HEC VOLUNTARY RETD EMPS WELFARE SOC Vs. HEAVY ENGINEEERING CORPORATION LTD
LAWS(SC)-2006-2-2
SUPREME COURT OF INDIA
Decided on February 24,2006

HEC VOLUNTARY RETD. EMPS. WELFARE SOC. Appellant
VERSUS
HEAVY ENGINEERING CORPORATION LTD Respondents





Cited Judgements :-

S N BASAVARAJAPPA VS. MANAGEMENT OF VIGNYAN INDUSTRIES LTD [LAWS(KAR)-2009-6-37] [REFERRED TO]
MADHUSUDAN TIWARY VS. PROJECT AND DEVELOPMENT INDIA LTD. [LAWS(JHAR)-2014-4-58] [REFERRED TO]
TRIBAL CO-OPERATIVE MARKETING DEVELOPMENT FEDERATION OF INDIA VS. SIDDHARTHA KUMAR [LAWS(DLH)-2008-2-391] [REFERRED TO]
INDERPAL SINGH VS. NATIONAL TEXTILE CORPORATION LIMITED [LAWS(DLH)-2010-2-152] [REFERRED TO]
INDUSTRIAL INVESTMENT BANK OF INDIA LIMITED OFFICERS ASSOCIATION VS. UNION OF INDIA [LAWS(CAL)-2007-3-25] [REFERRED TO]
KARTHIKEYA VARMA VS. THE UNION OF INDIA AND ORS. [LAWS(KER)-2015-7-30] [REFERRED TO]
BOARD OF TRUSTEES VISAKHAPATNAM PORT TRUST VS. T S N RAJU [LAWS(SC)-2006-9-14] [REFERRED TO]
Rajesh Sharma VS. State of M.P. [LAWS(MPH)-2006-8-84] [REFERRED TO]
P SELVARAJ VS. SHARDLOW INDIA LIMITED HOSUR GARDEN [LAWS(MAD)-2007-1-290] [REFERRED TO]
THE WORKMAN OF MANDYA NATIONAL PAPER MILLS VS. THE UNION OF INDIA [LAWS(KAR)-2016-7-31] [REFERRED TO]
INDU SHEKHAR SINGH VS. STATE OF U P [LAWS(SC)-2006-4-43] [REFERRED TO]
BHARAT EARTH MOVERS LTD. AND ANR. VS. A. SEETHARAMA BHAT AND ORS. [LAWS(SC)-2009-8-166] [REFERRED TO]
MANAGING DIRECTOR, STEEL AUTHORITY OF INDIA LTD., BHILAI VS. SMT. NARMADA BAI & ANR. [LAWS(CHH)-2009-10-48] [REFERRED TO]
NIPA DHAR VS. NATIONAL AVIATION COMPANY OF INDIA LTD [LAWS(CAL)-2010-12-74] [REFERRED]
JAGANNATH S/O ANNA KHAKARE VS. STATE OF MAHARASHTRA [LAWS(BOM)-2013-2-32] [REFERRED TO]
COMMISSIONER OF CUSTOMS VS. S KRISHNAMOORTHY [LAWS(MAD)-2009-1-262] [REFERRED TO]
KISHORE KUMAR VYAS VS. STATE OF C G [LAWS(CHH)-2007-10-17] [REFERRED TO]
WORKERS UNION, NAGALAND PULP AND PAPER CO. LTD. VS. NAGALAND PULP AND PAPER COMPANY LTD. AND OTHERS [LAWS(GAU)-2011-10-30] [REFERRED TO]
SHAIK MOHD ALI VS. PUNJAB AND SIND BANK, NEW DELHI [LAWS(APH)-2012-8-112] [REFERRED TO]
L.VENKATESWARA SASTRY VS. UNION OF INDIA [LAWS(APH)-2013-7-94] [REFERRED TO]
R D AVHAD VS. MAHARASHTRA STATE FARMING CORPORATION LTD [LAWS(BOM)-2006-3-24] [REFERRED TO]
K AJITKUMAR GADIYAR VS. CORPORATION BANK [LAWS(KAR)-2011-8-21] [REFERRED TO]
CHANDA KOCHHAR VS. ICICI BANK LTD. [LAWS(BOM)-2022-11-31] [REFERRED TO]
KALMESHVAR TEXTILE MILLS LTD. AND ORS. VS. RATNAKAR BABURAO CHIMOTE AND ORS. [LAWS(BOM)-2015-7-291] [REFERRED TO]
