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In 1974, the Undertakings in India of ESSO Eastern Inc. that is, ESSO Standard Refining Company of India Ltd. (for short 'ESSO') and Lube India Ltd. (for short 'LIL') were acquired by the ESSO (Acquisition of Undertakings in India) Act, 1974 and vested in Hindustan Petroleum Corporation Ltd. (for short 'HPCL'), a Government Company. In 1977, the shares of Caltex Oil Refining (India) Ltd. and Undertakings in India of Caltex (India) Ltd. were acquired by the Caltex (Acquisition of Shares of Caltex Oil Refining (India) Ltd. and the Undertakings in India of Caltex (India) Ltd. Act, 1977 and vested in Caltex Oil Refining (India) Ltd. (for short 'CORIL'), a Government Company. On May 5, 1978, by the order of the Company Law Board, CORIL was amalgamated with HPCL.

In the scheme the pay-scales of ESSO, LIL and CORIL sought to be equated with the pay-scales of HPCL are as follows: 

From ESSO	     To	 :  HPCL HPCL
Salary Group	     Salary Group  Salary Scale
				   RS.
E-7, E-8		A	   750-40-1150-50-1550
E-6			B	   1050-50-1450-60-1750

E-5, E-5A		    C	  1450-60-1690-65-1950
E-4			    D	  1600-65-2120
E - 3			    E	  1850-100-2350
E-2			    F	  2000-100-2500
O & E-1 & Unclassified	    G	  2250-100-2750
General Manager		    H	  2500-100-3000
From  :	 LIL	    To	:  HPCL	  HPCL
Salary Group	     Salary Group	Salary Scale
L-7			A	   750-40-1150-50-1550
L-6			B	   1050-50-1450-60-1750
L-5			C	   1450-60-1690-65-1950
L-4			D	   1600-65-2120
L -3			E	   1850-100-2350
L -2			F	   2000-100-2350
L- 1			G	   2250-100-2750
General Manager		H	   2500-100-3000
From CORIL	   To  :  HPCL	 HPCL
Salary Group	     Salary Group	Salary Scale
R-6 A, R-6 B		A	   759-40-1150-50-1550
R-7 A, R-7 B		B	   1050-50-1450-60-1750
R-8			C	   1450-60-1690-65-1950
R-9			D	   1600-65 -2 120
R- 10			E	   1850-100-2350
R- 11			F	   2000-100-2500
R- 12			G	   2250-100-2750
General Manager		H	   2500-100-3000
368

The complaint of the petitioners is that in the matter of fitment/ integration of the officers of CORIL, that is, the petitioners, and the officers of ESSO/LIL into HPCL/IOC Grades, gross disparities have been made to the prejudice of the officers of CORIL. It is the case of the petitioners that the officers of CORIL have been fitted by HPCL consist- ently in one or two Grades lower in HPCL vis-a-vis their counterparts in ESSO/LIL, performing similar duties and having similar responsibilities and status. It is urged on behalf of CORIL that in integrating the officers CORIL with those of ESSO and LIL, HPCL did not make any attempt to equate all the positions held by the officers of CORIL with those held by the officers of ESSO/LIL. It is submitted that before any fitment can be made into any scale of pay, it is incumbent to make an equation of posts and without such equation the officers of CORIL could not be fitted into the pay-scales of HPCL along with the officers of ESSO and LIL. In support of the contention that HPCL has not made any equation of posts before fitment in HPCL/IOC scales of pay, Mr. Sachar, learned Counsel appearing on behalf of the petitioners, has placed much reliance on the Tandon Commit- tee's Report. In the said report, the post of General Sales Representative of ESSO has been equated with the post of Retail Development Supervisor of CORIL. In the scheme pre- pared by HPCL, the post of General Sales Representative of ESSO (E-6) and that of Depot Superintendent (E-6) have been placed in the Salary Group B of HPCL, while the post of Retail Development Supervisor (R6-A) and Depot Superintend- ent/Relief Depot Superintendent (R6-B) of CORIL have been placed in the Salary Group A of HPCL. In Tandon Committee's Report, it has been observed that the functional similari- ties and the responsibility carried by both these function- aries, namely, Retail Development Supervisor of CORIL and General Sales Representative of ESSO, are alike. Further, it has been observed that since these two posts are congruent, they can be fitted in the same Group, that is, in Group B of the new HPCL Grade Structure representing IOC scales of pay. The post of Depot Super intendent-A (R7-B) and that of Mar- keting Representative (R7-A) of CORIL have been placed in the Salary Group B of HPCL, but similar posts of ESSO being E-5/E-5A have been placed in the Salary Group C of HPCL. It is thus complained that the scheme, which has been prepared by HPCL, is arbitrary and is not based on a proper equation of posts.

