Allahabad High Court
Dharni Dhar Singh And Others vs State Of U.P. And Others on 6 August, 2010
Bench: Sunil Ambwani, Kashi Nath Pandey
Court No. - 29 Case :- WRIT - A No. - 46392 of 2010 Petitioner :- Dharni Dhar Singh And Others Respondent :- State Of U.P. And Others Petitioner Counsel :- Ravi Prakash Srivastava Respondent Counsel :- C. S. C.,Dhananjay Awasthi Hon'ble Sunil Ambwani,J.
Hon'ble Kashi Nath Pandey,J.
Learned Standing Counsel appears for respondent Nos.1 and 2. Shri Dhananjay Awasthi has accepted notice on behalf of respondent No.3. All the respondents are allowed three weeks' time to file counter affidavit. The petitioner will have one week, thereafter, to file rejoinder affidavit. List on 20th September, 2010 for admission/ hearing.
All the 51 petitioners are Shift Officers working in the mills of U.P. Cooperative Spinning Mills Federation Ltd. with its head office at Kanpur. Their services are governed by the U.P. Cooperative Spinning Mills Centralised Services Rules, 1993. All the 11 mills of the Corporation were running in severe financial losses. We are informed that 6 mills have been closed and that in respect of remaining mills the negotiations were going on for preparing a Voluntary Retirement Scheme (VRS), for the officers and employees.
A VRS Scheme has been prepared and sanctioned in pursuance to which Rs.95 crores has been sanctioned by the State Government on 29.4.2010. The scheme offers payment of VRS amount to include 41% DA. In the 49th meeting of the Federation held on 23.10.2000 it was decided at Item No.7 that VRS amount should include dearness allowance as it has been issued from time to time (Samay samay par nirgat).
The mills are to be closed w.e.f. 10th August, 2010. All the 51 petitioners have made their offers in terms of the invitation of offer of VRS.
A Writ Petition No.13194 of 2007 was filed in this Court in which on 27th February, 2009 the Court passed an order directing the Managing Director of the Federation to decide the petitioner's representation. By order dated 8.4.2009 the Managing Director has decided and rejected the representation for including dearness allowance at the rate of 115%, on the basis of the Government Order dated 28.12.1999 (in the revised pay scale applicable from 1.1.1996). The Managing Director has observed in his order that in accordance with the recommendation of the 4th Pay Commission 41% dearness allowance is being currently paid to the employees, whereas by the Public Enterprise Bureau 89% D.A. has been sanctioned subject to the condition that the payment will be made only to those public sector enterprises, where the internal financial capacity of the enterprise is sufficient to bear the additional expenses. It was found that so far as employees of Federation are concerned, the dearness allowance has been sanctioned only to the extent of 41% and thus the VRS Scheme dated 31.8.2006 provides for only 41% D.A. The Managing Director further observed in item Nos.2 and 3 that out of total dues, the pay and provident fund dues are to the extent of 69.51 crores in which dues of only Mau Aima mill is to the extent of Rs.12.87 crores. He has referred to the orders passed by the Bombay High Court in respect of arrangement of payment of some dues and the appointment of the Official Liquidator.
Be that as it may, all the petitioners have made their offers for voluntary retirement, and that mills are going to close on 10th August, 2010. We are informed that the workers are not being paid their full salary for several years.
In the special facts and circumstances, we direct that offers of voluntary retirement of the petitioners and those employees, who have applied upto the last date fixed in VRS, shall be considered and VRS amount shall be settled and paid to them from the grant received from the State Government. The settlement, however, shall be subject to result of the writ petition. The acceptance of the VRS and receipt of the amount shall be without prejudice to the petitioners' rights to be decided in this writ petition.
Order Date :- 6.8.2010 SP/