Sunday, March 17, 2019

only permanent Government servants who have served for more than 10 years would have the option of getting pensionary benefits after their absorption in Public Sector Undertakings: SC

REPORTABLE

IN THE SUPREME COURT OF INDIA

 CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 3149 OF 2019 [Arising out of Special Leave Petition (Civil) No. 10663 of 2016]

P. Bandopadhya & Ors.           …Appellants

Versus

Union of India & Ors.              …Respondents  

 JUDGMENT

 INDU MALHOTRA, J.

Leave granted.

1. The present Civil Appeal arises out of S.L.P. (C) No. 4652 of 2018 wherein   the   impugned   Judgment   and   Order   dated   January   13, 2016 passed by the Bombay High Court in Writ Petition No. 2704 of 2005 has been challenged.


2. The facts relevant for the present Civil Appeal, are briefly set out below:

2.1. The   Appellants   were   erstwhile   employees   in   the   Overseas Communications   Service   [“OCS”],   a   Department   of   the Government of India. On April 1, 1986 the OCS was converted into a Government Company known as the Videsh Sanchar Nigam   Limited   [“VSNL”].   Initially,   all   employees   of   the erstwhile OCS were transferred en masse to Respondent No. 4 – VSNL (now known as Tata Communications Limited), where they worked on deputation from April 1, 1986 to January 1, 1990.


2.2. On July 5, 1989 the  Department of Pension  and Pension Welfare   of   the   Government   of   India   issued   Office Memorandum   No.   4/18/87­P   &   P.W.   (D)   [“Office Memorandum”]   specifying   the   terms   and   conditions governing   the   pensionary   benefits   of   employees   who   were transferred  en   masse  on   the   conversion   of   a   Government Department   into   a   Central   Public   Sector   Undertaking   or Autonomous Body. The relevant extract of the Office Memorandum is set out hereinbelow for ready reference:

2 “…The following terms and conditions will be applicable in the case of en masse transfer of employees:

 (a) The  permanent   Government   servants   shall   have   an option to retain the pensionary benefit available to them under the Government rules or be governed by the rules of the Public Sector Undertaking/Autonomous Body. This option shall also be available to the quasi permanent and temporary employees after they have been confirmed in the Public Sector Undertaking/Autonomous Body.

(b) The Government servants who opt to be governed by the pensionary   benefits   available   under   the   Government, shall   at   the   time   of   their   retirement,   be   entitled   to pension, etc., in accordance with the Central Government rules in force at that time. (c) The  permanent Government servants with less than 10 years’   service,   quasi   permanent   employees   and temporary employees who opt for the rules of the Public Sector Undertaking/Autonomous Body shall be entitled to an amount equal to Provident Fund contribution for the period of their service under the Government up to the date of permanent absorption in the  PSU/Autonomous Body  with simple interest at 6% per annum as opening balance   in   their   CPF   account   with   the   Public   Sector Undertaking/Autonomous Body…” (emphasis supplied)


2.3. In   pursuance   of   the   Office   Memorandum,   Notice   dated December 11, 1989 was issued by Respondent No. 4 – VSNL giving the erstwhile employees of OCS the option to either be absorbed in the regular service of VSNL; or, be transferred to the   Surplus   Staff   Cell   of   the   Central   Government   for employment   against   possible   vacancies   available   in   other Government offices. 3 The Appellants voluntarily exercised the option to be absorbed into the regular service of VSNL with effect from January 2, 1990.

