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.