IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY FIFTH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION Nos: 874 of 2003 and 3492 of 2007 Between: 1 L.Chinnabba Mandadi S/o Kannaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 2 N.Subramanyam S/o Kannaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 3 P.Madhava Reddy S/o Kannaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 4 K.Subramanyam S/o K.Ramaiah Chetty H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 5 P.Pattabhi Reddy S/o P.Janakirama Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 6 M.Reddeppa Reddy S/o M.Venkataswamy Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 7 G.Venkata Ramana S/o G.Nagamallaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 8 S.Saravana S/o A.M.Sivalingam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 9 R.Venkata Reddy S/o R.Valliyamma H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 10 V.Lakshmipathi s/o V.Krsihnama Naidu 11 P.Subramanyam s/o P.Govindaiah 12 A.Narasimulu s/o A.Kannayya 13 M.Subramanyam s/o Rajagopala Naidu 14 P.Raja Rathnam s/o P.Gopalaiah 15 S.Basheer s/o Allabaksha 16 M.Raghu s/o M.Subramanyam Naidu 17 P.Venkatapathi Reddy s/o P.Jiji Reddy 18 A.T.Shankar s/o AC.Tulasiram 19 G.Munaiah s/o G.Venkataswamy 20 V.Krishnapillai s/o M.Viswanadhapillai 21 M.Subramanyam s/o M.Varadharajulu 22 V.subramanyam s/o V.Krishnaiah 23 P.Rajendrachari s/o P.Krishnama Chari 24 S.Basha s/o S.Sukur 25 K.Krishnaiah s/o Ramaiah 26 P.Umapathy s/o P.Krishnaiah 27 K.Sivalingam s/o Kodandai 28 Y.Munaswamy s/o Y.Krishnaiah 29 V.Muneendra s/o V.Doraswamy 30 S.Sasirekha w/o S.Damodharam 31 A.Subramanyam Reddy s/o A.Ranga Reddy 32 K.Chenga Mandadi s/o K.Sivalinga Mandadi 33 B.Govinda Chetty S/o Doraswamy Chetty 34 K.Jagadeeswar s/o K.Gopal Chetty 35 J.Siddaiah s/o J.Subbaiah 36 K.Kesavulu s/o K.Chengaiah Naidu 37 D.Chalapathy s/o D.Doraswamy 38 R.Anji s/o R.Ramaiah 39 V.Hari Babu s/o V.Vadivelu Nattar 40 P.D.Kumar s/o N.S.Palani 41 R.Shanmugam s/o R.Raja H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 42 M.Ravi s/o Ramalingam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 43 S.Venkateswarlu s/o Late Subramanyam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 44 M.Sampath s/o M.Ramaiah Chetty H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 45 K.Dasaradhan s/o Kandhappa Gounder H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 46 K.Ramachandran s/o K.Krishnaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 47 S.Sreenivasulu Mandadi s/o S.Varadha mandadi H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 48 V.Guruswamy s/o Veeraswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 49 V.Jayaramudu s/o V.Munaswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 50 G.Rajendra s/o G.Lakshmaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 51 K.Gunasekhar s/o K.Venkataswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 52 P.Govindaswamy s/o P.Munaswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 53 K.Dhakshinmoorthy s/o K.Nallaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 54 A.Mohanraj s/o Amalanadhan H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 55 A.Jagannadha Reddy s/o A.Jayarami Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 56 R.Chennakesavulu s/o R.Venkatarathnam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 57 A.Sankar Reddy s/o A.Papi Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 58 J.Mohan Reddy s/o J.Reddeppa Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 59 G.Surendra Reddy s/o G.Gangi Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 60 G.Venkataramana Reddy s/o Veeram Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 61 T.Prabhakar Reddy s/o T.Venkataramana Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 62 T.Ramamoorthy s/o Kannaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 63 O.Narayana s/o O.Venkataswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 64 P.Raghava Reddy s/o P.Rami Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 65 E.Bhaskar s/o E.Munaswamy Mandadi H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 66 R.Waltar s/o R.Rajarathnam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 67 K.Mahesh s/o K.Chithraiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 68 V.Ravi s/o K.Venkata Swamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 69 S.Krishnudu s/o S.Subramanyam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 70 S.Abdul Kareem s/o Dasthagiri