JUDGMENT

DUTT, J.:— In these writ petitions, the petitioners are former officers and employees of the Caltex Oil Refining (India) Ltd., which has since been amalgamated with the Hindustan Petrolem Corporation Limited. The complaint of the petitioners is with regard to the inter se fitment of the officers and employees of the Caltex Oil Refining (India) Ltd. and the other two Companies which have also been amalgamated with Hindustan Petroleum Corporation Ltd., namely, ESSO Standard Refining Company of India Ltd. and Lube India Ltd.

2. In 1974, the Undertakings in India of ESSO Eastern Inc., that is, ESSO Standard Refining Company of India Ltd. (for short ESSO) and Lube India Ltd. (for short LIL) were acquired by the ESSO (Acquisition of Undertakings in India) Act, 1974 and vested in Hindustan Petroleum Corporation Ltd. (for short HPCL), a Government Company. In 1977, the shares of Caltex Oil Refining (India) Ltd. and Undertakings in India of Caltex (India) Ltd. were acquired by the Caltex (Acquisition of shares of Caltex Oil Refining (India) Ltd. and the Undertaking in India of Caltex (India) Ltd.) Act, 1977 and vested in Caltex Oil Refining (India) Ltd. (for short CORIL), a Government Company. On May 5, 1978, by the order of the Company Law Board, CORIL was amalgamated with HPCL.

3. By an order dated June 17, 1978, the Central Government appointed a one-man Committee of Mr. B. B. Tandon, IAS (Retd.), for the purpose of examining the problems arising out of the integration of the management staff of CORIL and HPCL. The said Committee was to make recommendations inter alia on the following :

(i) Fitment in equivalent Groups;

(ii) Criteria to be adopted for determination of seniority and fixation of inter se seniority; and

(iii) Placement in appropriate positions.

4. In September, 1979, the Tandon Committee submitted a report to the Central Government recommending that for equating positions in the two companies and fitting them in equivalent groups, the following two principles should be followed :-

1. The principle of functional similarity.

2. The principle of co-equal responsibility.

5. We shall have occasion to refer to the report of the Tandon Committee later in this judgment, for much reliance has been placed by the petitioners on the report. While the report of the Tandon Committee was under the consideration of the Central Government, HPCL appointed two functional directors for the purpose of formulating a rationalisation scheme. In this connection, we may refer to a letter dated July 28, 1979 of the Central Government whereby it advised HPCL that the pay-scales and perquisites of management and employees in the nationalised oil companies should be rationalised and fitted into the pay-scales of the Indian Oil Corporation, hereinafter referred to as IOC, a public sector Company. Further, it was stated in the said letter that the guiding principle to be adopted for the purpose was to find out the equivalence, that is to say, the equality of duty and also the equality of responsibility.

6. On July 7, 1980, a circular letter was issued by HPCL annexing thereto a rationalisation scheme consisting of two parts. In the first part, the past service benefits that would be admissible to each employee of CORIL on the basis of existing pay-scales and in the second part, details were given of the rationalised conditions of service, pay-scales, perquisites and retirement benefits. In the circular it was stated as follows :

"In relation to your fitment or fixation of salary in the proposed rationalised scales, should you have any grievance you will be at liberty to represent your case to a Grievance Committee, which has been specially constituted for the purpose.

I am directed to request you to signify your acceptance of this offer within 30 days from the date of receipt of this letter by returning the duplicate copy of this letter duly signed by you. On receipt of your acceptance, consequent letters will be issued."

7. In the scheme the pay-scales