Karnataka High Court
N G E F Scheduled Caste And Scheduled vs State Of Karnataka on 18 September, 2018
Author: L.Narayana Swamy
Bench: L. Narayana Swamy
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF SEPTEMBER, 2018
BEFORE
THE HON'BLE MR. JUSTICE L. NARAYANA SWAMY
WRIT PETITIONS NO. 5790, 5795, 5797, 5799,
5801 - 5803, 5805, 5811 - 5812, 5814
& 6547/2011
C/W. WRIT PETITION NOs.10494/2011,
10496/2011, 10498/2011,
WRIT PETITION NO.15158/2018(S-R)
WRIT PETITION NOs.5790, 5795, 5797, 5799,
5801 - 5803, 5805, 5811 - 5812, 5814 &
6547/2011
BETWEEN:
1. N G E F SCHEDULED CASTE AND
SCHEDULED TRIBES EMPLOYEES
WELFARE ASSOCIATION (R)
BYAPPANAHALLI POST,
BANGALORE-560 038
REPRESENTED BY ITS GENERAL
SECRETARY - SRI A BHEEMAPPA,
AGED ABOUT 55 YEARS ... PETITIONER
(IN W.P. NO.5790/2011)
2
2. SRI JOHN DAVID
AGED ABOUT 54 YEARS,
S/O LATE JOHNSON, P NO. 6490/MFP - 6,
NO.10/1, OLD BINNAMANGALA,
INDIRANAGAR I STAGE,
SRIKRISHNA TEMPLE ROAD,
BANGALORE-560 038 ... PETITIONER
(IN W.P. NO.5795/2011)
3. SRI M G THIPPAIAH
AGED 60 YEARS,
S/O M GANGAPPA,
P NO. 11285/M3, NO.23, III CROSS
KANAKANAGAR,
TANK ROAD, V V EXTENSION,
HOSKOTE TOWN-562 114 ... PETITIONER
(IN W.P. NO.5797/2011)
4. SRI K O NAGARAJ
AGED 59 YEARS,
S/O LATE OBALAPPA,
P NO. 7206/TFP, NO.21/A,
ASHIRVAD NILAYA,
JAGAJEEVANRAMANAGAR,
I MAIN, II CROSS
BANGALORE
SINCE DEAD BY LRs:
4(a) SMT. SAVITHRI
W/O. LATE K.O. NAGARAJ
AGED ABOUT 56 YEARS
3
4(b) SMT. SARALA
W/O. KIRAN KUMAR
AGED ABOUT 35 YEARS
4(c) SRI SUNIL KUMAR
S/O. LATE K.O. NAGARAJ,
AGED ABOUT 35 YEARS
4(d) SRI VIJAY KUMAR N.
S/O. LATE K.O. NAGARAJ,
AGED ABOUT 34 YEARS
ALL ARE RESIDING AT
#21/A, 1ST MAIN ROAD,
1ST CROSS, JJR NAGAR,
BANGALORE SOUTH,
BANGALORE-560 018 ... PETITIONERS
(IN W.P. NO.5799/2011)
5. SRI RAMADURGAIAH
AGED 58 YEARS,
S/O CHINNAMARAIAH,
P NO. 6906, MFP5, NO. 414,
BUILDING NO. 93, KHB COLONY,
(SHIRKI APARTMENT)
KENGERI SATELLITE TOWN,
BANGALORE-560 060 ... PETITIONER
(IN W.P. NO.5801/2011)
6. SRI M GOPAL
AGED ABOUT 56 YEARS,
S/O LATE MUNINAGAPPA,
P NO.6748/MED, NO.413, 13TH MAIN
14TH CROSS, LAKKASANDRA,
BANGALORE-560 030 ... PETITIONER
4
(IN W.P. NO.5802/2011)
7. SRI B V RAGHAVAN
AGED ABOUT 56 YEARS,
S/O LATE VENKATAPATHI,
P.NO. 12162/CAMPS, NO. 165,
7TH D MAIN, 4TH STAGE, III BLOCK,
BASAVESHWARA NAGAR,
BANGALORE-560 079 ... PETITIONER
(IN W.P. NO.5803/2011)
8. SRI PERUMAL
AGED ABOUT 56 YEARS,
S/O LATE CHINNASWAMY
P.NO. 11061/PE, NO. C6, 261,
BDA QUARTERS,
NEAR SAPLAMMA TEMPLE
