Hindustan Photo Films Manufacturing Company Limited Vs Government of India (Madras High Court)
The appeals arose from a common order of the learned Single Judge concerning the Voluntary Retirement Scheme (VRS) implemented for employees of Hindustan Photo Films Manufacturing Company Limited. The company challenged the observations in paragraph 34(v) and (vi) of the Single Judge’s order directing implementation of the severance package within one month and requiring employees to vacate company quarters within one month of receiving the monetary benefits. The Government of India also filed writ appeals against the common order dated 17 March 2017 in various writ petitions.
Read SC Judgment in this case: SC Upholds HC Order on VRS; Clarifies Benefit Parity
The company had earlier been declared a Sick Industrial Company. The Board for Industrial and Financial Reconstruction (BIFR), by order dated 30 January 2003, recommended its winding up, and the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), by order dated 7 June 2005, confirmed that recommendation. Subsequently, the Ministry of Heavy Industries approved the VRS package for the company’s employees on 20 March 2014, and the company issued a circular dated 21 March 2014 for its implementation. The employees’ union challenged the Government’s letter and the company’s circular, seeking, among other reliefs, 72 months’ salary on 2007 pay scales, arrears on the 2007 pay scales, non-deduction of recoverable advances and allowances, and permission to continue occupying staff quarters until 1 May 2016.
