In Brief
The State of Bihar appealed against a High Court order directing it to pay arrears and current pension to employees of the Anugraha Narayan Sinha Institute of Social Studies, an autonomous statutory body. The Institute's Board had resolved in 1985 to implement a retirement scheme from its own resources. Although the State had voluntarily contributed towards pension in certain years, the Supreme Court held that such discretionary payments did not create a legal obligation or enforceable right. The Court ruled that legitimate expectation must be grounded in law or statute, not mere past practice, and that an autonomous Institute's employees cannot be equated with State employees. The appeal was allowed and the writ petition dismissed.
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