2.4. Thereafter, a Staff Notice dated February 21, 1990 was issued by  Respondent  No. 4  – VSNL to  its  employees, who  were earlier working in OCS. The employees were called upon to exercise   their   option   in   terms   of   Clause   (a)   of   the   Office Memorandum,  i.e.  either  to   retain  the   pensionary   benefits available   under   the   Government   of   India   at   the   time   of retirement as per the applicable Central Government rules in force, or opt to be governed by the rules of Respondent No. 4 – VSNL. The format in which the option was to be indicated was enclosed with the Staff Notice, along with a document titled “Clarificatory Information to Facilitate Exercise of Option”. As per   paragraph   I   (1)   (ii)   of   the   clarificatory   document,   the eligibility   of   employees   who   chose   to   retain   pensionary benefits under the Central Government was conditional on putting in a minimum of ten years of qualifying service. The 4 relevant portion of Paragraph I (1) is reproduced hereinbelow for ready reference: “I.  Exercise  of  option in favour of retention of pensionary benefit under Central Government rules. (1) This   option  is   open   to  every  employee  whose   services have   been   transferred   from   Overseas   Communications Service to Videsh Sanchar Nigam Limited and who has been permanently absorbed in the Videsh Sanchar Nigam Ltd.,   irrespective   of   service   rendered   in   the   Overseas Communications Service. Your eligibility for benefits under the Pension Rules will however be conditional to :­… …  (ii)  Putting   in   a  minimum   of   ten  years   of   qualifying service. (9 years 9 months and above will be reckoned as 10 years)…” (emphasis supplied)

2.5. The Appellants opted to retain pensionary benefits under the rules of the Central Government by exercising their option in pursuance of the Staff Notice dated February 21, 2009.

2.6. Respondent No. 4 – VSNL  vide  Letters dated May 22, 2003 and June 29, 2004, sought a clarification from Respondent No.   3   –   Ministry   of   Communications   and   Information Technology, Department of Telecommunications [“DOT”] as to whether the Appellants – P. Bandhopadhya, I.P. Singh and G. Palaniappan could retain the pensionary benefits in spite of having less than 10 years of service as on January 2, 1990. 5

2.7. In response, the DOT  vide  Letter dated October 13, 2004 requested   VSNL   to   settle   the   cases   of   the   Appellants   in accordance with Clause (b) of the Office Memorandum.

2.8. Accordingly, by Letter dated November 30, 2004, Respondent No. 4 – VSNL informed Respondent No. 2 – Department of Pension and Pension Welfare, Government of India to settle the cases of the Appellants in accordance with Clause (b) of the Office Memorandum. 


2.9. In supersession of the Letter dated October 13, 2004, the Department of Pension and Pension Welfare, Government of India, vide Letter dated March 24, 2005 informed Respondent No. 4 – VSNL that the payment of Pension to the Appellants would be settled in terms of the Office Memorandum. This was re­confirmed by Respondent No. 3 – DOT  vide  Letter dated May 30, 2005.

2.10. Accordingly, Respondent No. 2 – Department of Pension and Pension Welfare, Government of India informed the Appellants that their pension would be settled in terms of the Office Memorandum. 6 2.11. On   June   27,   2005   the   Appellants   were   informed   by Respondent No. 4 – VSNL that they would not be eligible to receive Government Pension. They would, however, be eligible to receive benefits under Clause (c) of the Office Memorandum i.e. an amount equal to the Provident Fund contribution for the period of their service under the Government up to the date   of   permanent   absorption   in   the   Public   Sector Undertaking/Autonomous Body with 6% Simple Interest as opening balance in their CPF account with the Public Sector Undertaking/Autonomous Body.

2.12. Aggrieved   by   this   decision,   the   Appellants   made   a representation   before   the   Respondents   seeking   for   a declaration that their cases be governed by Clause (b), and not Clause (c) of the Office Memorandum.

2.13. The Appellants thereafter filed Writ Petition No. 2704 of 2005 before the Bombay High Court seeking the following prayers:  setting aside of Communication/Orders passed by the Respondents on March 24, 2005, May 30, 2005 and June 27, 2005; 7  directions to treat the cases of the Appellants as being governed by Clause (b), and not Clause (c) of the Office Memorandum. In effect, the Appellants were seeking directions that their cases be considered eligible for grant of pension by the Government of India.


