JUDGMENT

V. Kameswar Rao, J. - This petition has been filed with the following prayers: -

'In view of the above facts and circumstances of the case, it is most respectfully prayed that this Hon'ble Court may be pleased to:

(a) Issue Writ of certiorari, order / directions in the nature thereof calling for the records from the Respondent No.1 leading to preparation of the Note dated February 28th/29th 2008 which led to change in the pension of the members of the Petitioner;

b) Issue any writ, order or direction thereby quashing the Note dated February 28th/29th 2008 (annexure P 45) and further directing the Respondent No. 1 to restore the defraying the Dearness allowance/Dearness Relief to the members of the Petitioner being retirees in the pay scales effective upto 31.10.2002 as per Dearness allowance/Dearness Relief as fixed by Reserve Bank of India, Bi yearly, on single slab basis.

c) issue any writ, order or direction directing the Respondent No.1 to release the arrears of Da on pension to the members of the Petitioners being retirees in the pay scales effective upto 31.10.2002 on single slab basis as per Dearness allowance as fixed by Reserve Bank of India, Bi yearly, and continue to pay the pension and Dearness allowance/Dearness Relief as fixed by Reserve Bank of India, Bi yearly, on single slab basis.

d) Issue any other writ, order or direction granting to the Petitioner all other necessary and consequential relief as are just and proper in the facts and circumstances of the case;

(e) award costs to the Petitioner.'

2. The Petitioner herein is an association/society registered under the Societies Registration act, 1860, representing the pensioners of IFCI Limited ('IFCI', for short and Respondent No. 1 herein) and has filed the present petition espousing the cause of its members, i.e., the pensioners of IFCI who are aggrieved due to the imposition of certain circulars of the Indian Banks association ('IBa', for short) by the Respondent No.1 and the resultant discontinuation of the rates of Dearness allowance/Dearness Relief ('Da/DR', hereinafter) that were applicable to them as per the earlier circulars of the Reserve Bank of India ('RBI', for short), depriving them of substantial benefits after 15 years of effecting the pension scheme from November 1, 1993.

3. It is the case of the Petitioner that the conditions of service including remuneration, allowances and post retirement benefits of the employees of IFCI are governed by the Industrial Finance Corporation of India (Staff) Regulations, 1974 ('Staff Regulations', hereinafter), which were adopted by the Board of Respondent No. 1 in terms of Section 8(1) of the act of 1993 and are still in force. The said Staff Regulations stipulate that the employees of IFCI shall be eligible to certain allowances, including Da at the rates and subject to the conditions as applicable to the employees of RBI.

4. It is stated that the Industrial Development Bank of India ('IDBI', for short) was established in 1964 as a Statutory Corporation under the Industrial Development Bank of India act, 1964 as a wholly owned subsidiary of the RBI and had always been following /adopting the salary structure and rates of Da and other staff matters as per the conditions as applicable to the employees of the RBI. Both IFCI and IDBI were set up as Development Financial Institutions ('DFIs', for short) and for many years both the institutions were jointly financing industrial projects. Subsequently, with the Industrial Development Bank (Transfer of Undertaking and Repeal) act, 2003, it attained the status of a limited company viz., IDBI Ltd., and thereafter was renamed as IDBI Bank Ltd. after acquisition of 51% equity of IDBI Bank Ltd by Life Insurance Corporation of India ('LIC', for short), it has been categorized as a Private Sector Bank for regulatory purposes by the RBI. It is stated that IDBI did not have its own rates of Da/DR; rather it always followed the RBI in the matters of administration, includi