• VRS from PSU did not consider earlier service rendered in 2 PSU's

Dear Sir,

I took VRS from Indian Rare Earths Ltd Mumbai in 2005. They considered my service for IRE but not in earlier 2 PSU,s from where I shifted to next PSU through proper Channel upto IRE.

First I shifted from Hindustan Copper Limited to Cement Corporation Ltd and then to IREL.
When I shifted from HCL following PSU scales  to CCI following central pattern of scales PF and EL was transferred to CCI . However, when I shifted From CCI -central scales to IREL- PSU scales  , I withdrew the PF as per rules applicable to central scale employees. 

There is a VRS guideline of Department of Public enterprise GOI that earlier PSU service also will be considered provided Earned leave and PF were transferred.

My argument regarding PF is that although I was in PSU before coming to IREL. They had 2 system of pay-scales Central scales for old appointees and and PSU scales for new appointees. I was in Central Scales. There was a rule applicable for Central scale employees then  that when someone leaves a the PSU and joins another PSU he can either withdraw the amount or seek transfer. This was not applicable for PSU scale employees. I opted for this privilege and joined IREL through proper Chanel with pay protection and transfer allowance etc. 

My argument regarding EL transfer is that that IREL at that time did not have any rules of transfer of EL from earlier PSU and thus my EL balance got wasted. 

Thus it can be seen that PSU guideline which was issued by DPE did not take into different practices followed by different PSU's. The principle behind the guideline was to ensure that there was no break in service but was unworkable as the above instance goes to prove. Thus it was defective , ad-hoc and arbitrary. 

I had represented to Presidents Secretariat and I have received a reply dated 20th October 2014  from Department of Atomic Energy under which IREL is administered that the prior services can not be reckoned for VRS since IREL VRS does not does not contemplate consideration of service put in another PSE before joining IREL and because PF and EL did not take place. Also I did not ascertain the position then. 

I would request you to kindly let me know the rule position in my case and way forward.


Regards

Arijit Bagchi
Srikakulam ( Andhra Pradesh)
9989998500
Asked 2 years ago in Constitutional Law from Srikakulam, Andhra Pradesh
File a Writ Petition in Mumbai High Court.
Minansu Bhadra
Advocate, Kolkata
266 Answers
23 Consultations
4.8 on 5.0
1) As per VRS guideline of Department of Public enterprise GOI earlier  PSU service also will be considered provided Earned leave and PF were transferred.

2) you have with drawn your PF 

3) admittedly your PF has not been transferred . hence DAE was justified in rejecting your application tat your earlier services in other PSU cannot be considered 

4) it is your case that as rule applicable for Central scale employees then  that when someone leaves a the PSU and joins another PSU he can either withdraw the amount or seek transfer. hence you were justified in withdrawing your PF . 

5) you will have to file writ petition in High court to challenge refusal of DAE to grant you benefit of earlier services . further VRS guidelines will have to be challenged as it did not take into different practices followed by different PSU's. 

6) contact a local lawyer
Ajay Sethi
Advocate, Mumbai
23211 Answers
1218 Consultations
5.0 on 5.0
file writ petition in high court to challenge said VRS guidelines so that benefits of earlier services be also given to you.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0
1. No legal infirmity can be found in the decision of DAE to reject your application for consideration of earlier services in other PSU in so far as it it based on the factum that your PF has not been transferred. 

2. The withdrawal of PF by you has to be seen in the light of the rights conferred on you by the rules which allow  a central scale employee leaving one PSU for another PSU to either withdraw the amount or seek transfer. In terms of this rule you were justified to withdraw your PF. 

3. The legal recourse available to you is to move the High Court and challenge the decision of DAE which is further founded on the guidelines of VRS.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
1) litigation is an expensive proposition . since you have limited funds at your disposal cant advice you whether to move court or not without knowing how much additional funds you would receive if your contention is accepted . 

2) even if your Writ petition is admitted final hearing of petition may take some years . 

3) since you retired from IRE in mumbai and your application was rejected in mumbai you will have to file Writ in Mumbai
Ajay Sethi
Advocate, Mumbai
23211 Answers
1218 Consultations
5.0 on 5.0
1. The result of any litigation is uncertain. As rightly pointed out by my ld.colleague Mr.Sethi, litigation is an expensive affair. If you have limited finds at disposal then it is not advisable to venture into litigation. After consulting a lawyer and being apprised by him about his legal fee you will have a clear picture as to whether you can afford to wage a legal battle.

2. The case can be filed only in Mumbai since you retired from IRE in Mumbai.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0

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