2.14. A Division Bench of the Bombay High Court dismissed Writ Petition No. 2704 of 2005 on April 26, 2006 after holding that the case of the Appellants was covered by an earlier decision of a Division Bench in S.V. Vasaikar & Ors. v. Union of India & Ors.  [2003   (2)   Mh.L.J.   691   :   2003   (4)   Bom   CR   79].   The Judgment dated April 26, 2006 passed by the Division Bench was challenged by the Appellants before this Court by way of S.L.P. (C) No. 15862 of 2006, which was later renumbered as Civil Appeal No. 3059 of 2007. This Court  vide  Order dated July 14, 2011 set aside the Judgment dated April 26, 2006 passed by the Division Bench of the Bombay High Court in view of the submission by the Appellants that the decision in S.V. Vasaikar & Ors. v. Union of India & Ors. [2003 (2) Mh.L.J. 691 : 2003 (4) Bom CR 79] was not applicable to the facts of 8 their case. The matter was remanded to the High Court for fresh consideration on merits.

2.15. After remand, the Bombay High Court re­heard the matter, and passed a detailed judgment dismissing Writ Petition No. 2704 of 2005, and held that the Appellants were not eligible to avail pensionary benefits under the Government of India, since they had served for less than 10 years on the date of their absorption into VSNL. The High Court held that on a cumulative reading of Clauses (a), (b), and (c) of the Office Memorandum makes it clear that only permanent Government servants who have served   for   more   than   10   years   would   have   the   option   of getting pensionary benefits after their absorption in Public Sector Undertakings. The case of the Appellants would be governed by Clause (c) of the Office Memorandum which clearly carved out the category of employees who had not completed 10 years of service.   It   was   held   that   a   new   category   which   is   either contrary to Clause (c), or renders the import of Clauses (a) 9 and   (b)   nugatory,   cannot   be   created   by   way   of   judicial interpretation. The   High   Court   held   that   the   matter   was   squarely covered by the earlier decision of a Division Bench of the Bombay High Court in S.V. Vasaikar & Ors. v. Union of India & Ors. [2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR 79].


3. Aggrieved by the Judgment and Order dated January 13, 2016 passed   by   the   Division   Bench,   the   Appellants   filed   the   present Special Leave Petition. Applications for Impleadment have been filed by 48 persons who claim to be similarly situated as the Appellants. 


4. Mr.   Sanjay   Kumar   Mishra,   Advocate   appeared   on   behalf   of   the Appellants, and sought the setting aside of the impugned Judgment and Order dated January 13, 2016 passed by the Division Bench. Mr. Vikramjit Banerjee, learned Additional Solicitor General, appeared on behalf of Respondent Nos. 1 – 3, and Mr. Maninder Singh, learned Senior Advocate, appeared on behalf of Respondent No. 4 – VSNL.

5. We have perused the record with the able assistance of the counsel for the parties. The issue which arises for our consideration in the 10 present   Civil   Appeal   is   whether   the   Bombay   High   Court   was justified in holding that the case of the Appellants was covered by the earlier decision in S.V. Vasaikar & Ors. v. Union of India & Ors. [2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR 79], and whether they are entitled   to   receive   pensionary   benefits   under   the   Central Government.


6.     SUBMISSIONS OF PETITIONERS

6.1. Mr.   Sanjay   Kumar   Mishra,   Advocate,   submitted   that   the Division Bench of the Bombay High Court had committed an error by denying pensionary benefits to the Appellants.

6.2. It was submitted that Clause (b) of the Office Memorandum would govern the case of the Appellants, since they had opted to avail the pensionary benefits available under the Central Government at the time of their retirement under Clause (a) of the Office Memorandum.

6.3. It was further submitted that the Office Memorandum should be interpreted in isolation on the basis of its plain text, and the Form attached with the Staff Notice dated February 21, 1990 should not condition the said interpretation. 11 6.4. The Division Bench had erroneously interpreted the Office Memorandum, since Clause (a) is the controlling provision, and Clause (c) in no way dilutes what is provided by Clause (a). The   Appellants   challenged   the   interpretation   of   the Office Memorandum given  by a co­ordinate bench  in  S.V. Vasaikar & Ors.  v.  Union of India & Ors.  [2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR 79]. According to Mr. Mishra, Clauses (c) and (d) of the Office Memorandum provides only the mode of payment of retiral benefits with respect to two different categories of employees – viz.  employees with less than 10 years of qualifying service, and employees with more than 10 years of qualifying service.


