- (1.) This appeal by the Kerala State Road Transport Corporation, hereinafter referred to as KSRTC, challenges the decision of the High Court of Kerala in a series of Writ Appeals rendered on 24.3.2004 pursuant to an order of remand made by this Court in Civil Appeal Nos. 6651-6654 of 2000 and the connected cases. The decision remanding, was rendered on 17.4.2003 and the same is reported as Kerala State Road Transport Corporation Vs. K.O. Varghese & Ors. [(2003) 12 SCC 293].
(2.) KSRTC is a Corporation established under the Road Transport Corporation Act, 1950, hereinafter called, "the Act". The Corporation was formed on 15.3.1965. On 22.3.1965, the employees of the Transport Department of the Government of Kerala were absorbed in KSRTC. KSRTC became functional with effect from 1.4.1965. In the general instructions issued on 22.3.1965 in exercise of power under Section 34(1) of the Act, the Government while transferring the existing transport undertakings and their assets and liabilities to KSRTC, also made applicable to it, all orders and notifications thereunto issued by the Government, which were not inconsistent with the provisions of the Act, until their alteration or repeal. Part II thereof dealt with the staff. It would be profitable to set down paragraphs 10 to 12 of that Order at this stage: "10. All persons employed by Government in the State Transport Department and appointed substantively to a permanent post in that Department who would have continued in the service of Government but for the transfer of the management of the State Undertaking to the Corporation, shall be treated as permanently transferred to the Corporation for appointment under Section 14(2) of the Road Transport Corporation Act, 1950 (Central Act, LXIV of 1950) and on such transfer they will be deemed to have vacated office under Government and to have been offered and to have accepted employment under the Corporation. Provided that the provision shall not apply to persons, if any, appointed in the State Transport Department to the posts of Director of Transport and Chief Mechanical Engineer, and such persons shall continue as supernumeraries under Government service until further orders. 11. The Corporation shall guarantee continued employment to all such personnel as are transferred for service under the Corporation, under the same terms and conditions of service as were applicable to them under Government immediately before such transfer. 12. The Corporation shall pay to the employees so transferred their pension, gratuity and provident fund according to the relevant rules, notifications and orders of Government in force and applicable to them immediately before such transfer as and when such benefits accrue." In paragraph 15, it was provided that the past services of the transferred employees with the Government, would count for the purposes of promotion, leave, pension and such other benefits. Thus the transferred employees who retired from KSRTC were eligible for pension in terms of their conditions of absorption. But in terms of clause 10 they ceased to be employees of the Government.
(3.) On 27.3.1984, the Government of Kerala authorized KSRTC to pay pension to its employees as per Kerala Service Rules, hereinafter referred to as "KSR". The said communication is on the following terms. "In continuation of the letter cited above, I am directed to convey the Government decision authorizing the KSRTC to pay pension to its employees as per KSR and introduce GPF instead of contributory provident fund with effect from 1.4.1984. The KSRTC will obtain written undertaking from each employee to refund the management share of contribution to GPF as well as family pension fund hitherto made in consultation with the Regional Provident Fund Commissioner." On 5.5.1984, an order was issued by the Managing Director of KSRTC that all Corporation employees who retire after 1.4.1984 would be paid pension subject to the employees fulfilling the stipulations therein.;