The final option exercised by the employees regarding pensionary benefits is binding, and compliance with the principles of natural justice is essential in revising the benefits.

1. The facts in nutshell to be considered in this writ petition are that the present writ petitioners were initially appointed by the Government of India and subsequently, on formation of the Corporation viz., Food Corporation of India, the petitioners had exercised their option and accordingly transferred to Food Corporation of India. The service conditions as applicable to the employees of the Food Corporation of India were made applicable to all these writ petitioners.

2. The grievances of the writ petitioners are that the pensionary benefits as applicable to them at the time of exercising option had not been extended. Thus, the writ petitioners are constrained to move the present writ petition.

3. Pertinently, the learned counsel appearing for the writ petitioners relying on the judgment of the Supreme Court of India on the very same subject in the case of Union of India and another Vs. reported in 2010 (12) SCC 405 stated that the respondents before the Supreme Court of India were colleagues of the writ petitioners working in the same Food Corporation of India and they have filed writ petitions with reference to the conditions stipulated at the time of exercising option and the writ petitions were initially allowed by the Kerala High Court, against which, the Union of India preferred an appeal before the Apex Court and the same was decided on 10.02.2010.

4. The Hon'ble Supreme Court of India dealt with the Clauses and the Rules which are all relevant for the purpose of deciding the present writ petition.

5. Paragraph No.5 of the judgment reads as follows:

5. For the sake of convenient reference, Sections 12-A(1), (2), (4) and (4-C) are reproduced below:

“12-A. Special provisions for transfer of government employees to the Corporation in certain cases.—(1) Where the Central Government has ceased or ceases to perform any functions which under Section 13 are functions of the Corporation, it shall be lawful for the Central Government to transfer, by order and with effect from such date or dates (which, may be either retrospective to any date not earlier than 1-1-1965, or prospective) as may be specified in the order, to the Corporation any of the officers or employees serving in the Department of the Central Government dealing with food or any of its subordinate or attached offices and engaged in the performance of those functions:

Provided that no order under this sub-section shall be made in relation to any officer or employee in such Department or office who has, in respect of the proposal of the Central Government to transfer such officer or employee to the Corporation, intimated within such time as may be specified in this behalf by that Government, his intention of not becoming an employee of the Corporation.

(2) In making an order under sub-section (1), the Central Government shall, as far as may be, take into consideration the functions which the Central Government has ceased or ceases to perform and the areas in which such functions have been or are performed.

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(4) Every officer or other employee transferred by an order made under sub-section (1) shall, within six months from the date of transfer, exercise his option in writing to be governed,—

(a) by the scale of pay applicable to the post held by him under the Government immediately before the date of transfer or by the scale of pay applicable to the post under the Corporation to which he is transferred,

(b) by the leave, provident fund, retirement or other terminal benefits admissible to employees of the Central Government in accordance with the rules and orders of the Central Government as amended from time to time or the leave, provident fund or other terminal benefits admissible to the employees of the Corporation under the regulations made by the Corporation under this Act,

and such option once exercised shall be final:

Provided that the option exercised under clause (a) shall be applicable only in respect of the post to which such officer or employee is transf