In Brief
Paradeep Phosphates, a public sector company, enhanced employee superannuation age from 58 to 60 years in 1998 on government directive to reduce losses. When finances did not improve and government reversed this policy in 2001, the company withdrew the benefit in 2002 without notice to employees. A trade union challenged this as violating Section 9A of the Industrial Disputes Act, which requires advance notice before changing service conditions. The Industrial Tribunal and High Court upheld the union's claim, treating the enhanced age as a privilege that became an accrued benefit. The Supreme Court dismissed the company's appeal, holding that once a benefit is granted to employees, it constitutes a privileged service condition that cannot be unilaterally withdrawn without statutory notice, regardless of its temporary origin.
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