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Issues:
1. Interpretation of the Burmah Shell (Acquisition of Undertakings in India) Act, 1976 regarding pension funds transfer. 2. Extension of benefits for restoration of commuted pension and escalation in pension for Burmah Shell Management Staff Pensioners. Analysis: The Supreme Court judgment in this case involved the interpretation of the Burmah Shell (Acquisition of Undertakings in India) Act, 1976, specifically focusing on the transfer of pension funds. Under this Act, the right, title, and interest of Burmah Shell in its undertakings in India were acquired by the Central Government. The Act detailed the transfer of assets, liabilities, and the employment status of individuals previously employed by Burmah Shell. The petitioners, former Burmah Shell Management Staff Pensioners, sought relief for the restoration of commuted pension after 15 years and an increase in pension to address the impact of inflation and cost of living. The respondent, Bharat Petrolium Corporation A Limited, argued that the pension scheme was a funded scheme and differed from those applicable to government servants. The Court referred questions to an actuary regarding the financial solvency of the pension fund to accommodate the restoration of commuted pensions and pension escalation. The actuary's report indicated substantial additional liabilities for pension restoration. However, the Court decided to focus solely on the pension escalation issue due to a submission from the petitioners' counsel. The Court considered the pension fund of Burmah Shell and compared it to the pension benefits provided by Hindustan Petroleum Corporation, a sister concern nationalized by the government. Despite differences in pension schemes, the Court noted the obligation of the respondent company to supplement the pension fund from its earnings. The Court highlighted the devaluation of the rupee, the recognition of pension as property, and the State's liability towards retired personnel in a welfare state. Ultimately, the Court held that the petitioners were entitled to a pension hike similar to that granted by Hindustan Petroleum Corporation, effective from a specified date. The respondent company was directed to allocate funds if the pension fund was insufficient to cover the increased pension amount. The Court emphasized the obligation of the company to meet the justified pension escalation and ordered the disbursement of additional pension by a specified deadline. The judgment concluded with the allowance of the petition without costs.
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