Saheb H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 71 B.Narayanaswamy s/o B.Nagaraju H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 72 T.Sudhakar Chetty s/o T.Sankaraiah Chetty H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 73 R.Rajendran s/o Arigan H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 74 G.Chinnadorai s/o gangan H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 75 K.Munaswamy s/o Manikyam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 76 S.Rooban s/o M.Salaman H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 77 G.Purushotham s/o Kodandapani H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 78 E.Subramanyam s/o E.Venkataswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 79 S.Ebhinasan s/o Sigamani H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 80 T.Shanmugam s/o Thanigachalam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 81 G.Chinnabba s/o Govindaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 82 N.Sreenivasulu s/o Pedda Venkata Ramaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 83 D.Deenadayalan s/o V.D.Sundram H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 84 Mogiligowdu s/o Siddaiah Gowdu H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 85 S.Santhakumari w/o Yesudas H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 86 N.Yayathi s/o N. Narasimhulu H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 87 M.Venkatachalamaiah s/o Venkataramaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 88 S.Fairojibee w/o S.Kalesha H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 89 A.Venkatadri s/o A.Chinnadora H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 90 K.Balaram s/o K.Krishnama Chari H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 91 K.Subramanyam s/o K.Chinnaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 92 A.Indrababu s/o Krishnaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 93 S.Chandrasekhar s/o N.Sivaprakasham H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 94 D.Surendra babu s/o D.Ranganadha Chetty H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 95 R.Subramanyam s/o Raji H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 96 P.Gunasekharadu s/o K.Pandaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 97 V.Velayudam s/o Vinayaka H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 98 B.Subramanyam Naidu s/o B.Chinnabba Naidu H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 99 S.Thomas s/o M.Salaman H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 100 D.Santhosam s/o Dorairaj H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 101 P.Ramesh Babu s/o P.Konda Reddy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 102 M.Kuppaiah Naidu s/o M.Rajgopal Naidu H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 103 C.Chinnaswamy s/o Late Rathnam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 104 A.Nagaraj s/o A.Ramaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 105 S.Bhaskar s/o S.Subrahmanyam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 106 K.Ramakrishnaiah s/o K.Nagaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 107 A.Ramamoorthy s/o A.Govindarajulu H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 108 S.Chakravarthi s/o Somaraj H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 109 R.Eswara modali s/o Rajamodali H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 110 P.Sreeramulu s/o P.Munaswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 111 P.Murugan s/o P.Perumal H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 112 P.Dhanaraj s/o Ponnuswamy H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 113 N.Nagaraj s/o N.Babu Rao H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 114 A.Sundaraj s/o Anandaraj H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 115 T.S.Janardhan s/o T.V.Sundaraj H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 116 P.Madhusudhan s/o P.Krishnaiah H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 117 V.Peeter s/o Vedanayakam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 118 D.David s/o Dharmalingam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 119 S.Vijayan s/o N.Subbanaidu H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 120 S.Gnanasekhar s/o N.Sivaprakasam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 121 G.Muragaiah s/o N.sivaprakasam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 122 S.Mohd.Mustafa s/o s.Mastan Saheb H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 123 V.C.Muthu s/o Venkatachalam H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 124 A.Devraj s/o Anandaraju H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. 