The contention of the petitioners is that the compres- sion should have been made at the higher grades, namely, Grades R11 and R12 and the Grade of General Manager. This is not for this Court to say whether the compression should have been made in the lower grades or in the higher grades. By such compression, Grades R6 A and R7 A have been upgraded and the persons placed in those Grades have been benefited by such upgradation. There is much substance in the conten- tion made on behalf of HPCL that if compression had been made in the upper grades, there would be much complications and, moreover, such compression in the upper grades was not convenient to be made in view of functional differences. The Grade of General Manager cannot be clubbed together with a lower grade. In the circumstances, we are unable to accept the contention of the petitioners that the compression should have been made in the higher grades of CORIL. The most important question that requires consideration is whether in framing the rationalisation scheme HPCL has really made the equation of posts of CORIL with those of ESSO/LIL. It is the positive case of the petitioners that no such equation has been made and the fitment of the officers of CORIL and those of ESSO/LIL in the IOC/HPCL scales of pay have been made without the equation of posts, which is a sine qua non for integration of officers coming from different sources. The petitioners have mainly relied upon the recommendation of the Tandon Committee that General Sales Representative of ESSO has been equated with the post of Retail Development Supervisor of CORIL. In the scheme prepared by HPCL, the post of General Sales Representative of ESSO and that of Depot Superintendent have been placed in the Salary Group B of HPCL, while the post of Retail Development Supervisor and Depot Superintendent/Relief Depot Superintendent of CORIL have been placed in the Salary Group A of HPCL. As against this, the contention of HPCL is that the two Committees that were appointed by the Chairman of HPCL considered the different methods of fitment and equivalence of different pay-scales of ESSO, LIL and CORIL with the pay-scales of IOC. Except the bare allegation, no material has been produced before us on behalf of HPCL to show that the said Committees had, as a matter of fact, considered the question of equation of posts on the basis of the principle as laid down by the Central Government while referring the matter to the Tandon Committee, namely, functional similari- ty and co-equal responsibility. In the affidavits filed on behalf of HPCL, no particulars have been given with regard to the functional equivalence or otherwise of the different grades of these officers of CORIL, ESSO and LIL. It is also not stated what happened to the consideration by the Govern- ment of the Tandon Committee's report. There can be no doubt that the Government is not bound to accept the recommenda- tion of the Tandon Committee but, at the same time, the equation of posts has to be made on the principle of func- tional equivalence and co-equal responsibility. As no mate- rials have been produced in that regard on behalf of HPCL, it is difficult for us to hold that the different grades of posts have been compared before placing the officers of these companies in the IOC/HPCL scales of pay. While it is not within the domain of the Court to make the equation of posts for the purpose of integration, it is surely the concern of the Court to see that before the integration is made and consequent fitment of officers in different grades/scales of pay is effected, there must be an equation of different posts in accordance with the principle stated above. As there is no evidence or material in support of such equation of posts, it is difficult to accept the ra- tionalisation scheme with regard to the placing of the officers of CORIL in different IOC/HPCL grades of pay.