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Supreme Court of India

A. SATYANARAYANA REDDY AND OTHERSversusPRESIDING OFFICER, LABOUR COURT AND OTHERS

Citation
2016 INSC 1202
Decided
30 September 2016
Disposal
Appeal(s) allowed

Holding

If a Voluntary Retirement Scheme does not expressly cover lay‑off compensation, the workman may invoke Section 33C(2) of the Industrial Disputes Act and the Labour Court has jurisdiction to decide the claim.

Summary

The appellants were employees of a government undertaking who were laid off and later transferred to another company. The Government of Andhra Pradesh issued a Voluntary Retirement Scheme (VRS) offering a special compensation package, which the appellants accepted, but the VRS did not provide for lay‑off compensation. The workmen subsequently filed a claim for lay‑off compensation under Section 33C(2) of the Industrial Disputes Act, 1947 before the Labour Court, which was dismissed on the ground that they were no longer "workmen" after taking the VRS. The Supreme Court held that where the VRS does not expressly cover past dues such as lay‑off compensation, the employee retains the right to invoke Section 33C(2) and the Labour Court has jurisdiction to adjudicate the claim. Consequently, the Court set aside the orders of the High Court and the Labour Court and remitted the matter to the Labour Court for determination of the lay‑off compensation claim.

Issues considered

  • The applicability of Section 33C(2) of the Industrial Disputes Act, 1947 to a workman who has availed a Voluntary Retirement Scheme that does not expressly include lay‑off compensation.
  • Whether the Labour Court has jurisdiction to entertain a lay‑off compensation claim under Section 33C(2) when the employee has accepted a VRS.

Legislation cited

Subjects

Voluntary Retirement Schemelay‑off compensationSection 33C(2)Labour Court jurisdictionIndustrial Disputes Actworkman definitiongovernment undertaking

Judgment

                             [2016] 5 S.C.R. 408



A            A. SATYANARAYANA REDDY AND OTHERS
                                      v.
        PRESIDING OFFICER, LABOUR COURT AND OTHERS
                       (Civil Appeal No. 3053 of2008)
B                          SEPTEMBER 30, 2016
        [DIPAK MISRA, V. GOPALA GOWDA AND KURIAN
                         JOSEPH, JJ.)
          Industrial Disputes Act, 1947 - s. 33C(2) - Interpretation of.
    vis-a-vis a Voluntary Retirement Scheme - Workmen availed the
c   Voluntary Retirement Scheme and received the special compensation
    package - Claim for lay-off compensation uls. 33C(2) - Held:
    Though there is cessation of relationship between the employee and
    the employer in VRS but if it does not cover the past dues like lay-off
    compensation, subsistence allowance, etc., the workman would be
D   entitled to approach the Labour Court u/s. 33C(2) - If it is
    specifically covered, or the language of VRS would show that it
    covers the claim under the scheme, no forum will have any
    iurisdiction - On fact, claim pertaining to lay-off compensation
    having not been part of the VRS, the Labour Court has jurisdiction
    to adjudicate u/s. 33C(2) - Thus, matter is remitted to the Labour
E
    Court for adjudication in accordance with law.
          Allowing the appeal, the Court
          HELD: 1.1 Though there is cessation of relationship
    between the employee and the employer in VRS but if it does not
F   cover the past dues like lay-off compensation, subsistence
    allowance, etc., the workman would be entitled to approach the
    Labour Court under Section 33C(2) of the Act. If it is specifically
    covered, or the language of VRS would show that it covers the
    claim under the scheme, no forum will have any jurisdiction. [Para
    16) [420-C-D]
G
          1.2 With the said clarification, the matter would have been
    directed to be listed before the two-Judge Bench. It is not so
    required. It is noticeable that the claim relating to lay-off
    compensation is not covered in the VRS. The Labour Court, the
    Single Judge and the Division Bench declined to entertain the
H
                                      408
 A. SATYANARAYANA REDDY AND OTHERS v.. PRESIDING                     409
             OFFICER, LABOUR COURT

