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Satya Paul Nakra And Ors. vs Union Of India (Uoi) And Ors. on 20 February, 2003

13. Learned counsel for the appellants have relied upon Satya Paul Nakra versus Union of India, 2003 (3) AD (Delhi) 293. In the said case, the Court was examining the effect of Office Memorandum dated 6th November, 2001 issued by the Department of Public Enterprise modifying OM dated 5th May, 2000. By memorandum dated 6th November, 2001 it was directed that under the Gujarat pattern scheme salary shall be calculated on the basis of 30 days in a month and not 26 days and consequently method of calculation of ex-gratia in VRS shall be similar. Pursuant to the said Office Memorandum dated 6th November,2001, National Fertilizers Limited the respondent therein had issued a circular dated 22nd November, 2001 modifying the existing VRS and stating that for computation of ex-gratia, the month will be taken as 30 days and not 26 days. Some employees withdrew their application but the petitioners therein did not withdraw and their applications were accepted after the memorandum dated 22nd November, 2001. The contention raised was that the Board of Directors of National Fertilizers Limited had not approved the modified scheme mentioned in circular dated 22nd November, 2001. Another issue raised was that of discretion of the Board of Directors of National Fertilizers Limited. Both the contentions were rejected. Principle of estoppel was applied as the petitioners therein had taken compensation and accepted the same after circular dated 22nd November, 2001 was issued. It was held that OM dated 6th November, 2001 was binding on the Co.A(SB) No.20/2006 Page 10 National Fertilizers Limited, a public sector company. The said decision is not applicable to the facts of the present case. In the present case, the scheme was revised after the Office Memorandum dated 5th May, 2000 was issued and the option exercised by the Board of Directors of IRCC was approved by Ministry of Surface Transport in their letter dated 22 nd September, 2000. What has been paid to the appellants is different and higher than envisaged and applicable as per paragraph 5 of the Office Memorandum dated 5th May,2000.
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