JUDGMENT

KASLIWAL, J. - The above writ petitions and appeal are disposed of by one single order as identical questions of law are involved in these cases. In order to appreciate the controversy we would narrate the fact of the writ petitions. Shri Des Raj Bhatnagar, petitioner 1 and Shri Ved Pal Seth, petitioner 2 were employees of the Central Government. Petitioner 1 after serving in various capacities in the Department of Food of the Central Government from October 24, 1941 to August 31, 1971 (29 years and 10 months) was permanently absorbed in Food Corporation of India as Assistant on September 1, 1971 and retired from the government service.

2. Petitioner 2 after serving the government in various capacities for the period from November 5, 1947 to February 8, 1972 (20 years and 3 months) was permanently absorbed on February 9, 1972 in Food Corporation of India as Senior Assistant Manager and retired from the government service.

3. On absorption in the Food Corporation of India, the petitioners were required to exercise either of the following two options :

(a) Receiving the pro rata monthly pension and death-cum-retirement gratuity as admissible under the rules; and

(b) Receiving the pro rata gratuity and a lump sum amount in lieu of pension worked out with reference to commutation table obtaining on the date from which the pension was to be admissible and under the option order.

The office of the Pay and Accounts Officer, Ministry of Food and Agriculture determined the original pension payable to the petitioners per mensem. The petitioners were sanctioned original pensions in accordance with the provisions of the Central Civil Services (Pension) Rules, 1972. In case of petitioner 1 the original pension was determined at Rs. 240 per mensem payable from September 1, 1971. In case of petitioner 2 the original pension admissible was determined at Rs. 287 per mensem payable from February 9, 1972.

4. Petitioner 1 received his pension @ Rs. 240 per mensem for the period from September 1, 1971 to October 29, 1972. Petitioner 2 received his pension @ Rs. 287 per mensem for the period from February 9, 1972 to August 16, 1972. Under the above Rules maximum of one third of the amount of admissible pension could be commuted. However, in the case of government officers including Industrial Management Pool Officers who were opting for permanent absorption in Public Sector Undertakings, an option was given to commute the full amount of their original pension. Petitioner 1 and petitioner 2 commuted their original pensions for a lump sum of Rs. 35,568 and Rs. 43,601 on October 30, 1972 and August 17, 1972 respectively.

5. The Third Central Pay Commission was required to make its recommendations in the matter of providing relief of government pensioners. The Pay Commission, in order to secure government pensioners against the continuing erosion in the value of the rupee and to recommend appropriate measures for protecting the pension of government servants from such erosion on account of the possible increase in the cost of living in future and after having considered the matter, recommended that irrespective of the amount of pension drawn by them, pensioners should be given relied at the rate of 5 per cent of their pension subject to a minimum of Rs. 5 per mensem and a maximum of Rs. 25 per mensem. The relief at those rates were recommended to be given to the government pensioner as and when there was a 16 point rise in the 12 months average of the All India Working Class Consumer Price Index (1960-100). The relief for the first time, at these rates was to be paid when the 12th monthly average of this index reached 216. The said recommendation made by the Pay Commission was duly accepted by the Central Government.

6. The Ministry of Finance Office Memorandum No. F. 22(8)-EV (A) /75 dated February 13, 1976 inter alia, provided that where an officer on his retirement commutes a portion of his pension he is eligible for relief and ad hoc relie