VICE CHAIRMAN AND MANAGING DIRECTOR A.P.S.L.D.C. LTD. AND ANR.versusR. V ARAPRASAD AND ORS.

A    VICE CHAIRMAN AND MANAGING DIRECTOR A.P.S.l.D.C. LTD.
                         AND ANR.
                                         v.
                          R. VARAPRASAD AND ORS.

                                  MAY 22, 2003
B
               [SHIVARAJ V. PATIL AND ARIJIT PASAYAT, JJ.]


         Service law:

c         Voluntary Retirement Scheme:

         APS!DC Employees Voluntary Retirement Scheme 1995:

          VRS Ex-gratia and reckoning of eligibility-Cut off date-Calculation
    of-Held: Is the date feted for accepting application of the optee and not the
D   actual date of relieving him from service.

           Notice pay of three months-Entitlement of-Held: Optees of scheme
    are entitled to notice pay-However, when they continue in service having
    drawn full salary and allowance beyond stipulated notice period they are not
E   entitled to the notice pay.

          Voluntary retirement application-Acceptance of-Withdrawal-
    Maintainability of-Held: Once the application is accepted in terms ofscheme
    it cannot be withdrawn even if employees apply for withdrawal before they
    were relieved from services.
F          Appellant-Corporation issued Voluntary Retirement Scheme (YRS)
    Phase I for its employees. In terms of the scheme employees were entitled
    to three months' pay in lieu of notice and if the management took time in
    accepting the application of the employee and allowed the notice period
    to lapse or the individual concerned withdrew all salary during the notice
G   period, the employees would not be entitled to the notice period pay as
    they drew salary during that period. As employees opting for YRS had
    worked 15 days beyond the cut off date and earned salary for the period,
    they were given two months and 15 days notice pay in addition to 15 days
    salary. Appellants issued another YRS (Phase II) and fixed 28.1.1998 as
    cut off date for calculating YRS claims of the employees. Respondent Nos.
H                                        226
       VICE CHAIRMAN AND MANAGING DIR. A.P.S.ID.C LTD. r. R. VARAPRASAD   227
l to 32 and also other employees submitted their option for voluntary           A
retirement which was accepted. However, State Government took time to
provide the funds to pay claims of employee as such the optees were
relieved from service on 31.7.1998. They were given full salary and
allowances up to the date they were relieved including period of notice
pay beyond the cut off date but not the notice pay. Aggrieved respondent        B
filed writ petition. High Court allowed the writ petition and directed the
appellants to pay three months notice pay treating the date of relief from
service as the cut off date and to calculate the terminal benefits of the
optees as if they continued in service till 31. 7.1998 notwithstanding the
cut off date fixed. Division Bench upheld the order.

      Appellants issued VRS Phase III and 31.10.1998 was fixed as the cut
                                                                                c
off date. Respondents-employee W and A filed application seeking
voluntary retirement. Appellants accepted the same and also the
respondents acknowledged it. Thereafter respondents applied for
withdrawal of option. Respondents then filed writ petiiion seeking
direction to continue in service till they attain superannuation. High Court    D
passed an interim order and the respondents continued in service while
they were to be relieved from service along with large number of other
employees on 31.7.1999. High Court then allowed the writ petitions and
directed the Corporation to continue their services till their attaining the
age of superannuation. It held that these respondents had made the              E
applications for withdrawal before the effective date and they having not
accepted the monetary benefits under the VRS, could withdraw their
applications opting for VRS. Hence the present appeals.

      Appellants-Corporation contended that once the options seeking
voluntary retirement were accepted with reference to a cut off date the         p
terminal benefits to which the employees were entitled could be calculated
as on and up to the cut off date and not beyond that period as per the
VRS; that the employees continued in service beyond the cut off date as
they were not paid the amount due to them as per VRS; that they were
paid salary and other allowances even after the cut off date till the date
on which they were actually relieved from service; that the High Court          G
was not right in holding that the employees were entitled to get notice pay
even though they were continued in service having drawn full salary and
allowances beyond the stipulated notice period; and that the High Court
was also 11ot justified in directing the Corporation to treat two sets of
optees of VRS-Phase I and Phase II, similarly when they were governed           H
    228                    SUPREME COURT REPORTS [2003J SUPP. I S.C.R.