125 K.Munirajulu H.No.3-364.,Godugumur., Greamspet, Chittoor, Chittoor District. ..... PETITIONERS AND 1 The Government of A.P., Rep. by its Secretary, Animal Husbandary Dairy Development & Fisheries Dept., Secretariat, Hyderabad. 2 The A.P.Dairy Development Coop., Federation, Rep. by its Managing Director, Lalapet, Hyderabad. 3 Chittoor District Co-op Milk Producers U Chittoor. 4 Prl.Secretary to the Govt.Public Enterpr Secretariat., Hyderabad. 5 The Govt. of AP rep. by its Prl. Secretary, Labour Employment Dept., Secrewtariat, Hyd R5 is impleaded as per court order dt. 26-6-2003 in wpmp 15193 of 2003 6 The Liquidator, Chittoor District Co-op. Milk Producer's Union Ltd., Milk Products Factory, Chittoor R6 is impleaded as per court order dt. 11-7-2006 in WPMP 17255 of 2006 .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a Writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the impugned action of the respondents in initiating proceedings for retrenching the petitioners herein vide impugned Memo No.2262/P.E.I/2002-2, dated 29-8-2002 thereby to throw out the petitioners after long service of 20 years as highly illegal, arbitrary and violative of Art.14 and 21 of the Constitution of India and consequently direct the respondents to evolve and take steps for absorbing the petitioners in any other government department of public sector undertakings in view of law laid down by the Apex Court. Counsel for the Petitioners:MR.V.S.K.RAMA RAO Counsel for the Respondents: GP FOR ANIMAL HUSBANDARY WRIT PETITION NO : 3492 of 2007 Between: 1 K. Babu Saheb, S/o. Late Y. Peeru Saheb, R/o. H.no.83, Bairagipattada, Tirupati, Chittoor District. 2 G. Cecil Paul, S/o.G. Jesuratnam, 3-786, Greemspet, Vellore Road, Chittoor. 3 P. Muni Raja, S/o. P. Krishnaiah, R/o. H.No.3-99, Kondametta Street, Srikalahasti, Chittoor District. 4 R. Vijaya Lakshmi, W/o. Danunjaya Gupta, Chittoor District Cooperative Milk Producers Union Ltd., Chittoor. 5 P. Babaiah, S/o. Late P.G. Chinna Peeraiah, Chittoor District Cooperative Milk Producers Union Ltd., Chittoor. ..... PETITIONERS AND 1 The Government of A.P., rep. by its Secretary, Animal Husbandry, Dairy Development & Fisheries Dept, Secretariat, Hyderabad. 2 The A.P. Dairy Development Coop. Federation, rep. by its Managing Director, Lalapet, Hyderabad. 3 The Chittoor District Cooperative Milk Producers, Union Ltd., Milk Products Factory, Chittoor rep. by its General Manager/Liquidator. 4 The Principal Secretary to the Government, Public Enterprises (1), Secretariat, Hyd. 5 The District Collector, Chittoor District at Chittoor. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ, order o direction more particularly one in the nature of writ of mandamus declaring the impugned action of the respondents in initiating proceedings for retrenching the petitioners herein vide impugned Memo No.2262/P.E.I/2002-2. dt. 29.8.2002 and G.O.Ms.No.03, dt. 5.1.2007 and further action of the respondents in not paying salaries to the petitioners from January, 2001 onwards as highly illegal, arbitrary and violative of Art. 14 and 21 of the Constitution of India and consequently direct the respondents to evolve and scheme or taking steps for absorbing the petitioners in any other Government Department or Public Sector Undertaking or in the vacancies reported vide District Collector's proceedings Roc.No.A7/3021/2001, dt. 3.11.2001. Counsel for the Petitioners:MR.G.VIDYASAGAR Counsel for the Respondents: GP FOR FISHERIES The Court made the following : COMMON ORDER: The petitioners claimed to have been employed in different capacities by the Chittoor District Co-operative Milk Producer’s Union Limited, the third respondent herein. It is stated that the third respondent initiated steps for retrenching the petitioners and had approached the first respondent for necessary permission. The petitioners complain that though on an earlier occasion the first respondent had declined permission to the third respondent to retrench the petitioners and other employees, steps have been initiated through a memo, dated 29.08.2002, issued by the first respondent, paving the way for retrenchment of the employees. The petitioners feel aggrieved by the same. Heard Sri G.Vidyasagar, learned counsel for the petitioners, learned Government