claim on the ground that they had no jurisdiction to adjudicate      A
the controversy. The claim pertaining to lay-off compensation
having not been part of the VRS, the Labour Court has jurisdiction
to adjudicate under Section 33C(2) of the Act. Therefore, the
judgment and order of the High Court and that of the Labour
Court is set aside. The matter is remitted to the Labour Court
                                                                      B
for adjudication in accordance with law. The Labour Court would
finalise the claim preferred under Section 33C(2) of the Act on
its own merits within the stipulated period. (Para 17, 18] (420-D-
G]
      National Buildings Construction Corporation v. Pritam
      Singh Gill and others (1972) 2 SCC 1 : 1973 (1) SCR             c
      40; A.K. Bindal and another v. Union of India and
      others (2003) 5 SCC 163:2003 (3) SCR 928; A.
      Satycmarayrma Reddy and others ~: Presiding Officer,
      Labour Court, Guntur and others (2008) 5 SCC 280 :
      2008 (7) SCR 105; Pal v. Pal VRS Employees Welfare              D
      Association 2002 - 1 LLJ Bombay 527; Government
      Soap Factory, Bangalore v. labour Court AIR 1970
      Mysore 225;Central Bank of India v. P.S. Rajagopalan
      (1964) 3 SCR 140; Mis Kesoram Coflan Mills Ltd. v.
      Gangadhar & others (1964) 2 SCR 809; U.P. Electric
      Supply Co. Ltd. v. R.K. Shukla and another 1969 (2)             E
      SCC 400:1970 (1) SCR 507 - referred to.
                       Case law reference
1973 (1) SCR 40              referred to         Para 1
20Q~ (3) SCR 928             referred to         Para 1               F
200~ (7) SCR 105             referred to         Para 1
2002 - 1 LLJ Bombay 527 referred to              Para6
AIR 1970 Mysore 225          referred to         Para6
(1964) 3 SCR 140             referred to         Para 10              G
(1964) 2 SCR 809             referred to         Para 10
1970 (1) SCR 507             referred to         Para 11
     CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3053
of2008.
                                                                      H
410                SUPREME COURT REPORTS                       [2016] 5 S.C.R.



A           From the Judgment and Order dated 13.04.2005 of the High Court
      of Andhra Pradesh at Hyderabad, in Writ Appeal No. 820 of2005.
             A. Subba Rao, Adv. for the Appellants.
             Mohanprasad Meharia, G. N. Reddy, Advs. for the Respondents.

B            The Judgment of the Court was delivered by
             DIPAK MISRA, J. I. A two-Judge Bench while dealing with
      the interpretation of provisions of Sections 33C(2) of the Industrial
      Disputes Act, 194 7 (for short, "the Act") vis-a-vis a Voluntary Retirement
      Scheme framed by the State of Andhra Pradesh noticed that the
c     conclusion arrived at by the Division Bench of the High Court ofAndhra
      Pradesh in Writ Appeal No. 820 of2005, whereby it had given the stamp
      ofapproval to the judgment and order dated 21" March, 2005, passed by
      the learned Single Judge of the said Court in Writ Petition No. 4196 of
      2005, holding, inter alia, that once the workmen had availed the Voluntary
      Retirement Scheme and received the special compensation package,
D     they could not have put forth a claim for lay-off compensation under
      Section 33C(2) of the Act and in that context perceived a discordant
      note in National Buildings Construction Corporation v. Pritam SingIt
      Gill and otlters and A.K. Binda/ and anotlter v. Union of India and
                       1



      otlters~ and thereafter scanning the anatomy of the Act, referred the

E     matter to a larger Bench in A. Satyanamymw Reddy anti otlters v.
      Presiding Officer, Labour Court, Guntur and otlters' by stating tl~us:-
             "The right of the workman to claim payment of lay off
             compensation is not denied or disputed. If the said claim has no
             nexus with the Voluntary Retirement Scheme, in our opinion, in a
             given case, like the present one, it is possible to hold that a
 F
             proceeding under Section 33C(2) of the Act would be maintainable.
             We are, therefore, of the opinion that the question being one of
             some importance should be considered by the larger Bench as
             there exists an apparent conflict in the said decisions in National
             Buildings Construction Corporation (supra) and A.K. Bindal
G            (supra)."
             Because of the aforesaid order, the matter has been placed before
      us.
      • (1972) 2 sec 1
      2 (2003J 5 sec 163
H     '(2008J 5 sec 280
 A. SATYANARAYANA REDDY AND OTHERS v. PRESIDING                               411
       OFFICER, LABOUR COURT [DIPAK MISRA, J.]

