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P. Bandopadhya & Ors. Vs. Union of India & Ors.

  Supreme Court Of India Civil Appeal /3149/2019
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Case Background

The present Civil Appeal arises out of S.L.P. (C) No. 4652 of 2018wherein the impugned Judgment and Order dated January 13,2016 passed by the Bombay High Court in Writ Petition ...

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REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 3149 OF 2019

[Arising out of Special Leave Petition (Civil) No. 10663 of 2016]

P. Bandopadhya & Ors.          …Appellants

Versus

Union of India & Ors.              …Respondents

JUDGMENT   

INDU MALHOTRA, J.

Leave granted.

1.The present Civil Appeal arises out of S.L.P. (C) No. 4652 of 2018

wherein the impugned Judgment and Order dated January 13,

2016 passed by the Bombay High Court in Writ Petition No. 2704 of

2005 has been challenged.

2.The facts relevant for the present Civil Appeal, are briefly set out

below:

1

2.1.The   Appellants   were   erstwhile   employees   in   the   Overseas

Communications   Service   [“OCS”],   a   Department   of   the

Government of India. On April 1, 1986 the OCS was converted

into a Government Company known as the Videsh Sanchar

Nigam   Limited   [“VSNL”].   Initially,   all   employees   of   the

erstwhile OCS were transferred en masse to Respondent No. 4

– VSNL (now known as Tata Communications Limited), where

they worked on deputation from April 1, 1986 to January 1,

1990.

2.2.On July 5, 1989 the Department of Pension and Pension

Welfare   of   the   Government   of   India   issued   Office

Memorandum   No.   4/18/87­P   &   P.W.   (D)   [“ Office

Memorandum ”]   specifying   the   terms   and   conditions

governing   the   pensionary   benefits   of   employees   who   were

transferred  en  masse  on  the  conversion of  a  Government

Department   into   a   Central   Public   Sector   Undertaking   or

Autonomous Body.

The relevant extract of the Office Memorandum is set

out hereinbelow for ready reference:

2

“…The following terms and conditions will be applicable in

the case of en masse transfer of employees:

(a)The  permanent   Government   servants   shall   have   an

option to retain the pensionary benefit available to them

under the Government rules or be governed by the rules

of the Public Sector Undertaking/Autonomous Body. This

option shall also be available to the quasi permanent and

temporary employees after they have been confirmed in

the Public Sector Undertaking/Autonomous Body.

(b)The Government servants who opt to be governed by the

pensionary   benefits   available   under   the   Government,

shall   at   the   time   of   their   retirement,   be   entitled   to

pension, etc., in accordance with the Central Government

rules in force at that time.

(c)The  permanent Government servants with less than 10

years’   service,   quasi   permanent   employees   and

temporary employees who opt for the rules of the Public

Sector Undertaking/Autonomous Body shall be entitled to

an amount equal to Provident Fund contribution for the

period of their service under the Government up to the

date of permanent absorption in the  PSU/Autonomous

Body  with simple interest at 6% per annum as opening

balance   in   their   CPF   account   with   the   Public   Sector

Undertaking/Autonomous Body… ”

(emphasis supplied)

2.3.In   pursuance   of   the   Office   Memorandum,   Notice   dated

December 11, 1989 was issued by Respondent No. 4 – VSNL

giving the erstwhile employees of OCS the option to either be

absorbed in the regular service of VSNL; or, be transferred to

the   Surplus   Staff   Cell   of   the   Central   Government   for

employment   against   possible   vacancies   available   in   other

Government offices.

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The Appellants voluntarily exercised the option to be

absorbed into the regular service of VSNL with effect from

January 2, 1990.

2.4.Thereafter, a Staff Notice dated February 21, 1990 was issued

by Respondent No. 4 – VSNL to its employees, who were

earlier working in OCS. The employees were called upon to

exercise   their   option   in   terms   of   Clause   (a)   of   the   Office

Memorandum,  i.e.  either to retain the pensionary benefits

available   under   the   Government   of   India   at   the   time   of

retirement as per the applicable Central Government rules in

force, or opt to be governed by the rules of Respondent No. 4 –

VSNL.

