High Court of KeralaSingle JudgeWrit petition allowed; Ext.R1(a) not applicable...

P.A. Unnikrishnan and others v. Hindustan Insecticides Ltd. and General Manager, Hindustan Insecticides Ltd.

Case / Petition Number:WP(C).No.26223/2003
Neutral Citation::null

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Thottathil B. RadhaKrishnan
Judgment Date
2007-07-17
Court Decision / Holding
The writ petition is allowed. Ext.R1(a) would not apply to govern Ext.P1 for the petitioners, and the pay revision arrears, gratuity, leave encashment, etc., will be settled in accordance with Government Orders issued from time to time. No modifications can be made on the basis of Ext.R1(a) to alter Ext.P1 for the petitioners.
Final Disposition
Writ petition allowed; Ext.R1(a) not applicable; Ext.P1 terms remain binding and arrears/pay revision to be settled per government orders.

Parties to the Case

Appellants / Petitioners

  • P.A. Unnikrishnan
  • E.P. Venugopal
  • M.O. Antony
  • P. Gopinathan
  • T.R. Raju
  • M.K. Sukumaran
  • M.L. Xavier
  • C.K. Gopi
  • T.V. Mathai
  • V.S.B. Alanchandran
  • Mathai A. John
  • K.E. Chandramohan
  • P.O. Polouse
  • Mathews M. Jacob
  • A.N. Subramanian
  • K. Ahmed Pillai
  • M.J. Kuriakose
  • T.G. Rajan
  • V.A. Kumaran
  • P. Krishnankutty Nair
  • K.E. Sivanandan
  • P. Thankam
  • Sudha P. Sankaran
  • P.V. Anna Radhika
  • C.J. Joseph
  • E.E. Elias
  • P.T. Varghese
  • K.M. Varkey
  • P.K. Sankaranarayanan
  • K.P. Vijayan
  • N.K. Sivan
  • D. Mathai
  • P.P. Antony
  • D. Cherian
  • K.C. Chennan
  • V.A. Mohammed Kunju
  • K.G. Paul
  • V.J. Joseph
  • Thomas Sebastian
  • M.G. Narayanan
  • K.B. Rajan
  • A.M. Krishna Unni
  • P.G. Vichithran
  • V. Vikraman Nair
  • P.V. Kumaran
  • M.C. Mathai
  • K.V. Bhaskaran Pillai
  • K.P. Thomas
  • P.P. Purushothaman
  • P.A. Majeed
  • M. Vadivel

Respondents

  • Hindustan Insecticides Ltd. (A Govt. of India) represented by the Managing Director, Office of the Company, New Delhi
  • General Manager, Hindustan Insecticides Ltd., Eloor 683 501

Legal Representation & Advocates

Counsels for Petitioners

  • • M.C. Sen
  • • Shahna Karthikeyan

Counsels for Respondents

  • • E.K. Nandakumar
  • • A.K. Jayasankar Nambiar
  • • Priya Mahesh
  • • Priya Manjooran

Case Synopsis & Summary

This writ petition (WP(C) 26223/2003) challenges a Government-initiated shift in the voluntary retirement scheme framework for employees of Hindustan Insecticides Ltd. The first respondent company had resumed a Voluntary Retirement Scheme (VRS) via Ext.P1 Office Order, which stated that, apart from arrears for gratuity, leave encashment, and any pay-revision adjustments, the terms of the VRS were not to be altered, and that modified implementation would be based on Government orders. About a month later, the Government of India issued Ext.R1(a) through the Department of Public Enterprises laying down parameters for VRS formulation in PSUs, effectively signaling a broader policy approach. The petitioners argued that Ext.P1 should govern their contractual entitlement and that Ext.R1(a) should not override the existing scheme already acted upon. The court held that Ext.R1(a) cannot be used to modify Ext.P1, since it expresses government preference but should not interfere with binding contractual terms already in place. Relying on judicial precedents such as HEC Voluntary Retd. Employees Welfare Society v. Heavy Engineering Corpn. Ltd. and A.K. Bindal v. Union of India, the court concluded that government memoranda, though binding in certain contexts, cannot alter established contracts. Consequently, the petition is allowed; Ext.R1(a) is not applicable to govern Ext.P1 for the petitioners, and arrears/pay revision matters will be settled per Government Orders issued over time.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that Ext.P1, the voluntary retirement scheme already in force, should govern their entitlements including gratuity, leave encashment, and any pay revision arrears. They argued that Ext.R1(a), issued by the Government, lays down parameters for VRS across PSUs but cannot modify or override the terms of a contractually binding scheme that employees have acted upon. They urged that the Ext.R1(a) memorandum should not be applied to alter the settled rights under Ext.P1 and that any modification would require a fresh agreement or law. The petition sought a declaration that Ext.R1(a) would not govern the petitioners’ VRS and a direction to settle arrears per existing Government orders.