7.     SUBMISSIONS OF RESPONDENTS


7.1. The counsel for the Respondents inter alia submitted that the issue in the present case was squarely covered by the earlier judgment of the Bombay High Court in S.V. Vasaikar & Ors. v. Union of India & Ors. [2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR   79].   The   Appellants   through   their   Federation   had 12 appeared in this case, and had not challenged this judgment before this Court. As a consequence, this judgment attained finality. It was therefore not open to the Appellants to relitigate   the   same   issue   in   the   present   Writ   Petition.   The Division   Bench   rightly   followed   the   said   decision   while dismissing   Writ   Petition   No.   2704   of   2005   by   way   of   the impugned Judgment and Order dated January 13, 2016.


7.2. It   was   submitted   on   behalf   of   VSNL   that   the   Office Memorandum categorises employees into two classes –  first, those who have completed 10 years of qualifying service; and second, those who do not have 10 years of qualifying service. Under   the   Office   Memorandum,   while   the   first   class   of employees is entitled to pension under the Government of India,   the   second   class   is   entitled   to   a   certain   sum   of Provident Fund contribution.

7.3. The   Appellants   admittedly   had   less   than   10   years   of qualifying service. They had voluntarily exercised their option of   getting   absorbed   in   the   regular   service   of   VSNL.   As   a consequence, this resulted in the severance of their previous service with the Central Government, and they were deemed 13 to have retired from Government service on January 2, 1990 i.e. the date of their absorption with VSNL in accordance with Rule 37(1) of the Central Civil Services (Pension) Rules, 1972 [“CCS (Pension) Rules, 1972]. The Appellants having taken a conscious decision to opt for absorption in VSNL, knowing fully well that they had not completed   10   years   of   qualifying   service   with   the   Central Government, were not entitled to receive pensionary benefits as per Rule 49 of the CCS (Pension) Rules, 1972.


7.4. It was submitted that the Office Memorandum was virtually in conformity with Rule 49 r.w. Rule 37 of the CCS (Pension) Rules, 1972. In any case, the Office Memorandum cannot be interpreted   in   isolation,   and   has   to   be   construed   in consonance with the CCS (Pension) Rules, 1972. The   requirement   of   having   completed   a   minimum qualifying service of 10 years for entitlement to pensionary benefits   under   Rule   49   of   the   CCS   (Service)   Rules,   1972 would apply to Clause (a) of the Office Memorandum. 14 The Appellants had admittedly less than the minimum qualifying   service   of   10   years,   and   were   deemed   to   have retired from Government service, and were not entitled to pensionary   benefits   under   the   Central   Government.   On absorption with VSNL, they would not be entitled to pension.


8.     DISCUSSION AND ANALYSIS

8.1. Rule 37 of the CCS (Pension) Rules, 1972 provides that a Government   servant   who   is   absorbed   in   a   Corporation   or Government   Company   is   deemed   to   have   retired   from government service on the date of his/her absorption. The relevant extract of Rule 37 of the CCS (Pension) Rules, 1972 is reproduced hereinbelow: “37. Pension on absorption in or under a corporation, company or body (1)     A Government   servant   who   has   been   permitted   to   be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government  or a State Government or in or under   a   Body   controlled   or   financed   by   the   Central Government or a State Government,  shall be deemed to have retired from service from the date of such absorption and subject to sub­rule (3) he shall be eligible to receive retirement   benefits   if   any,   from   such   date   as   may   be determined, in accordance with the orders of the Central Government applicable to him. (2) … 15 (3) Where there is pension scheme in a body controlled or financed   by   the   Central   Government   in   which   a Government servant is absorbed, he shall be entitled to exercise option either to count the service rendered under the Central Government in that body for pension or to receive   pro   rata   retirement   benefits   for   the   service rendered   under   the   Central   Government   in   accordance with the orders issued by the Central Government. EXPLANATION.–   Body   means   Autonomous   Body   or   Statutory Body.” (emphasis supplied) The Appellants having voluntarily exercised the option to get absorbed in the regular service of VSNL, were deemed to have retired from the service of the Central Government on the date of their absorption i.e. January 2, 1990 as per Rule 37(1) of the CCS (Pension) Rules, 1972.