The format in which the option was to be indicated was

enclosed with the Staff Notice, along with a document titled

“Clarificatory Information to Facilitate Exercise of Option”. As

per   paragraph   I   (1)   (ii)   of   the   clarificatory   document,   the

eligibility   of   employees   who   chose   to   retain   pensionary

benefits under the Central Government was conditional on

putting in a minimum of ten years of qualifying service. The

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relevant portion of Paragraph I (1) is reproduced hereinbelow

for ready reference:

“I.  Exercise  of  option in favour of retention of pensionary

benefit under Central Government rules.

(1)This   option  is   open   to  every  employee  whose   services

have   been   transferred   from   Overseas   Communications

Service to Videsh Sanchar Nigam Limited and who has

been permanently absorbed in the Videsh Sanchar Nigam

Ltd.,   irrespective   of   service   rendered   in   the   Overseas

Communications Service. Your eligibility for benefits under

the Pension Rules will however be conditional to :­…

…  (ii)  Putting   in   a  minimum   of   ten  years   of   qualifying

service. (9 years 9 months and above will be reckoned

as 10 years)…”

(emphasis supplied)

2.5.The Appellants opted to retain pensionary benefits under the

rules of the Central Government by exercising their option in

pursuance of the Staff Notice dated February 21, 2009.

2.6.Respondent No. 4 – VSNL  vide  Letters dated May 22, 2003

and June 29, 2004, sought a clarification from Respondent

No.   3   –   Ministry   of   Communications   and   Information

Technology, Department of Telecommunications [“DOT”] as to

whether the Appellants – P. Bandhopadhya, I.P. Singh and G.

Palaniappan could retain the pensionary benefits in spite of

having less than 10 years of service as on January 2, 1990.

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2.7.In response, the DOT  vide  Letter dated October 13, 2004

requested   VSNL   to   settle   the   cases   of   the   Appellants   in

accordance with Clause (b) of the Office Memorandum.

2.8.Accordingly, by Letter dated November 30, 2004, Respondent

No. 4 – VSNL informed Respondent No. 2 – Department of

Pension and Pension Welfare, Government of India to settle

the cases of the Appellants in accordance with Clause (b) of

the Office Memorandum. 

2.9.In supersession of the Letter dated October 13, 2004, the

Department of Pension and Pension Welfare, Government of

India, vide Letter dated March 24, 2005 informed Respondent

No. 4 – VSNL that the payment of Pension to the Appellants

would be settled in terms of the Office Memorandum. This

was re­confirmed by Respondent No. 3 – DOT   vide  Letter

dated May 30, 2005.

2.10.Accordingly, Respondent No. 2 – Department of Pension and

Pension Welfare, Government of India informed the Appellants

that their pension would be settled in terms of the Office

Memorandum.

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2.11.On   June   27,   2005   the   Appellants   were   informed   by

Respondent No. 4 – VSNL that they would not be eligible to

receive Government Pension. They would, however, be eligible

to receive benefits under Clause (c) of the Office Memorandum

i.e. an amount equal to the Provident Fund contribution for

the period of their service under the Government up to the

date   of   permanent   absorption   in   the   Public   Sector

Undertaking/Autonomous Body with 6% Simple Interest as

opening balance in their CPF account with the Public Sector

Undertaking/Autonomous Body.

2.12.Aggrieved   by   this   decision,   the   Appellants   made   a

representation   before   the   Respondents   seeking   for   a

declaration that their cases be governed by Clause (b), and

not Clause (c) of the Office Memorandum.

2.13.The Appellants thereafter filed Writ Petition No. 2704 of 2005

before the Bombay High Court seeking the following prayers:

setting aside of Communication/Orders passed by the

Respondents on March 24, 2005, May 30, 2005 and

June 27, 2005;

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directions to treat the cases of the Appellants as being

governed by Clause (b), and not Clause (c) of the Office

Memorandum.

In effect, the Appellants were seeking directions that

their cases be considered eligible for grant of pension by the

Government of India.

