LexBHARAT PETROLEUM (ERSTWHILE BURMAH SHELL) MANAGEMENT STAFF PENSIONERS. versus BHARAT PETROLEUM CORPORATION LTD. & ORS.
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BHARAT PETROLEUM (ERSTWHILE BURMAH SHELL)
MANAGEMENT STAFF PENSIONERS.
v.
BHARAT PETROLEUM CORPORATION LID. & ORS.
MAY 11, 1988
[RANGANATH MISRA AND MURARI MOHON DUTI, JJ.]
Burmah Shell (Acquisition of Undertakings in India) Act, 1976:
ss. 3, 4, 9 & JO( 1)-Burmah Shell Management Staff Pensioliers-
Claim for escalation of pension-Admissibility of.
Civil Services: Pension-No lunger considered a bounty-Held
to be property-Entitlement to escalation of pension-Judicial notice
can be taken of the fact that the rupee has lost its value.
Burmah Shell Oil Storage and Distributing Company of India
D Limited bad a non-contributory pension fund. Consequent upon
nationalisation of the petroleum industry, this fund was taken over by
the Government company, respondent No. I, under s. 10(1) of the
Burmah Shell (Acquisition of Undertakings in India) Act 2 of 1976.
In this writ petition under Art. 32 of the Constitution the erst-
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while Burmah Shell Management Staff Pensioners claimed adequate
escalation in their pension keeping in view the loss of purchasing power
of the rupee and the general rise in the cost of living. In support of their
claim they relied upon the steep escalation in the pension granted by the
Hindustan Petroleum Corporation, a sister concern, to its employees.
The latter bas no such fund. It was contended for the respondent-
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Company that if the escalation admitted by the Hindustan Petroleum
Corporation is accepted as the basis for escalation in the respondent
company there would be injustice or a burden would arise which they
cannot discharge.
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Allowing the writ petition,
HELD: 1. The petitioners being the management staff of the
Burmah Shell are entitled to a hike in the pension. [316E-F]
2. Judicial notice can be taken of the fact that the rupee has Jost
its value to a considerable extent. Pension is no longer considered as a
H bounty and it has been held to be property. ln a welfare state, as ours,
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.BHARAT PETil.OLEUM STAFF v. BHARAT PE1ROLEUM CORPN. [MISRA. J. [ 313
rise in the pension of the retired personnel, who are otherwise entitled
to it, is accepted by the State and the State has taken the liability. In
the instant case, if the similarly situated sister concern like Hindus-
tan Petroleum Corporation can admit appropriate rise in the pension,
there is no justification as to why the respondent company should not do
so. [316D-E]
3. The respondent-company has an obligation to pay from its
earnin~ into the fond and merely because the existing fund is not
adequate to bear the additional liability the claim which is othern'ise
justified cannot be rejected. The company's current funds are available
to supplement the pension fund. [3!6C]
4. Respondent No. l to give to the petitioners hike in the pension
effective from Isl May, 1988 at the same rate as is being given by
Hindustan Petroleum Corporation. If the amount available from the
pension fund is not adequate the Government-company would allocate
appropriate funds to meet the demand. The additional pension to be
disbursed latest by 31st of July, 1988. [316F-G]
ORIGINAL JURISDICTION: Writ Petition (Civil) No. 590 of
1987.
(Under Article 32 of the Constitution of India)
B.B. Sawhney for the Petitioners.
G.B. Pai, 0.C. Mathur, Ms. Meera Mathur, Ms. Deepa
Chhabra and D.N. Misra for the Respondents.
The Judgment of the Court was delivered by
RANGANATH MISRA, J. Under the Burmah Shell {Acquisition
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of Undertakings in India) Act 2 of 1976, (hereinafter referred to as the
'Act'), the Union of India acquired the right, title and interest of
Burmah Shell Oil Storage and Distributing Company of India Limited
(hereinafter referred to as Burmah Shell) in relation to its under-
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takings in India. Sections 3, 4, and 9 of the Act are relevant. Under
section 3 the right, title and interest of Burrnah Shell in relation to its
undertakings in India stood transferred and became vested in the
Central Government. In terms of section 4, the assets and liabilities
were taken over by the Government of India. Under section 9 persons
employed under Burmah Shell came under the employment of the H
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SUPREME COURT REPORTS
I 1988] Supp. I S.C.R.
Government Company known as Bharat Petrolium Corporation
Limited (respondent No. l herein). Section IO( I) provides thus:
"Where a provident, superannuation, welfare or
other fund has been established by Buimah Shell foExcerpt shown. Read the full judgment & AI analysis in Lexace.