Chandigarh: High Court junks plea seeking staff service extension in CITCO

Since 2013, CITCO has been giving extension to all its employees — from Group A to Group D — beyond the retirement age.

By: Express News Service | Chandigarh | Updated: October 9, 2016 4:18 am

After taking note of the fresh decision taken by the UT administrator that no further extension will be given to employees of Chandigarh Industrial and Tourism Development Corporation (CITCO) after they are 58-year-old, the Punjab and Haryana High Court Saturday disposed of the petition filed by the employees’ union seeking extension in services. However, the court has granted liberty to the petitioners to challange the decsion.

While disposing of the case, the court said: “Since a final decsion has been taken, no further directions can be passed in the instant petition. Needless to observe that, if any member of the union is aggrieved of the order, it would always be open for such employee to raise a chhallenge to the same, if so advised and on grounds in accordance with law.” There are around 1,000 employees working in different units — industrial and tourism — of the corporation. At present, there are around 45 employees on extension, who are expected to be revelived next week.

The workers’ union had filed a petition on September 20, 20133, seeking extension in service. Since 2013, CITCO has been giving extension to all its employees — from Group A to Group D — beyond the retirement age. The then UT administrator, Kaptan Singh Solanki, had issued orders on July 6 not to give extension to CITCO employees. During the hearing on September 19, the court had observed: “Even though a decision may have been taken, a formal order denying benefit of extension to employees of the CITCO beyond the age of superannuation has not been circulated.” The court directed the corporation to circulate the orders among the employees.

Subsequently, CITCO issued an order, which reads: “In suppression of all previous orders regarding grant of extension in service beyond retirement age of 58 years issued by the administration, CITCO is hereby exempted from the operation of the above said orders. Consequently, all employees of CITCO shall hence forth retire on attaining the sage of 58 years.” The move of not giving extension is being hailed in view of the depleting financial health of the corporation.

The corporation has to generate funds to meet all its expenditures and receives no financial assistance from the Chandigarh administration. Major part of the gross profit of the corporation is going towards meeting salary expenditure. The decision of the corporation provide a two-year extension to retiring employees on the Punjab pattern added to the salary expenditure of the corporation. According to the norms, the salary to sale has to be between 20 and 22 per cent. In both the hotels being run by CITCO — Mountview and Shivalikview —it is more than double the norms.