The court examined the scope and content of the SVRS and Sharma's undertaking. It acknowledged that while Sharma had accepted the scheme with the understanding that his salary would be calculated based on his reduced pay scale, the benefits being claimed did not form part of the retirement package.
The court analyzed BSES's reliance on the A.K. Bindal judgment. In that case, the Supreme Court ruled that an employee who avails voluntary retirement cannot later seek financial benefits like pay revision. However, the court here noted that A.K. Bindal dealt with pay revisions directly linked to retirement packages, whereas Sharma's claim arose from a disciplinary action unrelated to the SVRS package itself. Thirdly, the court referred to A. Satyanarayana Reddy, which allowed employees to claim certain financial benefits post-retirement if those claims were not explicitly covered under the SVRS. In Sharma's case, the court found that the pay revision linked to the penalty reduction was a separate issue, not part of the retirement benefits package under SVRS.
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