Pleader for Animal Husbandry and Sri N.Rajeshwar Rao, learned counsel for the sixth respondent. The third respondent has gone into rough weather for the past several years. Steps have been initiated for liquidation and the sixth respondent was appointed as a liquidator. It’s production has come to a stand still and as many as 387 employees have opted for voluntary retirement from service, under the scheme introduced therein. While dealing with various aspects of the matter, the first respondent issued the impugned memo, dated 29.08.2002, indicating various steps to be taken in the light of the option exercised by large number of employees, under the Voluntary Retirement Scheme (VRS). The steps are as under: 1. “Since large number of employees have opted for VRS, it may not be possible to run the unit and hence, the management may take decision on the issue of declaring lay off at the earliest in accordance with the provisions of the Industrial Disputes Act, 1947. 2. Employees opted for VRS may relieved by 31.08.2002 (AN). 3. All em0ployees working on deputation with other Departments who opted for VRS shall be called back to the parent organization and may be relieved by 31.08.2002 (AN). Also employees on deputation who have not opted for VRS shall also be called back to report on 31.08.2002 to the parent organization. 4. The management may take decision to retrench the surplus employees, who have not opted for VRS, as per rules.” It emerges that the emphasis was more about the situation that arises out of acceptance of the options exercised by the employees for VRS and to recall the employees, who are on deputation, to ensure that the activities are carried on. At the same time, it was observed that, in case any employees are found surplus and they have not opted for VRS, steps may be taken to retrench them. This, however, does not mean that any retrenchment has come into existence straight away. It is also brought to the notice of this Court that the Government passed order, dated 15.07.2003, refusing permission to retrench the employees from the first respondent, and ultimately, orders in accordance with Section 25-O of the Industrial Disputes Act, 1947, have to be passed by the concerned agency. Till such time, the petitioners cannot be said to have suffered any grievance, in the context of retrenchment. The Writ Petitions are accordingly disposed of, directing that no cause of action had accrued to the petitioners, on account of the impugned memo. It is, however, left open to them to work out their remedies as and when the situation arises as well as to claim the emoluments, which they are entitled to in law. One development has taken place during the pendency of the writ petitions. On a representation made by the sixth respondent, the Government issued G.O.Ms.No.3, Animal Husbandry, Dairy Development and Finance Department, dated 05.01.2007, releasing a sum of Rs.7,97,48,067/- under different heads. Out of that amount, Rs.4,81,41,441/- was earmarked for salary for 451 employees, who went on VRS. The second item is salaries for 140 employees, who did not opt for VRS, in two spells, namely June 2001 to August 2002, being a sum of Rs.1,07,12,110/- and from September, 2002 to 29.07.2003 (the date on which the third respondent was ordered for liquidation), being a sum of Rs.78,55,548/-. The extension of benefits under VRS is not the subject matter of these writ petitions. All the petitioners are said to be the non-optee employees for whom the amounts to be paid towards salaries, were released under two heads, referred to above. While the salaries for June 2001 to August 2002 are said to have been released, the salaries for the second spell are withheld, awaiting orders, as provided for under the G.O., itself. Inasmuch as the writ petitions are being disposed of, there may not be any difficulty in releasing the amount earmarked for salaries from September, 2002 to 29.07.2003. The amount is said to be in fixed deposit. The sixth respondent shall take necessary steps for payment of the amounts towards salary from September, 2002 to 29.07.2003, duly verifying the identify of the employees and their entitlement, in consultation with the second respondent. Similarly respondents 2 and 6 shall take necessary steps to transfer the amount earmarked for employer’s share of EPF for 140 non-optee employees, being Rs.23,02,490/-. ____________________ Dt.25.04.2008 L.NARASIMHA REDDY, J GJ ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{JGK}