Contentions of Respondents

The respondents defended Ext.R1(a) as a government memorandum setting parameters for VRS in PSUs and argued it reflects the policy of the government, which is a majority share-holder. They contended that Ext.R1(a) could be used to guide future VRS formulations and to recalibrate terms in line with Government policy, particularly for PSUs that have yet to decide on a VRS framework. They argued that Ext.P1 may be superseded or modified by higher policy directives when applicable, and that implementing authorities could adjust terms in future pay revisions in accordance with government orders.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
HEC Voluntary Retd. Employees Welfare Society v. Heavy Engineering Corpn. Ltd.(2006) 3 SCC 708PositiveCited in support of the proposition that government memoranda cannot override already binding contractual terms and should not modify an existing VRS contract.
A.K.Bindal v. Union of India(2003) 5 SCC 163PositiveCited to reinforce that government decisions or memos cannot unilaterally override established contractual rights, supporting non-application of Ext.R1(a) to Ext.P1.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT :** **THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN** **TUESDAY, THE 17TH JULY 2007 / 26TH ASHADHA 1929** **WP(C).No. 26223 of 2003(V)** **--------------------------------PETITIONERS:** - **----------------** **1. P.A.UNNIKRISHNAN, 'AMBADI', CHANGAMPUZHA NAGAR, KALAMASSERY SOUTH – 682 033, (CHIEF DRAFTSMAN) (HINDUSTAN INSECTICIDES LIMITED).** **2. E.P.VENUGOPAL, 'DEVEEKRIPA', GOVERNMENT HIGH SCHOOL ROAD, THIRUVANKULAM, ERNAKULAM DISTRICT (PVT. SECRETARY TO GM) -DO- -DO-** **3. M.O.ANTONY, MANAKIL HOUSE, KODUVAZHANGA, NEERIKODE P.O, (OPERATOR GR.I) -DO- -DO-** **4. P.GOPINATHAN, MUDAPPATHY HOUSE, KANNADI PARAMBU P.O., KANNUR DISTRICT (SHIFT PRODUCTION SUPERVISOR) -DO- DO-** **5. T.R.RAJU, THEVARAN, MANTTUPARAMBU, NAYARAMBALAM – 682 509 (SHIFT PRODUCTION SUPERVISOR) -DO- -DO-** **6. M.K.SUKUMARAN, MUDAKAR PILLAI, MANJUMMEL P.O. 683 501,(OPERATOR GR.I).** **7. M.L.XAVIER, MULLOTH HOUSE, DO. DO. PONEKKARA, EDAPPALLY, ELAMAKKARA 683 501, (OPERATOR GR.I) -DO- -DO-** **8. C.K.GOPI, S/O. KANNAN, KANAPPILLI PARAMBIL HOUSE, MANJUMMEL P.O., (LEADSMAN FITTER) -DO- -DO-** ## **9. T.V.MATHAI, THOLANIKUNNEL, MANNATHUR P.O., PAMPAKUDA, (OPERATOR GR.II) -DO- -DO-** ## **10. V.S.B ALANCHANDRAN, VELLOLIL HOUSE, WEST KORATTY, MAMBRA P.O., (ELECTRICIAN GR.I) DO- DO-** ## **W.P.