A by distinct and different sets of guidelines and conditions.
          Disposing of the appeals, the Court

          HELD: I.I. Clause (c) of the APSIDC Employees Voluntary
    Retirement Scheme, 1995 states that the date of acceptance of the
B   applications of the employees seeking voluntary retirement under the
    Scheme shall be the date for calculation of VRS ex-gratia, as well as for
    reckoning eligibility. Clause (i) states that the payments that are due from
    the Corporation under the Scheme shall be released to the concerned on
    the date of relieving subject to receipt of funds from the Government. This
C   clause has no bearing as far as the cut off or effective date is concerned
    for the purpose of calculating the terminal benefits including VRS ex-
    gratia and other benefits available under the VRS, to which an employee
    is entitled. Clauses (c) and (i) are meant to serve different purposes. One
    is for the purpose of calculation of the benefits in terms of money under
    the VRS and the other is to see that the employee is not sent out without
D   such payment. [235-C-G)

          1.2. The payments that are due to be made by the Corporation under
    the  Scheme   depends upon the release of the funds by the Government.
    All employees who accept VRS could be relieved at a time or batch by
    batch depending on availability of funds. If some time is taken in this
E   process even after acceptance of the voluntary retirement application, an
    employe<? is not relieved from service, unless entire amount to which he
    was entitled under the Scheme was paid. He is to be paid salary and
    allowances from the date of acceptance of voluntary retirement
    application/cut off date till he is actually relieved from the service. The
F   employee may continue in service in the interregnum by virtue of clause
    (i) but ~hat cannot alter the date on which the benefits that were due to
    an employee under the VRS are to be calculated. Clause (c) itself indicates
    that any increase in salary after the cut off point/date cannot be taken
    into consideration for the purpose of calculation of payments to which an
    employee is entitled under the VRS and also for remaining period of
G   service, wherever applicable no compensation shall be paid for the period
    for which the salary ·has already been drawn by the employee after
    submission of application for voluntary retirement.
                                                        [235-G, H; 236-A, 8, CJ

         1.3. When the employees have opted for VRS on their own without
H   any compulsion knowing fully well about the Scheme guidelines and
      VlCECHAlRMAN AND MANAGING DIR. A.P.S.l.D.C. LTD. v. R. VARAPRASAD   229
circulars governing the same, it is not open to them to make any claim A
contrary to the terms accepted. It is matter of contract between the
Corporation and the employees. It is not for the courts to re-write the
terms of the contract, which were clear to the contracting parties, as .
indicated in the guidelines and circulars governing them under which1
Voluntary Retirement Scheme floated. (236-F, G(
                                                                                B
      1.4. The terminal benefits and financial package available under the
Scheme are to be calculated up to the cut off date fixed for accepting the
applications of the employees and not up to the date of their actual
relieving from service. The submission that relieving date should be taken
as effective date for calculating terminal benefits and financial package       C
under VRS, the date may be fluctuating depending on availability of funds,
cannot be accepted. (236-G-H(

       2.1. Once a cut off date was fixed for the purpose of calculating the
benefits under the VRS and thereafter an employee is continued in service
to satisfy clause (i) and if that period happens to be three months or more,    D
that itself shall be treated as notice period. In that case, he shall not be
entitled for notice period pay again on the ground that an employee having
drawn full salary during the notice period although no separate notice was
required to be given, would not be entitled for pay for the notice period
again. [237-E, Fl
                                                                                E
      2.2. In the case of VRS Phase I, the employees were given notice pay
for two months 15 days and salary for 15 days. The employees were
actually relieved from service fifteen days beyond the cut off date as the
funds were not made available immediately. The period for '' hich the
employees even under VRS phase I worked for 15 days after the cut off F
date were not given notice pay for full three months. In the instant case·
the respondents worked for a period of five months after the cut off date
for which they had drawn salary. Out of these five months three months
would be adjusted towards notice pay, as in the VRS Phase I only 15 days
were adjusted as notice pay as those employees had worked only for 15
days beyond the cut off date. Unfortunately, the Division Bench of the High G
Court did not examine the issues that arose for consideration keeping in
mind the relevant clauses, guidelines, and specific terms contained in VRS
including the amendment to the guidelines. Rights and benefits available
to the employees under a particular VRS ought to be examined in the light
of the specific terms and conditions governing them. Thus the Division H
    230                    SUPREME COURT REPORTS (2003) SUPP. I S.C.R.

