SOM PRAKASH V. UNION OF INDIA AIR 1981 SC 212 

FACTS  

The petitioner was a clerk in Burma Shell Oil Storage Ltd, he was qualified for pension and  he opted for voluntary retirement along with that he was entitled to receive provident fund  under the Employee’s Provident Fund and Miscellaneous Provision Act, 1952 and Gratuity  under the Payment of Gratuity Act, 1972. 

The petitioner retired on 1^stApril,1973. Upon retirement he was entitled to receive an amount  of 165.99 along with supplementary retirement benefit of Rs.86 per month for a period of 13  months. This amount was subject to certain deductions under Regulation 16, subsequently the  amount left after deduction was Rs.40.05. 

After a while, Burma Shells were taken over by the Government of India under Burma Shell  (Acquisition of Undertaking in India) Act, 1976. Bharat petroleum corporation Ltd. Became a  successor of Burma Shell Oil Storage Ltd.  

On25th September a letter was sent to petitioner concerning the deductions which resulted in altogether pension of Rs.40.05 further, the amount of Rs.86 per month was a subject of  petitioner’s discretion was withdrawn. 

The petitioner by a way of writ petition under Article 32 of the Indian constitution filed a plea  in the supreme court of India, after such deduction. 

ISSUES  

Whether the company Burma Shell Oil Storage Ltd. Which was acquired by the central  government is a state under Article 32 of the constitution?

Whether the two deductions made in his pension are valid as it violates Art 14 and 19 of the  Indian constitution? 

ARGUMENTS 

The respondents raised an objection in connection with the second respondents that no writ  will lie against them since it is neither a government body nor a statutory organization but a  simple company. They further stated that the gratuity amount and the pension amount cannot  be separated as they go hand in hand. The main concern by the petitioner was the validity of  the said deductions to be considered in granting him his pension. 

JUDGEMENT  

The bench consisted of three members namely justice V.P.Krishna Iyer, who delivered the  judgement, justice O.Chinnappa Reddy and justice R.S.Pathak, who had a contrasting  opinion, yet the judgement was delivered unanimously by three judges. 

It was held that every government owned companies or corporations, although considered a  separate legal entity to be included in the ambit of Article 12, to be considered a part of state. Thus, Bharat Petroleum Corporation Ltd to be considered a part of State. 

Gratuity and provident fund to be a separate payment and not to go hand in hand along with  that any deduction made in the security deposit will never be considered a complete benefit. 

This case analysis is done by Bhumika Kathuria, of Vivekananda Institute of professional  Studies, intern at Legal Vidhiya.

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