8.2. It   is   the   admitted   position   that   the   Appellants   had   not completed 10 years of service on the date of their absorption into VSNL, i.e.  when they were deemed to have retired from the service of the Central Government. To receive pensionary benefits from the Government, a Government   servant   is   required   to   put   in   a   minimum ‘qualifying   service’   as   defined   by   Rule   3(q)   of   the   CCS (Pension)   Rules,   1972.   According   to   Rule   3(q),   ‘qualifying service’   means   the   service   rendered   while   on   duty   or 16 otherwise which shall be taken into account for the purpose of   Pensions   and   Gratuities   admissible   under   the   CCS (Pension) Rules, 1972.


8.3. Rule 49(2) of the CCS (Pension) Rules, 1972 provides that a Government   servant   is   entitled   to   receive   pension   on retirement only after the completion of the qualifying service of 10 years.1  On the other hand, a Government servant who retires before completing the qualifying service of 10 years is entitled   to   service   gratuity   under   Rule   49(1)   of   the   CCS (Pension) Rules, 1972. The relevant extract of Rule 49 of the CCS (Pension) Rules, 1972 is reproduced hereunder for ready reference: “49. Amount of Pension (1) In the case of a Government servant retiring in accordance with   the   provisions   of   these   rules  before   completing qualifying   service   of   ten   years,   the   amount   of   service gratuity  shall be calculated at the rate of half month’s emoluments   for   every   completed   six   monthly   period   of qualifying service. (2) (a)   In   the   case   of   a   Government   servant   retiring   in accordance   with   the   provisions   of   these   rules   after completing qualifying service of not less than thirty­three years, the amount of pension shall be calculated at fifty per cent of average emoluments, subject to a maximum of four thousand and five hundred rupees per mensem.; 1 Union of India & Anr. v. Bashirbhai R. Khiliji, (2007) 6 SCC 16 : AIR 2007 SC 1935. 17 (b)   In   the   case   of   a   Government   servant   retiring  in accordance   with   the   provisions   of   these   rules  before completing   qualifying   service   of   thirty­three   years,   but after   completing   qualifying   service   of   ten   years,   the amount of pension admissible under Clause (a) and in no case the  amount of pension shall be less than Rupees three hundred and seventy­five per mensem;…” (emphasis supplied) A conjoint reading of the statutory rules,  i.e.  Rule 37 with Rule 49 of the CCS (Pension) Rules, 1972, would make it abundantly   clear   that   the   Appellants   were   not   entitled   to pensionary benefits since admittedly they did not have the minimum qualifying service of 10 years, to make their service pensionable with the Central Government. On absorption in VSNL on January 2, 1990 there was a severance of their service with the Central Government. The Appellants would be entitled to the retiral benefits under VSNL. After exercising the option to be absorbed in VSNL, the Appellants are now estopped from seeking pensionary benefits from the Central Government. 18