A Bench erred in holding that the Corporation could not discriminate
    between the employees of VRS Phase I and VRS Phase II.
                                                (237-G-H; 238-A, 8, C(

          3. It is fairly settled that the voluntary retirement once accepted in
    terms of the Scheme or rules, as the case may be, cannot be withdrawn.
B   In the instant case, the applications of the respondents opting for voluntary
    retirement under the Scheme were accepted and even the acceptance was
    communicated to them. Thereafter, they filed the writ petitions. Hence the
    High Court erred in allowing the writ petitions holding that they applied
    for withdrawal before the effective date considering the date of relieving
C   the employees as the effective date. The position is to be examined on the
    facts, terms of the VRS and circumstances governing a particular case of
    withdrawal offer made seeking voluntary retirement after its due
    acceptance. (240-C, D, El

          Bairam Gupta v. Union of India and Anr. AIR (1987) SC 2354; J.N.
D Srivastava v. Union of India and Anr., AIR [1999) SC 1571; Shambhu Murari
    Sinha v. Project and Development India and Anr., (2000) 5 SCC 621 a!!d
    Bank of India and Ors. v. O.P. Swarnakor and Ors., (2003) 2 SCC 721,
    referred to.

           4. It appears that the respondents have continued in service; may
E   be they have attained superannuation by now or they are likely to attain
    superannuation in near future; at any rate, they having been continued
    for all these years and taking note of the particular facts and circumstances
    of these cases, it is not just and appropriate to disturb the impugned order
    under Article 136 of the Constitution of India. [240-H; 241-Af
F         CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5638of1999.

         From the Judgment and Order dated 15.6.1999 of the Andhra Pradesh
    High Court in W.A. No. 633 of 1999.

                                       WITH
G
          C.A. Nos. 2159-2160, 4067-4069 and 4658-4659 of 2001.

          L. Nageshwara Rao, Roy Abraham, Dr. Seema Jain. and Himinder Lal
    for the Appellants.
H         B. Kanta Rao, Ms. Chaya Devi, Ms. Sudha Gupta, V. Shekhar, A
VICE CHAIRMAN AND MANAGING DIR A.P.SJD.C LTD. " R VARAPRASAD[PATIL, J.) 23 1

Mahadev, S. Ganesh, P.S. Narasimha, Ananga Bhattacharya, Sridhar P.,               A
K. Ram Kumar, Ms. K. Sarada Devi, Ms. B. Sunita Rao for the Respondents.

     The Judgment of the Court was delivered by

      SHIVARAJ V. PATIL, J. Civil Appeal No. 5638 of 1999.
                                                                                   B
       The Andhra Pradesh State Irrigation Devel~pment Corporation Ltd.
(for short 'Corporation') is a Government company, registered under the
Companies Act, 1956. Pursuant to the national policy, the State of Andhra
Pradesh issued instructions for floating Voluntary Retirement Scheme (VRS)
in the Government companies and corporations. The Corporation introduced           C
the VRS (Phase-I) on 1.6.1995. In the light of the said Scheme the Corporation
issued a circular on 4. 7.1997 inviting applications from the employees, who
were eligible under the Scheme. In response to the same 416 employees
submitted their options seeking voluntary retirement. The Corporation accepted
their options on 18.10.1997 treating 31.10.1997 as cut off date for all purposes
of VRS. The funds, for giving benefits under the Scheme to the employees,          D
were made available to the Corporation by the State Government during the
first week of November, 1997. The employees, whose options had been
accepted, were relieved from service on 15.11.1997. As per the Scheme
offered, the employees were entitled to three months pay in lieu of notice.
The cut off date was fixed as 31.10.1997. The employees had worked 15
days beyond the cut off date and earned salary for the period. Hence they          E
were given two months and 15 days notice pay in addition to the 15 days
salary. On 1.10.1997 the State Government issued a clarification stating, "in
the circumstances where the management takes time to take a decision about
the acceptance of the application of the employee and allows the notice
period to lapse or the individual concerned has drawn all salary during the        p
notice period, in these cases notice period pay would not be admissible as the
individual has already drawn salaries during the notice period."

       The Corporation issued another VRS (Phase II) on 12.12.1997 seeking
options from the employees. 212 employees, including respondents I to 32
in this appeal, submitted their options for voluntary retirement. Th.: options G
were accepted fixing the cut off date as 28.2.1998 for the purpose of calculating
the VRS claims of the employees. Since the State Government insisted for
pre audit clearance by the Director of Treasuries and Accounts to pay the
claims of the employees, it took some time and the funds were provided by
the State Government only 011 25.7.1998. The optees were relieved from H
    232                      SUPREME COURT REPORTS [2003) SUPP. I S.C.R.

