within a time frame of three months from the date of receipt of the order. The respondent-company aggrieved by the order dated 15.12.2012 passed in W.P.No.18712 of 2005 passed by the learned Single Judge filed writ appeal.
4. Heard arguments of learned counsel for the parties.
5. The petitioner while in service was drawing a provisional fixation of pay as per general bulletin No.1044 dated 3.10.2000 vide Annexure-E enclosed to the writ petition. There was revision of salary structure as per clauses 6(1) and 6(2) of Annnexure-E which reads as follows :-
“6.1 Till such time the revision of wages are effected to for employees, pay fixation in respect of employees promoted to Grade 1 on or after 1.1.1997 will be provisionally fixed at the minimum of the revised pay scale in Grade 1.
6.2 The rules regarding final pay fixation would be issued in due course.”
The sum and substance of the above said clauses is that, employees promoted to Grade I on or after 1.1.1997 will be paid provisional fixation of pay till such time of revision of wages are effected. The petitioner was paid provisional fixation till he has submitted an application for VRS and subsequently, after fixation of regular pay, he was paid the difference amount.
6. From the perusal of Annexure-F i.e. inter office memo dated 21.10.2000, item No.2, which reads as under :-
“2. Till such time a decision is taken on final pay fixation and HRA, the above arrangement is to be treated purely as provisional.”
7. As discussed above, the petitioner was drawing a provisional pay till the final decision is taken. So the respondents have not considered that as on the date of submission of the application for VRS by the petitioner, he was drawing provisional fixation of pay and paid VRS compensation on the provisional fixation. Government of India has issued a office memorandum dated 8.12.2000 vide Annexure-L qualifying the points raised by the administrative Ministries/Departments. The points are as follows :-
“1. xxx 2. xxx 3. Whether any arrears of ex-gratia are to be paid in the event of pay revision being sanctioned subsequent to voluntary separation?
Ex-gratia will be re-calculated on the basis of revised pay scale and the difference be paid.
4 to 23. xxxx”
8. That, as per point No.3 is concerned, the Government of India has clarified that in the event of pay of revision is sanctioned subsequent to the voluntary separation, ex- gratia will be recalculated and difference be paid.
9. As per point No.3 of office memorandum dated 8.12.2000 is concerned, there is a revision of regular pay-scale subsequent to the VRS opted by the petitioner. The respondent-company have to extend the benefit as per Annexure-F to the petitioner. But the respondents have not extended the said benefit to the petitioner. Thus, the action of respondents in not extending the benefit of regular pay fixation is arbitrary. The Government of India has clarified that in the event of pay revision, ex- gratia will be re-calculated on the basis of revised pay scale and difference will be paid. Respondents without considering the material has denied the claim of the petitioner. That on the basis of the regular pay fixation, difference in pay was also paid to the petitioner. The claim of the petitioner is based on the regular pay fixation.
10. The learned Single Judge after considering the entire material placed on record has allowed the writ petition and quashed Annexure-J. We do not find any grounds to interfere with the order passed by the learned single judge.
11. In view of the above, we pass the following :
ORDER Writ appeal is dismissed. The order of the learned Single Judge dated 15.02.2012 in W.P.No.18712 of 2005 is confirmed.
Sd/- JUDGE Sd/- JUDGE rs