2.14.A Division Bench of the Bombay High Court dismissed Writ

Petition No. 2704 of 2005 on April 26, 2006 after holding that

the case of the Appellants was covered by an earlier decision

of a Division Bench in S.V. Vasaikar & Ors. v. Union of India &

Ors.  [2003   (2)   Mh.L.J.   691   :   2003   (4)   Bom   CR   79].   The

Judgment dated April 26, 2006 passed by the Division Bench

was challenged by the Appellants before this Court by way of

S.L.P. (C) No. 15862 of 2006, which was later renumbered as

Civil Appeal No. 3059 of 2007. This Court vide Order dated

July 14, 2011 set aside the Judgment dated April 26, 2006

passed by the Division Bench of the Bombay High Court in

view of the submission by the Appellants that the decision in

S.V. Vasaikar & Ors. v. Union of India & Ors. [2003 (2) Mh.L.J.

691 : 2003 (4) Bom CR 79] was not applicable to the facts of

8

their case. The matter was remanded to the High Court for

fresh consideration on merits.

2.15.After remand, the Bombay High Court re­heard the matter,

and passed a detailed judgment dismissing Writ Petition No.

2704 of 2005, and held that the Appellants were not eligible

to avail pensionary benefits under the Government of India,

since they had served for less than 10 years on the date of

their absorption into VSNL.

The High Court held that on a cumulative reading of

Clauses (a), (b), and (c) of the Office Memorandum makes it

clear that only permanent Government servants who have

served  for   more   than  10   years   would   have   the  option  of

getting pensionary benefits after their absorption in Public

Sector Undertakings.

The case of the Appellants would be governed by Clause

(c) of the Office Memorandum which clearly carved out the

category of employees who had not completed 10 years of

service.   It   was   held   that   a   new   category   which   is   either

contrary to Clause (c), or renders the import of Clauses (a)

9

and   (b)   nugatory,   cannot   be   created   by   way   of   judicial

interpretation.

The   High   Court   held   that   the   matter   was   squarely

covered by the earlier decision of a Division Bench of the

Bombay High Court in S.V. Vasaikar & Ors. v. Union of India

& Ors. [2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR 79].

3.Aggrieved by the Judgment and Order dated January 13, 2016

passed  by  the  Division  Bench,   the  Appellants  filed  the  present

Special Leave Petition. Applications for Impleadment have been filed

by 48 persons who claim to be similarly situated as the Appellants. 

4.Mr. Sanjay Kumar Mishra, Advocate appeared on behalf of the

Appellants, and sought the setting aside of the impugned Judgment

and Order dated January 13, 2016 passed by the Division Bench.

Mr. Vikramjit Banerjee, learned Additional Solicitor General,

appeared on behalf of Respondent Nos. 1 – 3, and Mr. Maninder

Singh, learned Senior Advocate, appeared on behalf of Respondent

No. 4 – VSNL.

5.We have perused the record with the able assistance of the counsel

for the parties. The issue which arises for our consideration in the

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present   Civil   Appeal   is   whether   the   Bombay   High   Court   was

justified in holding that the case of the Appellants was covered by

the earlier decision in S.V. Vasaikar & Ors. v. Union of India & Ors.

[2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR 79], and whether they are

entitled   to   receive   pensionary   benefits   under   the   Central

Government.

6.SUBMISSIONS OF PETITIONERS     

6.1.Mr.   Sanjay   Kumar   Mishra,   Advocate,   submitted   that   the

Division Bench of the Bombay High Court had committed an

error by denying pensionary benefits to the Appellants.

6.2.It was submitted that Clause (b) of the Office Memorandum

would govern the case of the Appellants, since they had opted

to avail the pensionary benefits available under the Central

Government at the time of their retirement under Clause (a) of

the Office Memorandum.

6.3.It was further submitted that the Office Memorandum should

be interpreted in isolation on the basis of its plain text, and

the Form attached with the Staff Notice dated February 21,

1990 should not condition the said interpretation.

11

6.4.The Division Bench had erroneously interpreted the Office

Memorandum, since Clause (a) is the controlling provision,

and Clause (c) in no way dilutes what is provided by Clause

(a).

The   Appellants   challenged   the   interpretation   of   the

Office Memorandum given by a co­ordinate bench in   S.V.

Vasaikar & Ors.  v. Union of India & Ors. [2003 (2) Mh. L.J.