A service on 31.7.1998. They were permitted to continue in service beyond the
    notice period of three months and they were given full salary and allowances
    up to 31.7.1998, i.e., for a period of five months (including period of notice
    pay) beyond the cut off date. They were not given notice pay while settling
    their claims under the Scheme because they had also drawn salary during that
B   period.

          The respondents I to 32 filed writ petition No. 2190 I of 1998 in the
   High Court seeking a writ of mandamus directing the Corporation to pay all
   service benefits as if they were in service up to 31.7.1998. The Corporation
   resisted the writ petition by filing a detailed counter affidavit contending that
C the writ petitioners were not entitled for any relief. The learned single Judge
   of the High Court allowed the writ petition and directed the Corporation to
   pay three months notice pay treating the cut off date as 31.7.1998 though
   specific prayer was not made in the writ petition to this effect. The Corporation
  was also directed to calculate the terminal benefits of the optees as if they
   were continued in service till 31. 7.1998 notwithstanding the cut off date
D fixed was 28.2.1998. Aggrieved by this order of the learned single Judge the
  appellants filed writ appeal No. 633 of 1999 before the Division Bench of the
   High Court. The same was dismissed by the Division Bench holding that the
  action of the Corporation in not giving notice pay to the employees covered
  under the second phase of YRS was discriminatory and violative of Article
E 14 of the Constitution of India as such benefit was given to the employees
  covered under the first. phase of the YRS. Under these circumstances the
  appellants have called in question the validity and correctness of the impugned
  judgment and order of the Division Bench of the High Court affirming the
  order of the learned single Judge.

F          Mr. L. Nageshwara Rao, learned senior counsel for the appellants -
    Corporation, urged that the High Court was not right in holding that the
    employees were entitled to get notice pay even though they were continued
    in service having drawn full salary and allowances beyond the stipulated
    notice period; the High Court was also not justified in directing the Corporation
    to treat two sets of optees of YRS - Phase I and Phase II, similarly when they
G   were governed by distinct and different sets of guidelines and conditions; that
    the terminal benefits to which the employees were entitled could be calculated
    as on and up to the cut off date of 28.2.1998; once the options seeking
    voluntary retirement were accepted with reference to a Cl!t off date the
    employees were not entitled to claim terminal benefits beyond that date.
H   According to the learned counsel the employees were continued in service
VICE CHAIRMAN AND MANAGING DIR. AP S.l.D C. LTD. 1·. R. VARAPRASAD [PATIL ,J.] 233

beyond 28.2.1998 because of the condition that they could not be relieved A
from services even after the cut off date until they were paid the amount due
to them as per VRS; they were paid salary and other allowances even after
the cut off date till the date on which they were actually relieved from service
after making the payment; that period between 1.3.1998 and 31. 7.1998 could
not be taken into consideration for the purpose of calculating the terminal B
benefits as per the VRS.

     In opposition the learned counsel representmg t:ie respondents in their
arguments supported the impugned judgment and order. They reiterated the
submissions that were made before the High Court.

      The learned counsel for the parties took us through the relevant portions
                                                                                     c
of various documents on which they placed reliance. To resolve the
controversies that arise for consideration in this appeal, it becomes necessary
to look at the guidelines, the VRS and circulars issued by the Corporation
seeking the options of the employees for voluntary retirement. The claims of
the parties are to be examined in the light of these documents as between D
them. Annexure P-1 dated 1.6.1995 is a circular issued by the Corporation in
which it is stated that the Management is pleased to issue a Voluntary
Retirement Scheme for employees of the Corporation and the Scheme will be
known as "APSIDC Employees Voluntary Retirement Scheme 1995". The
relevant clauses, which have bearing on the controversies to be resolved E
read: -

       "(c) For calculation ofVRS Ex-gratia, as well as reckoning eligibility,
            the date of acceptance of the application will be taken into
            consideration. Any increase in the salary after the cut-off point/
            date cannot be taken into consideration. However, for calculating        F
            the compensation for "Remaining period of service" wherever
            applicable, no compensation shall be paid for the period for which
            the salary has already been drawn by the employee after
            submission of VRS application.