8.4. The Office Memorandum dated July 5, 1989 was issued by the Department of Pension and Pension Welfare, Government of   India   to   settle   the   pensionary   terms   and   conditions applicable in cases of en masse transfer of employees on the conversion of a Government Department into a Central Public Sector Undertaking/Autonomous Body. (A) Clause (a) of the Office Memorandum provided an option to   Government   servants   (permanent,   quasi­permanent and temporary) to either retain the pensionary benefits available   to   them   under   the   Government   rules   or   be governed   by   the   rules   of   the   Public   Sector Undertaking/Autonomous   Body.   Under   Clause   (b), Government   servants   who   opt   to   retain   pensionary benefits were entitled to receive pension at the time of their retirement “in accordance with Central Government rules in force at that time”. (B) A  conjoint reading of Clauses (a) and (b) would indicate that   the   option   of   retaining   pensionary   benefits   was available only to those Government servants who were, in the first place, entitled to receive pension at the time of 19 their retirement. This is evident from Clause (a) which provides   the   option   to   “retain”   pensionary   benefits available under the relevant Government rules. Clauses (a) and (b) pre­suppose that the Government servants who opt to retain pensionary benefits, should be entitled to receive pensionary benefits under the Central Government rules, in the first place. (C) Rule 37 read with Rule 49 of the CCS (Pension) Rules, 1972 indicates that the Appellants were not entitled to receive   Pension   under   the   CCS   (Pension)   Rules,   1972, since   they   had   not   completed   10   years   of   qualifying service.   There   was,   therefore,   no   question   of   the Appellants availing of the option of ‘retaining’ the benefits under Clause (a). (D) The Division Bench has rightly held that Clause (b) of the Office Memorandum cannot be read in isolation, and is required to be read in conjunction with Clause (a). The entitlement to Pension under Clause (b) is qualified by the phrase “in accordance with the Central Government rules in force at that time”. 20 (E) Further,   Paragraph   I   (1)   (ii)   of   the   document   titled “Clarificatory Information to Facilitate Exercise of Option” clearly   stated   that   the   eligibility   to   retain   pensionary benefits under the Central Government was subject to the condition   of   putting   in   a   minimum   of   10   years   as qualifying service. The   Appellants   were   specifically   informed   of   this clarification   at  the   time  of  exercising  their  option   that their   eligibility   for   pensionary   benefits   under   the   CCS (Pension) Rules, 1972 was dependant on their fulfilling the minimum   eligibility   requirement   of   10   years   qualifying service on the day their retirement.

8.5. We find great force in the submissions made by Mr. Maninder Singh, Senior Advocate appearing for VSNL, and the learned Additional Solicitor General, that the case is squarely covered by the earlier decision of a Division Bench of the Bombay High Court in  S.V. Vasaikar & Ors.  v. Union of India & Ors. [2003 (2) Mh. L.J. 691 : 2003 (4) Bom CR 79].


8.6. It has been rightly contended that the earlier Writ Petition No. 5374 of 2002 was filed in a representative capacity. Petitioner 21 No. 3 in the said Writ Petition was the Federation of the VSNL Employees Union, a collective body of VSNL employees. The Federation   was   espousing   the   collective   interest   of   the Appellants, and other similarly situated persons before the Division   Bench.   The   prayers   in   Writ   Petition   No.   5374   of 2002, was recorded by the High Court in the following words: “3. In the second petition, i.e., Writ Petition No. 5374 of 2002, a   prayer   is   made   for  declaring   that   the   action   of   the respondents   in   not   giving   the   petitioners   and   similarly situated   employees,  who  had  not   completed  ten  years  of service with the Government of India, the right to exercise option for retaining Government pensionary benefits on their absorption   with   VSNL   is   arbitrary,   discriminatory   and violative of Articles 14 and 16 of the Constitution. It was, therefore, prayed that appropriate direction be issued to the Government   of   India   that   the  Petitioners   and   similarly situated   employees,  who  had  not   completed  ten  years  of service on their date of absorption in VSNL, are entitled to exercise option for retaining Government pensionary benefits by counting their service in Government of India along with their service with VSNL for such benefits.” (emphasis supplied) The Division Bench dismissed the Writ Petitions, and held as follows: “26. Regarding the contention that employees, who had not completed ten years, were not allowed to exercise the option with regard to pensionary benefits, it may be stated that even when they were in the Government service, when VSNL was a Government Company, they were not entitled to such benefits.   Reading   the   memorandum   also,   it   becomes abundantly clear that the persons, who had not completed ten years of service with the Government, were not entitled to 22 pensionary benefits. The option, which was allowed by the Government, and to be exercised by the employees, was in respect of those employees who had completed ten years or more   of   service  and   quasi­permanent   employees   and temporary employees, who would be entitled to such benefits after   they   would   be   confirmed   in   the   Public   Sector   or Autonomous   Bodies.  Since   the   petitioners   and   similarly situated   persons,   who   had   not   completed   ten   years   of service, were not entitled to such benefits even under the Government,   they   cannot   make   grievance   for   pensionary benefits.” (emphasis supplied) The afore­said findings of the Division Bench squarely cover the present case of the Appellants.

