1998 Supreme(SC) 740
SUPREME COURT OF INDIA
MANOHAR, J
OIL NAND NATURAL gas CORPORATION LIMITED
Vs.
G. S. CHUGANI
Decided on July 31, 1998
The pensionary benefits of an employee of the Oil and Natural Gas Commission are governed by the final scheme approved by the Central Government under the Oil and Natural Gas Commission Act, 1959.
Headnote:
OIL AND NATURAL GAS COMMISSION ACT, 1959 - SECTION 15, 32 - PENSION SCHEME - APPROVAL OF GOVERNMENT - SCHEME MODIFIED AND APPROVED BY GOVERNMENT - PENSIONARY BENEFITS GOVERNED BY FINAL SCHEME.
Fact of the Case:
The respondent, a legal adviser with the appellant-Corporation, retired from service on 30-6-1991. A draft superannuatory benefit scheme for employees was approved by the Executive Committee with modifications and subject to approval of authorities, including the Commissioner of Income-tax. The draft scheme was circulated as "Self-Contributory Post-Retirement and Death in Service Benefit Scheme, 1990." After representations from employee associations, the scheme underwent further modifications and was submitted to the Government for approval on 14-6-1990. There were subsequent modifications, and the Central Government approved the scheme on 18-9-1991.
Finding of the Court:
The respondent filed a writ petition claiming the benefit of the draft scheme circulated on 29-4-1990. The appellants clarified that the draft scheme had undergone modifications and the final scheme was approved on 18-9-1991. The High Court initially directed the implementation of the draft scheme but later modified its order, directing the respondent to receive benefits under the scheme approved by the Central Government. The respondent accepted this order but appealed against it, arguing that the learned Judge could not review his decision.
Issues: Whether the pensionary benefits of the respondent should be governed by the draft scheme circulated on 29-4-1990 or the final scheme approved by the Central Government on 18-9-1991.
Ratio Decidendi: The Oil and Natural Gas Commission Act, 1959, Section 15, empowers the Commission to carry out its functions, including implementing schemes involving capital expenditure exceeding 30 lacs of rupees, with the previous approval of the Government. Section 32 authorizes the Commission to make regulations for enabling it to discharge its functions, including terms and conditions of service of its employees, with the Central Government's approval. The draft scheme was subject to approval by appropriate authorities, and the final scheme was approved by the Central Government. Therefore, the pensionary benefits of the respondent are governed by the final scheme.
Final Decision: The Supreme Court allowed the appeal, set aside the impugned order of the High Court, and restored the order of the learned single Judge in Review Petition No. 19/95 dated 15th of December, 1995.
( 1 ) SPECIAL leave granted.
( 2 ) THE respondent was a legal adviser with the appellant-Corporation. He retired from service on 30-6-1991. While the respondent was in service a draft superannuatory benefit scheme for the employees of the appellants was approved by the Executive Committee with some modifications and subject to the approval of the appropriate authorities including Commissioner of Income-tax on 29-4-1990. The draft scheme was circulated under the title "self-Contributory Post-Retirement and Death in Service Benefit Scheme, 1990. " Thereafter, on account of representations received from certain associations of employees the draft scheme underwent further modifications. The scheme was submitted to the Government for approval on 14-6-1990. Thereafter, there was some further modifications to the scheme and the modified scheme was again submitted to the Government for approval on 15-11-1990. There were several subsequent modifications to the draft scheme. Ultimately on 18-9-1991 the Central Government approved the scheme as ultimately modified.
( 3 ) THE respondent filed a writ petition in the High Court claiming benefit of the draft scheme as circulated on 29th of April, 1990. In the affidavit in reply which was filed by the appellants in the writ petition it was pointed out that the draft scheme which was circulated on 29th of April, 1990 had undergone several modifications before finalisation and the scheme became final only after the approval of the Government on 18-9-1991. The scheme so approved was the only scheme in operation. The appellants were agreeable to give to the respondent benefits under the scheme as approved by the Central Government. Thereupon minutes of the order were drawn up and an order was passed on 2-12-1991 in terms of the minutes. The order, however referred to pension being granted to the respondent in terms of the scheme of 29-4-1990.
( 4 ) SINCE the pensionary benefit granted to the respondent was in accordance with the scheme as finally approved and not as per the draft scheme the respondent filed a second writ petition which was granted. However, on review, at the instance of the appellants the learned single Judge who had decided the second writ petition came to the conclusion that a scheme which was never brought into force could not have been directed to be implemented and, therefore, directed the parties to obtain a review of the earlier order of 2-12-1991 in terms of the minutes which had been obtained from the Division Bench in the first writ petition. The Division Bench thereupon by its order dated 9-11-1995 directed the learned single Judge hearing the review petition in the subsequent writ petition to decide this question. The learned single Judge, therefore, in review in the second writ petition, by his order of 15-12-1995 modified his earlier order and directed that the respondent will be entitled to pensionary benefits as per the scheme as modified and finally approved by the Central Government by its order dated 18th of September, 1991.
( 5 ) THE respondent by his letter of 15th of December, 1995 addressed to the appellants accepted the order of the single Judge in the said review application and requested the appellants to finalise his benefits accordingly, and after adjustment of amounts as mentioned in that letter. The respondent, however, thereafter preferred an appeal before the Division Bench of the High Court against the said judgment and order in review dated 15-12-1995.
( 6 ) THE Division Bench has allowed the appeal only on the basis that the learned Judge could not have reviewed his decision in the way he did. In the review application in the first writ petition, the Division Bench had expressly allowed the question of identity of the scheme to be implemented, to be decided by the learned Judge who was hearing the review application in the second writ petition. The learned Judge rightly came to the conclusion that a scheme which was never in existence and was on