Modified Voluntary Retirement Scheme of 2002 of Azam Jahi Mill Workers Association v. National Textile Corporation Limited & Ors.

Civil Appeal · 2021 INSC 677Decided 26 Oct 2021
Civil Appeal Nos. 6260-61 of 2021
Justice M.R. Shah · Justice A.S. Bopanna

Background

When a Government-owned textile mill in Telangana closed in 2002, all its employees took voluntary retirement on the same day. Of those who had been living in mill-provided staff quarters, 134 workers refused to vacate despite notice and were later allotted free 200-square-yard house plots as a "welfare and rehabilitation" measure when the land was sold to a development authority. The remaining 318 workers, who had obediently vacated their quarters years earlier, were denied the same plots, and went to the High Court claiming discrimination.

Decision Breakdown

The Supreme Court held that the two groups of ex-employees were genuinely similarly situated, both groups had worked the same jobs, retired under the same scheme on the same day, and originally occupied identical quarters, and that the only difference was that one group had complied with an eviction notice while the other had not. Rewarding those who unlawfully overstayed while denying the same benefit to those who complied with the law was found to be arbitrary and violative of Article 14. The Court restored the High Court Single Judge's order directing equal allotment of plots to the remaining 318 workers, with a direction to complete the process within six months.

Lesson Learnt

The right to equal treatment under Article 14 can require the State to extend the same welfare benefit to all similarly placed citizens, including correcting a situation where law-abiding behaviour was effectively being punished compared to those who defied official notices.

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