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Supreme Court of India 2022-01-10 allowed

State of Maharashtra & Anr vs Bhagwan & Ors

Bench: 2 — M.R. Shah

In Brief

The Water and Land Management Institute (WALMI) is an autonomous society registered under the Societies Registration Act, 1860, governing water and land management education and research in Maharashtra. WALMI employees sought pension benefits on par with State Government employees. The High Court granted their request, holding it discriminatory to deny such benefits given WALMI receives 100% state funding and employees are paid from the Consolidated Fund. The Supreme Court reversed this, holding that autonomous bodies cannot claim parity with Government employees merely because they receive state grants or have government-appointed governing council members. WALMI's own rules explicitly exclude pension benefits. The State's 2005 policy decision to deny pension to aided institute employees is a valid policy choice with financial implications that courts should not interfere with. The Court held pensionary benefits are recurring liabilities, not one-time payments, and availability of current funds cannot justify perpetual commitments.

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Administrative Law Constitutional Law Service Law Pension Benefits Autonomous Bodies Policy Decisions

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