       2.The expose of facts are that the appellants were employees of        A
Nagarjuna Cooperative Sugars Limited (for short, "the Company"), a
Government of Andhra Pradesh undertaking. It was declared as a "relief
undertaking" in terms of the AP. Relief Undertaking (Special Provisions)
Act, 1971 (for brevity, "the 1971 Act"). As is evident, the management
of the industrial undertaking declared lay-off wherefor compensation
                                                                               B
was to be paid. The employees-union of the Company preferred a writ
petition in the High Court ofAndhra Pradesh assailing the Memorandum
No. 25027/SUG/A2/97-3 dated 5'h January, 1998, whereunder the
workmen were not granted compensation and, in fact, were deprived of
the same. It was urged by the workmen that the lay-off compensation
was paid only for the months of June and July, 1995, though they were          c
entitled to get the said compensation for the period 01.08.1995 to
06.09.2002.
       3. When the matter stood thus, the State of Andhra Pradesh
transferred the Company to one S.C.M. Sugars Limited, which absorbed
some of the workmen, and out of the said absorbed employees, some of           D
them were paid lay-off compensation and some were not extended the
benefit. Be it stated, at one point of time all the employees had expressed
their willingness to continue to work under the transferee-management.
At a later stage, the Government of Andhra Pradesh allowed the said
transferee-Company to shift the factory to the State of Karnataka, as a
.consequence of which, the workmen lost the opportunity to continue to         E
be employed.
       4. As the factual matrix would unfurl, the Government of Andhra
Pradesh issued G.O.Ms. No. 25 dated 21" May, 200 I, provided for a
special compensation package for the employees. The condition that
was incorporated in the package was to the effect that the amount of           F
compensation was to be paid to the workmen only in the event if they
had not opted for employment with the transferee Company. We shall
refer to the Voluntary Retirement Scheme (YRS) at a later stage.
      5. As the factual score would further undrape, the appellants opted
for voluntary retirement and they were paid the amount of special              G
compensation in terms of the YRS. It is apposite to note here that as the
said scheme did not make any provision for payment of lay-off
compensation, the appellants moved the High Court under Article 226 of
the Constitution oflndia by preferring Writ Petition No.16916of1998.
The relief sought in the writ petition was resisted by the transferee          H
412              SUPREME COURT REPORTS                           [2016] 5 S.C.R.



A     Company urging that the workmen having accepted the benefits under
      the VRS and there had been cessation of relationship between the
      employer and employee, the writ petition was not maintainable and the
      relief sought in the writ petition could not be acceded to. The learned
      Single Judge upon hearing the learned counsel for the parties opined that
      it would be appro!Jriate for the writ petitioners to approach the Industrial
B
      Tribunal and work out their remedies by way of a claim petition and by
      leading appropriate evidence before the said Court. The High Court, be
      it noted, granted liberty to the workmen to raise all issues which were
      available including those which had been raised in the writ petition, and
      accordingly disposed of the writ petition.
c             6. In pursuance of the aforesaid order, the workmen filed a petition
      under Section 33C(2) of the Act claiming lay-off compensation before
      the Presiding Officer, Labour Court, Guntur that fonned the subject matter
      of C.F.R. No. 43 I 9/2004 Ill Un-No. M.P. /2004. The Labour Court
      dismissed the application as not maintainable onthe foundation that the
D     claimants were not workmen under Section 2(s) of the Act having
      received all the benefits under VRS. Aggrieved by the aforesaid order
      of the Labour Court, the appellants herein preferred W.P. No. 4196 of
      2005. The learned Single Judge referred to the authority in A.K. Bindlt/
      (supra), adverted to the decision of the Bombay High Court in Pll/ v.
      Pal VRS Employees Welfare Association", that dealt with ·'existing
E      individual rights" in the context of Section 33C(2) of the Act, distinguished
      the decision rendered in Government Soap Factory, Bangalore v.
      Lllbour Court5 and eventually held that the Labour Court had correctly
      exercised the jurisdiction by coming to hold that the writ petitioners were
      no more workmen within the meaning of Section 2(s) of the Act and
 F    hence, there was no warrant for any interference in exercise ofjurisdiction
      under Article 226 of the Constitution. Dissatisfaction of non-success
      compelled the writ petitioners to prefer Writ Appeal No. 820 of 2005
      and the Division Bench concurred with the view expressed by the learned
      Single Judge in view of the dictum of this Court in A.K. Bimla/ (supra).
      Hence, the present appeal by special leave. We have already noted
 G     how the matter has been placed before the three-Judge Bench.
           7. Section 2(s) of the Act defines the workman as follows:-
              ""workman" means any person (including an apprentice) employed
      4
          2002 - I LLJ Bombay 527
H     ' AI.R 1970 Mysore 225
 A. SATYANARAYANA REDDY AND OTHERS v. PRESIDING                              413
      OFFICER, LABOUR COURT [DIPAK MISRA, J.]

