Lpa No. 535 of 2001 · Gujarat High Court

CORAM : HONOURABLE MS. JUSTICE R.M.DOSHIT HONOURABLE MR.JUSTICE K.M.THAKER Date : 25/02/2008 ORAL JUDGMENT (Per : HONOURABLE MS. JUSTICE R.M.DOSHIT) This group of Appeals preferred under Clause 15 of the Letters Patent raise common issue. The Appeals are, therefore, heard and decided by this common judgment. Letters Patent Appeals Nos.535 of 2001 and 573 of 2001 arise from common judgment and order dated 3rd May, 2001 passed by the learned Single Judge (Coram: K.M.Mehta, J.) in Special Civil Applications Nos.5743 of 1999 and 5498 of 1999. The appellant in both these Appeals is Gujarat Rajya Dairy Karmchari Sabha, a labour union (hereinafter referred to as “the LPA/535/2001 JUDGMENT Sabha”). The Sabha represents the workmen employed by the respondent – Gujarat Dairy Development Corporation (hereinafter referred to as “the Corporation”). Rest of the Appeals arise from the common order dated 24th July, 2001 made by the learned Single Judge (Coram: P.B.Majmudar, J.) in Special Civil Application No.4672 of 2001 and Special Civil Applications Nos.5739 of 2001 to 5266 of 2001.

The writ petitioners before the learned Single Judge, the appellants before this Court are the Sabha and some individual workmen. The challenge is two fold, first the Sabha and the workmen have challenged the scheme for voluntary retirement. Second the challenge is against the order of termination of service of those workmen who had accepted and had applied for voluntary retirement offered under the aforesaid Circular dated 7th August, 1999. The respondent Corporation is a company registered as such. As the Corporation was running into loss, it had approached the Board for Industrial and Financial Reconstruction (hereinafter referred to as “the BIFR”) for rehabilitation. Pending the matter LPA/535/2001 JUDGMENT before the BIFR, in consonance with the Government policy in respect of its loss making public sector units, the Corporation had in the year 1998 offered its employees a voluntarily retirement scheme.

It, however, appears that the said scheme could not be implemented. In supersession of the said offer for voluntary retirement. The Corporation under its Circular dated 8th July, 1999 made a fresh offer for voluntary retirement on the terms and conditions mentioned in the said Circular. It is this scheme of voluntary retirement which was under challenge in the writ petitions. Employees, who had submitted their applications for voluntary retirement under the said scheme, were relieved on 31st July, 1999. Challenge to the scheme for voluntary retirement was that the terms and conditions offered under the said scheme were less favourable to the employees than those offered in the earlier scheme of 1998. That the workmen were meted unfair treatment and that the scheme was in contravention of the fundamental right of the workmen under Article 14 of the Constitution of India. LPA/535/2001 JUDGMENT Admittedly, the workmen did accept the offer submitted under the aforesaid Circular dated 8th July,

1999. The said applications made by the workmen were accepted and they were voluntarily retired on 31st July, 1999. Since their retirement on 31st July, 1999, on 2nd August, 1999 the concerned workmen submitted their applications to withdraw the earlier applications for voluntary retirement made by them under the Circular dated 8th July, 1999. The said applications for withdrawal were not accepted by the Corporation. The learned Single Judge has, by impugned judgment dated 3rd May, 2001, upheld the voluntary retirement scheme contained in the Circular dated 8th July, 1999. The same has been followed in common order dated 24th July, 2001. We are in agreement with the learned Single Judge. Clause 8 of the Circular dated 8th July, 1999 made it specific that the applications for voluntary retirement once submitted, would not be allowed to be withdrawn later on. Thus, the workmen were put to LPA/535/2001 JUDGMENT notice that the offer made under Circular dated 8th July, 1999 was final. The workmen did accept the said offer and made applications for voluntary retirement. Having accepted the offer and submitted the applications for voluntary retirement, the withdrawal was not permissible. The appellants having accepted the offer of voluntary retirement, they are estopped from challenging the same as being unfair or violative of Article 14 of the Constitution of India. No case for interference is made out. The Appeals are dismissed. Parties will bear their own cost. Civil Application No.8642 of 2001 stands disposed of. (Ms. R.M.Doshit, J.) (K.M.Thaker, J.)