* IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 2762-815/2005 HARISH KUMAR & ORS. ..... Petitioners Through Mr. Rama Shankar, Adv. versus UOI & ORS. ..... Respondents Through Mr. Dinesh Agnani, Adv. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA O R D E R % 20.05.2008 1. On 1st April, 1986 Mahanagar Telephone Nigam Ltd. (MTNL, for short) was incorporated and telecommunication services in two cities of Delhi and Mumbai were transferred to the said company. 2. The petitioners who were working with Department of Telecommunications were sent on deputation to MTNL. 3. The petitioners however, did not opt to be absorbed in MTNL and consequently they were repatriated to their parent department, namely, Department of Telecommunication. 4. While working with MTNL the petitioners were paid Rs. 3,000/- per month w.e.f. 1st April, 1999 or from the date of joining, whichever is later in terms of letter dated 6th June, 2000. The said letter reads as under : “MAHANAGAR TELEPHONE NIGAM LIMITED (A GOVERNMENT OF INDIA ENTERPRISE) No.MTNL / IRW / 21 (6) / 99/Pt. Dated 6th June, 2000 Sub : Grant of compensation of Rs. 3000/- p.m. to Group-A and B officers working in MTNL. In suppression of this Office Orders of even number dated 25.5.2000 and 26.5.2000, the Board of Directors of MTNL have decided to pay a compensation of Rs.3000/- p.m. to all Group-A and B officers working in MTNL. This compensation shall be payable with effect from 1-4-1999 or from their date of joining MTNL, whichever is later, till the IDA pay scales becomes operative for Group-A & B officers, subject to the following conditions : i) This compensation will not have any link with the pay of the officers. ii) With the grant of this compensation, the payment of other benefits like Quarterly incentive with effect from 1-4- 2000 and schemes for payment of Lunch Allowance for attending office on Saturdays and holidays will stand withdrawn from the date from the date of issue of this office order in respect of Group-A and B officers working in MTNL. iii) All Group-A and B officers will switch over to six days a week working in with immediate effect. This issues with the approval of CMD MTNL. Sd/- (M L Malik) Principal General Manager, (O) MTNL Corporate Office” 5. Para 1 of the said letter reveals that MTNL had withdrawn the earlier Office Orders dated 25th May, 2000 and 26th May, 2000 and fresh terms as mentioned in the letter dated 6th June, 2000 were offered. The letter dated 25th May, 2000 has been placed on record. The said letter dealt with special payment of Rs. 3,000/- per month to Group A and B officers but was circumscribed with several conditions. One of the main conditions imposed in the said letter, was that special payment would be paid to deputationists only on their furnishing an undertaking in the format attached that they would refund the entire amount of special payment paid to them in case they do not opt for absorption and ask for repatriation to the parent department. The relevant portion of the letter dated 25th May, 2000 reads as under : “ No. MTNL / IRW / 21 (6) / 99/Pt. Dated May 25, 2000 Sub : Special payment of Rs. 3000/- p.m. to Group-A and B officers. The Board of Directors of MTNL in their meeting held on 24.5.2000 have decided to pay Special Payment of Rs.3000/- p.m. to all Group-A and B officers presently working in MTNL w.e.f. 1.11.1998 or from or from their date of joining MTNL, whichever is later, till the actual date of absorption, subject to the following conditions : a) The Special Payment will be paid on furnishing an undertaking in favour of MTNL as per the format attached and such officers who do not opt for absorption in MTNL and/or are not absorbed and/or resign on their own volition before the date of absorption will have to refund the amount of Special Payment to be made to them.” 6. Reading of the two letters dated 25th May, 2000 and 6th June, 2000 makes it clear that the respondent/MTNL had withdrawn the condition that the employees of Department of Telecommunication who were on deputation would have to refund special payment of Rs.3,000/- per month in case they do not opt for absorption and seek repatriation to their parent department. In these circumstances, I do not think that MTNL can now ask for refund of Rs.3,000/- per month which was paid to the employees of Department of Telecommunication. Letter dated 6th June, 2000 superseded the said condition which were imposed in the earlier letter dated 25th May, 2000. Special payment of Rs.3000/- per month was without any condition of absorption. In fact, the said condition was specifically withdrawn. The only condition imposed in the letter dated 6th June, 2000 was that the employees would be paid extra compensation of Rs. 3000/- per month till IDA pay scales become operative and secondly, the employees would not be entitled to other benefits like quarterly incentive, scheme for payment of lunch allowance for attending office on Saturdays and that all employees shall work for 6 days a week. 7. Learned counsel for the respondent/MTNL has referred to Extracts of Minutes of 126th Meeting of the Board of Directors of MTNL held on 24th May, 2000. This is an internal document of MTNL. On the first page of the said document itself the word „confidential‟ is stated. It is not the case of the respondent-MTNL that Minutes dated 24th May, 2000 were circulated. I may note here that MTNL by letter dated 6th June, 2000 had made an offer to the employees after superseding the earlier offer mentioned in the letter dated 25th May, 2000. The letter of offer contains certain stipulations as a result of which the employees were also to give up certain rights. The employees accepted the offer in the letter dated 6th June, 2000. Therefore, a valid and a binding contract came into existence between the respondent/MTNL and the employees. MTNL could not have unilaterally modified the terms and conditions of the binding contract as per which they were liable and have made payment of Rs.3,000/- per month. The respondent/ MTNL has not relied upon the Doctrine of Ultravires or claimed that the offer made on 6th June, 2000 is contrary to it‟s Articles/Constitution. Issue and contents of the letter dated 6th June, 2000 are not denied. Learned counsel for the respondent/ MTNL has drawn attention to the scheme for permanent absorption dated 4th September, 2003 and office order dated 22nd March, 2004. The petitioners have not opted for permanent absorption, therefore the scheme of permanent absorption does not apply to them. In case, the petitioners had opted for permanent absorption, they would have become entitled to IDA pay scales and not CDA pay scales with retrospective effective from 1st October, 2000. IDA pay scales are much higher than the CDA pay scales and the difference is apparent from letter dated 22nd March, 2004 wherein equivalent pay scales have been mentioned. The relevant CDA and IDA pay scales are as under : “ Sl No. Existing CDA Pay Scale Corresponding IDA Pay Scale 1 6500-200-10500 10750-300-16750 (E2) 2 7500-250-12000 13000-350-18250 (E3) 3 8000-275-13500 14500-350-18700 (E4) 4 10000-325-15200 16000-400-20800 (E5) 5 12000-375-16500 17500-400-22300 (E6) 6 14300-400-18300 18500-450-23900 (E7) ” 8. The petitioners have not been paid IDA pay scales. They received and were paid salary under the CDA pay scales while they were working on deputation with MTNL. In addition, they have received Rs.3,000/- per month in terms of letter dated 6th June, 2000. 9. In view of the above findings, it is held that the respondent/ MTNL is not entitled to ask for refund of Rs.3,000/- per month from the petitioners on the ground that they did not agree to or opt for absorption in MTNL. The writ petition is allowed and the Order dated 24th September, 2004 issued by the respondent/MTNL is hereby quashed. Recovery, if any, made by respondent/corporation shall be refunded to the petitioners within 8 weeks from the date of the receipt of the copy of this Order. In case, refund is not made within 8 weeks, respondent will be liable to pay interest @ 10 % per annum from the date of this Order till payment. No costs. SANJIV KHANNA, J. MAY 20, 2008 Vld/P