691 : 2003 (4) Bom CR 79].

According to Mr. Mishra, Clauses (c) and (d) of the Office

Memorandum provides only the mode of payment of retiral

benefits with respect to two different categories of employees –

viz. employees with less than 10 years of qualifying service,

and employees with more than 10 years of qualifying service.

7.SUBMISSIONS OF RESPONDENTS     

7.1.The counsel for the Respondents inter alia submitted that the

issue in the present case was squarely covered by the earlier

judgment of the Bombay High Court in S.V. Vasaikar & Ors. v.

Union of India & Ors. [2003 (2) Mh. L.J. 691 : 2003 (4) Bom

CR   79].   The   Appellants   through   their   Federation   had

12

appeared in this case, and had not challenged this judgment

before this Court. As a consequence, this judgment attained

finality. It was therefore not open to the Appellants to re­

litigate   the   same   issue   in   the   present   Writ   Petition.   The

Division   Bench   rightly   followed   the   said   decision   while

dismissing Writ Petition No. 2704 of 2005 by way of the

impugned Judgment and Order dated January 13, 2016.

7.2.It   was   submitted   on   behalf   of   VSNL   that   the   Office

Memorandum categorises employees into two classes –  first,

those who have completed 10 years of qualifying service; and

second, those who do not have 10 years of qualifying service.

Under   the   Office   Memorandum,   while   the   first   class   of

employees is entitled to pension under the Government of

India,   the   second   class   is   entitled   to   a   certain   sum   of

Provident Fund contribution.

7.3.The   Appellants   admittedly   had   less   than   10   years   of

qualifying service. They had voluntarily exercised their option

of   getting   absorbed   in   the   regular   service   of   VSNL.   As   a

consequence, this resulted in the severance of their previous

service with the Central Government, and they were deemed

13

to have retired from Government service on January 2, 1990

i.e. the date of their absorption with VSNL in accordance with

Rule 37(1) of the Central Civil Services (Pension) Rules, 1972

[“CCS (Pension) Rules, 1972].

The Appellants having taken a conscious decision to opt

for absorption in VSNL, knowing fully well that they had not

completed  10  years   of  qualifying   service   with  the   Central

Government, were not entitled to receive pensionary benefits

as per Rule 49 of the CCS (Pension) Rules, 1972.

7.4.It was submitted that the Office Memorandum was virtually in

conformity with Rule 49 r.w. Rule 37 of the CCS (Pension)

Rules, 1972. In any case, the Office Memorandum cannot be

interpreted   in   isolation,   and   has   to   be   construed   in

consonance with the CCS (Pension) Rules, 1972.

The   requirement   of   having   completed   a   minimum

qualifying service of 10 years for entitlement to pensionary

benefits   under   Rule   49   of   the   CCS  (Service)   Rules,   1972

would apply to Clause (a) of the Office Memorandum.

14

The Appellants had admittedly less than the minimum

qualifying   service   of   10   years,   and   were   deemed   to   have

retired from Government service, and were not entitled to

pensionary   benefits   under   the   Central   Government.   On

absorption with VSNL, they would not be entitled to pension.

8.DISCUSSION AND ANALYSIS     

8.1.Rule 37 of the CCS (Pension) Rules, 1972 provides that a

Government servant who is absorbed in a Corporation or

Government   Company   is   deemed   to   have   retired   from

government service on the date of his/her absorption.

The relevant extract of Rule 37 of the CCS (Pension)

Rules, 1972 is reproduced hereinbelow:

“37. Pension on absorption in or under a corporation,

company or body

(1)A     Government   servant   who   has   been   permitted   to   be

absorbed in a service or post in or under a Corporation or

Company wholly or substantially owned or controlled by

the Central Government  or a State Government or in or

under   a   Body   controlled   or   financed   by   the   Central

Government or a State Government,  shall be deemed to

have retired from service from the date of such absorption

and subject to sub­rule (3) he shall be eligible to receive

retirement   benefits   if   any,   from   such   date   as   may   be

determined, in accordance with the orders of the Central

Government applicable to him.

