- (1.) The dispute in these matters basically between the appellant and the serving employees of Air India on one hand and retired employees on the other is about the interpretation of Air India Employees Self-Contributory Superannuation Pension scheme (hereinafter referred to as 'scheme').
(2.) In or about 1994, Air India proposed creation of a Pension Scheme for its employees. The Scheme was based on actuarial reports. The employees had to contribute to the fund under the Scheme, Air India contributing a token sum of Rs. 100/- per annum for all the employees put together. Broadly, Scheme was that all full time employees of Air India would become members of the Scheme and contribute a percentage of their salary to be deducted every month and credited to the fund under the Scheme. Each member had to contribute for a minimum period of 15 years and for those who did not have sufficient number of years of service from the date of the commencement of the scheme upto their superannuation, an amount was calculated based on the total number of years in deficit and the member was required to make payment of the entire sum so calculated either in lump sum or to pay the said amount in monthly installment along with interest on the total sum due. On 12th August, 1996, a deed of trust for incorporating the Scheme was entered into between air India and the trustees. The deed also contained rules known as 'air India Employees Selfcontributing Pensionary scheme Rules' (hereinafter referred to as 'the Rules'). Further, it postulated creation of a pension fund. A deed of variation of the trust was executed on 7th october, 1997 to amend certain provisions of the trust deed. The trust deed, inter alia, stipulates that the retiring employees would get pension equivalent to 40 per cent of the last pay drawn salary, consisting of basic pay, dearness allowances and personal pay, if any.
(3.) To give effect to the aforesaid, an agreement was entered into with Life Insurance corporation of India which issued a master policy stipulating various terms and conditions.;