STATE OF KERALA VS. KERALA VOCATIONAL HIGHER SECONDARY SCHOOL [LAWS(KER)-2022-10-205] [REFERRED TO]
NORTH DELHI POWER LTD VS. GOVT OF NCT OF DELHI [LAWS(DLH)-2007-7-109] [REFERRED TO]
P.P. VAIDYA VS. IFCI LTD [LAWS(DLH)-2014-5-4] [REFERRED TO]
DINESH CHANDRA MISHRA VS. PROJECT AND DEVELOPMENT INDIA LTD [LAWS(JHAR)-2012-4-10] [REFERRED TO]
KARNATAKA AGRO INDUSTRIES CORPORATION VOLUNTARILY RETIRED EMPLOYEES WELFARE ASSOCIATION REGD VS. STATE OF KARNATAKA [LAWS(KAR)-2011-4-73] [REFERRED TO]
T.M. MADAV YADAV VS. PRINCIPAL SECRETARY TO THE GOVERNMENT AND OTHERS [LAWS(MAD)-2018-8-615] [REFERRED TO]
CHAIRMAN AND MANAGING DIRECTOR, ITDC, NEW DELHI VS. RABINDRANATH SAHOO [LAWS(ORI)-2022-12-77] [REFERRED TO]
K K PURI VS. UNION OF INDIA [LAWS(P&H)-2010-9-791] [REFERRED]
MRIGANK JOHRI AND OTHERS VS. UNION OF INDIA AND OTHERS [LAWS(SC)-2017-7-33] [REFERRED TO]
CHANDRASHEKAR A K VS. STATE OF KERALA [LAWS(SC)-2008-11-92] [REFERRED TO]
ASSISTANT GENERAL MANAGER VS. RADHEY SHYAM PANDEY [LAWS(SC)-2020-3-13] [REFERRED TO]
P. KUNHIRAMAN AND ORS. VS. STATE OF KERALA AND ORS. [LAWS(KER)-2015-1-231] [REFERRED TO]
INDU SHEKHAR SINGH VS. STATE OF U. P [LAWS(SC)-2006-5-118] [REFERRED TO]
SUSHILABEN NAVINCHANDRA SHAH VS. STATE OF GUJARAT [LAWS(GJH)-2006-7-25] [REFERRED TO]
K.K. PURI VS. UNION OF INDIA AND OTHERS [LAWS(P&H)-2010-9-761] [REFERRED TO]
KHEM CHAND VS. BHARTIA CUTTLER HAMMER AND ORS. [LAWS(P&H)-2014-3-276] [REFERRED TO]
NEW VICTORIA MILLS VS. SHRIKANT ARYA [LAWS(SC)-2021-9-90] [REFERRED TO]
NATIONAL INSURANCE SPECIAL VOLUNTARY VS. UNITED INDIA INSURANCE [LAWS(SC)-2018-10-68] [REFERRED TO]
TAPAN KUMAR MUKHERJEE VS. STATE [LAWS(CAL)-2010-8-47] [REFERRED TO]
POONAM GARG VS. IFCI VENTURE CAPITAL FUNDS LTD [LAWS(DLH)-2019-9-247] [REFERRED TO]
SHIV RAM VERMA VS. MANAGING DIRECTOR, FOOD CORPORATION OF INDIA AND ORS. [LAWS(DLH)-2009-3-180] [REFERRED TO]
JOGENDRA SINGH VS. TINPLATE COMPANY OF INDIA LTD. [LAWS(JHAR)-2019-5-104] [REFERRED TO]
SENGAMUTHU N VS. MANAGEMENT OF NEYVELI LIGNITE CORPORATION LTD [LAWS(MAD)-2010-7-415] [REFERRED TO]
DEEPAK MOHAN SETHI VS. BSES RAJDHANI POWER LTD. [LAWS(DLH)-2014-5-392] [REFERRED TO]
MITHILESH SINGH S/O LATE RAM RAJ SINGH VS. PROJECTS AND DEVELOPMENT INDIA LIMITED (PDIL) [LAWS(JHAR)-2018-2-10] [REFERRED TO]
SEWAKRAM RAGHUNATHJI POTBHARE VS. MAHARASHTRA STATE [LAWS(BOM)-2017-7-274] [REFERRED TO]
S N BASAVARAJAPPA VS. MANAGEMENT OF VIGNYAN INDUSTRIES LTD [LAWS(KAR)-2012-7-381] [REFERRED TO]
