Government cannot reject VRS citing faculty shortage: Orissa High Court

The Orissa High Court ruled that the state government cannot deny voluntary retirement (VRS) to employees solely citing faculty shortages, declaring such rejections illegal under current laws. 

The judgment came in response to a petition by Dr. Rabi Narayan Dhar, a 27-year veteran orthopaedics professor, whose VRS application was rejected by the state in February 2024.

Case Background: Dr. Dhar’s Plea

According to the case details, Dr. Dhar applied for VRS under Rule 42 of the Odisha Civil Service (Pension) Rules, 1992, on December 27, 2023, citing health issues and personal difficulties.

However, the government rejected his plea on February 8, 2024, arguing that faculty shortages in medical colleges justified blocking his retirement in the public interest. Dhar subsequently challenged this in the High Court on August 20, 2024.

Legal Reasoning and Directives

Justice AK Mohapatra’s bench emphasised that Rule 42 does not permit rejections based on faculty scarcity. It also stated that the rule only requires 20 years of service and a three-month notice

 “The state authorities committed an illegality by rejecting the petitioner’s VRS application,” the court stated, ordering the government to process Dhar’s retirement effective March 27, 2024 (three months post-application).

Further, it mandated payment of pending salaries and directed the clearance of pension benefits within three months.

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Contrast with Earlier Precedent

Earlier in February, the Orissa HC had upheld the VRS rejection of Dr. Snigdha Prava Mishra, a physiology professor, citing risks to public healthcare.

However, Justice SK Panigrahi noted Odisha’s rules lacked provisions allowing such rejections, unlike Uttar Pradesh or Tamil Nadu. He ordered amendments within three months to align with other states, stressing that the scarcity of doctors was a grave public concern.