Case Note & Summary
The petitioners, former employees of the Department of Overseas Communication Services (OCS) of the Government of India, were absorbed into Videsh Sanchar Nigam Limited (VSNL), now Tata Communications Ltd, following a policy decision in 1986 to convert the department into an autonomous corporation. They sought pensionary benefits under an Office Memorandum dated 5 July 1989 issued by the Department of Pension and Pension Welfare. The writ petition was initially dismissed in April 2006, but the Supreme Court remanded it for fresh consideration on merits. The High Court examined the terms of the Office Memorandum and found that it applied only to employees who retired or died while in government service, not to those who opted for absorption in VSNL. The petitioners had exercised an option to join VSNL and received benefits under a Voluntary Retirement Scheme, which was inconsistent with the claim for pension. The court held that the petitioners were not entitled to pensionary benefits under the OM, as they had voluntarily left government service and were governed by the terms of absorption. The petition was dismissed.
Headnote
A) Service Law - Pension - Absorption in Autonomous Corporation - Office Memorandum dated 5 July 1989 - Petitioners, former employees of Department of Overseas Communication Services, absorbed in VSNL, claimed pensionary benefits under OM dated 5 July 1989 - Court held that the OM applied only to employees who retired or died while in government service, not to those who opted for absorption in VSNL and received benefits under the Voluntary Retirement Scheme - Petitioners had exercised option to join VSNL and were governed by the terms of absorption, which did not provide for pension - Petition dismissed (Paras 1-10).
Issue of Consideration
Whether the petitioners, who were employees of the erstwhile Department of Overseas Communication Services and absorbed in VSNL, are entitled to pensionary benefits under the Office Memorandum dated 5 July 1989 issued by the Government of India, Department of Pension and Pension Welfare.
Final Decision
The writ petition is dismissed. The petitioners are not entitled to pensionary benefits under the Office Memorandum dated 5 July 1989.
Law Points
- Pensionary benefits
- Absorption in autonomous corporation
- Office Memorandum dated 5 July 1989
- Voluntary Retirement Scheme
- Option exercised by employees
- Terms of absorption
Case Details
2016 LawText (BOM) (01) 34
WRIT PETITION NO.2704 of 2005
Anoop V. Mohta, G.S. Kulkarni
Mr. Rajesh Gehani for Petitioners, Mr. H.V. Mehta for Respondent nos.1 to 3, Mr. K.J. Presswala a/w Mr. Sandeep Gopal i/b M/s Mulla & Mulla Craigie Blunt & Caroe for Respondent no.4
P. Bandopadhya, I.P. Singh, G. Palaniappan
Union of India, Department of Pension and Pension Welfare, Ministry of Communications and Information Technology, Videsh Sanchar Nigam Limited (now TATA COMMUNICATIONS LTD)
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India seeking pensionary benefits.
Remedy Sought
Petitioners sought pensionary benefits under Office Memorandum dated 5 July 1989.
Filing Reason
Petitioners, former employees of Department of Overseas Communication Services absorbed in VSNL, claimed pensionary benefits.
Previous Decisions
Writ petition initially dismissed on 26 April 2006; Supreme Court in Civil Appeal No.3059 of 2007 set aside the dismissal and remanded for fresh hearing on merits.
Issues
Whether the petitioners are entitled to pensionary benefits under the Office Memorandum dated 5 July 1989.
Whether the Office Memorandum applies to employees who opted for absorption in an autonomous corporation.
Submissions/Arguments
Petitioners argued that they were entitled to pensionary benefits under the Office Memorandum dated 5 July 1989.
Respondents contended that the Office Memorandum did not apply to employees who opted for absorption in VSNL and received benefits under the Voluntary Retirement Scheme.
Ratio Decidendi
The Office Memorandum dated 5 July 1989 applies only to employees who retired or died while in government service, not to those who opted for absorption in an autonomous corporation and received benefits under a Voluntary Retirement Scheme.
Judgment Excerpts
By this petition under Article 226 of the Constitution of India the petitioners who were the employees of the erstwhile Department of Overseas Communication Services (OCS) of the Government of India absorbed in the services of the Videsh Sanchar Nigam Limited (for short 'VSNL') now known as 'Tata Telecommunications Ltd-Respondent no.4, are seeking pensionary benefits under the Office Memorandum dated 5 July 1989 issued by the Government of India, Department of Pension and Pension Welfare.
Procedural History
The writ petition was initially dismissed on 26 April 2006. The petitioners appealed to the Supreme Court in Civil Appeal No.3059 of 2007, which by order dated 14 July 2011 set aside the dismissal and remanded the matter for fresh hearing on merits. The petition was then heard by this bench.
Acts & Sections
- Constitution of India: Article 226