DOMLUR, III MAIN,
BANGALORE-560 071 ... PETITIONER
(IN W.P. NO.5805/2011)
9. SRI Y KRISHNAPPA
S/O LATE YALLAPPA,
P NO. 11887/AUDIT FINANCE,
AGED 55 YEARS, NO.28, 6TH CROSS
THIMMAIAH GARDEN,
R T NAGAR POST,
BANGALORE-560 032 ... PETITIONER
(IN W.P. NO.5811/2011)
10. SRI H N BALAKRISHNA
AGED ABOUT 60 YEARS,
S/O B NANJAIAH,
5
P. NO.6069/M3R,
NO. U77, DHANALAKSHMI VILAS,
8TH CROSS, L N PURAM,
BANGALORE ... PETITIONER
(IN W.P. NO.5812/2011)
11. SRI K P SOMAIAH
AGED 58 YEARS,
S/O LATE K P POOVAIAH,
PNO. 7032, MFPP, NO.76, 13TH CROSS
20TH B MAIN, VENKATESHWARA LAYOUT,
B T M I STAGE,
BANGALORE-560 068 ... PETITIONER
(IN W.P. NO.5814/2011)
12. SRI N RACHAIAH
AGED 57 YEARS,
S/O NANJAYYA,
P NO. 6883,MFP2, NO.441, 4TH CROSS,
KAMALANAGAR GOVT. SCHOOL
LAL BAHADUR SHASTRY ROAD,
BANGALORE-560 001 ... PETITIONER
(IN W.P. NO.6547/2011)
(BY SRI V. LAKSHMINARAYANA, SENIOR COUNSEL
FOR SRI VIKRAM BALAJI, ADVOCATE)
AND
1. STATE OF KARNATAKA
REPRESENTED BY
THE CHIEF SECRETARY,
VIDHANA SOUDHA,
DR. AMBEDKAR ROAD,
BANGALORE-560 001
6
2. STATE OF KARNATAKA
REPRESENTED BY
THE PRINCIPAL SECRETARY,
INDUSTRIES AND COMMERCE DEPARTMENT,
VIKASA SOUDHA,
BANGALORE-560 001
3. STATE OF KARNATAKA
REPRESENTED BY
THE PRINCIPAL SECRETARY,
LABOUR DEPARTMENT,
VIKASA SOUDHA,
BANGALORE-560 001
4. N G E F LIMITED, REPRESENTED BY
ITS OFFICIAL LIQUIDATOR,
12TH FLOOR, RAHEJA TOWERS, M G ROAD,
BANGALORE-560 001
... COMMON RESPONDENTS
(BY SRI A.C. BALARAJ, HCGP FOR R1 TO 3;
SMT. B. RAJASHREE, ADVOCATE FOR R4)
***
THESE WRIT PETITIONS ARE FILED UNDER
ARTICLES 226 AND 227 OF THE CONSTITUTION OF
INDIA, PRAYING TO QUASH THE ORDER
DT.19.11.2010 PASSED BY R2 PRODUCED AT ANN-A
& ISSUE A WRIT OF MANDAMUS DIRECTING THE
RESPONDENTS TO CONSIDER THE CASE OF THE
PETITIOENRS FOR VRS SCHEME IN RESPECT OF THE
SCHEME WHICH IS IN FAVOUR OF THE PETITIONERS
i.e., 1999 SCHEME & CONSIDER THE CASE OF THE
PETITIONERS FOR ABSORPTION IN SOME OTHER
7
GOVT. ORGANIZATIONS LIKE KSRTC, BMTC, BMRCL,
GRANT OF 10% EX-GRATIA CONTINUITY OF SERVICE
& UP TO DATE SALARY, PAY REVISION ETC., & NOT
TO DEDUCT ANY AMOUNT FROM OUT OF THE
RETIREMENT BENEFITS & PASS A FRESH ORDER.
W.P's. No.10494/2011, 10496/2011, 10498/2011
BETWEEN
1. MR. M C KRISHNAPPA (P.NO.5382)
AGE: 59 YEARS,
S/O LATE MR. CHANNEGOWDA
RESIDING AT NO.208,
NAGARABHAVI II STAGE
12TH BLOCK, 2ND MAIN, 4TH CROSS
BANGALORE-560 072 ... PETITIONER
(IN W.P. NO.10494/2011)
2. MR H C RUDRESHAIAH (P. NO.8205)
SINCE DECEASED BY HIS LRS.
