JUDGMENT

Y.K. Sabharwal, J.-The matter concerning the pension of Central Government employees absorbed in Public Sector Undertakings has been the subject matter of examination by this Court from time to time.

2. In "Common Cause", A Registered Society And Ors. v. Union of India1, the grievance stressed was that certain provisions of the Commutation of Pension Rules permit Union of India to recover more than what is paid to the pensioners upon commutation and thus they sought for the issue of directions for formulating appropriate scheme rationalising the provisions relating to commutation. That petition was filed on behalf of the government servants who had commuted their pension partially. During the pendency of the matter, Union of India agreed to restore the commuted portion of the pension in regard to all civilian employees at the age of 70 years or after 15 years, whichever is later, and agreed to make this effective from 1st April, 1986. The Court, however, directed that it would be just and equitable that the benefit agreed to be extended in respect of commuted portion of the pension should be effective from 1st April, 1985.

3. In Welfare Association of Absorbed Central Government Employees in Public Enterprises v. Union of India & Ors.2, a two Judges Bench examined the writ petition filed on behalf of those who at the time of retirement from Government service and entering into public sector had taken the advantage of commuting the entire pension and were seeking the benefit of the judgment in the case of Common Cause (supra). It was held that the petitioners belong to a class different from those whose case was before this Court in the Common Cause case. It was noticed that the commutation does bring certain advantages to the commutee and the class of Government officers represented by the petitioner had derived such benefits and there was no basis for the allegation that by not extending the benefit of common cause case, there has been any infringement of Article 14 of the Constitution.

4. In Welfare Association of Absorbed Central Government Employees in Public Enterprises v. Union of India & Ors. and P.V. Sundara Rajan & Anr. v. B.B. Tandon & Ors.3 being, Writ Petitions (C) Nos. 11855 of 1985 and 567 of 1995 respectively, the relief was confined to the restoration of one-third portion of the fully commuted pension as per the decision in Common Cause case. The contention of the petitioners was that they have been denied the benefit of common cause judgment, by insertion of para 4 in the impugned OM dated 5th March, 1987. They sought quashing of the said para which provided that the Central Government employees who got themselves absorbed under Central Public Sector Undertakings/Autonomous Bodies and have received/or opted to receive commuted value for one-third of pension as well as terminal benefits equal to the commuted value of the balance amount of pension left after commuting one-third of pension are not entitled to any benefit under the said orders as they have ceased to be Central Government pensioners. The scope of Rule 37A of the CCS (Pension) Rules, 1972 was also examined. That Rule reads as under :-

"37-A. Payment of lump sum amount to persons on absorption in or under a corporation, company or body

(1) Where a government servant referred to in Rule 37 elects the alternative of receiving the (retirement gratuity) and a lump sum amount in lieu of pension, he shall, in addition to the (retirement gratuity) be granted :

(a) on an application made in this behalf, a lump sum amount not exceeding the commuted value of one-third of his pension as may be admissible to him in accordance with the provisions of the Civil Pensions (Commutation) Rules; and

(b) terminal benefits equal to the commuted value of the balance amount of pension left after commuting one-third of pension to be worked out with reference to the commutation tables obtaining on the date from which the commuted value