       (d) The VRS option exercised is final as far as employee is concerned.        G
       (e) There shall be no separate notice either for the employee or the
           Corporation. In terms of service conditions mentioned in the
           offer of appointment/service rules/S.R.S.

             xxx             xxx                    xxx                              H
    234                     SUPREME COURT REPORTS [2003) SUPP. I S.C.R.

A          (i)   The payments that are due from the Corporation under the scheme
                 shall be released to the concerned on the date of relief subject to
                 receipt of funds from Government."

    Under the Scheme the Vice Chairman and Managing Director shall have
    power to amend, modify, alter or withdraw or extend the period of operation
B   of the Scheme at any time either in whole or in part, at his discretion, if the
    circumstances so warrant.

          Annexure P-2 is circular dated 4.7.1997, issued by the Corporation
    referring to Annexure P-1 dated 1/6/1995 and other circulars inviting
C   applications from the employees, who were eligible and willing to accept
    VRS to apply in the prescribed form. By memo dated I. I 0.1997 (Annexure
    P-3) Government of Andhra Pradesh issued amendment to the Voluntary
    Retirement Scheme guidelines, issued in the memo No. 1038/PE.1/A2/94-4
    dated 23. 1.1996. The amendment reads: -

D           I. (a) Jn the said Memo, for the existing clause 6(a)(iv) the following
            shall be substituted, namely: -

           "IV One month's/three months' notice pay (as per the conditions of
           service applicable)

E          If an application of an employee opting for Voluntary Retirement is
           accepted instantaneously and payment is arranged by the management
           on the same day, the concerned individual would be entitled to payment
           of ex-gratia alone with the notice period pay. It is however clarified
           that payment of ex-gratia for service rendered or left over service
           (whichever is less) as well as the amount payable for the notice
F          period should not exceed the basic pay plus D.A. that would have
           been paid to the employees who have opted for Voluntary Retirement
           Scheme till the date of his superannuation.

            In the circumstances where the Management takes time to take a
            decision about the acceptance of an application submitted by the
G           employee for Voluntary Retirement Scheme; and allows the notice
            period to lapse or the individual concerned has drawn full salary
            during the notice period served by him, in these cases notice period
            pay would not be admissible as the individual has already drawn the
            salary during the notice period."
H
VI CE CHAIRMAN AND MANAGING DIR. A.P.S.l.D.C. LTD. 1-. R. VARAPRASAD[PATIL,J] 235

         This amendment came into force from the date of issue of memo itself,      A
i.t>., from 1.10.1997.

    In this appeal we are concerned with respondents 1 to 32 falling under
VRS phase II.

      In the light of the contentions urged two points arise for consideration B
- (I) whether the terminal benefits and financial package available under the
Scheme are to be calculated up to the cut off da;e fixed for accepting the
applications of the employees, who opted for voluntary retirement or they
should be calculated up to the actual date of relieving them from service, and
(2) whether the respondents were entitled for notice pay of three months. C

       In clause (c) of Annexure P-1, extracted above, it is expressly and
clearly stated that the date of acceptance of the applications of the employees
seeking voluntary retirement under the Scheme shall be the date for calculation
of VRS ex-gratia, as well as for reckoning eligibility. Added to this it is also
made clear that any increase in the salary after the cut off point/date cannot D
be taken into consideration. It is also stated that for calculating the
compensation for "remaining period of service" wherever applicable no
compensation shall be paid for the period for which the salary has already
been drawn by the employees after submission of VRS applications. Clause
(i) of the Annexure states that the payments that are due from the Corporation
under the Scheme shall be released to the concerned on the date of relieving E
subject to receipt of funds from the Government. This clause, in our view,
has no bearing as far as the cut off or effective date is concerned for the
purpose of calculating the terminal benefits including VRS ex-gratia and
other benefits available under the VRS, to which an employee is entitled,
particularly so, when in clause (c), I'S already stated above, it is mentioned F
that for calculation of VRS ex-gratia as well as reckoning its eligibility the
date of acceptance of applications will be taken into consideration. Clauses
(c) and (i) are meant to serve different purposes. One is for the purpose of
calculation of the benefits in terms of money under the VRS and the other
is to see that the employee is not sent out without such payment. If that
happens it will lead to a great hardship to an employee without any financial G
support to carry on life. It is for that reason clause (i) appears to have been
incorporated so that an employee is not rendered jobless. The payments that
are due to be made by the Corporation under the Scheme depended upon the
release of the funds by the Government. If some time is taken in this process
even after acceptance of the voluntary retirement application, an employee is H
    236                     SUPREME COURT REPORTS [2003] SUPP. I S.C.R.

