MANOJBHAI N.SHAH & ORS. Vs. UNION OF INDIA & ORS.


This case is regard to retiral benefits to be given to a special class of retired employees of five nationalized general insurance companies. The undisputed facts and legal issues involved in all these cases are as the insurance companies, who have been described hereinafter as “the Employers” were in financial difficulties and so as to cut their expenditure, the Employers framed a scheme named “General Insurance Employees Special Voluntary Retirement Scheme, 2004” (hereinafter referred to as “the Scheme”), so as to enable its employees to retire prematurely on certain conditions with some special benefits. Normally a person gets pension when he retires from service after putting in the period of pensionable service as per his service conditions.In this case all employees would be eligible to get pension if they retire from service after putting in 20 years of services.To curtail the expenditure, it was decided to reduce the number of employees and in pursuance of the scheme, offers were invited from the employees who wanted to opt for voluntary retirement even before completion of
 
the period of normal pensionable service. It was open to the employees to opt for retirement even on completion of 10 years of qualifying service, provided they had attained the age of 40 years. The Scheme had a limited duration of 60 days, during which the employees had to decide whether they wanted to opt for the Scheme. The employees will also get benefits under the provisions of the Payment of Gratuity Act, 1972 and the amount of Provident Fund, which they were otherwise entitled to. After acceptance of voluntary retirement under the Scheme, such retired employees would be  entitled to get benefit of the revision of pay, which was retrospectively given from 1st August, 2002 under the Notification dated 21st December.Employers denied the  Notification or retrospective increase in the salary to the employees who had retired under the scheme. As a result all judgments directing the Employers to make additional payment of pension to the employees retiring under the Scheme.
 

 

 

 

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