(2)…

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(3)Where there is pension scheme in a body controlled or

financed   by   the   Central   Government   in   which   a

Government servant is absorbed, he shall be entitled to

exercise option either to count the service rendered under

the Central Government in that body for pension or to

receive   pro   rata   retirement   benefits   for   the   service

rendered   under   the   Central   Government   in   accordance

with the orders issued by the Central Government.

EXPLANATION.–   Body   means   Autonomous   Body   or   Statutory

Body.”

(emphasis supplied)

The Appellants having voluntarily exercised the option

to get absorbed in the regular service of VSNL, were deemed

to have retired from the service of the Central Government on

the date of their absorption i.e. January 2, 1990 as per Rule

37(1) of the CCS (Pension) Rules, 1972.

8.2.It   is   the   admitted   position   that   the   Appellants   had   not

completed 10 years of service on the date of their absorption

into VSNL, i.e. when they were deemed to have retired from

the service of the Central Government.

To receive pensionary benefits from the Government, a

Government   servant   is   required   to   put   in   a   minimum

‘qualifying   service’   as   defined   by   Rule   3(q)   of   the   CCS

(Pension)   Rules,   1972.   According   to   Rule   3(q),   ‘qualifying

service’   means   the   service   rendered   while   on   duty   or

16

otherwise which shall be taken into account for the purpose

of   Pensions   and   Gratuities   admissible   under   the   CCS

(Pension) Rules, 1972.

8.3.Rule 49(2) of the CCS (Pension) Rules, 1972 provides that a

Government   servant   is   entitled   to   receive   pension   on

retirement only after the completion of the qualifying service

of 10 years.

1

 On the other hand, a Government servant who

retires before completing the qualifying service of 10 years is

entitled   to   service   gratuity   under   Rule   49(1)   of   the   CCS

(Pension) Rules, 1972.

The relevant extract of Rule 49 of the CCS (Pension)

Rules, 1972 is reproduced hereunder for ready reference:

“49. Amount of Pension

(1)In the case of a Government servant retiring in accordance

with   the   provisions   of   these   rules  before   completing

qualifying   service   of   ten   years,   the   amount   of   service

gratuity  shall be calculated at the rate of half month’s

emoluments   for   every   completed   six   monthly   period   of

qualifying service.

(2)(a)   In   the   case   of   a   Government   servant   retiring   in

accordance   with   the   provisions   of   these   rules   after

completing qualifying service of not less than thirty­three

years, the amount of pension shall be calculated at fifty

per cent of average emoluments, subject to a maximum of

four thousand and five hundred rupees per mensem.;

1 Union of India & Anr. v. Bashirbhai R. Khiliji, (2007) 6 SCC 16 : AIR 2007 SC

1935.

17

(b)  I  n   the   case   of   a   Government   servant   retiring  in

accordance   with   the   provisions   of   these   rules  before

completing   qualifying   service   of   thirty­three   years,   but

after   completing   qualifying   service   of   ten   years,   the

amount of pension admissible under Clause (a) and in no

case the  amount of pension shall be less than Rupees

three hundred and seventy­five per mensem;…”

(emphasis supplied)

A conjoint reading of the statutory rules,  i.e.  Rule 37

with Rule 49 of the CCS (Pension) Rules, 1972, would make it

abundantly  clear  that  the  Appellants were not  entitled  to

pensionary benefits since admittedly they did not have the

minimum qualifying service of 10 years, to make their service

pensionable with the Central Government. On absorption in

VSNL on January 2, 1990 there was a severance of their

service with the Central Government. The Appellants would

be entitled to the retiral benefits under VSNL.

After exercising the option to be absorbed in VSNL, the

Appellants are now estopped from seeking pensionary benefits

from the Central Government.

18

8.4.The Office Memorandum dated July 5, 1989 was issued by

the Department of Pension and Pension Welfare, Government

of   India   to   settle   the   pensionary   terms   and   conditions

applicable in cases of en masse transfer of employees on the

conversion of a Government Department into a Central Public

Sector Undertaking/Autonomous Body.

(A)Clause (a) of the Office Memorandum provided an option

to   Government   servants   (permanent,   quasi­permanent

and temporary) to either retain the pensionary benefits

available   to   them   under   the   Government   rules   or   be

governed   by   the   rules   of   the   Public   Sector

Undertaking/Autonomous   Body.   Under   Clause   (b),

Government   servants   who   opt   to   retain   pensionary

benefits were entitled to receive pension at the time of

their retirement “in accordance with Central Government

rules in force at that time”.

