Summary
Hindustan Copper computed a miner’s voluntary-retirement benefits using a 1945 birth date in Form B, departing from the 1949 date maintained in his service book and subsequent records. The Court rejected the employer’s unilateral late alteration without hearing and its unexplained mistake theory. Form B had high probative value but was not conclusive. It ordered computation using 21 September 1949, payment of the difference within four months and 7% simple interest from retirement to actual payment.
Issues
- Whether the employer could reduce accepted VRS benefits by unilaterally departing from its long-standing service-book birth date.
- Whether Form B conclusively determined age or delay barred the employee’s challenge.
Provisions considered
- Article 300A, Constitution of IndiaAccepted VRS benefits assumed the character of property and required accurate assessment; the reduction here lacked lawful authority and procedural fairness. (¶ 21-23)
Held
- The relevant standing-order clause permitted reliance on Form B, subject to medical confirmation when necessary; it did not make the entry conclusive. The routine joining-time medical assessment was not shown to be an age-determination board opinion. (¶¶ 9, 13-14)
- The service book, pay slips and VRS estimate consistently reflected the later birth date. The employer, as custodian of those records, did not adequately explain the alleged mistake or its long continuation. A mechanical unilateral correction without an opportunity to the employee was unjustified. (¶¶ 12-18, 21)
- This was an employer’s detrimental alteration at retirement, rather than an employee’s late request to extend service. There had been no occasion to challenge the favourable service-book entry earlier; the employee complained after the employer alerted him to its contrary computation. Delay and estoppel did not defeat the claim on these facts. (¶ 15-22)
- Once the VRS application was accepted, accurate computation of the benefit was protected under Article 300A. The record supported computation on the service-book date rather than a fresh remand to repeat the erroneous approach. (¶ 21-23)
Result
Appeal allowed. Both High Court judgments and the rejection order were set aside. VRS benefits were to be calculated on birth date 21 September 1949 and paid within four months after deducting sums already paid. The difference carried 7% simple annual interest from 3 October 2002 to actual payment. Pending applications disposed of; no order as to costs.