IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No. 15391 of 2008 DATE OF DECISION : 19.08.2009 Kaplash Datt .... PETITIONER Versus Punjab Agro Industries Corporation Limited, Chandigarh ..... RESPONDENT CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTAL Present: Mr. V.B. Aggarwal, Advocate, for the petitioner. Mr. Anant Kataria, Advocate, for the respondent. * * * SATISH KUMAR MITTAL , J. The petitioner was appointed and joined the services of Punjab Energy Devices Limited, Malerkotla (hereinafter referred to as `PEDL') as Production Engineer on 2.12.1985. In the said company, the Punjab Agro Industries Corporation Limited, Chandigarh (hereinafter referred to as `the respondent Corporation'), which is a State Government undertaking, was having 49% share, whereas the remaining 51% share was owned by a private person. In view of disinvestment of equity share-holding in PED, on 26.2.1991, services of the petitioner were taken on deputation by the respondent Corporation for a period of one year, which was extended by the respondent Corporation. Subsequently, services of the petitioner were CWP No. 15391 of 2008 -2- permanently absorbed in the respondent Corporation on the post of Manager with effect from 26.10.1994. From the said post, the petitioner has retired on 31.8.2005 on attaining the age of discretion. After his retirement, the respondent Corporation has granted the benefits of CPF, Gratuity, leave encashment etc. to the petitioner, while calculating his qualifying service from 26.10.1994 to 31.8.2005. The petitioner has filed the instant petition for issuing direction to the respondent Corporation to grant him the benefit of earlier service rendered by him from 2.12.1985 to 26.10.1994, towards CPF, Gratuity, leave encashment, leave account etc., with interest. It is the case of the petitioner that PEDL was a subsidiary company of the respondent Corporation and consequent upon disinvestment of equity share-holding by the respondent Corporation in its subsidiary company, the petitioner was taken on deputation by the respondent Corporation on 26.2.1991, on which he was lateron absorbed. Therefore, the respondent Corporation cannot deny the benefit of earlier service rendered by the petitioner in PEDL. In the written statement, it is stated that PEDL was not a branch of the respondent Corporation. In the said company, the respondent Corporation was having only 49% share. However, it is admitted that during the struggle period of PEDL, the petitioner was taken on deputation by the respondent Corporation on 26.2.1991. It is further stated that since the petitioner was permanently absorbed in the respondent Corporation with effect from 26.10.1994, therefore, he was entitled for retiral benefits from CWP No. 15391 of 2008 -3- the said date. I have heard the arguments of learned counsel for the parties. It is conceded position that on 26.2.1991, the petitioner was taken into the services of the respondent Corporation on deputation and subsequently, with effect from 26.10.1994, he was permanently absorbed on the post of Manager. It is also admitted position that in PEDL, the respondent Corporation was having 49% share capital and at its own, on 26.2.1991, the respondent Corporation took the services of the petitioner on deputation. In view of these facts, I am of the opinion that the petitioner is entitled for counting of his service from 26.2.1991 to 31.8.2005 as the qualifying service for the purpose of granting him the retiral benefits, like CPF, Gratuity, leave encashment and leave account etc. The petitioner has served the respondent Corporation from 26.2.1991 to 31.8.2005. Firstly, he was taken on deputation and subsequently, was permanently absorbed. The services rendered by the petitioner on deputation in the respondent Corporation cannot be ignored for the purpose of granting the retiral benefits. The contention of counsel for the respondent that since during the period of deputation, the petitioner remained the employee of PEDL, therefore, he was not entitled for counting the said service period, cannot be accepted. In view of the above, this petition is allowed and the respondent Corporation is directed to grant the benefit of service rendered by the petitioner from 26.2.1991 to 26.10.1994 towards CPF, Gratuity, leave CWP No. 15391 of 2008 -4- encashment and leave account etc., within a period of three months from the date of receipt of a certified copy of this order. If the respondent Corporation fails to release the said benefit to the petitioner within the stipulated period, it shall also be liable to pay interest on the due amount at the rate of 8% per annum from the date of the retirement of the petitioner. August 19, 2009 ( SATISH KUMAR MITTAL ) ndj JUDGE