UNION OF INDIA Vs. A S GANGOLI

JUDGEMENT

(1.) This appeal by special leave is directed against the judgment dated 14.3.2001 passed by the Bombay High Court in W.P. No.2973 of 1989.

(2.) Respondents 1 to 10 were commissioned into Indian Air Force (IAF for short) during 1963 to 1967. By the year 1987, they had put in more than 20 years of service and had reached the rank of either Group Captain or Wing Commander.

(3.) The Government of India, by Circulars dated 17.3.1986 and 19.2.1987 of the Defence Ministry, read with O.M. dated 6.3.1985 of Finance Ministry permitted pro-rata pensionary benefits to officers of defence services on their immediate absorption in Central Public Enterprises. As there was a surplus of officers in the middle seniority level, IAF came up with schemes from time to time enabling officers to take premature retirement voluntarily and join public sector undertakings ( PSUs for short) and autonomous bodies, without losing the pensionary benefit relating to the IAF service. One such scheme notified on 1.4.1986 invited the officers in the age group of 40 to 47 years to retire voluntarily and join M/s. Vayudoot Ltd.- a public sector undertaking. Several IAF officers including Respondents 1 to 10 applied for premature retirement from IAF under the said scheme in order to join Vayudoot Ltd. By order dated 6.5.1987, the Air Headquarters accepted the proposal for permanent absorption of respondents in Vayudoot Ltd. and also conveyed the Government s approval for premature retirement of the respondents from the Indian Air Force in public interest with effect from 18.5.1987. The respondents accordingly left IAF and joined Vayudoot Ltd. By order dated 13.7.1987, the Ministry of Defence sanctioned pensionary benefits to respondents in terms of Ministry s Circular dated 19.2.1987.