A not relieved from service, he is to be paid salary and allowances from the
    date of acceptance of voluntary retirement application/cut off date till he is
    actually relieved from the service. The employee may continue in service in
    the interregnum by virtue of clause (i) but that cannot alter the date on which
    the benefits that were due to an employee under the YRS to be calculated.
B   Clause (c) itself indicates that any increase in salary aftrr the cut off point/
    date cannot be taken into consideration for the purpose of calculation of
    payments to which an employee is entitled under the VRS. It is further made
    clear that for remaining period of service, wherever applicable, no
    compensation shall be paid for the period for which the salary has already
    been drawn by the employee after submission of application for voluntary
C   retirement.

          This being the position both learned single Judge and the Division
    Bench of the High Court were not right in taking a contrary view that the
    benefits available under the Scheme and terminal benefits should be reckoned
    and calculated as on the date of actual relieving the employees notwithstanding
D   the cut off date mentioned by the Corporation and accepted by the employees.
    An employee even after accepting his application c.ould not be relieved unless
    entire amount to which he was entitled under the Scheme was paid. Such
    payment depended on making funds available by the State Government. AU             :~

    employees who accepted VRS could be relieved at a time or batch by batch
E   depending on availability of funds. Further funds may be made available
    early or late. If the argument of the respondents that relieving date should be
    taken as effective date for calculating terminal benefits and financial package
    under VRS, the dates may be fluctuating depending on availability of funds.
    Hence it is not possible to accept this argument. When the employet:s have
    opted for VRS on their own without any compulsion knowing fully wen
F   about the Scheme, guidelines and circulars governing the same, it is not open
    to them to make any claim contrary to the terms accepted. It is matter of
    contract between the Corporation and the employees. It is not for the courts
    to re-write the terms of the contract, which were clear to the contracting
    parties, as indicated in the guidelines and circulars governing them under
G   which Voluntary Retirement Schemes floated.

         Jn the circumstances we are of the view that the terminal benefits and
  finar.cial package available under the Scheme are to be calculated up to the
  cut off date fixed for accepting the applications of the employees and not up
  to the date of their actual relieving from service. Hence the relevant date for
H the purpose of calculation of terminal benefits and benefits of VRS ~Jhe
VICE CHAIRMAN AND MANAGING DIR A.P.S.l.D C. LTD. ''· R. VARAPRASAD (PATIL, l.] 23 7

respondents was 28.2.1998 and not 31.7.1998.                                          A
      As per clause (e) of Annexure P-1 it is made abundantly clear that there
shall be no separate notice either for the employee or Corporation in terms
of service conditions mentioned in the offer of appointment/service rules/
S.R.S. As per Annexure P-3 Memo dated"i.10.1997 Government of Andhra
Pradesh issued amendment to the Voluntary Retirement Scheme Guidelines                B
contained in the Memo dated 23 .1.1996 and this amendment came into force
with immediate effect. As per the amendment, extracted above, if an
application of an employee opting for voluntary retirement is accepted
instantaneously and the payment is arranged by the Management on the same
day the concerned individual would be entitled to payment of ex-gratia alone          C
with the notice period pay. It is also clarified that in the circumstances where
the Management takes time to take a decision about the acceptance of an
application submitted by the employee for the YRS and allows the notice
period to lapse or the individual concerned has drawn full salary during the
notice period served by him, notice period pay would not be admissible as
the individual has drawn the salary during the notice period.                         D
      In the present case admittedly the cut off date fixed was 28.2.1998,
which is not disputed. The contention was that since the employees continued
to be in service till 31. 7.1998, they were entitled to the retiral benefits and
the benefits available under the YRS as on 31. 7.1998, the date on which they E
were actually relieved. While discussing first point we have clarified the
position in this regard. As per clause (e) of Annexure P-1 no separate notice
was required to be issued in terms of service conditions mentioned in the
offer of appointment/service rules/S.R.S. But once a cut off date was fixed
for the purpose of calculating the benefits under the YRS and thereafter an
employee is continued in service to satisfy clause (i) of Annexure P-1 and if F
that period happens to be three months or more, that itself shall be treated as
notice period. In that case he shall not be entitled for notice period pay again
as is clear fro'm the Memo dated 1.10.1997 (Annexure P-3), on the ground
that an employee having drawn full salary during the notice period although
no separate notice was required to be given, would not be entitled for pay for G
the notice period. Even while dealing with the cases of YRS Phase I, the
employees were given notice pay for two months 15 days and salary for 15
days. In those cases the Corporation had treated the cut off date as 31. I0. 1997
but the employees were actually relieved from service on 15.11.1997, as the
funds were not made available immediately. It clearly shows that for the
period for which the employees even under YRS first phase worked for 15 H
    238                     SUPREME COURT REPORTS [2003] SUPP. I S.C.R.

