Allow ’92 absorption policy benefits to retrenched staffers, HC tells govt

More than a quarter century after the retrenchment of employees of the erstwhile Punjab State Leather Development Corporation came under judicial scrutiny, the Punjab and Haryana High Court has directed Punjab to extend the benefits of its April 20, 1992, absorption policy to them.

The Bench held that their “rightful claim cannot be denied” by a subsequent amendment to the policy. The writ petition had been pending since 1999. The verdict was pronounced by Justice Harpreet Singh Brar.

The petitioners had moved the court seeking directions to be absorbed in government departments, boards or corporations “on the same terms and conditions” as their juniors and seniors who had already been adjusted, and to withdraw the Golden Handshake Scheme offered at the time of winding up.

Appearing for the petitioners, senior advocate GS Bal argued that the winding up of the corporation was decided on June 13, 1992, and the process began in 1993, when employees with the requisite qualifications were considered for absorption elsewhere under the 1992 policy.

He said while juniors and seniors alike were adjusted, the petitioners, retained temporarily to assist in the winding up, were arbitrarily excluded.

The state and other respondents argued that the 1992 policy was amended on March 13, 1995, to cover only government employees. Justice Brar observed: “There is no doubt that at the time of retrenchment of the petitioners, the policy contained in the letter dated April 20, 1992, was operative. As such, rightful claim of the petitioners cannot be denied by amending the policy… when the decision of retrenchment was taken.”