S. B. Sinha, J. - (1.) These two appeals involving common questions of fact and law were taken up for hearing together and are being disposed of by this common judgment.
(2.) The members of the appellant Union were employees of Heavy Engineering Corporation Limited, the respondent herein (the Company). It is a sick company. It was referred to BIFR in terms of the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. As one of the measures for revival of the company it floated a scheme for voluntary retirement of its employees. One of such scheme was floated in the year 1987 which remained in force upto 1990. On and about 20-10-90 a revised Voluntary Retirement Scheme was floated. The said scheme was to remain effective for an initial period of one year but admittedly the same has been extended from time to time. Both unionised and non-unionised employees numbering in thousands opted thereunder. Pursuant to or in furtherance of the said scheme the following benefits were to be given to the employees opting for voluntary retirement : "5.1.1 Compensation at the rate of one and half months salary for each completed year of service, subject to a ceiling equal to the employees monthly salary at the time of voluntary retirement multiplied by balance months of service left before the normal date of superannuation. 5. 1.2 Payment of salary for the notice period as provided in the offer of appointment of the employee. 5. 1.3 Cash value of the unavailed Earned Leave at the credit of the employee on the effective date of voluntary retirement subject to the existing limit of 240 days. 5. 1.4 Payment of Provident Fund accumulation inclusive of Corporations contribution in full together with interest thereon standing to the employees credit in the Provident Fund Account as on the date of the voluntary retirement. 5. 1.5 Gratuity as admissible under the Gratuity Rules applicable to the employee. 5. 1.6 Payment of TA, cost of transportation of baggage, Transfer Grant and incidental Travelling Allowance etc. as in the case of serving employees on transfer for proceeding to his Home Town or to the place where he intends to settle in India."
(3.) The Company issued a circular letter being Circular No. 5/97 dated 9th October, 1997 effecting revision in the scale of pay. The same, although issued on 9th October, 1997, was given retrospective effect from 1-1-1992. It was to remain in force for a period of 5 years from the said date, i.e., upto 31-12-1996. Clauses 3.2 and 3.3 thereof read as under : "3.2 The revised Scales of Pay shall also be applicable on a pro-rata basis to only those Executives, non Unionised Supervisors and Employees in equivalent salary grades who were on the rolls of the Corporation as on 1-1-1992 but have subsequently ceased to be in service of the Corporation on account of superannuation or death. 3. 3 Benefits of revision of Scales of Pay shall not be applicable to those Executives, Non Unionised Supervisors and Employees in equivalent Salary Grades of the Corporation who were on the rolls of the Corporation as on 1-1-1992 but have subsequently left the services of the Corporation for the following reasons :- 3. 3.1 Dismissal; 3. 3.2 Discharge; 3. 3.3 Resignation without permission; 3. 3.4 Resignation in cases where disciplinary action for misconduct involving moral turpitude has been initiated or contemplated." ;