High CourtSingle JudgeWrit petition dismissed (without costs).

Staff Pensioners v. Bharat Petroleum Corporation Ltd. & Ors.

Case / Petition Number:W.P. No. 215 of 1989
Neutral Citation:1990 SCR (1) 962

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Ranganath Misra
  • M.M. Punchhi
  • K. Ramaswamy
Judgment Date
1990-03-13
Court Decision / Holding
Writ petition dismissed.
Final Disposition
Writ petition dismissed (without costs).

Parties to the Case

Appellants / Petitioners

  • Staff Pensioners

Respondents

  • Bharat Petroleum Corporation Ltd.
  • Ors.

Legal Representation & Advocates

Counsels for Petitioners

  • • M.S. Gujral
  • • Ms. Kirti Misra
  • • B.B. Sawhney

Counsels for Respondents

  • • G.B. Pari
  • • O.C. Mathur
  • • Ms. Meera
  • • S. Sukumaran

Case Synopsis & Summary

This writ petition under Article 32 was filed by about 450 erstwhile Burmah Shell employees seeking restoration of the commuted portion of their pension and its alignment with Hindustan Petroleum Corporation Limited (HPCL) pensioners. In a prior writ petition (W.P. No. 590/87 decided on May 11, 1988), the Court granted a substantial hike in pension and left the restoration of the commuted portion for later consideration. The present petition contends that HPCL's decision to defer until 1992 should not bar relief here and argues that the earlier decision does not operate as res judicata. The respondents contend that granting restoration now would create disparity between BPCL pensioners and HPCL pensioners and that relief should await HPCL's own revised scheme; the petitioners challenge the BPCL pension framework as not at par with Government employees or other PSUs. The Court notes the Burmah Shell pension scheme's uniqueness and recognizes equity relief granted in the 1988 order but holds that restoring the commuted portion at this stage would be inappropriate since there has been no substantial change, and it would create disparity between pensioners of different undertakings. Consequently, the petition is dismissed, though the earlier pension enhancement remains acknowledged.

Provisions of Law Cited

Constitution of India, Article 32Constitution of India, Article 14

Legal Doctrines & Maxims

  • Res Judicata

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that HPCL's decision to defer until 1992 should not bar relief here and that the earlier decision does not operate as res judicata. They seek restoration of the commuted portion of pension and parity with HPCL pensioners, arguing that withholding restoration would create inequality among pensioners of different undertakings. They rely on the principle discussed in Common Cause & Ors. v. Union of India to justify restoration of the commuted portion after 15 years from retirement, and urge that the benefits already granted in W.P. No. 590/87 be extended to all erstwhile Burmah Shell employees.

Contentions of Respondents

The respondents argue that altering the pension scheme now would be inappropriate since HPCL has not revised its scheme. Granting restoration would create disparity between BPCL and HPCL pensioners, and the petition should await HPCL's revised scheme. The petitioners are governed by a special BPCL pension scheme not on par with Government employees or other PSUs, and the court should refrain from interference at this stage. They acknowledge that the earlier order granted a pension hike but maintain that restoration of the commuted portion is not justified.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Common Cause & Ors. v. Union of India[1987] 1 SCC 142Mentioned OnlyCited to reference the 15-year commuted pension restoration principle; not treated as binding authority to compel restoration in the present case.

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Extracted Judgment Text

Exact text extracted from official judgment records.

