In Brief
An autonomous institute established under the Anugraha Narayan Sinha Institute of Social Studies Act, 1964, sought to compel the Bihar state government to pay pension arrears and ongoing pension to its employees. The Supreme Court held that the state had no legal obligation to fund the pension scheme, as the institute's own board resolution in 1985 determined the retirement benefit scheme would operate from the institute's resources without seeking additional state grants. While legitimate expectation is a ground for judicial review, it cannot create enforceable legal rights without an underlying legal obligation. Past state payments, whether voluntary or erroneous, cannot be judicially enforced as permanent entitlements. The Court affirmed that autonomous institute employees cannot be treated as state employees, and the state cannot be burdened with their pension liability.
The lawyer headnote and full judgment text are available to registered users.