(C) 26223/2003** **11. MATHAI A. JOHN, EALAKKATTIL HOUSE, THIRUVANIYOOR P.O., PUTHENCRUZ (VIA) 682 308,(QUALITY CONTROL SUPERVISOR) DO- DO-** **12. K.E. CHANDRAMOHAN, VAYALIMBHAGATH HOUSE, KOTTAYAM POIL P.O., PATHAYAKUNNU VIA, THALASSERY (OPERATOR GR.II) DO. DO.** **13. P.O.POULOSE, POLLAYIL HOUSE, ALANGAD P.O., KUNNEL 683 511, (MATERIAL HANDLING LABOURER ) DO. DO.** **14. MATHEWS M.JACOB, MENOTH MALIL HOUSE, RABA MANGALAM P.O., PERUMVABOOR VIA. 683 545, (QUALITY CONTROL SUPERVISOR) DO. DO.** **15. A.N.SUBRAMANIAN, AMMANAKUZHI HOUSE, ELOOR NORTH, UDYOGAMANDAL P.O. FITTER GR,.II DO. DO.** **16. K.AHAMMED PILLA, KATTILA PARAMBIL HOUSE, VALLYKUNNAM P.O., EDAPPILLY (N), 682 024, (OPERATOR GR.II) DO. DO.** **17. M.J.KURIAKOSE, MULLAPARAMBIL HOUSE, MUPPATHADAM P.O., ALUVA,(OPERATOR GR.II) DO. DO.** **18. T.G.RAJAN, THEVARAPILLI HOUSE, THATTANPADI, VELLARAPILLI (S) P.O., 683 580 (SENIOR ASSISTANT) DO. DO.** **19. V.A. KUMARAN, VAYALAKDU HOUSE, MUPPATHADAM P.O., ALUVA 683 110, MASON GR.III DO. DO.** **20. P.KRISHNANKUTTY NAIR, S/O. G.PADMANABA PILLAI, 'SRUTHI',TTHAIKKATTUKARA P.O., ALUVA 683 106/. (STOCK VERIFIER (DPRVISL HTSFR) DO. DO.** **21. K.E.SIVANANDAN, POORATHIL CHERUPUNIAL, CHEMPILAVU P.O., 686 584, (SR. STORE KEEPER) DO. DO.** **22. P.THANKAM, 'SARALA MANDIRAM', PALLURUTHY, KOCHI-6, (SUPDT. (GENERAL SERVICE) DO. DO.** **23. SUDHA P.SANKARAN, 'KARTHIKA', MUTTAM, THAIKAVE, THAIKATTUKARA P.O., ALUVA, (SUPERINTENDENT ACCOUNTS) DO. DO.** ## **W.P.(C) NO.26223/2003** **24. P.V.ANNA RADHIKA, 'SIMON COTTAGE, EAST KADUNGALLOOR , U.C.COLLEGE P.O., ALUVA 2 (SUPERINTENDENT-PURCHASE) DO. DO.** **25. C.J.JOSEPH, CHEMPLAYIL HOUSE, MUNDAKAL, PALA, KOTTAYAM (DIST), FITTER GR.I DO.** **26. E.E.ELIAS, ERUMALAYIL HOUSE, NO.117/XXI, ROSE LINE, THOTTAKKATTUKARA PO.O., (OPERATOR GRADE I DO. DO.** **27. P.T.VARGHESE, PARAYIL HOUSE, ELOOR EAST, NEAR ESI DISPENSARY, UDYOGAMANDAL P.O., SENIOR STORE KEEPER DO. DO.** **28. K.M.VARKEY, PANAMPARAMBIL HOUSE, MANJUMMEL P.O., 683501 (OPERATOR GR.II) DO. DO.** **29. P.K.SANKARANARAYANAN, S/O. KOCHUPAPPU, CHALARPADAM HOUSE, ALANTHURUTH, VADAKKEKARA, N. PARUR (OPERATOR GR.I) DO. DO.** **30. K.P.VIJAYAN, KIZHAKKAVEEDU, THAIKATTUKARA P.O., AMBATTUKAVE, ALUVA (OPERATOR GR.I) DO. DO.** **31. N.K.SIVAN, NAMBRALIL, SOUTH VAZHAKULAM, ALUVA- 683 105. (OPERATOR GR.I) DO. DO.** **32. D.MATHAI, MOOLAYIL HOUSE, MANJUMMEL P.O., UDYOGAMANDAL 683 501, (LEADSMAN-PACKER) DO. DO.** **33. P.P.ANTONY, PANAKKAL HOUSE, CHAPAL LINE, ALUVA (LEADSMAN- OPERATORp) DO. DO.** **34. D.CHERIAN, PALLIKUNNIL HOUSE, NEAR CSI CHURCH, ALUVA 683101, (SHIFT PRODUCTION SUPERVISOR) DO. DO.** **35. K.C.CHENNAN, S/O.CHAKKAN, KALAMUTT PARAMBIL HOUSE, CHEMGAMANAD P.O., ALUVA(MASON GR.II) DO. DO.