A days after the cut off date were not given notice pay for full three months.
     In the present case the cut off date was 28.2.1998 but the respondents were
    actually relieved from service on 31.7.1998. Thus they worked for a period
    of five months after the cut off date for which they had drawn salary. Out of
    these five months three months would be adjusted towards notice pay as in
B   the YRS Phase I only 15 days were adjusted as notice pay as those employees
    had worked only for 15 days beyond the cut off date. In the impugned
    judgment the Division Bench held that the Corporation could not discriminate
    between the employees of YRS Phase I and YRS Phase II. We fail to see how
    there was any discrimination. Unfortunately, the Division Bench of the High
    Court did not examine the issues that arose for consideration keeping in mind
C   the relevant clauses, guidelines and specific terms contained in YRS including
    the amendment to the guidelines. Rights and benefits available to the
    employees under a particular YRS ought to be examined in the light of the
    specific terms and conditions governing them. Since this has not been done
    the Division Bench committed an error in recording its findings. On the other
    hand, there appears to have been consistency in the stand of the Corporation.
D   Added to this the amendment as per Annexure P-3, reference to which has
    already been made above, justifies the stand of the appellants for the reasons
    that no separate notice was required to be given and if an employee had
    drawn the salary during the notice period, he would not be entitled b claim
    pay for notice period again. In this view we answer the point No. 2 in the
E   negative and against the respondents.

          In the light of what is stated above, we are of the view that the judgment
    and orders of the learned single Judge and of the Division Bench of the High
    Court cannot be sustained. Hence they are set aside and the appeal is allowed
    with no order as to costs.
F
    Civil Appeal Nos. 4067-4069 of 2001 and Civil Appeal Nos. 2159-2160 of
    2001

           In view of our conclusions arrived at in Civil Appeal No. 5638of1999,
    these appeals also are entitled to succeed. We may also mention that the
G   respondent in Civil Appeal No. 4067 of 200 I is governed by YRS Phase II
    and the respondents In Civil Appeal Nos. 4068-4069 of2001and2159-2160
    of2001 are governed by YRS Phase III. It may be added that the terms and
    conditions, which are applicable to YRS Phase II are similar to YRS Phase
    Ill also, as the matters are identical. In this view these appeals are also
H   allowed. The impugned judgment and orders of the High Court are set aside.
 VICE CHAIRMAN AND MANAGING DIR. AP.S.l.D.C. LTD. v. R. VARAPRASAD [PATIL ,J] 239

No costs.                                                                           A
CIVIL APPEAL NOS. 4658-4659 OF 2001