     in any industry to do any manual, unskilled, skilled, technical,        A
     operational, clerical or supervisory work for hire or reward,
     whether the terms of employment be express or implied, and for
     the purposes of any proceeding under this Act in relation to an
     industrial dispute, includes any such person who has been
     dismissed, discharged or retrenched in connection with, or as a
                                                                              8
     consequence of, that dispute, or whose dismissal, discharge or
     retrenchment has led to that dispute, but does not include any
     such person -
      (i) who is subject to the Air Force Act, 1950 (45 of 1950), or the
      Army Act,1950 (46of1950), ortheNavy Act, 1957 (62of1957);
      or
                                                                              c
      (ii) who is employed in the police service or as an officer or other
      employee of a prison; or
      (iii) who is employed mainly in a managerial or administrative
      capacity; or                                                            D
      (iv) who, being employed in a supervisory capacity, draws wages
      exceeding [ten thousand rupees] per mensem or exercises, either
      by the nature of the duties attached to the office or by reason of
      the powers vested in him, functions mainly of a managerial nature."
  8. Section 33C(2) of the Act reads as follows:-                             E
      "Where any workman is entitled to receive from the employer
      any money or any benefit which is capable of being computed in
      terms of money and if any question arises as to the amount of
      money due or as to the amount at which such benefit should be
      computed, then the question may, subject to any rules that may be       F
      made under this Act, be decided by such Labour Court as may be
      specified in this behalf by the appropriate Government [within a
      period not exceeding three months]:
      Provided that where the presiding officer of a Labour Court
      considers it necessary or expedient so to do, he may, for reasons       G
      to be recorded in writing, extend such period by such further period
      as he may think fit."
       9. In A.K. Binda/ (supra) a two-Judge Bench was considering
the grant of pay revision in respect of companies which came under the
Board for Industrial and Financial Reconstruction (for short, "BIFR").        H
414             SUPREME COURT REPORTS                            [2016] 5 S.C.R.


A     In the said case an issue also arose with regard to the framing of voluntary
      retirement scheme pertaining to the grievance ofnon-revision of the pay
      scale of the workmen. It was contended by the respondents therein that
      the employees having taken YRS and having taken the amount without
      any demur, the relationship of employee and employer had ceased to
      exist and, therefore, they cannot raise any grievance regarding the non-
B
      revision of pay scale. The said submission was opposed on the ground
      that employees had no option in the matter and accepted YRS under
      compulsion and further under the YRS, the total compensation amounts
      have to be calculated as there was revision of pay scale since 1992 as
      claimed by the workmen and in that context opined thus:-
c            "34 .. This shows that a considerable amount is to be paid to an
             employee ex gratia besides the terminal benefits in case he opts
             for voluntary retirement under the Scheme and his option is
             accepted. The amount is paid not for doing any work or rendering
             any service. It is paid in lieu of the employee himself leaving the
D            services of the company or the industrial establishment and
             foregoing all his claims or rights in the same. It is a package deal
             of give and take. That is why in the business world it is known as
             "golden handshake". The main purpose of paying this amount is
             to bring about a complete cessation of the jural relationship between
             the employer and the employee. After the amount is paid and the
E            employee ceases to be under the employment of the company or
             the undertaking, he leaves with all his rights and there is no question
             of his again agitating for any kind of his past rights with his
             erstwhile employer including making any claim with regard to
             enhancement of pay scale for an earlier period. If the employee
F            is still permitted to raise a grievance regarding enhancement of
             pay scale from a retrospective date, even after he has opted for
             Voluntary Retirement Scheme and has accepted the amount paid
             to him, the whole purpose of introducing the Scheme would be
             totally frustrated.
G            35. The contention that the employees opted for YRS under any
             kind of compulsion is not worthy of acceptance. The petitioners
             are officers of the two Companies and are mature enough to
             weigh the pros and cons of the options which were available to
             them. They could have waited and pursued their claim for revision
             of pay scale without opting for YRS. However, they in their
H
    A. SATYANARAYANA REDDY AND OTHERS v. PRESIDING                             415
          OFFICER, LABOUR COURT [DIPAK MISRA, J.)

