M.P.State Road Transport Corp vs Manoj Kumar & Anr

The appellant Madhya Pradesh State Road Transport Corporation (for short, the 'Corporation') is a public sector undertaking of the State of Madhya Pradesh and undertakes the work of carrying passengers from one place to another within and outside the State of Madhya Pradesh. As the appellant Corporation was running into losses, the State Government obtained permission from the Department of Road Transport & Highways of the Ministry of Shipping, Road Transport & Highways, Government of India for winding up of the appellant Corporation. This permission was given by the Government of India on March 23, 2005 with the following directions:

Managing Director” The respondents/employees in all these appeals had submitted their applications for voluntary retirement within the span of original period fixed under the Scheme, i.e. between July 01, 2005 and August 01, 2005. Other common factor in all these appeals is that before their applications could be accepted, they had sought withdrawal of their option. However, requests for withdrawal of the options were made after August 01, 205, i.e. after the expiry of the original Scheme. However, their requests for withdrawal were not entertained and on the contrary applications for VRS submitted by these employees were accepted. In order to make it abundantly clear, we clarify that this happened after these respondents had submitted their affidavits withdrawing their options under the VRS Scheme. These respondents were, accordingly, relieved from the organisation on the afternoon of July 31, 2005.

While contesting these writ petitions, plea taken by the Corporation was that as per the specific provision contained in the VRS Scheme itself, there was a clear prohibitory clause putting an embargo on the rights, if any, of these employees from withdrawing their applications and, therefore, move on the part of these respondents to withdraw their option to take voluntary retirement was inconsequential and the Corporation was empowered to go ahead by accepting the applications for VRS.

At this juncture, therefore, other issue that gains importance and needs to be decided is: whether validity of the Scheme was extended up to July 31, 2007 and the employees could withdraw their offer before this date or the date on which the initial scheme expired, i.e. August 01, 2005 and the withdrawal thereafter was not permissible?

When we apply the aforesaid test to the facts of this case, we find that insofar as those employees who fall in the first category are concerned, they had withdrawn their offer after August 01, 2005, except one Mr. Dinesh Chand Yadav, who is respondent No.1 in the Civil Appeal arising out of Special Leave Petition (Civil) No. 14874 of 2010. Therefore, from this batch, only he is entitled for reinstatement with back wages, as he has also filed an undertaking, in terms of this Court's order dated May 12, 2016, to the effect that he is not gainfully employed during the relevant period. Likewise, employees falling in the second category had withdrawn their offer after October 28, 2006, except Mr. Sukhram and Mr. Ram Sharan Rathore, both respondents in the Civil Appeal arising out Special Leave Petition (Civil) No. 14594 of 2010. However, these respondents failed to comply with this Court's order dated May 12, 2016. They are, therefore, entitled for reinstatement without back wages.

Accordingly, Civil Appeal arising out of Special Leave Petition (Civil) No. 14874 of 2010 qua Mr. Dinesh Chand Yadav and Civil Appeal arising out of Special Leave Petition (Civil) No. 14594 of 2010 are dismissed. In the case of all other respondents, their application for withdrawal post the tenure of the Scheme would be of no consequence. The direction of the High Court reinstating these respondents/employees is, therefore, found to be contrary to law and is hereby set aside, resulting into allowing all other appeals of the Corporation.

In the facts and circumstances of this case, there shall be no order as to costs.

AUGUST 29, 2016.