(B)A  conjoint reading of Clauses (a) and (b) would indicate

that   the   option   of   retaining   pensionary   benefits   was

available only to those Government servants who were, in

the first place, entitled to receive pension at the time of

19

their retirement. This is evident from Clause (a) which

provides   the   option   to   “retain”   pensionary   benefits

available under the relevant Government rules. Clauses

(a) and (b) pre­suppose that the Government servants who

opt to retain pensionary benefits, should be entitled to

receive pensionary benefits under the Central Government

rules, in the first place.

(C)Rule 37 read with Rule 49 of the CCS (Pension) Rules,

1972 indicates that the Appellants were not entitled to

receive Pension under the CCS (Pension) Rules, 1972,

since   they   had   not   completed   10   years   of   qualifying

service.   There   was,   therefore,   no   question   of   the

Appellants availing of the option of ‘retaining’ the benefits

under Clause (a).

(D)The Division Bench has rightly held that Clause (b) of the

Office Memorandum cannot be read in isolation, and is

required to be read in conjunction with Clause (a). The

entitlement to Pension under Clause (b) is qualified by the

phrase “in accordance with the Central Government rules

in force at that time”.

20

(E)Further,   Paragraph   I   (1)   (ii)   of   the   document   titled

“Clarificatory Information to Facilitate Exercise of Option”

clearly   stated   that   the   eligibility   to   retain   pensionary

benefits under the Central Government was subject to the

condition   of   putting   in   a   minimum   of   10   years   as

qualifying service.

The   Appellants   were   specifically   informed   of   this

clarification at the time of exercising their option that

their   eligibility   for   pensionary   benefits   under   the   CCS

(Pension) Rules, 1972 was dependant on their fulfilling the

minimum   eligibility   requirement   of   10  years   qualifying

service on the day their retirement.

8.5.We find great force in the submissions made by Mr. Maninder

Singh, Senior Advocate appearing for VSNL, and the learned

Additional Solicitor General, that the case is squarely covered

by the earlier decision of a Division Bench of the Bombay

High Court in S.V. Vasaikar & Ors. v. Union of India & Ors.

[2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR 79].

8.6.It has been rightly contended that the earlier Writ Petition No.

5374 of 2002 was filed in a representative capacity. Petitioner

21

No. 3 in the said Writ Petition was the Federation of the VSNL

Employees Union, a collective body of VSNL employees. The

Federation   was   espousing   the   collective   interest   of   the

Appellants, and other similarly situated persons before the

Division Bench. The prayers in Writ Petition No. 5374 of

2002, was recorded by the High Court in the following words:

“3. In the second petition, i.e., Writ Petition No. 5374 of 2002,

a   prayer   is   made   for  declaring   that   the   action   of   the

respondents   in   not   giving   the   petitioners   and   similarly

situated   employees,  who  had  not   completed  ten  years  of

service with the Government of India, the right to exercise

option for retaining Government pensionary benefits on their

absorption   with   VSNL   is   arbitrary,   discriminatory   and

violative of Articles 14 and 16 of the Constitution. It was,

therefore, prayed that appropriate direction be issued to the

Government   of   India   that   the  Petitioners   and   similarly

situated   employees,  who  had  not   completed  ten  years  of

service on their date of absorption in VSNL, are entitled to

exercise option for retaining Government pensionary benefits

by counting their service in Government of India along with

their service with VSNL for such benefits.”

(emphasis supplied)

The Division Bench dismissed the Writ Petitions, and

held as follows:

“26. Regarding the contention that employees, who had not

completed ten years, were not allowed to exercise the option

with regard to pensionary benefits, it may be stated that

even when they were in the Government service, when VSNL

was a Government Company, they were not entitled to such

benefits.   Reading   the   memorandum   also,   it   becomes

abundantly clear that the persons, who had not completed

ten years of service with the Government, were not entitled to

22

pensionary benefits. The option, which was allowed by the

Government, and to be exercised by the employees, was in

respect of those employees who had completed ten years or

more   of   service  and   quasi­permanent   employees   and

temporary employees, who would be entitled to such benefits

after   they   would   be   confirmed   in   the   Public   Sector   or

Autonomous   Bodies.  Since   the   petitioners   and   similarly

situated   persons,   who   had   not   completed   ten   years   of

service, were not entitled to such benefits even under the

Government,   they   cannot   make   grievance   for   pensionary

benefits.”

