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TMI Blog2006 (2) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... ay not accept offers of a number of employees and may confine the same to only a section of optees. Similarly when an employer accepts the recommendations of a Pay Revision Committee, having regard to the financial implications thereof it may accept or reject the whole or a part of it. The question of inclusion of employees who form a special class by themselves, would, thus, depend upon the object and purport thereof. The appellants herein do not fall either in clauses 3.2 or 3.3 expressly. They would be treated to be included in clause 3.2, provided they are considered at par with superannuated employee. They would be excluded if they are treated to be discharged employee. We have noticed that admittedly thousands of employees had opted for voluntary retirement during the period in question. They indisputably form a distinct and different class. Having given our anxious consideration thereto, we are of the opinion that neither they are discharged employees nor are superannuated employees. The expression superannuation connotes a distinct meaning. It ordinarily means, unless otherwise provided for in the statute, that not only he reaches the age of superannuation prescribed theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 month months' salary for each completed year of service, subject to a ceiling equal to the employee's 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following terms : the employees who have voluntarily retired after 1.1.1992, on the effective date of revision of wages and salary, as the case may be, he will be eligible for arrears of wages including arrear of compensation paid under the approved voluntary retirement scheme. However, the arrears will be payable only after the wage revision is approved. It is the responsibility of the company to pay the arrears arising from wage revision. Arrears on account of V.R.S., compensation, if any, may however be met from the Budget grant of the company for V.R.S. for the year in which such revision takes effect. 6. As despite the said purported direction of the Central Government the benefit of the revised scale of pay were not extended to the appellants herein, they filed a writ petition before the Ranchi Bench of the High Court of Judicature at Patna (now Jharkhand High Court). A learned Single Judge of the said Court dismissed the said writ petition opining that the appellants had no legal right in relation thereto. It was furthermore opined that when the said circular No.5 of 1997 was issued, the appellants having voluntarily retired, it was not applicable in their case. 7. Lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jural relationship comes to an end, Mr. Ranjit Kumar argued. Drawing our attention to the distinction between clauses 3.2 and 3.3 afore-mentioned, it was submitted that it specifically lays down as to what was to be included has been included and what was to be excluded has been excluded. Thus, the Company never had any intention to include the cases of the employees who had opted for voluntary retirement in terms of the scheme, they have not been included in clause 3.2 of the Circular. Revised pay scale being applicable to a person who is in service, a'fortiori the same would be inapplicable to the persons who are not in service, according to the learned counsel. 10. In reply, Mr. S.B. Upadhyay, learned counsel submitted that the jural relationship was created in terms of the scheme itself and in this behalf our attention was drawn to paragraph 20.2 of afore-mentioned Circular No.5/97 which reads as under: 20.2 Only those separated Executives, Supervisors and Employees in the equivalent salary grades who ceased to be in employment of the Corporation due to superannuation or death on or after 01.01.1992 shall be eligible for arrears on pro-rata basis. 11. An offer for voluntary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the benefit of compensation and notice pay was restricted to Basic Pay and Dearness Allowance that would have been paid to the employees till the date of their supernanuation and in case the employee being released after serving the full notice period or part thereof and having drawn the salary for the same, the notice pay would not be admissible to that extent. It is on the afore-mentioned premise clauses 3.2 and 3.3 of the said scheme are to be construed. 15. The revised scale of pay have been made applicable on a pro-rata basis to those employees who were on the rolls of the Corporation as on 01.01.1992 but have subsequently ceased to be in service of the Corporation on account of superannuation or death. While extending the said benefit, the word only has been used which is of some significance. Clause 3.3 of the scheme which excludes the applicability of the scheme categorically states that the same shall not be applicable to those who were on the rolls of the Corporation on the said date, but subsequently left the services for the reasons stated thereunder, namely : 1. Dismissal; 2. Discharge; 3. Resignation without permission; 4. Resignation in cases where disciplinary ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey would be excluded if they are treated to be discharged employee. 21. We have noticed that admittedly thousands of employees had opted for voluntary retirement during the period in question. They indisputably form a distinct and different class. Having given our anxious consideration thereto, we are of the opinion that neither they are discharged employees nor are superannuated employees. The expression superannuation connotes a distinct meaning. It ordinarily means, unless otherwise provided for in the statute, that not only he reaches the age of superannuation prescribed therefor, but also becomes entitled to the retiral benefits thereof including pension. Voluntary retirement could have fallen within the afore-mentioned expression, provided it was so stated expressly in the scheme. 22. Financial considerations are, thus, a relevant factor both for floating a scheme of voluntary retirement as well as for revision of pay. Those employees who opted for voluntary retirement, make a planning for the future. At the time of giving option, they know where they stand. At that point of time they did not anticipate that they would get the benefit of revision in the scales of pay. They pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t they have not been expressly included within the purview thereof, we are of the opinion that although they have not been excluded by clause 3.3, they would be deemed to be automatically excluded. 28. In Hindustan Machine Tools Ltd. Anr. vs. M.S. Kang/P.N. Kashyap (1997) 11 SCC 186, this Court observed that 10. ..Those who retired on attaining the age of 58 years or voluntarily retired under Rule 24.2(b) or (c), as the case may be, under the Conduct, Discipline and Appeal Rules referred to hereinbefore are the persons referred to in clause 2.2.2 of the office order. The benefits of the revision of pay scales shall not be applicable to those persons who were on the rolls of the Company as on 31-12-1986 but subsequently left the service of the Company before the date of issue of Office Order No.45 of 1990 for any reason, whatsoever, including resignation except the category mentioned in clause 2.2 above. Thereby the necessary implication is that all those who are covered and stand on the same footing are excluded except to the extent of gratuity, revision of the terminal benefits as mentioned in para 6.13 which postulates that gratuity paid or payable to employees covered under clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26 of the Service Rules. No further action on the part of the Executive Committee of the Central Board of the Bank would be required in such a case and rule 11 will not be applicable. 31. The said has no application in the present case. 32. It has not been suggested that voluntary retirement, in absence of any express statutory rule governing the filed, would bring about a case of superannuation. In V. Kasturi (supra) a new Rule was introduced providing for pension of an employee after retirement on completion of 20 years of service, provided he requested in writing therefor. The questions which fall for consideration therein was that if a person was eligible for pension at the time of his retirement and if he survives till the time of subsequent amendment of the relevant pension scheme, whether he would become entitled to enhanced pension or would become eligible to get more pension as per the new formula of computation of pension. In the fact situation obtaining therein, it was held that employees could be divided in two categories, i.e., those who were eligible for pension at the time of his retirement and those who were not. Whereas in the case of first category the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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