2022 (1) TMI 1233 - SC - Indian Laws

Supreme Court rules against pension parity for WALMI employees, upholding autonomy and policy discretion

The State of Maharashtra and Ors. Versus Bhagwan, Sudhakar Namdeo Gaikwad, Uttam & Ors. Etc. Etc

The Supreme Court held that employees of the Water and Land Management Institute (WALMI) are not entitled to pensionary benefits on par with State ... Extension of pensionary benefits to the employees of Water and Land Management Institute, the State of Maharashtra and another - whether the employees of the WALMI are entitled to the pensionary benefits on par with the State Government employees? - HELD THAT:- WALMI is an independent autonomous body and a Society registered under the Societies Registration Act, 1860. The administration and management of the WALMI is through its Governing Council. That WALMI has its own Rules, namely, WALMI Establishment Rules, 1980, governing the service conditions and the benefits available to the employees of WALMI. The WALMI Establishment Rules, 1980 provide for the benefits of travelling allowance, daily allowance, medical reimbursement, house rent allowance etc. but however, do not provide for pension, provident fund. Thereafter the Governing Council of WALMI has adopted the Maharashtra Civil Services Rules except Pension Rules. Thus, it can be seen that WALMI is an independent autonomous entity governed by their own Rules and Regulations and the administration and management of WALMI is being run through/by its Governing Council. It is required to be noted that as such the Government vide G.R. dated 08.11.2005 specifically took a policy decision that the employees of aided institutes, boards, corporations, who are not governed by Maharashtra Civil Services (Pension) Rules, 1982, shall not be made applicable to such institutions. Even the proposal made by the then Director of WALMI to extend the pensionary benefits to the employees of WALMI came to be rejected by the State Government. Neither the G.R. dated 08.11.2005 nor the decision of the State Government refusing to extend the pensionary benefits to the employees of WALMI are challenged. As per the law laid down by this Court in a catena of decisions, the employees of the autonomous bodies cannot claim, as a matter of right, the same service benefits on par with the Government employees. Merely because such autonomous bodies might have adopted the Government Service Rules and/or in the Governing Council there may be a representative of the Government and/or merely because such institution is funded by the State/Central Government, employees of such autonomous bodies cannot, as a matter of right, claim parity with the State/Central Government employees. In the present case, WALMI being an autonomous body, registered under the Societies Registration Act, the employees of WALMI are governed by their own Service Rules and conditions, which specifically do not provide for any pensionary benefits; the Governing Council of WALMI has adopted the Maharashtra Civil Services Rules except the Pension Rules - the High Court is not justified in directing the State to extend the pensionary benefits to the employees of WALMI, which is an independent autonomous entity. The impugned common judgment and order passed by the High Court directing the State to extend the pensionary benefits to the employees of WALMI is unsustainable, both in law and on facts - Appeal allowed. Issues Involved:1. Entitlement of WALMI employees to pensionary benefits on par with State Government employees.2. Autonomy and independent governance of WALMI.3. Financial implications and policy decisions regarding pensionary benefits.4. Judicial interference in policy decisions.Issue-wise Detailed Analysis:1. Entitlement of WALMI employees to pensionary benefits on par with State Government employees:The Supreme Court examined whether employees of the Water and Land Management Institute (WALMI) are entitled to pensionary benefits similar to those of State Government employees. The High Court had previously directed the State to extend such benefits, citing that WALMI performs educational and research activities, receives 100% grants from the State Government, and that its employees are regulated by the Maharashtra Civil Services Rules. The High Court found the denial of pensionary benefits discriminatory and violative of Article 14 of the Constitution of India. However, the Supreme Court disagreed, stating that WALMI is an autonomous body with its own rules, which specifically exclude pension benefits. The Court emphasized that WALMI employees are governed by their own service rules and cannot claim parity with State Government employees.2. Autonomy and independent governance of WALMI:The Supreme Court highlighted that WALMI is a society registered under the Societies Registration Act, 1860, and is governed by its own Governing Council and Establishment Rules. These rules provide for various allowances but explicitly exclude pension benefits. The Court noted that WALMI operates independently, with its administration and management vested in its Governing Council, and the State is not the disciplinary authority for WALMI employees. The Court also pointed out that WALMI's posts are temporary and person-specific, further emphasizing its autonomy.3. Financial implications and policy decisions regarding pensionary benefits:The Court underscored that extending pensionary benefits to WALMI employees would have significant financial implications. It referred to the State Government's policy decision in 2005, which excluded pension benefits for employees of aided institutes, boards, and corporations. The Court stressed that such policy decisions, especially those with financial repercussions, should be left to the discretion of the State and the autonomous bodies themselves. It cited previous judgments that courts should refrain from interfering in policy decisions that have financial implications and cascading effects.4. Judicial interference in policy decisions:The Supreme Court reiterated the principle that courts should not interfere with policy decisions, particularly those involving financial matters. It referenced several precedents where the Court had abstained from issuing directions with financial implications. The Court concluded that the High Court's directive to extend pensionary benefits to WALMI employees was unsustainable, both in law and on facts, and set aside the High Court's judgment. The Court emphasized that such decisions should be made by the State Government and the autonomous body, not the judiciary.Conclusion:The Supreme Court quashed the High Court's order directing the State to extend pensionary benefits to WALMI employees, holding that WALMI, as an independent autonomous body, is not entitled to such benefits. The Court emphasized the autonomy of WALMI, the specific exclusion of pension benefits in its rules, and the financial implications of extending such benefits. The judgment reinforced the principle that courts should not interfere with policy decisions, especially those with financial consequences.