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DISCOMS to pay pension, terminal dues to VRS optees: HC rules

DISCOMS to pay pension, terminal dues to VRS optees: HC rules
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First Published: Thu, Jul 05 2007. 01 15 AM IST
Updated: Thu, Jul 05 2007. 01 15 AM IST
By PTI
New Delhi: In a setback to power distribution companies, the Delhi High Court has directed them to pay pension and terminal dues to employees who opt for Voluntary Retirement Scheme (VRS).
“The Pension Trust and the Government of National Capital Territory (GNCT) are not liable to make payment towards terminal benefits and residual pension arising to those who opted VRS/VSS formulated by the DISCOMS,” Justice S Ravinder Bhat said delivering the judgement on 1 July.
“The employees of DISCOMS are entitled to get terminal dues like gratuity, provident fund, leave travel concession etc. from the date of their respective severance from employment,” Justice Bhat observed.
Directing the DISCOMS to make the payments to the employees within three months, the Court asked them to adopt a method to pay pension, gratuity, leave encashment etc.
In case of “any default in payment, the VRS optees concerned shall be entitled to interest at the rate of 8% per annum for the entire amount till the date of payment,” the order said and imposed a cost of Rs 50,000 on each of the four companies for the litigation.
The order came on a bunch of petitions filed by the companies seeking court’s direction to NCT government to take the liability to pay the pension and other benefits.
The DISCOMS alleged that the liability to pay such pension under the Schemes fell on the NCT government through its Delhi Vidyut Board (DVB) Employees Terminal Benefit Fund, a trust incorporated under provisions of the Indian Trusts Act.
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First Published: Thu, Jul 05 2007. 01 15 AM IST