PENSIONERS' ASSOCIATION, EX-ASSAM OIL OFFICERS AND ORS. versus UNION OF INDIA AND ORS.

Citation: [2004] 2 S.C.R. 479 · Decided: 17-02-2004 · Supreme Court of India · Bench: BRIJESH KUMAR

Judgment (excerpt)

PENSIONERS' ASSOCIATION, EX-ASSAM OIL OFFICERS AND ORS. A 
v. 
UNION OF INDIA AND ORS. 
... 
FEBRUARY 17, 2004 
J 
[BRIJESH KUMAR AND ARUN KUMAR, JJ.] 
B 
Service Law: 
Burmah Oil Company (Acquisition of Shares of Oil India Ltd. and of the c 
undertakings in India of Assam Oil Company Ltd. and the Burmah Oil Co. 
(India Trading Ltd.) Act, 1981; Ss. 6(1), 11(1), 12: Acquisition of an Oil 
Company by the Government of India and later merging with the "Indian Oil 
Corporation Ltd. -Denial of benefits of revised pension scheme to the retirees 
of the. Oil Company-Challenge to-Held: Liabilities of the successor 
Corporation would include payment of pension/other pensionary benefits to D 
the employees of the company-Pension Scheme (1973) framed by the Oil 
Company to provide for creation of fund for pensionary benefits to its 
employees-Transferring of fund to the successor Corporation-Revised 
Pension Scheme (1983) framed by the Corporation thereafter-Objects of 
both the Schemes are same-Retirees of the predecessor Oil Company became 
the members of the Corporation on the appointed day and could be treated E 
......._. 
as transferred employees-Absence of any express provision for the applicability 
,., 
of revised Scheme to the retired employees on or after its execution-Hence 
retirees from the 0 ii Company eligible to get pensionary benefits of the Revised 
Pension Scheme from funds transferred by the company-Interpretation of 
Statutes. 
F 
I ---
Petitioners were retired employees of an Oil Company (Assam Oil 
--· 
Company Ltd.) which was nationalized and taken over by the Government 
of India by virtue of the Burmah Oil Company (Acquisition of Shares of 
Oil India and of the Undertakings in India of Assam Oil Company Ltd.) 
and the Burmah Oil Company (India Trading Ltd.) Act, 1981. The said G 
Oil Company was later transferred and merged with the Indian Oil 
--1 
Corporation Ltd. (Assam Oil Division). All the employees of the Company 
---"< 
after the appointed date became the employees of the successor Indian Oil 
..__ 
Corporation. The right, title and interest of the company including 
liabilities for the payment of pension/pensionary benefits to its employees H 
479 
480 
SUPREME COURT REPORTS 
(2004] 2 S.C.R. 
A were transferred and vested in the Indian Oil Corporation. Fund created 
by the company for payment of pension to its retired employees stood 
transferred to the Indian Oil Corporation and these retirees had been 
receiving pension therefrom. In pursuance of the revised Pension Scheme, 
1983, Indian Oil Corporation in 1995 promulgated a formula for revision 
B of pension in respect of the employees of Indian Oil Corporation (Assam 
Oil Division). However, the said scheme was made applicable to the 
employees who had retired after 1st December, 1994. The cut-off date was 
challenged by the retired employees in the matter ofSubrata Sen and Ors., 
v. Union of India and Ors., (2001] 8 SCC 71 and this Court set aside the 
cut-off date, thereby employees retired before the cut-off date became 
C eligible to get benefits of the revised pension scheme. However, the Indian 
Oil Corporation denied benefits of the revised scheme to the retirees of 
the Oil Company. Hence the present writ petition. 
It was submitted by the petitioners-retirees of the Company that the 
pension fund as existed prior to appointed date stood transferred to the 
D successor Indian Oil Corporation; that they have been receiving pension/ 
pensionary benefits from the Indian Oil Corporation; that the pension fund 
was reconstituted by virtue of Section 12(3) of the Nationalization Act; 
and that they were entitled to get benefits of the revised Pension Scheme 
by virtue of provisions of law under Section 12(1)(4) of the Act. 
E 
On behalf of the respondents, it was submitted that the retirees prior 
to the appointed date were not the employees transferred to the successor 
Indian Oil Corporation and the revised Pension Scheme, 1983 did not 
apply to them; that no pension fund was transferred to the Indian Oil 
Corporation for making payments of pensionary benefits to retirees of the 
p 
Company; that the retirees of the Company had been deriving benefits as 
per Pension Scheme, 1973 promulgated by the Company viz. from 
annuities purchased by the .retirees from the Life Insurance Corporation 
before their retirement; that the retirees of the Company had no link with 
the Indian Oil Company; .and that the retirees. of the Company were not 

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