(emphasis supplied)

The afore­said findings of the Division Bench squarely

cover the present case of the Appellants.

8.7.The decision in S.V. Vasaikar & Ors. v. Union of India & Ors.

[2003   (2)   Mh.   L.J.   691   :   2003   (4)   Bom   CR   79]   was   not

challenged before the Supreme Court, and has since attained

finality. Therefore, the relief sought by the Appellants before

the High Court was barred by the principle of res judicata.

Reference   can   be   made   to   the   decision   of   the

Constitution   Bench   in  Direct   Recruit   Class   II   Engineering

Officers’ Association v. State of Maharashtra & Ors.

2

 wherein

Sharma, J., on behalf of the five­judge bench, held:

“35…It is well established that the principles of res judicata

are   applicable   to   writ   petitions.   The   relief   prayed   for   on

behalf of the petitioner in the present case is the same as he

2 (1990) 2 SCC 715 : AIR 1990 SC 1607.

23

would  have, in the  event  of his success, obtained  in the

earlier writ petition before the High Court. The petitioner in

reply contended that since the special leave petition before

this   Court   was   dismissed   in   limine   without   giving   any

reason, the order cannot be relied upon for a plea of res

judicata. The answer is that it is not the order of this Court

dismissing the special leave petition which is being relied

upon; the plea of res judicata has been pressed on the basis

of the High Court’s judgment which became final after the

dismissal of the special leave petition. In similar situation a

Constitution Bench of this Court in Daryao v. State of UP

3

held that where the High Court dismisses a writ petition

under Article 226 of the Constitution after hearing the matter

on the merits, a subsequent petition in the Supreme Court

under Article 32 on the same facts and for the same reliefs

filed   by   the   same   parties   will   be   barred   by   the   general

principle of res judicata. The binding character of judgments

of courts of competent jurisdiction is in essence a part of the

rule of law on which the administration of justice, so much

emphasised by the Constitution, is founded and a judgment

of the High Court under Article 226 passed after a hearing on

the merits must bind the parties till set aside in appeal as

provided by the Constitution and cannot be permitted to be

circumvented by a petition under Article 32…”

(emphasis supplied)

Albeit the decision of the Constitution Bench was in the

context of a Writ Petition filed under Article 32, it would apply

with greater force to bar a Writ Petition filed under Article

226, like the one filed by  the  present Appellants,  by  the

operation of the principle of res judicata.

3 (1962) 1 SCR 574 : AIR 1961 SC 1457.

24

8.8.The   Appellants   were   not   entitled   to   receive   pensionary

benefits either under the CCS (Pension) Rules, 1972 or under

Clauses (a) and (b) of the Office Memorandum. 

The case of the Appellants being Government servants

prior to their absorption in VSNL, with less than 10 years of

qualifying service, would be squarely covered by Clause (c) of

the Office Memorandum. Under Clause (c), they would be

entitled to receive an amount equal to the Provident Fund

contribution   for   the   period   of   their   service   under   the

Government, upto the date of their permanent absorption

along with Simple Interest at 6% per annum as the opening

balance   in   their   CPF   account   with   the   Public   Sector

Undertaking/Autonomous Body.

9.In   view   of   the   aforesaid   findings,   the   present   Civil   Appeal   is

dismissed. The impugned Judgment and Order dated January 13,

2016 passed by the Bombay High Court in Writ Petition No. 2704 of

2005 is affirmed.

10.The Applications for Impleadment filed in the Appeal are disposed

of in terms of the present judgment. Any other pending I.A.s are

disposed of.

25

Ordered accordingly.

…..……...........................J.

(UDAY UMESH LALIT)

..….……..........................J.

(INDU MALHOTRA )

New Delhi

March 15, 2019.

26

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