BHARAT PETROLEUM ERSTWHILE BURMAH SHELL MANAGEMENT STAFF PENSIONERS Vs. BHARAT PETROLEUM CORPORATION LIMITED

JUDGEMENT

(1.) Under the Burmah Shell (Acquisition of Undertakings in India) Act 2 of 1976, (hereinafter referred to as the 'Act'), the Union of India acquired the right, title and interest of Burmah Shell Oil Storage and Distributing Company of India Limited (hereinafter referred to as Burmah Shell) in relation to its undertakings in India. Sections 3, 4 and 9 of the Act are relevant. Under S. 3 the right, title and interest of Burmah Shell in relation to its undertakings in India stood transferred and became vested in the Central Government. In terms of S. 4, the assets and liabilites were taken over by the Government of India. Under S. 9 persons employed under Burmah Shell came under the employment of the Government company known as Bharat Petroleum Corporation Limited (respondent No. 1 herein). Section 10(1) provides thus :-

(2.) This petition under Art. 32 of the Constitution is by the erstwhile Burmah Shell Management Staff Pensioners who claim two reliefs :-

(3.) In answer to the rule nisi, the respondent made its return by contending that the pension scheme of the first respondent is a funded scheme. The decision of this Court in the case of Common Cause rendered in respect of Government servants, both of civil and defence services, cannot be extended to a public sector undertaking. The pension scheme of Burmah Shell was set up by Non-Contributory Pension Fund by a Trust Deed in December, 1950, but effective from 1st January, 1947, of which both the management staff as also the clerical staff were members. This Court on 13th of November, 1987, referred two questions arising for determination for the opinion of Mr. D. K. Lodaya, Chief Actuary of the Life Insurance Corporation of India at Bombay, with the consent of parties and the two questions referred are :-