BHARAT PETROLEUM (ERSTWHILE BURMAH SHELL) MANAGEMENT STAFFP vs BHARAT PETROLEUM CORPORATION LTD. & ORS.

The Supreme Court held that under the Burmah Shell (Acquisition of Undertakings in India) Act, 1976, the management staff pensioners of Burmah Shell are entitled to an escalation in their pension due to the loss of purchasing power of the rupee. The Court recognized that pension is property and not a bounty, affirming that the state has an obligation to ensure adequate pension adjustments. The Court ordered the respondent company to implement the pension hike effective from May 1, 1988, at the same rate as provided by Hindustan Petroleum Corporation, with additional funds allocated if necessary.