2015 (11) TMI 1888 - HC - Indian Laws

Absorption of retrenched employees of Government or Public Corporations in Government Service - Calculation of the services of the absorbed employees rendered in the erstwhile department for the purpose of pensionary benefits - HELD THAT - The provisions of Section 3 of the Rescission of Rules Act 2009 have obviously protected the interest of retrenched employees, who had not absorbed before 8 April, 2003 under the provisions of the Absorption Rules - Since Rescission Rules 2003 protected the benefit of pay granted to an absorbed retrenched employee prior to the date of commencement of Rescission Rules 2003 even after enforcement of Rescission Rules Act 2009, there is no reason to withdraw it. More so, the last salary drawn by the retrenched employees was also protected by means of Government Order dated 11 November 1993. The matter of protection of pay scale as last drawn by the retrenched employees was considered by the Hon'ble Supreme Court in the case of Chittaranjan Sharma v. State of Himachal Pradesh, reported in 1996 (9) TMI 663 - SUPREME COURT , whereby the Supreme Court directed to maintain the pay scales of the absorbed employees in the event of their retrenchment. This has been followed by the learned Single Judge. Therefore, the findings given by the learned Single Judge as well as the directions issued to the appellants to give the consequential benefits to the respondents do not deserve to be interfered with. Calculation of the services of the absorbed employees rendered in the erstwhile department for the purpose of pensionary benefits - HELD THAT - The original petitioner has failed to produce any such rule, which would entitle him to claim the inclusion of his services rendered in the erstwhile undertaking for the purpose of pensionary benefits. The petitioner was retrenched from service of Auto Tractors Ltd., Pratapgarh. He was absorbed in the State Government service under the Absorption Rules 1991 in accordance with the terms and conditions provided therein. Absorption Rules 1991 do not contain any such provision as to calculate the period of service of the retrenched employee rendered in the erstwhile department for the purpose of pensionary benefits. Therefore, in the absence of a specific provision in the Rules, no such benefit can be provided by the Court. Appeal disposed off.

Summary

Issues:
1. Interpretation of Rescission Rules 2003 and Rescission Rules Act 2009 regarding absorption of retrenched employees in Government Service.
2. Protection of rights and benefits of retrenched employees under different rules and regulations.
3. Calculation of services for pensionary benefits of absorbed employees.

Issue 1: Interpretation of Rescission Rules 2003 and Rescission Rules Act 2009
The case involved a dispute regarding the absorption of retrenched employees of Government or Public Corporations in Government Service under different rules and regulations. The Rescission Rules 2003 terminated the right of consideration for absorption acquired under the 1991 Rules with effect from 8 April, 2003. The Rescission of Rules Act 2009 further clarified that retrenched employees not absorbed before April 8, 2003, shall have no claim for absorption under the previous rules. The Court held that the Rescission Rules 2003 did not have retrospective operation but effectively terminated the right of retrenched employees for absorption acquired under the 1991 Rules from April 8, 2003 onwards, except for those absorbed between May 9, 1991, and April 8, 2003.

Issue 2: Protection of rights and benefits of retrenched employees
The Court acknowledged that the Rescission Rules 2003 protected the pay granted to absorbed retrenched employees before its enforcement, which was further maintained under the Rescission Rules Act 2009. The protection of pay scale and last drawn salary of retrenched employees was also ensured through government orders and judicial precedents. The Court upheld the directions to provide consequential benefits to the respondents, citing precedents that supported the protection of pay scales and benefits of absorbed employees even after retrenchment.

Issue 3: Calculation of services for pensionary benefits
Regarding the calculation of services for pensionary benefits of absorbed employees, the Court noted that the Absorption Rules 1991 did not contain provisions for including services rendered in the erstwhile department for pensionary benefits. As the petitioner failed to produce any rule supporting the inclusion of previous services for pension benefits, the Court rejected the claim for calculating previous service rendered in the erstwhile undertaking. Consequently, the judgment of the Single Judge in this regard was set aside, and the relief sought for pensionary benefits based on previous services was denied.

In conclusion, the Court clarified the termination of rights for absorption of retrenched employees under different rules, upheld the protection of pay and benefits for absorbed employees, and rejected the claim for including previous services for pensionary benefits due to the absence of specific provisions in the relevant rules.