       wisdom thought that in the fact situation YRS was a better option       A
       available and chose the same. After having applied for YRS and
       taken the money it is not open to them to contend that they exercised
       the option under any kind of compulsion. In view of the fact that
       nearly ninety-nine per cent of employees have availed of the YRS
       Scheme and have left the Companies (FCI and HFC), the writ
                                                                               B
       petition no longer survives and has become infructuous."
       10. In Pritam Singh Gill (supra), this Court was dealing with a
case wherein the respondent was dismissed from service w.e.f.
September 19, 1967. He was suspended on October 5, 1964 and the
order of suspension remained in f,orce till September I 8, 196 7. During
the period of suspension, on October 7, 1965, he was transferred to
                                                                                c
Delhi. After dismissal the respondent applied to the Labour Court at
Delhi under Section 33C(2) of the Act for computing the benefits and
amounts he was entitled to receive alleging that he had not been paid
such amounts and benefits. The Labour Court framed certain issues
and decided the claim in favour of the employee. The only question that        D
arose before this Court pertained to jurisdiction of the Labour Court to
entertain the employees' application under Section 33C(2) of the Act.
According to the appellants, the respondent-employee having alre~dy
been dismissed had ceased fo be the workman from the date of application
and, therefore, he had no locus standi to approach the Labour Court
under Section 33C(2) of the Act. On behalf of the respondent, it was            E
argued that if the period in respect of which benefits and amounts are
claimed under Section 33C(2) of the Act was during the course of his
employment prior to dismissal, then mere fact that he was dismissed by
the employer before he could apply to the Labour Court under Section
33C(2) would not deprive him of his right to claim reliefunder that Section.    F
The Court posed the question whether Section 33C(2) of the Act can be
invoked by dismissed workman in respect of benefits and salary due to
him forthe period prior to the date of his dismissal. The Court referred
to the authorities in Central Bank of India v. P.S. Rajagopalan 6 and
Mis Kesomm Cotton Mills Ltd. v. Gangadltar & otlters 7 and
distinguished the said cases as the factual background was different.           G
However, it reproduced certain passages from P.S. Rajagopalan (supra)
because the Court in the said decision has discussed the legislative history
of Chapter Y-A and Section 33C of the Act and observed that:-
' (1964) 3 SCR 140
7
  ( 1964) 2 SCR 809                                                             H
416            SUPREME COURT REPORTS                           [2016] 5 S.C.R.



A            "In our opinion, on a fair and reasonable construction of sub-section
             (2) it is clear that if a workman's right to receive the benefit is
             dispute, that may have to be determined by the Labour Court.
             Before proceeding to compute the benefit in terms of money the
             Labour Court inevitably has to deal with the question as to whether
             the workman has a right to receive that benefit. If the said right is
B
             not disputed, nothing more needs to be done and the Labour Court
             can proceed to compute the value of the benefit in terms of money;
             but if the said right is disputed, the Labour Court must deal with
             that question and decide whether the workman has the right to
             receive the benefit as alleged by him and it is only ifthe Labour
c            Court answers this point in favour of title workman that the next
             question of making necessary computation can arise."
      And again,
             "Besides, it seems to us that if the appellant's construction is
             accepted, it would necessarily mean that it would be at the option
             of the employer to allow the workman to avail himself of the
D
             remedy provided by sub-section (2) because he has merely to
             raise an objection on the ground that the right claimed by the
             workman is not admitted to oust the jurisdiction of the Labour
             Court to entertain the workman's application. The claim under
             Section 33-C(2) clearly postulates that the determination of the
E            question about computing the benefit in terms of money may, in
             some cases, have to be preceded by an enquiry into the existence
             of the right and such an enquiry must be held to be incidental to
             the main determination which has been assigned to the Labour
             Court by sub-section (2)."
              11. After reproducing the said passages, the Court referred to
F
      the !lUthority in U.P. Electric Supply Co. Ltd. v. R.K. Shukla mid
      another" wherein the Court after review of various decisions had upheld
      the jurisdiction of the Labour Court to entertain application for lay off-
      compensation under Section 33C(2) observing that such jurisdiction could
      not be ousted by a mere plea denying the workman's claim for computation
G     of the benefit in terms of money, adding that the Labour Court had to go
      into the question and determine whether on the facts it had jurisdiction to
      make the computation.
            12. Thereafter, the Court in Pritam Singh Gill (supra) referred
      to number of decisions and posed the question thus:-
H     • AIR 1970 SC 237; 1969 (2) sec 400
A. SATYANARAYANA REDDY AND OTHERS v. PRESIDING                               417
      OFFICER, LABOUR COURT [DIPAK MISRA, J.]

