LPA/576/2013 of IDPL VRS/RETIRED EMPLOYEES WELFARE FEDERATION GURGAON, THROUGH ITS SECRETARY, Y R SURI & ORS Vs UNION OF INDIA & ORS

IN THE HIGH COURT OF DELHI AT NEW DELHI

LPA 576/2013

IDPL VRS/RETIRED EMPLOYEES WELFARE FEDERATION GURGAON, THROUGH ITS SECRETARY, Y R SURI & ORS ..... Appellants Through: Mr. Y.R. Suri, Secretary of the Appellants.

Versus

UNION OF INDIA & ORS ..... Respondents Through: Mr. Sumeet Pushkarna and Mr. Kartikeya Bhargava, Advocates for R-1. Mr. R.S. Mathur, Advocate for R-3.

CORAM:

HON'BLE MS. JUSTICE REVA KHETRAPAL HON'BLE MR. JUSTICE S.P. GARG

O R R16.07.2014

: REVA KHETRAPAL, J. (Oral) CM No.12151/2013

This is an application praying for condonation of 31 days delay in re-filing the appeal.

For the reasons stated in para 2 of the application, the delay in re-filing is condoned.

Application stands disposed of.

LPA 576/2013

1.This appeal is directed against the judgment dated 8[th] April, 2013 passed by the learned Single Judge in W.P.(C) No.261/2010. 2.The Appellant Nos.2 to 8 and Respondent Nos.4 to 566 are amongst the 6572 employees of the Indian Drugs and

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Pharmaceuticals Ltd. (for short “IDPL”) who had opted for Voluntary Retirement on 31.12.2002 and have now filed the writ petition seeking benefits of the 5[th] Pay Commission.

3.By Circular dated 03.02.2009, the Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals informed the implementation of the revised pay scale of the 5[th] Pay Commission with effect from 02.02.2009 to the existing employees of IDPL.

4.The Appellants claim that as per the guidelines bearing DPE O.M. No.2(32)/97-DPE (WC) GL-XXXV dated 08.12.2000 and Office Memorandum dated 28.02.2002 issued by the Government of India, Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises, they are entitled for recalculation of the ex-gratia on the basis of the revised scales of pay, and other consequential benefits like gratuity, leave encashment, etc. on account of revision in the pay scales. The Respondents, on the other hand, contend that no arrears have been paid to any person prior to 02.02.2009.

5.The learned Single Judge dismissed the writ petition, after noticing that the Supreme Court in the case of Officers and Supervisors of IDPL vs. Chairman and MD, IDPL and Ors., (2003) 6 SCC 490, which pertained to the very same company viz., IDPL (the Respondent No.3 in the writ petition), has held that persons who have taken VRS cannot be entitled to the benefit of pay revision. The Supreme Court in the said case further recognized the economic incapability of the Respondent No.3 and the heavy losses incurred by it in the last many years as well as the pendency of the matter before

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the BIFR for declaring the IDPL as sick unit. The Supreme Court also laid down that the economic capability of the employer plays crucial part while implementing any of the recommendations of the Central Pay Commission. Further, the Supreme Court relied upon the observations in its earlier judgment in the case of A.K. Bindal and Anr. vs. Union of India and Ors., (2003) 5 SCC 163, wherein the Supreme Court had observed that as per “golden handshake” principle, on taking VRS by an employee, the jural relationship of employer and employee comes to an end and an employee thereafter cannot rake up the issue of claim of arrears on account of pay revision.

6.It is in the aforesaid circumstances that the learned Single Judge did not find any merit in the writ petition filed on behalf of Appellants and dismissed the writ petition.

7.No cogent reason could be pointed out to us by the Appellant as to why we should interfere with the decision of the learned Single Judge which is premised on the judgment of the Supreme Court in Officers and Supervisors of IDPL (supra).

8.The appeal is consequently dismissed. There shall be no order as to costs.

REVA KHETRAPAL JUDGE

July 16, 2014 km

S.P. GARG

JUDGE

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