2(a) SMT. K.N. KUMARI,
W/O. LATE H.C. RUDRESHAIAH,
AGED ABOUT 62 YEARS,
2(b) H.R. SIDDALINGASWAMY,
S/O. LATE H.C. RUDRESHAIAH,
AGED ABOUT 32 YEARS
2(c) H.R. MANJUNATH
S/O. LATE H.C. RUDRESHAIAH,
AGED ABOUT 29 YEARS,
8
ALL ARE RESIDENCE OF NO.94,
'NIDHI NIVASA', 1ST FLOOR, 2ND MAIN,
2ND CROSS, NAGADEVANAHALLI
JNANABHARATHI POST,
BENGALURU-560 056 ... PETITIONERS
(IN W.P. NO.10496/2011)
3. MR. H. RAMAKRISHNAYYA (P. NO.7899)
AGED 56 YEARS,
S/O MR. HANUMANTHAYYA,
RESIDING AT THAVALAKERE VILLAGE POST,
BANGALORE SOUTH TALUK ... PETITIONER
(IN W.P. NO.10498/2011)
(BY SRI M. SIVAPPA, SENIOR COUNSEL
FOR SRI ANIL KUMAR S., ADVOCATE)
AND
1. STATE OF KARNATAKA
REPRESENTED BY THE CHIEF SECRETARY
VIDHAN SOUDHA,
DR. AMBEDKAR ROAD,
BANGALORE-560 001
2. STATE OF KARNATAKA
REPRESENTED BY THE PRINCIPAL SECRETARY
INDUSTRIES AND COMMERCE DEPARTMENT,
VIDHAN SOUDHA,
BANGALORE-560 001
3. STATE OF KARNATAKA
REPRESENTED BY THE PRINCIPAL SECRETARY
9
LABOUR DEPARTMENT,
VIDHAN SOUDHA,
BANGALORE-560 001
4. NGEF LIMITED
REPRESENTED BY ITS OFFICIAL LIQUIDATOR
12TH FLOOR, RAHEJA TOWERS, M G ROAD,
BANGALORE-560 001
... RESPONDENTS
(COMMON)
(BY SRI A.C. BALARAJ, HCGP FOR R1-R3;
SMT. B. RAJASHREE, ADVOCATE FOR R4)
***
THESE WRIT PETITIONS ARE FILED UNDER
ARTICLES 226 AND 227 OF THE CONSTITUTION OF
INDIA, PRAYING TO QUASH THE ORDER DATED
19.11.2010 PASSED BY THE SECOND RESPONDENT
PRODUCED AT ANNEXURE-B, AND DIRECT THE
RESPONDENTS TO CONSIDER THE CASE OF THE
PETITIONERS FOR VRS SCHEME IN RESPECT OF THE
SCHEME WHICH IS IN FAVOURABLE OF THE
PETITIONERS i.e. "THE 1999-80% SCHEME" AND
CONSIDER THE CASE OF THE PETITIONERS FOR
ABSORPTION IN SOME OTHER GOVERNMENT
ORGANIZATION LIKE KSRTC, BMTC, BMRCL, GRANT
OF 10% EX-GRATIA, CONTINUITY OF SERVICE AND
UP TO DATE SALARY, INTEREST AS APPLICABLE AND
PAY REVISION.
W.P. NO.15158/2018
BETWEEN
Y VENKATASWAMY S/O T YELLAPPA
AGED ABOUT 63 YEARS,
10
R/AT NO.44, THUBARAHALLI NEW EXTENSION
R.J.HALLI POST, WHITE FIELD
(BEHIND COFFEE DAY)
BENGALURU - 560 066.
... PETITIONER
(BY SRI M. SIVAPPA, SENIOR COUNSEL FOR
SRI ANIL KUMAR S. ADVOCATE)
AND
1. THE STATE OF KARNATAKA
BY ITS CHIEF SECRETARY
VIDHANA SOUDHA
BENGALURU - 560 001.
2. NGEF LTD.,
REPRESENTED BY ITS MANAGING DIRECTOR,
KARNATAKA STATE INDUSTRIES
AND COMMERCE AND INFRASTRUCTURE
DEVELOPMENT CORPORATION LTD.,
KHANIJA BHAVAN, RACE COURSE ROAD,
BENGALURU - 560 001.
3. THE CHAIRMAN AND COMMISSIONER
NGEF LTD.,
KARNATAKA STATE INDUSTRIES AND
COMMERCE AND INFRASTRUCTURE
DEVELOPMENT CORPORATION LTD.,
KHANIJA BHAVAN, RACE COURSE ROAD,
BENGALURU - 560 001.
4. THE MANAGING DIRECTOR
KSIIDC, NOTIFIED NODAL AGENCY
FOR NGEF EMPLOYEES AFFAIRS
4TH FLOOR KHANIJA BHAVAN,
11
RACE COURSE ROAD,
BENGALURU - 560 001.