    "The crucial point which requires consideration on the appellant's       A
    argument is thus confined to the precise scope and meaning of
    the word "workman" used in Section 33-C(2) in the background
    of the definition of this word as contained in Section 2(s)."
13. Thereafter, it was held:-
    "This section was enacted for the purpose of enabling individual          B
    workman to implement, enforce or execute their existing individual
    rights against their employers without being compelled to have
    recourse to Section 10 by raising disputes and securing a reference
    which is obviously a lengthy process. Section 33-C of the Act has
    accordingly been described as a provision which clothes the Labour
    Court with the powers similar to those of an executing court so           c
    that the workman concerned receives speedy relief in respect of
    his existing individual rights. The primary purpose of the section
    being to provide the aggrieved workman with a forum similar to
    the executing courts, it calls for a broad and beneficial construction
    consistently with other provisions of the Act, which should serve         D
    to advance the remedy and to suppress the mischief. It may
    appropriately be pointed out that the mischief which Section 33-C
     was designed to suppress was the difficulties faced by individual
     workmen in getting relief in respect of their existing rights without
     having resort to Section I 0 of the Act. To accept the argument of
    the appellant, it would always be open to an unfair, unsympathetic        E
    and unscrupulous employer to terminate the services of his
    employee in order to deprive him of the benefit conferred by
     Section 33-C and compel him to have resort to the lengthy
     procedure by way ofreference under Section I 0 of the Act thereby
     defeating the very purpose and object of enacting th is provision.       F
     This, in our view, quite clearly brings out the repugnancy visualised
     in the opening part of Section 2 of the Act and such a position
     could hardly have been contemplated by the Legislature. In order
     to remove this repugnancy Section 33-C(2) must be so construed
     as to take within its fold a workman, who was employed during
     the period in respect of which he claims relief, even though he is       G
     no longer employed at the time of the application. In other words
     the term "workman" as used in Section 33-C(2) includes all persons
     whose claim, requiring computation under this sub-section, is in
     respect of an existing right arising from his relationship as an
     industrial workman with his employer. By adopting th is construction     H
418             SUPREME COURT REPORTS                           [2016) 5 S.C.R.



A           alone can we advance the remedy and suppress the mischief in
            accordance with the purpose and object of inserting Section 33-C
            in the Act. We are, therefore, inclined to agree with the view
            taken by the Madras decisions and we approve of their approach.
            According to Shri Malhotra, in cases where there is no dispute
            about the employee's right which is not denied, he will be entitled
B
            to file a suit. Whether ornot the right of suit can be claimed by the
            employee, we are not persuaded on the basis of this argument to
            accept the construction canvassed on behalf of the appellant and
            deny to a dismissed employee the benefit of speedy remedy under
            Section 33-C(2) of the Act."
c                                                            [emphasis supplied]
             14. It needs to' be noted that after so stating, the three-Judge
      Bench clarified that its pronouncement was strictly in the context of the
      Act. The Court opined that in the case at hand they were only concerned
      with the Act and it should not be treated as expression of an opinion as
D     regards the provisions of the Minimum Wages Act.
             15. Be it stated immediately, in the case at hand to appreciate the
      applicability of the provisions contained in Section 33C(2) of the Act, it is
      necessary to appreciate the benefits available to the employees under
      the VRS. The benefits which are available are reproduced below:-
E            "BENEFITS:
             The following benefits are payable to the employees covered under
             the scheme.
             Terminal benefits:
             The following benefits as statutorily due will be paid as per
F            eligibility.
              i. The balance in the P.F. Account payable as per the CPF
              regulation.
              ii.Cash equivalent of accumulated earned leave as per the rules
              of the enterprise.
 G            iii. Gratuity as per the provisions of the Payment of Gratuity Act
              or other applicable Rules of the Organisation.
              Exgratia Benefits:
              i) An employee who is regular or permanent, whose request for
              VRS is accepted would· be entitled to an Ex-gratia payment
H           . equivalent to One and Half months emoluments (Pay+ DA) last
 A. SATYANARAYANA REDDY AND OTHERS v. PRESIDING                               419
       OFFICER, LABOUR COURT [DIPAK MISRA, J.]

