MODIFIED VOLUNTARY RETIREMENT SCHEME OF 2002 OF AZAM JAHI MILL WORKERS ASSOCIATIONNATIONAL TEXTILE CORPORATION LIMITED & ORS. versus NATIONAL TEXTILE CORPORATION LIMITED & ORS.

Citation: [2021] 11 S.C.R. 321 · Decided: 26-10-2021 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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MODIFIED VOLUNTARY RETIREMENT SCHEME OF 2002 OF
AZAM JAHI MILL WORKERS ASSOCIATION
v.
NATIONAL TEXTILE CORPORATION LIMITED & ORS.
(Civil Appeal Nos. 6260-61 of 2021)
OCTOBER 26, 2021
[M. R. SHAH AND A. S. BOPANNA, JJ.]
Constitution of India:
Art. 14 – Right to equality – 318 ex-employees of the erstwhile
Mill seeking parity with a group of 134 ex-employees who were
allotted 200 sq. yards of plots free of cost – Workers/employees of
the Mill were allotted employees’ quarter constructed and owned
by the Mill – Said employees including the members of the workers
association took voluntary retirement – Thereafter, issuance of notice
to vacate the quarters – 318 employees including the members of
the association forcefully evicted, however, 138 employees continued
to stay in their respective quarters – Subsequently, closure of the
Mill and major portion of the land allotted to Kakatiya Urban
Development Authority-KUDA – Submission of proposal by KUDA
to State Government to allot 200 sq. yards developed plot free of
cost to each of 134 ex-employee of the Mill as a rehabilitation and
welfare measure, which was accepted by the State Government –
Thereafter, representation by 318 retired workers seeking allotment
of 200 sq. yard plot as allotted to other 134 workers – Writ petition
by the Workers Association – Allowed by the Single Judge, however,
dismissed by the Division Bench – On appeal, held: Remaining 318
ex-employees of the erstwhile Mills can claim the parity and equality
vis-a-vis other similarly situated 134 ex-employees of the Mills and
can claim 200 Sq. Yards of plots free of cost – As a law abiding
person, 318 employees vacated the quarters and as such they cannot
be put to disadvantageous situation – To allot 200 Sq. Yards of
plots to 134 ex-employees to avoid undue hardship to the ex-
employees and as a rehabilitation and welfare measure, and not to
other ex-employees similarly situated, would be discriminatory and
violative of Art.14 – There is no rationale justification in providing
differential treatment to one class of ex-employees similarly placed
[2021] 11 S.C.R. 321
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SUPREME COURT REPORTS
[2021] 11 S.C.R.
with another class of ex-employees who are allotted the plots – Thus,
the order passed by the Division Bench is quashed and set aside
and that of the Single Judge is restored.
Art. 14 – Concept of equality – Valid classification – Held:
Art. 14 may permit valid classification – Classification must
necessarily satisfy two tests-distinguishing rationale has to be based
on a just objective, and the choice of differentiating one set of
persons from another must have a reasonable nexus to the objects
sought to be achieved.
 Allowing the appeals, the Court
HELD: 1.1 At the time when the proceedings for closure
of respondent No.4 Mill was held before the Ministry of Labour,
a request was made to allot the quarters to the concerned
workmen at reasonable rates and in the order granting approval
for closure, it was submitted on behalf of the Mills that the request
to allot the quarters is under consideration by the management.
That, after the closure permission, proceedings were initiated
by KUDA to acquire the land of respondent No.4 Mills to an
extent of 135.33 Acres. However, it appears that the Vice
Chairman of KUDA vide letter / communication dated 28.12.2006
submitted their proposal to permit KUDA to allot 200 Sq. Yards
of plots free of cost to 134 ex-employees of erstwhile respondent
No.4 Mills. In the letter it was specifically mentioned that to avoid
undue hardship to the ex-employees and as a welfare measure a
proposal was made by the Vice Chairman of KUDA to permit
KUDA to allot 200 Sq. Yards of developed plots free of cost to
134 employees of the erstwhile respondent No.4 Mills. Vide G.O.
No.463 dated 27.06.2007, the State Government accepted the
said proposal and granted the permission to allot 200 Sq. Yards
of developed plots free of cost to each of 134 employees of
erstwhile respondent No.4 Mills. Nothing further was mentioned
either in the communication / letter dated 28.12.2006 nor in the
G.O. No.463 dated 27.06.2007 that to avoid any litigation and/or
litigation cost as now stated in the affidavit in reply it was proposed
to allot 200 Sq. Yards of plots to 134 ex-employees. However,
thereafter when a request was made on behalf of the remaining
318 ex-employees, who as such were similarly situated to those
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134 ex-employees, also to al
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