... RESPONDENTS
(BY SRI A.C. BALARAJ, HCGP FOR R1;
SMT. B. RAJASHREE, ADVOCATE FOR R2 TO 4)
***
THIS WRIT PETITION IS FILED UNDER ARTICLES
226 AND 227 OF THE CONSTITUTION OF INDIA,
PRAYING TO DIRECT THE RESPONDENTS TO
CONSIDER THE CASE OF THE PETITIONER FOR
SETTLEMENT OF TERMINAL BENEFITS PAYABLE ON
ACCOUNT OF ACTION OF CLOSURE OF NGEF
COMPANY WHICH HAS NOT BEEN ORDERED TO BE
REVIVED WITH FULL SALARY/WAGES FROM
20.12.2002 TILL ATTAINMENT OF SUPERANNUATION
OF THE PETITIONER WITH ALL CLOSURE BENEFITS
ATTACHED TO THE SERVICE LIKE, WAGE REVISION,
D.A. QUARTERLY REVISION, ANNUAL INCREMNET,
H.R.A. AND C.C.A. TIME BOUND PROMOTION TILL
END OF SERVICE, HOSPITALIZATION
REIMBURSEMENT, LEAVE ENCHASHMENT, DEPOSIT
OF 12% PER MONTH TO P.F. ALONG WITH INTEREST,
YEARLY BONUS, GRATUITY AS PER NEW POLICY
EMPLOYEES WELFARE FUND CONTRIBUTION WITH
CONTINUITY SERVICE AND OTHER BENEFITS TO
WHICH THE PETITIONER IS ENTITLE IN THE
INTEREST OF JUSTICE.
THESE PETITIONS COMING ON FOR FINAL
HEARING THIS DAY, THE COURT MADE THE
FOLLOWING:
12
ORDER
The petitioner No.1 is an Association registered under the Karnataka Societies Registration Act, 1960 established for welfare of the employees working in NGEF Limited. Some of the petitioners are members of the first petitioner and some are ex-employees of the NGEF. The Company winding up proceedings was initiated and it was registered in Company Petition No.154/2002 on the file of this Court.
2. This Court by the order dated 22.06.2017 has disposed of the Company Application No.184/2015 filed therein seeking to recall winding up order dated 03.08.2004 passed by this Court on the recommendation of BIFR dated 02.08.2002 under Section 20(1) of the Sick Industrial Companies 13 (Special Provisions) Act, 1985. In the said order at Para No.39 it was ordered as under:
"In view of the aforesaid, Company Application No.184/2015 is allowed and the winding up order dated 03.08.2004 passed by a co-ordinate bench of this Court is stayed or sisted and kept in suspension sine-die and the recommendation of the BIFR dated 02.08.2002 forwarded to this Court for winding up of the Company is also stayed permanently subject to the further orders of this Court."
3. The learned counsel for the petitioners submits that the Management has introduced three VRS schemes and when the 1999 scheme is more beneficial to the petitioners they did not take the scheme introduced in 2002, which is less beneficial to them. Therefore the scheme which is beneficial to the employees has to be preferred. But in the impugned 14 order dated 19.11.2010 in No.CI 48 CEL 2010, Bangalore passed by the 2nd respondent produced at Annexure 'A', the Government has mentioned voluntary retirement scheme 2002 without any reason. Accordingly, these petitions have been filed for extension of benefit of 1999 scheme.
4. Before consideration of 2016 Scheme it is necessary to consider effect of order dated 22.06.2017 on Company Application No.184/2015 in Company Petition No.154/2002. In Company Petition No.154/2002 vide order dated 22.06.2017 on Company Application No.184/2015 winding up order dated 03.08.2004 has been stayed permanently. The effect of this order has brought back the Company alive and these petitioners became employees of the Company on roll. Therefore, the Company having restored, the petitioners also restored into service and accordingly, it 15 establishes the employees and employer relationship in between them. Though the scheme was exercised by the petitioners, by virtue of the order passed in the Company Petition on the Company Application referred herein above, they are entitled for the monetary benefits as if they are in service and by virtue of reaching the superannuation it is to be treated as if they are retired from service on superannuation and their service benefits including arrears and salary is to be computed appropriately and accordingly extended to them.