8.7. The decision in S.V. Vasaikar & Ors. v. Union of India & Ors. [2003   (2)   Mh.   L.J.   691   :   2003   (4)   Bom   CR   79]   was   not challenged before the Supreme Court, and has since attained finality. Therefore, the relief sought by the Appellants before the High Court was barred by the principle of res judicata. Reference   can   be   made   to   the   decision   of   the Constitution   Bench   in  Direct   Recruit   Class   II   Engineering Officers’ Association v. State of Maharashtra & Ors.2 wherein Sharma, J., on behalf of the five­judge bench, held: “35…It is well established that the principles of res judicata are   applicable   to   writ   petitions.   The   relief   prayed   for   on behalf of the petitioner in the present case is the same as he 2 (1990) 2 SCC 715 : AIR 1990 SC 1607. 23 would  have, in the  event  of his success, obtained  in the earlier writ petition before the High Court. The petitioner in reply contended that since the special leave petition before this   Court   was   dismissed   in   limine   without   giving   any reason, the order cannot be relied upon for a plea of res judicata. The answer is that it is not the order of this Court dismissing the special leave petition which is being relied upon; the plea of res judicata has been pressed on the basis of the High Court’s judgment which became final after the dismissal of the special leave petition. In similar situation a Constitution Bench of this Court in Daryao v. State of UP3 held that where the High Court dismisses a writ petition under Article 226 of the Constitution after hearing the matter on the merits, a subsequent petition in the Supreme Court under Article 32 on the same facts and for the same reliefs filed   by   the   same   parties   will   be   barred   by   the   general principle of res judicata. The binding character of judgments of courts of competent jurisdiction is in essence a part of the rule of law on which the administration of justice, so much emphasised by the Constitution, is founded and a judgment of the High Court under Article 226 passed after a hearing on the merits must bind the parties till set aside in appeal as provided by the Constitution and cannot be permitted to be circumvented by a petition under Article 32…” (emphasis supplied) Albeit the decision of the Constitution Bench was in the context of a Writ Petition filed under Article 32, it would apply with greater force to bar a Writ Petition filed under Article 226,   like   the   one   filed   by   the   present   Appellants,   by   the operation of the principle of res judicata. 3 (1962) 1 SCR 574 : AIR 1961 SC 1457. 24 8.8. The   Appellants   were   not   entitled   to   receive   pensionary benefits either under the CCS (Pension) Rules, 1972 or under Clauses (a) and (b) of the Office Memorandum.  The case of the Appellants being Government servants prior to their absorption in VSNL, with less than 10 years of qualifying service, would be squarely covered by Clause (c) of the Office Memorandum. Under Clause (c), they would be entitled to receive an amount equal to the Provident Fund contribution   for   the   period   of   their   service   under   the Government,   upto   the   date   of   their   permanent   absorption along with Simple Interest at 6%  per annum  as the opening balance   in   their   CPF   account   with   the   Public   Sector Undertaking/Autonomous Body.


9. In   view   of   the   aforesaid   findings,   the   present   Civil   Appeal   is dismissed. The impugned Judgment and Order dated January 13, 2016 passed by the Bombay High Court in Writ Petition No. 2704 of 2005 is affirmed.

10. The Applications for Impleadment filed in the Appeal are disposed of in terms of the present judgment. Any other pending I.A.s are disposed of. Ordered accordingly.

…..……...........................J. (UDAY UMESH LALIT) ..….……..........................J. (INDU MALHOTRA)

New Delhi March 15, 2019. 26

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