VIDESH SANCHAR NIGAM LTD. & ANR. versus AJIT KUMAR KAR & ORS.

VIDESH SANCHAR NIGAM LTD. & ANR. versus AJIT KUMAR KAR & ORS.

Employees transferred from OCS to VSNL and opting for Government pension are entitled to pension calculated on emoluments as per IDA pay scales and Dearness Relief at IDA rates only; erroneous payment of DA at Central rates cannot constitute a vested right; respondents cannot receive DA twice, as order of High Court would result in excess of permissible neutralization.

Parties
Appellant: Videsh Sanchar Nigam Ltd.; Respondent: Ajit Kumar Kar; Respondent: Union of India; Respondent: Respondent Nos. 1 to 8 (Retired Employees of VSNL)
Jurisdiction
India
Judgment Date
01 April 2008
Procedural Posture
Civil Appeal / Appeal From Division Bench of High Court
Outcome
Appeal allowed; High Court orders set aside; writ petition dismissed.
Legal Topics
Pension, Dearness Relief, Central Civil Services (pension) Rules, 1972, Absorption in Public Sector Undertaking, Emoluments, Pay Scales, Fundamental Rules, Gratuity, Commuted Value of Pension
Service Law Pension Dearness Relief Central Civil Services (pension) Rules, 1972 Absorption in Public Sector Undertaking Emoluments Pay Scales Fundamental Rules +2 more

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Parties

Videsh Sanchar Nigam Ltd.

Appellant

Ajit Kumar Kar

Respondent

Union of India

Respondent

Respondent Nos. 1 to 8 (Retired Employees of VSNL)

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench of High Court

Legal Issues

  1. 1 Entitlement to dearness relief on pension computed on IDA pay scales for employees absorbed in VSNL from OCS
  2. 2 Whether pensioners can receive DA at both CDA and IDA scales
  3. 3 If mistaken extra pensionary benefits can be treated as a vested right

Ratio Decidendi

Employees transferred from OCS to VSNL and opting for Government pension are entitled to pension calculated on emoluments as per IDA pay scales and Dearness Relief at IDA rates only; erroneous payment of DA at Central rates cannot constitute a vested right; respondents cannot receive DA twice, as order of High Court would result in excess of permissible neutralization.

Court Disposition

Appeal allowed; High Court orders set aside; writ petition dismissed.

Orders

  • Impugned orders of Single Judge and Division Bench of Calcutta High Court set aside.
  • Writ petition dismissed.