S RENGARAJ VS. PUNJAB NATIONAL BANK [LAWS(MAD)-2006-11-289] [REFERRED TO]
GANESWAR BISWAL VS. STATE OF ORISSA [LAWS(ORI)-2011-8-9] [REFERRED TO]
UNION OF INDIA VS. MANIK LAL BANERJEE [LAWS(SC)-2006-7-46] [REFERRED TO]
P MATHAPPAN VS. DEPUTY COMMISSIONER OF LABOUR [LAWS(MAD)-2008-6-19] [REFERRED TO]
WMI CRANES LTD VS. KUSH SITARAM CHAVAN [LAWS(BOM)-2007-1-88] [REFERRED TO]
DINESH CHANDRA MISHRA AND ANOTHER VS. PROJECT AND DEVELOPMENT INDIA LTD., DHANBAD & ORS. [LAWS(JHAR)-2012-4-222] [REFERRED TO]
RAJENDER KUMAR SHARMA VS. NORTH DELHI POWER LTD. [LAWS(DLH)-2014-5-8] [REFERRED TO]
JNANENDRA NATH MANNA VS. BALMER LAWRIE & COMPANY LTD AND OTHERS [LAWS(CAL)-2019-4-249] [REFERRED TO]
SANJAY MADHUKAR BUGADE & ORS VS. PUNJAB AND MAHARASHTRA COOP BANK LTD & ORS [LAWS(BOM)-2018-6-181] [REFERRED TO]
MANAGING DIRECTOR, SOLAPUR ZILLA SAHAKARI DUDH UTP VS. VILAS SATYAVAN MORE; SHIVAJI SIDDHESHWAR GUND; NAN [LAWS(BOM)-2016-9-203] [REFERRED TO]
ASSOCIATE BANKS' RETIRED OFFICERS' ASSOCIATION VS. STATE BANK OF TRAVANCORE [LAWS(KER)-2014-2-89] [REFERRED TO]
ANAND V KALLANNAVAR VS. BEML LIMITED [LAWS(KAR)-2012-7-226] [REFERRED TO]
UNITED INDIA INSURANCE CO. VS. N. SRINIVASAN [LAWS(MAD)-2017-7-168] [REFERRED TO]
ASSISTANT GENERAL MANAGER, STATE BANK OF INDIA AND ORS. VS. RADHEY SHYAM PANDEY AND ORS. [LAWS(SC)-2015-2-108] [REFERRED TO]
SRI NARAYAN MURTI VS. TINPLATE COMPANY OF INDIA LTD. [LAWS(JHAR)-2019-5-105] [REFERRED TO]
INDRA DEO SINGH VS. TINPLATE COMPANY OF INDIA LIMITED [LAWS(JHAR)-2019-5-107] [REFERRED TO]
HP AGRO INDUSTRIES CORPORATION LTD VS. B M DUTT [LAWS(HPH)-2017-9-15] [REFERRED TO]
MUMBAI GRAHAK PANCHAYAT AND ANOTHER. VS. STATE OF MAHARASHTRA AND OTHERS. [LAWS(BOM)-2017-5-2] [REFERRED TO]
KRISHNA MURARI LAL ASTHANA VS. UNION OF INDIA [LAWS(RAJ)-2010-1-26] [REFERRED TO]
BALAK RAM SINGH VS. STATE BANK OF INDIA [LAWS(MPH)-2012-7-172] [REFERRED TO]
PATRICK MIRANDA VS. INDIAN OVERSEAS BANK [LAWS(BOM)-2011-8-122] [REFERRED TO]
MANAGING DIRECTOR STEEL AUTHORITY OF INDIA LTD VS. BASANTA BAI [LAWS(CHH)-2009-10-9] [REFERRED TO]
FEDERAL MOGUL BEARING INDIA LTD VS. STATE OF H P [LAWS(HPH)-2011-9-5] [REFERRED TO]
BHARAT COKING COAL LIMITED VS. GOPESHWAR RAJAK [LAWS(JHAR)-2020-10-43] [REFERRED TO]
GEORGE PUTHENANGADI AND ORS. VS. STATE BANK OF INDIA AND ORS. [LAWS(KER)-2015-10-57] [REFERRED TO]


JUDGEMENT

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."



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