VIDESH SANCHAR NIGAM LTD. & ANR. versus AJIT KUMAR KAR & ORS.

Citation: [2008] 5 S.C.R. 871 · Decided: 01-04-2008 · Supreme Court of India · Bench: P.P. NAOLEKAR · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2008] 5 S.C.R. 871 
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VIDESH SANCHAR NIGAM LTD. & ANR. 
A 
II. 
AJIT KUMAR KAR & ORS. 
(Civil Appeal No. 2338 of 2008) 
APRIL 1, 2008 
B 
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(P.P. NAOLEKAR & LOKESHWAR SINGH PANTA, JJ.) 
Service Law: 
Memorandum No. 4(8)185-P & PW dated January 13, 
1986; amended O.M. No. 4118187 - P & PW (0) dated July 5, c 
1989, O.M. No. 4118187 - P & PW (0) dated February 7, 1990 
clarifying about emoluments and payment of pension issued 
by Government of India/Central Civil Services (Pension) 
Rules, 1972; rr. 0, 3(c), 3 (1) and (e), 33, 49 and 55A/ 
Fundamental Rules; rr. 9(21) and 44: 
D 
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Pension -
Employees transferring from Overseas 
Communication Service, an office of Government of India, and 
absorbed in Videsh Sanchar Nigam Limited, a Public Sector 
Undertaking -
Settlement of Pension -
Pension on 
E 
emoluments drawn by them in PSU on Industrial Dearness 
Allowance pay scale - VSNL making payment of pension to 
the employees of OCS absorbed in it on emoluments arrived 
at as per /DA pay scales and Dearness Relief accrued thereto 
wrongly calculated as per Central Dearness Allowance scales 
for certain period in contradiction to Government of India 
F 
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Circular dated December 25, 1992 on the subject - Issuance 
of clarific.atory Circular by VSNL - Challenge to - Allowed by 
Single Judge of the High Court - Affirmed by Division Bench 
of the High Court - Correctness of- Held: Incorrect- Retiree~· 
in question have no vested right to receive Dearness Relief at G 
CDA scales on pension calculated as per /DA pay scales -
Mis.fake committed by VSNL by making payments in 
.. 
..( 
contravention of the Government of India Circular could' never 
be considered as supporting the existing fallacies - By issuing 
871 
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872 
SUPREME COURT REPORTS 
[2008] 5 S.C.R. 
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A clarificatory order neither Government of India nor VSNL had 
snatched away the right of pension of the respondent-retirees 
- They are not entitled to get DA twice, on CDA scale and a/so 
on /DA scale - Moreover, in terms of r(O) of Pension Rules, 
pension does; not include DR and amount of pension has to 
B be calculated in terms of r. 49 of the Pension Rules- Impugned 
order of the High Court would result in granting benefits to the 
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retirees in question in excess of 100% neutralization of increase 
in cost of living, which is not permissible - Hence, set aside -
However, the pensionary benefits given to them by mistake/in 
c terms of order of the High Court, shall not be recovered - Grant 
of Dearness Relief - Purpose of. 
Words and Phrases: 
'Deemed relief' and 'Emoluments' - Meaning of in the 
D context of s.3 of the Civil Services (Pension) Rules, 1972. 
'Pay' -
Meaning of in the context of r.9(21) of the 
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Fundamental Rules. 
Respondent Nos.1 to 8, retired employees of Videsh 
E Sanchar Niagam Limited, a Public Sector Undertaking, 
filed a writ petition before the High Court of Calcutta 
seeking directions to appellant and Union of India to 
rescind/revoke the impugned decisions and orders 
contained in the Office Orders/Memoranda dated October 
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18., 1995; December 19, 1995; November 22, 1996; May 5, 
1998; May 28, 1998 and November 12, 1998 issued by the 
Government of India to pay to the petitioners their 
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pensionary benefits in terms of the Memoranda/Office 
Orders dated January 13, 1986, March 19, 1986, October 
30, 1986, July 5, 1989, December 11, 1989, February 07, 
G 1990, February 21, 1990, February 21, 1990 and September 
3, 1993 for making payments of arrears of pensionary 
benefits after calculating average emoluments on the last 
pay drawn in the revised pay scale of 1992 and 
)o. 
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subsequent revised pay scales with. the dearness relief 
H calculated at the rate/rates prescribed by Central 
VIDESH SANCHAR NIGAM LTD. & ANR. v. AJIT 
873 
KUMAR KAR & ORS. 
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Government; and to make payments of the withheld A 
amount of gratuity and commuted value of pension; and 
also to make all such payments with compound interest 
at the minimum rate of 18% per annum from the date/dates 
such amounts became due till the date the same are 
actually paid. The Single Judge of the High Court allowed 
B 
the Writ Petition and granted the reliefs. The appeal 
preferred thereagainst by the appellants was dismissed 
by the Division Bench of the High Court. Hence the 
present appeal. 
Respondents-retired employees submitted that the C 
reasons given by the Single Judge as well as Division 
Bench of the High Court for granting r

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