The main legal point established in the judgment is that employees were entitled to pension from the State Government after their absorption in the corporation, as per the Tamil Nadu Pension Rules, 1960, and the pension scheme formulated for the employees of the State Transport Corporations under the Industrial Disputes Act, 1947 was upheld.

(S.J. Mukhopadhaya, J.)

The State Transport was originally under the Transport Department of the State of Tamil Nadu. Subsequently, in the year 1972, the State Government created Transport Corporations for various districts and transferred the assets and liabilities of the Transport Department to the respective Corporations. The service of the State Government employees, who were in the transport department were also transferred and placed under the respective Corporations, where they were posted. They were absorbed in their respective Corporations.

The employees, who were under the State Government and were eligible, were entitled for pension from the State under the rules after their absorption in the corporation. A settlement was arrived with the corporation and separate provision for pension for the corporation employees were also made. Circulars were issued from time to time allowing the benefits. As certain benefits were limited to a class of employees by prescribing cut-off date, they were challenged and the matter was finally settled by the decision of the Supreme Court.

In the year 2005, the State Government issued G.O. ms. No.42 dated 27th May, 2005, in the light of the different decisions of this Court and Supreme Court, but a cut-off date of 1st Sept., 1998 was fixed under clause 5 (b). Retired Employees Welfare Associations of different corporations challenged the cut-off date as was prescribed in the Government Order by filing different writ petitions in this Court and relief having granted, the State of Tamil Nadu has preferred writ appeals against common judgment dated 27th Sept., 2006, passed by learned single Judge. They were heard together and disposed of by this common judgment.

2. As the matter stands settled in view of the earlier decisions of this Court and Supreme Court, it is not necessary to discuss all the facts, except the relevant ones, as mentioned hereunder :-

As stated above, the State Transport was under the control of the Transport Department of the State. In the year 1972, the State Government created different Transport Corporations for various districts; transferred assets and liabilities of transport department to the concerned corporations. The service of the State Government employees were also placed under those corporations, who were later on absorbed in the respective corporations.

The State Government employees, who were working prior to creation of the corporation in the transport department of the State and completed the requisite period of service were eligible for pension under the Tamil Nadu Pension Rules, 1960. Options were called for from the State Government employees for their absorption in respective corporation, but it took long period and the formalities of absorption were completed between the year 1975 and 1982. On 18th April, 1975, the State Government, from Finance (FR-II) Department, issued G.O. ms. No.378 relating to terminal benefits such as pension, gratuity, PF, for the employees, who were to be absorbed permanently in all public sector undertakings of the State. In respect of pension and gratuity, the following provision was made:-

"Pension and Gratuity:

In addition to pay in the public undertaking, an optee will be entitled to pension/gratuity earned by him in Government service prior to such absorption. If the qualifying service under Government is less than ten years, gratuity and Death-cum-Retirement Gratuity alone will be payable. They are permitted to draw their pension/gratuity immediately on absorption in the Corporation."

3. As the procedure for absorption started since 1975 and it took long period (upto 1982) for completion, no cut-off date of absorption was prescribed under G.O. Ms. No.378 dated 18th April, 1975. Subsequently, on 31st March, 1980, the State Government from Finance (CFC) Department issued G.O. ms. No.284 dated 31st March, 1980. By the said Government Order, two significant changes were made, viz.,

a) The pension of employees p