      drawn, for each completed year of service or the monthly                A
      emoluments at the time ofretirement multiplied by the balance
      months of service left before normal date of retirement whichever
      is less, subject to a minimum of Rs.30,000/- (Rupees Thirty
      Thousand only).
      One month/three months notice pay, as per the service conditions         B
      applicable.
      If the application of an employee opting for YRS is accepted
      instantaneously and payment is arranged by the management on
      the same day, the concerned individual would be entitled for
      payment of ex-gratia along with pay for notice-period.
      Payment of ex-gratia for services rendered or left over
                                                                              c
      service(whichever is less), as well as the amount payable for the
      Notice period should, however, not exceed the basic pay + DA
      that would have bee:l paid to the employee who has opted for
      YRS till the date of his superannuation.
      Where the management takes times to take a decision on the               D
      acceptance of an application submitted by the employees for YRS
      and allows the notice period to lapse or the employee concerned
      has drawn full salary during the notice period serve,d by him, the
      pay' for notice period would not be admissible as the employee
      has already drawn the salary for the notice period,                      E
      In addition the Employee and his family would also be entitled to
      travel fare of the admissible class to his native place within the
      State of Andhra Pradesh, which will be verified with reference to
      his L.T.C. file.                      .
      ii) For calculation of ex-gratia under the Scheme the fraction of        F
      service viz., 6 months and above will be treated as one year and
      service of\ess than 6 months will be ignored.             •
      iii) EOL upto a period of one year will be considered for calculation
      of ex-gratia benefits, provided the Service Regulations of the
      concerned Organizations permit sanction of such EOL."
                                                                               G
   16. We need not refer to the other clauses as they do not really provide
for any kind ofbenefit but stipulate the various aspects for implementation
of the YRS and the procedure to be adopted. On a perusal of the YRS,
it is clear as day that it did not deal with the lay-off compensation. As
has been laid down in Pritam Singll Gill (supra), a claim pertaining to
non-payment of suspension allowance could be agitated under the said           H
420                SUPREME COURT REPORTS                       [2016] 5 S.C.R.



A     provision in spite of the employee being dismissed from service. In A.K.
      Bindal (supra) the two-Judge Bench has held that after acceptance of
      the scheme and availing of benefits under YRS an employee could not
      claim higher wages. The controversy was different. If the YRS had
      mentioned about the lay-off compensation, needless to say, the claim
      would have been covered and the amount received by the workmen
B
      would have been deemed to have been covered the quantum of lay-off
      compensation. That is not the factual position. Therefore, the controversy
      that arose in Pritam Singh Gill (supra) and the dispute that emanated
      in A.K. Bindal (supra) are quite different. Hence, we are disposed to
      think that there exists no conflict between Pritam Singh Gill (supra)
c     and A.K. Binda/ (supra). We think it appropriate to say that though
      there iS cessation ofrelationship between the employee and the employer
      in YRS but if it does not cover the past dues like lay-off compensation,
      subsistence allowance, etc., the workman would be entitled to approach
      the Labour Court under Section 33C(2) of the Act. If it is specifically
      covered, or .the language of YRS would show that it covers the claim
D
      under the scheme, no forum will have any jurisdiction.
             17. With the aforesaid clarification, we would have directed to list
      the matter before the two-Judge Bench. It is not so required. It is
      noticeable that the claim relating to lay-off compensation is not covered
      in the YRS. The Labour Court, learned single Judge and the Division
E     Bench have declined to entertain the claim on the ground that they had
      no jurisdiction to adjudicate the controversy. We have already held that
      claim pertaining to lay-off compensation having not been part of the
      YRS, the Labour Court has jurisdiction to adjudicate under Section 33C(2)
      of the Act. Therefore, we set aside the judgment and order of the High
 F    Court and that of the Labour Court.
             18. Resultantly, the appeal is allowed, the impugned judgments
      and orders are set aside and the matter is. remitted to the Labour Court
      for adjudication in accordance with law. The Labour Court shall finalise
      the claim preferred under Section 33C(2) of the Act on its own merits
      within three months hence. The parties are directed to appear before
G     the Labour Court on J7•h October, 2016. There shall be no order as to
      costs.
      Nidhi Jain                                                  Appeal allowed.



H


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A. SATYANARAYANA REDDY AND OTHERS versus PRESIDING OFFICER, LABOUR COURT AND OTHERS — 2016 INSC 1202 - Legal Desk AI