The Punjab and Haryana High Court has finally put an end to a legal fight that dragged on for more than 26 years. The court directed the Punjab government to give former employees of the Punjab State Leather Development Corporation the same benefits as those granted under its April 20, 1992 policy for surplus staff.
Justice Harpreet Singh Brar said that the employees’ claims were valid and could not be taken away by a later amendment in 1995. He noted that the policy in force at the time of their retrenchment was the 1992 one and that the petitioners’ rights had to be recognized under that policy.
The case began when T S Saini and others filed a writ petition in 1999. They had worked for the corporation, which had been running losses since it was set up.
In June 1992 the government decided to close it down in phases. While many workers including juniors were adjusted into other state departments, boards and corporations under the 1992 policy, these petitioners were retained for winding-up work and left out of absorption.
The petitioners sought continuity of service, citing a 1998 High Court ruling in the case of Avtar Singh where similar employees had been granted relief.
The court had even allowed them to accept Golden Handshake compensation in 1999 without losing their right to continue with the petition.
The state government argued that the petitioners had already taken compensation and reached retirement age so they could not now claim absorption. It also pointed to the 1995 amendment which limited the 1992 policy only to government department employees.
Justice Brar dismissed these arguments. He relied on the earlier Avtar Singh ruling, which held that employees declared surplus before 1995 were covered under the original 1992 policy.
He added that out of 209 retrenched staff, 192 had already been adjusted and there was no justification for leaving out these petitioners.
The court has now ordered the Punjab government to grant notional benefits to the petitioners on par with their juniors.
The Golden Handshake amount they received will be adjusted against these benefits. The petitioners agreed not to claim interest on delayed payments and the government will not seek interest on the compensation already given.
The state has been given three months to comply with the order. With this direction, the writ petition pending since 1999 has been disposed of without any cost order.
Source – The Indian Express