        These appeals are directed against the common order made in W.P.
  l 5703 of l 999 and W.P. No.15742 of l 999. Respondent No. l, Yijay Kumar,
 in C.A. No. 4658 of 2001 and respondent No. l, A.Simhadri, in C.A. No. B
 4659 of 2001 (hereinafter referred to as 'respondents'). filed writ petition
 Nos. 15701of1999 and 15742of1999 in the High Court seeking direction
 to the appellant-Corporation to continue them in service till they attain
 superannuation. Both are covered by YRS Phase-III. The Corporation fixed
 3 J.10. l 998 as cut off date for YRS Phase-Ill. Respondents Yijay Kumar and C
 A.Simhadri filed applications seeking voluntary retirement under the said
 Scheme on 31.10. l 998 and 10.10. l 998 respectively. Corporation accepted
 their options on 24.11.1998 and 27. I 0.1998, which were also acknowledged
 b~ the respondents on 26.1 l.1998 and 2. l 1.1998. Thereafter, they applied for
 w'ithdrawal of the option given for YRS on 8.1.1999 and 26.2.1999
 respectively. These respondents could not be relieved from service along D
 with large number of other employees who were relieved on 3 l .7. l 999 under
.YRS Phase-III because of the interim order granted by the High Court in the
 writ petitions filed by them. The Division Bench of the High Court, by the
 impugned order, allowed the writ petitions and directed the Corporation to
 continue their services till their attaining the age of superannuation. In doing E
 so, the High Court followed the decisions of this Court in Bairam Gupta v.
 Union of India and Anr., AIR (1987) SC 2354, JN. Srivastava v. Union of
 India and Anr., AIR ( 1999) SC 157 l and Shambhu Muarai Sinha v. Project
 & Development India and Anr., [2000] 5 SCC 621. The High Court was of
 the view that the respondents had filed their withdrawal applications on
 8.1.1999 and 26.2.1999 and had the benefit of interim directions to continue F
 in service granted by the High Court on 30.7.1999 while they were to be
 relieved on 31.7.1999 and the result was that they were still in service on that
 date. The High Court further observed that these respondents had made the
 applications for withdrawal before the effective date i.e. 31.7 .1999 and they
 having not accepted the monetary benefits under the YRS Scheme, could
 withdraw their applications opting for YRS. Jn this view, the writ petitions G
 of these respondents were allowed. Before us, the learned counsel on both
 sides relied on the decision of this Court in Bank of India and Ors. v. ·o.P.
 Swarnakar and Ors., [2003] 2 SCC 721] and few other decisions. The decisions
 cited on behalfofthe respondents do not help them. Unlike in those decisions
 these respondents filed applications offering to take voluntary retirement under H
    240                     SUPREME COURT REPORTS [2003] SUPP. I S.C.R.

A the Scheme; their applications were accepted by the Corporation which were
    acknowledged by these respondents; they made representations for withdrawal
    from the VRS Scheme several days after the Corporation accepted their
    applications made seeking voluntary retirement; merely because they could
    not be relieved in view of the interim order passed by the High Court in the
B   writ petitions and that they could not be relieved immediately after the cut
    off date for want cf funds to be received from the Government by the
    Corporation, they could not take away the result or escape consequence of
    the acceptance of their voluntary retirement by the Corporation. In other
    words, question of withdrawal of their applications made for seeking voluntary
    retirement after their acceptance did not arise and they could not be permitted
C   to do so in law. It is fairly settled now that the voluntary retirement once
    accepted in terms of the Scheme or rules, as the case may be, cannot be
    withdrawn. In these appeals from the facts it is clear that the applications of
    the respondents opting for voluntary retirement under the Scheme were
    accepted and even the acceptance was communicated to them. Thereafter,
    they filed the writ petitions. Hence the High Court was not right in allowing
D   the writ petitions holding that they applied for withdrawal before the effective
    date considering the date of relieving the employees as the effective date. In
    the light of the discussions made in Civil Appeal No. 5638 of I999 the High
    Court, in our view, was wrong in treating 31.7.1999 as an effective date. The
    decisions relied on by the respondents before the High Court or in this Court
E   on facts do not help them. Moreover, position is to be examined on the facts,
    terms of the VRS and circumstances governing a particular case of withdrawal
    offer made seeking voluntary retirement after its due acceptance.

          In view of this legal position, the impugned order cannot be sustained.
    We would have set aside the same but for the peculiar facts and circumstances
F   of the case stated hereinafter. These respondents though sought for voluntary
    retirement under the Scheme could not be relieved even on 31.7.1999
    alongwith large number of other employees because of the interim order
    passed by the High Court in the writ petitions filed by them. Consequently,
    they continued in service. Even in the SLPs filed by the Corporation, though
G   leave was granted, interim order was specifically refused as is clear from the
    order dated 23.7.2001 passed by this Court in these appeals, which reads:-

            "Leave granted. Tag with C.A. Nos. 4067-4069/2001. No stay."

         It appears to us that the respondents have continued in service; may be
H   they have attained superannuation by now or they are likely to attain
VICE CHAIRMAN AND MANAGING DIR. A.P.S.l.D.C. LTD. v. R. VARAPRASAD [PATIL, J.] 24 J

superannuation in near future; at any rate, they having been continued for all A
these years and taking note of the peculiar facts and circumstances of these
cases, we do not think it is just and appropriate to disturb the impugned order
under Article 136 of the Constitution of India in the light of what is stated
above. Consequently, these appeals are disposed of accordingly but with no
order as to costs.
                                                                                      B
N.J.                                                        Appeal disposed of.