BHARAT PETROLEUM (ERSTWHILE BURMAH SHELL) A MANAGEMENT STAFF PENSIONERS AND ORS. _v._ _'1'_ BHARAT PETROLEUM CORPORATION LTD. AND ORS. MARCH 13, 1990 B [RANGANATH MISRA, M.M. PUNCHHI AND K. RAMASWAMY, JJ.] _Labour_ _and Services: Pension-Restoration_ _of commuted por-_ _tion_ _of pension-Retired staff of Bharat Petroleum (erstwhile Burmah_ _Shell)-Whether and when entitled to._ ####,,.... ### c ,_ Some of the erstwhile employees of Burmah Shell, in an earlier writ petition, claimed restoration of the commuted portion of pension and enhancement of pension on par with the pensioners of Hindustan .... Petroleum Corporation Limited, (HPCL). At the time of hearing, the claim for restoration of the commuted portion of pension was given up. D This Court accepted the claim of the petitioners as regards enhancement of pension and ordered a sizeable hike in the pension. The present writ petition claims the same relief which was given up at the time of hearing of the earlier writ petition, viz., restoration of commuted porlion of pension. Admittedly, HPCL had deferred its decision till 1992 in _>---.,_ this regard. " On behalf of the petitioners it was contended that though, HPCL has deferred its decision till 1992, the petitioners were not precluded from approaching this Court and that the earlier decision did not operate as _res judicata._ On behalf of the respondents it was contended that as soon as -..: # • from approaching this Court and that the earlier decision did not operate as _res judicata._ p On behalf of the respondents it was contended that as soon as -..: HPCL revises its scheme the petitioners would also be entitled to the benefit thereof and that grant of the relief earlier would create disparity between the persons who receive pension from HPCL and those from the Respondent. G Dismissing the writ petition, this Court, ##### relief as prayed for at this stage since that would create disparity bet-HELD: 1.1. It would be inappropriate to interfere and grant the 'r~ ween the personnel who receive pension from Hindustan Petroleum Corporation Ltd. and the respondent Corporation. t965B] H 962 STAFF PENSIONERS _v._ B.P. CORPN. IK. RAMASWAMY. J.] 963 1.2. This Court has already held that the retired personnel of Burmah Shell would be entitled to a hike in p_ension at par with pensioners of HPCL. (W.P. No. 590/87 decided on ll.5.1988). HPCL has not accorded to its pensioners the relief of restoration of the commuted portion of pension after the expiry of 15 years. The order passed by this Court is as recent as May ll, 1988. After such a short time lag and in A the absence of any substantial change in the position, it is not desirable B to entertain the claim for restoration of commuted pension. The petitioners are governed by a special scheme, which ;.. not at par with Government employees or the other Public Sector Undertaking'l. [964G-H; 96SA] _Common Cause_ _&_ _Ors._ v. _Union_ _of India,_ [1987] l SCC 142, referred to. CIVIL ORIGINAL JURISDICTION: Writ Petition No. 215 of 1989. (Under Article 32 of the Constitution of India.) M.S. Gujral, Ms. Kirti Misra and B.B. Sawhney for the Petitioners. G.B. Pari, O.C. Mathur, Ms. Meera and S. Sukumaran for the . ~ Respondents. The Judgment of the Court was delivered by ###### c D E K. RAMASWAMY, J. This writ petition under Art. 32 filed on behalf of about 450 erstwhile employees of M/s. Burmah Shell retired between May 1, 1979 and December 1984, is for a mandamus or direc tion to the respondents to restore full pension (which had been commuted) to the petitioner Nos. 2 to 5 and others similarly situated upon f the expiry of 12-1/2 years from date of _retirement_ in case of those retired prior to April 1985 and after 11-1/3 years to I.hose retired prior to April 1, 1985 from their respective dates of retirement. They claim that though in their previous Writ Petition No. 590/87 disposed of by a Division Bench of this Court on May 11, 1988 of which one of us (Ranganath Misra, J.) was a member, a hike in the pension effective G from May 1, 1988 was granted. Consideration of the present relief had been left over for a later period. Admittedly, the petitioners in Writ Petition No. 590/87 sought two reliefs, namely, (i) restoration of the commuted portion of the pension, and (ii) enhancement of pension on par with the pensioners of the Hindustan Petroleum Corporation Limited, for short 'HPCL'. During the course of hearing, claim for the H 964 SUPREME COURT. REPORTS [ 1990] I S.C.R. first relief was given up and submission was confined to the second A relief. This Court accepted the contentions of the petitioners and ordered a seizeable hike in the pension. The relief in this writ petition squarely covers relief No. 1 ·of Writ Petition No. 590/87. But the ground on which the petitioners have again come before the Court within a short spell is that their hope of the respondent's sister-con B cern, namely, HPCL, restoring commuted portion of pension to its pensioners has been smashed as it has deferred its decision on the issue till 1992. Their learned counsel contends that in _Common Cause_ _&_ _Ors._ v. _Union of India,_ [ 1987] 1 SCC 142 this Court upheld the 15 years formula and directed that the commuted portion of the pension should be restored to all the civil servants as well as the armed forces personnel of the Central Government effective from April 1, 1985. It is ##### c maintained that as principle the same would be applicable to the petitioners as well. The respondents, it is claimed, have to bear an additional liability of only a sum of Rs.1,02,41,635 out of its huge profits without in any manner affecting its functioning. When the employees of the Central Govt. and other Public Sector Undertakings are D receiving the same benefits, the denial thereof to the petitioners is arbitrary, unjust and unfair and offends Art. 14 of the Constitution. There is no scheme in vouge in other Public Sector Undertakings like commuted pension scheme except in HPCI. Though HPCL has postponed action in this regard till 1992, the petitioners are not precluded to approach this Court for redressal and the previous decision does not E operate as _res_ _judicata._ This Court having accorded in equity benefits of pension, which is a legal right of the petitioner, the relief also may be granted to the petitioners. A B ##### c Shri Pai, learned counsel for the respondents, has resisted all these contentions. The short question is whether it is a fit case for F interference and issue of a direction to the respondents to give the relief as prayed for. Admittedly, the petitioners claimed this relief in Writ Petition No. 590/87. This Court after appropriate consideration held that a sizeable hike in pension would meet the ends of justice. Admittedly, Burmah Shell has a unique scheme known as "Burm ah Shell India Pension Fund" with its own rules. This Court held that the G retired personnel would be entitled io a hike in pension at par with pensioners of HPCL. Admittedly, HPCL has not accorded to its pensioners the relief of restoration of the commuted portion of pension after the expiry of 15 years. The order passed by this Court is as recent as May 11, 1988. After such a short time lag and in the absence of any substantial change in the position, in our considered view, it is H not desirable to entertain the claim for restoration of commuted pen A B _J_ ## STAFF PENSIONERS _v._ B.P. CORPN. [K. RAMASWAMY, J.] 965 sion. Admittedly, the petitioners are governed by a special scheme, which is not at par with Government employees or the other Public Sector Undertakings. In all fairness Shri Pai also has stated' that as and when HPCL revises its scheme the petitioners would be entitled to the same benefits. Grant of the relief at this stage would create disparity between the personnel whQ receive pension from HPCL and the respondents. We find sufficient justification in the contention of Shri Pai. So we do not feel justified that it would be appropriate to interfere and grant the refief as prayed for. The writ petition is accordingly dismissed, but without costs. G.N. Petition dismissed. ##### •