** **36. V.A.MOHAMMED KUNJU, VALLAMKOTIL HOUSE, ELOOR EAST, UDYOGAMANDAL 683 501. (PACKER GR.II) DO.** **37. K.G.PAUL, KANOTH HOUSE, ELOOR (S), UDYOGAMANDAL P.O., 683 501 (SHIFT PRODUCTION SUPERVISOR) DO. DO.** ## **W.P.(C) NO.26223/2003** **38. V.J.JOSEPH, VADAKKEPARAMBIL HOUSE, MUTHIRAMALA, KARUKACHAL P.O., KOTTAYAM DISTRICT 686 540, QUALITY CONTROL SUPERVISOR ) DO. DO.** **39. THOMAS SEBASTIAN, VADAKKE PARAMBIL, HOUSE, MUTHIRAMALA, KARUKACHAL P.O., KOTTAYAM DISTRICT 686 540 (ANALYST GR.I) DO.** **40. M.G.NARAYANAN, MUNDAPUZHA, RUBBER BOARD,P.O., PUTHUPALLY, KOTTAYAM DISTRICT 686 009. (HELPER ) DO.** **41. K.B.RAJAN, KANJIKAL HOUSE, CHUNANGAMVELY P.O, ALUVA 683 105 (SHIFT PRODUCTION SUPERVISOR) DO. DO.** **42. A.M.KRISHNA UNNI, 'KRISHNA SREE'. HOSPITAL ROAD, THRIPUNITHURA (DEPUTY PLANT SUPERVISOR) DO. DO.** **43. P.G.VICHITHRAN, PAMBALAMALIL HOUSE, PAYYAL, NEAR OTAKALI JUNCTION, NEDUNGAPRA P.O., PERUMBAVOOR- 683 545, (PLANT SUPERINTENDENT) DO,** - **. 44. V.VIKRAMAN NAIR, 'ANJU VIHAR', PARAYAMUTTOM, KULATHOOR, VAZHAKADA P.O. NEYYATTINKARA, TRIVANDRUM (FITTER GR.I) DO. DO.** **45. P.V.KUMARAN, S/O.VAREED, KORAVANKUNNU, NEDUMBSSERY, ATHANI P.O., ALUVA (MASON GR.II) DO. DO.** **46. M.C.MATHAI, MUKKUNGAL HOUSE, CHILAVANNOOR, KADAVANTHARA P.O., KOCHI 20. (LEADSMAN-BOILER OPERATOR) DO. DO.** **47. K.V.BHASKARAN PILLAI, KOTTARAPPATTU HOUSE, MANAKA PADI, KARUMALOOR P.O. (OPERATOR GRADE I) DO. DO.** **48. K.P.THOMAS, KARUTHEDATH HOUSE, PIPELINE ROAD, THAIKATTUKARA P.O., ALUVA (OPERATOR GR.I DO. DO.** ## **W.P.(C) NO.26223/2003** **49. P.PURUSHOTHAMAN, 'SARO NIVAS', MANJUMMEL P.O., ARATTUKADAVU ROAD, ELOOR (OPERATOR GRADE I ) DO.** **50. P.A.MAJEED, PALLIKKARA HOUSE, KOTTUVADI MUKKU, MANJUMMEL P.O. (SHIFT PRODUCTION SUPERVISOR) DO.** **51. M.VADIVEL, VELLAKULATH HOUSE, NATHOLY PARAMBU, JANATHA ROAD MANJUMMEL, P.O., HELPER DO.** **BY ADV. SRI.M.C.SEN SMT.SHAHNA KARTHIKEYAN** **RESPONDENTS:** - **------------------** **1. HINDUSTAN INSECTICIDES LTD., (A. GOVT. OF INDIA ) REP.BY THE MANAGING DIRECTOR, OFFICE OF THE COMPANY, 2ND FLOOR CORE 6 SCOPE COMPLEX, LODI ROAD, NEW DELHI.** **2. GENERAL MANAGER, HINDUSTAN, INSECTICIDES LTD., ELOOR 683 501.** - **BY ADV. SRI. SRI.E.K.NANDAKUMAR SRI.A.K.JAYASANKAR NAMBIAR S.C.** - **SMT.PRIYA MAHESH SMT.PRIYA MANJOORAN** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17/07/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **W.P.(C) NO.26223/2003** ## **APPENDIX** ## **PETITIONER'S EXHIBITS** **EXT.P1:- COPY OF THE EMPLOYES VOLUNTARY RETIREMENT SCHEME, 2002 WITH THE OFFICE ORDER NO.1461. DT. 28.1.02.** **EXT.P2:- COPY OF THE ORDER OF THE 1ST RESPONDENT DT. 12.8.02.