4. Learned counsel for the N.G.E.F. Limited submitted that in view of the order passed on Company Application, the petitioners are not entitled to any of the benefits as above. Their services cannot automatically be continued and they are only ex-employees of the Company. Secondly the effect of the order passed in Company Application No.184/2015 is only in respect of 16 utilization of the land measuring 119.665 acres and for other development purpose and this cannot be treated as if Company has been brought back alive for the purpose of claiming salary and other monetary benefits. In order to substantiate her contention, learned counsel referred Para Nos.36 and 37 of the said order in Company Application No.184/2015 in Company Petition No.154/2002 and submitted that, this Court while allowing the Company Application No. 184/2015 has held that recall of the winding up order is only to facilitate the respondent for reconstruction and utilization of the land belongs to the NGEF Limited and the workmen in service and whose dues have so far not been settled because of litigation by them. Otherwise, they should be given an opportunity to place their claim before the concerned Nodal Agency. It is further submitted that the petitioners are no more on the roll as employees and they are ex-employees of the Company. 17 Whether they were entitled to 1999 scheme or 2016, now it is claimed that the petitioners would be benefited by 1999 scheme. Under this circumstance they would get the benefit only what has been provided in 2016 scheme.
5. Learned HCGP appearing for Respondent Nos.1 to 3 supports the submission made by the learned counsel for the 4th respondent and he also submits that as it provided in Para 36 of the order dated 22.06.2017 the State Government and the Nodal Officer to re-construct and utilize the land which belongs to the NGFF Limited only for prospective and development purpose and the Company in liquidation would not restore for the purpose of production and other purposes. Recalling the winding up order of the Company was to facilitate and utilization of land and not to continue the petitioners into service. Further, he placed reliance on 18 the Government Order dated 14.11.2007 and submits that NGEF Limited, Bangalore has been closed and according to the winding up proceedings in order to discharge the liability to the various borrowers it is brought back on track by steeping the winding up order.
6. While allowing the Company Application No.184/2015 on 22.06.2017 at Para No.39, this Court stayed or sisted and kept in suspension sine-die and the recommendation of the BIFR dated 02.08.2002 forwarded to this Court for winding up of the Company is also stayed permanently subject to further orders of this Court. The purpose of winding up proceedings is to discharge the liability and also to settle the debts between the borrower and the Company. By virtue of the said order on the basis of the recommendation made by BIFR for winding up of the Company it has been put 19 an end to the Company for all the purposes. However, by virtue of the order dated 22.06.2017 the winding up order including the recommendation of the BIFR dated 02.08.2002, it was recalled and restored and it could be interpreted and the State also shall stand by it that the Company is brought alive by restoring it to its original position. This being the case the prayer of the petitioners for extension of monetary and salary benefits including the arrears and revision of salary, it has to be computed by the Government and the Nodal Officer. The NGEF Limited and the State Government could have made submission before the Company Court to get clarification or the modification of the order. That has not been done though the order is dated 22.06.2017. Hence the order in Company Application has to be understood as it is interpreted by this Court that the Company has not yet wound-up and the Company has been intact. Thus the submission of the respondents is 20 liable to be rejected and it is accordingly rejected. Consequently the petitioners' claim that their claim has to be considered as if they are continued upto superannuation with revision of pay from time to time, promotion etc.
7. The 1999 scheme, the 2006 scheme and the 2016 scheme were available to the employees of the Company for the purpose of voluntary retirement from service. The very voluntary retirement schemes denote the employees ended their service for the Company and they would get the benefit on the basis of voluntary retirement from service availed by them. The scheme denotes that some of the petitioners are employees and are still in service and retain the relationship as employees of the Company and urged to accept the retirement scheme to put an end to the relationship between the Company and the employees. Hence, that 21 scheme has not concluded and the scheme itself is in dispute, that means the other petitioners who are not willing to retire from service or discontinued from services of the respondent-Company, their services still remain, they are to be continued till they attain superannuation or included in the scheme. Under these circumstances, the 2016 scheme will not get concluded and still it is on investigation for the purpose of salary and other monetary benefits including the arrears, considering them on the roll of the Company as aforesaid till their superannuation as per the demand made and mentioned in the meeting proceedings dated 07.03.2018.
8. In view of the above observations, these petitions are allowed. The Government and the Nodal Officer are directed to comply payment of the monetary benefits of 22 these petitioners and settle the same within a period of six months from the date of receipt of copy of this order.
9. Learned counsel for the petitioner in Writ Petition *No.15158/2018 submits that in the light of the observations and discussions made above, while disposing the above writ petitions, the liberty may be reserved to the petitioner in Writ Petition *No.15158/2018 to make necessary application or representation for extension of similar benefits. If such representation is made by the said petitioner, then the respondents to consider the same and pass appropriate orders within a period of six months thereafter. W.P. *No.15158/2018 is accordingly disposed of.
Sd/-
JUDGE Sbs* *Corrected vide chamber Order dated 30.11.2018