Rs 25K costs imposed on handloom corporation

Legal Correspondent

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Shimla, August 6

The High Court has imposed costs of Rs 25,000 on Himachal Pradesh State Handicrafts and Handloom Corporation Ltd for not paying the admissible monetary benefits in terms of the voluntary retirement scheme (VRS) to its former General Manager.

Justice Satyen Vaidya directed the corporation to pay a sum of Rs 7,85,172 to the petitioner, along with six per cent interest per annum with effect from June 23, 2010, when the petitioner had raised the claim with the respondents for the first time.

The court observed that, “The reason for denying the benefit of the revised pay scales to the petitioner for calculating his voluntary retirement benefits is not tenable. There is no provision in the VRS of October 5, 1988, whereby, the person having voluntarily retired under the said scheme was disentitled from getting the benefits on pay scales revised for the period during which they had served.”

The petitioner had sought voluntary retirement on June 30, 2008, in terms of the VRS floated by the Government of India and adopted by the Government of Himachal Pradesh. The competent authority accepted the request of the petitioner on July 3, 2008.

The state government issued a notification on August 26, 2009, whereby it had allowed the revised pay grades with effect from January 1, 2006, to its employees as per the recommendation of the Fifth Pay Commission.

The employees also became entitled to the revision of pay scales in terms of the notification. The petitioner submitted his claim for grant of revised voluntary retirement benefits on the basis of new pay grades, besides the amount having become due to him on account of revision in pay grades.

The corporation in its reply has pleaded its helplessness in making the payment of arrears on account of revision of pay scales on the ground of its adverse financial health.