Electronics Corporation Of India ... vs The Controlling Authority Under ... on 30 September, 2016
This issue was considered by a Division Bench of the
Madras High Court in Srinivasan v. Government of India and
it was clearly held that the scheme formulated by the
Department of Public Enterprises will come into effect in any
public sector undertaking only on the approval of the Board of
Directors and the Board of Directors can specify the terms and
conditions of the implementation of the scheme including the
date of commencement of the scheme. The issue before the
Madras High Court was with regard to a scheme called Death-
cum-Retirement Gratuity Scheme for the Employees of Public
Sector Enterprises. The Scheme was made effective with effect
from January 1, 1986. But the scheme was implemented by the
management with effect from 01.07.l993. One employee opted
for voluntary retirement on 01.04.1993 and was relieved on
30.06.1993. He made a representation for the consideration of
the management on 20.08.1993 stating that he was relieved on
30.06.1993 and he shall not be deprived of the enhanced
benefits granted by the management with effect from
01.07.1993. The Writ Petition was dismissed by the learned
single Judge when a direction was sought for extending the
benefit. The matter was taken before the Division Bench by the
employee and the Division Bench held as follows: