ONGC RETIRED EMPLOYEES WELFARE ASSOCIATION Vs. ONGC LTD.

JUDGEMENT

(1.) SPECIAL Civil Application No. 6611 of 2011 and Special Civil Application No. 5956 of 2012 filed by the ONGC Retired Employees' Association with its members -retired employees for following common prayers made in para 8(A) to (C).

(2.) SPECIAL Civil Application No. 6652 of 2012 to 6666 of 2012 are one page petitions filed by individual retired employee for grant of prayers made in para 8 of Special Civil Application No. 5956 of 2012.

(3.) THE Oil and Natural Gas Commission ("ONGC" for short) introduced the scheme titled as "ONGC Self -Contributory Post Retirement and Death in Service Benefits Scheme, 1991" for post retirement benefits of the officers of the ONGC. The copy of the said scheme is found placed at Annexure -K with Special Civil Application No. 6611 of 2011. It is self -financing scheme. Its Eligibility Clause 1(b) provides that the member of the scheme should have served ONGC for a continuous minimum period of ten years except in case of death/permanent total disablement and should have contributed as per Clause -2 of the Scheme. Clause 1(c)(i) provides for membership that all regular executives of O.N.G.C. in the service of the Commission on or after the effective date of the Scheme shall be eligible to become members of the scheme, subject to the condition that the employee who retired between 1.4.1990 and 1.4.1991 will be excluded from the scheme. Clause 1(c)(ii) provides that the scheme shall be optional to the existing executives in regular service on the effective date of the Scheme i.e. 1.4.1990. However, it is compulsory for the executives joining regular service in the Commission as new entrants on or after the effective date of the Scheme. Clause -2 provides for contribution to be made by the members to be calculated on the basis of their salary and according to the rate fixed in various age group provided in the said clause. Clause 2.2 provides that the employees superannuating within ten years from the effective date of the scheme shall be required to contribute minimum for a period of 10 years. Clause 2.3 provides that apart from the above contribution, additional cash contribution will be made by the member employee to make up the requirements relating to funding the scheme as determined by the actuaries/trustees from time to time. Clause 3 provides for reckonable service. Clause 3. A provides for counting of services, for determining eligibility for pension, rendered only in ONGC. Clause 4(c)(i) provides for refund of cash contribution with interest on member employee leaving within ten years of joining the ONGC. Clause 4(c)(ii) provides that the members leaving the service after cash contribution of 10 years or more will be entitled at their option either to have deferred pension from their notional age of superannuation, based on their reckonable service and salary at the time of leaving the organization. Clause 4 provides for calculation of benefits to be given to the member. Clause 4(d) provides that the benefit under the scheme will be paid by purchasing annuity from the LIC at the time of superannuation or leaving the Organization as per clause 4(c). It further provides that such benefit will be calculated on the basis of LIC Annuity for life pension with guaranteed payment for 15 years. The members are also given option to choose from the various types of annuities available with LIC. Clause 4(e) provides that the members shall have option to commute one third of the pensionary benefits as per LIC Annuity for Life Pension with guaranteed payment for 15 years. Clause 5 provides for managing the scheme as per which the scheme shall be run by the trust consisting of trustees to be nominated by the Chairman, ONGC and representatives as may be nominated on the Board by Central Working Committee ("CWC" for short) of Association of Scientific and Technical Officers of ONGC ("ASTO" for short). It further provides that the trust would make investment plan of the fund as per the pattern of rule 67(2) of the Income Tax Rules, 1961 and would purchase annuity from LIC for the beneficiaries under the Scheme. Clause 6 provides that the scheme is based on voluntary contribution by the member employees. It provides that no contribution will be made by ONGC towards this scheme except the contribution of Rs. 100.00 per annum and no other financial liability on account of this scheme will devolve on ONGC or the Government of India. Clause 7 provides that the trustees may review the availability of funds annually or at such other intervals as may be fixed by the Trustees to decide whether any revision in the maximum entitlement and/or the rate of employees' contribution under the scheme is warranted.