** **EXT.P3:- COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT TO THE 48TH PETITIONER DT. 21.7.03.** **EXT.P4:- COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT TO THE 49TH PETITIONER, DT. 21.7.03.** ## **RESPONDENTS EXHIBITS** **EXT.R1(a):- COPY OF THE OFFICE MEMORANDUM DT. 28TH FEBRUARY 2002.** ## **/TRUE COPY/** **P.S. TO JUDGE** ## **tss** ## **THOTTATHIL B. RADHAKRISHNAN, J.** = = = = = = = = = = = = = = = = = = = = = = = = ## **WP(C).No.26223 OF 2003-V** = = = = = = = = = = = = = = = = = = = = = = = = Dated this the 17[th ] day of July, 2007. ## **JUDGMENT** By Ext.P1 Office Order, the first respondent company, employer of the petitioners, resumed a Voluntary Retirement Scheme, which was notified thereby. In so far as payment of arrears towards gratuity, leave encashment etc. on account of pay revision, if any, the same shall be settled as per Government Orders received from time to time. For all other intents and purposes, the Scheme was not liable to be altered. After a month of issuance of Ext.P1 Office Order, which was acted upon by the employees, in particular, the petitioners, the Government of India issued Ext.R1(a) Office Memorandum through its Department of Public Enterprises in the Ministry of Heavy Industries & Public Enterprises WP(C)26223/2003 -: 2 :- laying down certain parameters for formulation of voluntary retirement schemes by the public sector undertakings. The said Office Memorandum issued by the Government, though may be binding on companies which are yet to take decisions in so far as it expresses the decision of the Government which is a majority share-holder, that cannot be intended to interfere with the terms of the contract between the employer and voluntarily retiring employee in terms of a voluntary retirement scheme already in place and binding the parties and which has been acted upon. Reference in support of this can be made to the decisions of the Apex Court in **HEC Voluntary Retd. Employees Welfare Society v. Heavy Engineering Corpn. Ltd.** [(2006) 3 SCC 708] and **A.K.Bindal v. Union of India** [(2003) 5 SCC 163]. Under the aforesaid circumstances, this writ petition is allowed declaring that Ext.R1(a) Scheme would not apply to govern the petitioners and the first respondent in the application of Ext.P1 Scheme and no modification can WP(C)26223/2003 -: 3 :- be made on the basis of Ext.R1(a), while the payment of arrears towards gratuity, leave encashment etc. on account of pay revision, if any, will be settled as per Government Orders received from time to time. Sd/- **THOTTATHIL B. RADHAKRISHNAN, JUDGE.** Sha/-