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Supreme Court of India 2021-02-22 allowed

Himachal Road Transport Corporation & Anr vs Himachal Road Transport Corporation Retired Employees Union

Bench: 3 — Ashok Bhushan, R. Subhash Reddy, M.R. Shah

In Brief

A road transport corporation introduced a Pension Scheme on 05.06.1995 but excluded employees who had retired before that date, offering it only to those in service on that date or retiring thereafter. Retired employees challenged this cut-off date as discriminatory under the Constitution. The Supreme Court upheld the cut-off date, holding that retired employees who had already received benefits under the Contributory Provident Fund Scheme formed a different class from those in service when the Pension Scheme was created. The Court found the date reasonable as it corresponded to Cabinet approval and was justified by financial considerations, distinguishing this case from earlier rigid precedents on pension equality.

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Constitutional Law Administrative Law Employee Benefits Pensions Classification and Equal Protection Cut-off Dates

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