TaxTMI 
TaxTMI 
2022 (1) TMI 1233
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....a society registered under the Societies Registration Act, 1860, which has its own Memorandum of Association. WALMI is being administered by its Governing Council. WALMI is an autonomous institution governed by its own Rules and Regulations. WALMI came into existence in the year 1980 under the World Bank Project of the Irrigation Department. The funds and properties of the Society and their entire management vests in the Governing Council. The main objects for which the Society has been formed are as under: (a) With a view to promoting advancement of science and acquisition of scientific knowledge to provide instructions and training in all branches of science both theoretical and applied and in particular in Water Management and Land Development for Irrigation and agriculture. (b) To establish an institution for imparting instructions and training and conducting research in Water Management and Land Development for irrigation and agriculture. (c) To prescribe courses for instruction and training in Water Management and Land Development for irrigation and agriculture and hold examinations and grant certificates, diplomas etc. (d) To seek affiliat....
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....eeting held on 11.08.1980 framed the WALMI Establishment Rules, 1980, which provided the service conditions including certain allowances to be paid to its employees. It was provided in the said Rules that the Service Rules made by the Government of Maharashtra for its employees (as may be amended/modified from time to time) shall apply to the employees of the Institute unless they are repugnant to the Rules made or may be made by the Institute. It is specifically provided that Government Rules for Pension, Provident Fund and Gratuity shall not, however, apply. The Governing Council in its 41st meeting held on 31.01.1995 reiterated that the Governing Council has made the Establishment/Service Rules of the Government of Maharashtra applicable to WALMI except the Rules for Pension, Provident Fund and Gratuity. It was also mentioned that the Contributory Provident Fund Rules framed by WALMI have been made applicable. Grant of pensionary benefits to the employees of the Grant-in-aid Institutes/Corporation etc. came to be discussed in the meeting of the Cabinet Ministers held on 30.01.1997. After due deliberation, the Cabinet approved the proposal to the effect that no pensionary benefit....
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....rder, the High Court has allowed the writ petitions and has quashed and set aside the communication dated 05.03.2013 of the State Government refusing to extend the pensionary benefits to the employees of WALMI and consequently has directed to extend pensionary benefits to the employees of WALMI, with arrears w.e.f. 06.05.2013. While allowing the writ petitions, the High Court has observed that the amount available with WALMI and deposited with E.P.F. towards the employee's contribution itself is sufficient to meet the financial liability of the pensionary benefits to employees and that there does not appear to be any reasonable basis for the State Government to refuse to extend the benefit of pension to the retired employees of WALMI. The High Court has also further observed that as the WALMI institute essentially performs educational and research activities and receives 100% grant from the State Government, that the service conditions of employees are regulated by Maharashtra Civil Services Rules and that the employees have been from time to time extended the benefits of wage, pay scale revision on par with the Government employees. That the employees are being paid out of the....
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....plicable to the employees of WALMI and therefore they are not entitled to the pensionary benefits, the High Court ought not to have interfered with such a policy decision in exercise of powers Under Article 226 of the Constitution of India. 4.3. It is further submitted by Shri Mehta, learned Solicitor General that WALMI is an independent autonomous body, a Society registered under the Societies Registration Act and the administration and management vest with its Governing Council. It was submitted that the employees of WALMI are governed by its own Service Rules, which specifically prohibits the pensionary benefits to its employees and only Gratuity Rules are made applicable and, therefore, the employees of the WALMI cannot be put at par with the Government employees. 4.4. It is submitted that even otherwise, whether to grant and/or extend the pensionary benefits to the employees of the WALMI, which is an autonomous body, is a policy decision, which was not required to be interfered with by the High Court in exercise of powers Under Article 226 of the Constitution of India. It is submitted that to interfere with such a policy decision would not be permissible while exercising....
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.... 1993 Supp (1) SCC 153; State of Bihar and Ors. v. Bihar Secondary Teachers Struggle Committee, Munger and Ors. (2019) 18 SCC 301; and Punjab State Cooperative Milk Producers Federation Limited and Anr. v. Balbir Kumar Walia and Ors. (2021) 8 SCC 784. 4.8. Thus, making the above submissions and relying upon the above decisions, it was prayed to allow the present appeal. 5. Learned Counsel appearing on behalf of the Respondents-original writ Petitioners while opposing the present appeals vehemently submitted that in the facts and circumstances of the case, the High Courts, after having been satisfied that there was no valid justification not to extend the pensionary benefits to the employees of WALMI has rightly directed the State to extend the pensionary benefits to the employees of WALMI. 5.1. It was submitted that WALMI, right from its inception is being paid funds from the Irrigation Department and WALMI receives Grant-in-aid from the Government. It was submitted that the object and purpose of WALMI is to impart training/education. Further that even the staff was allocated by the Irrigation Department of the State. It was further submitted that even the posts, which are....
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....igh Court has directed the State to extend the retirement benefits to the employees of WALMI mainly on the following grounds: (i) that the primary functions of WALMI are educational, the purpose of establishing the Institute is to impart training to engineers and farmers of Maharashtra State and to provide expert advice to the Water Resources Department, Government of Maharashtra relating irrigation management; (ii) that the Institute receives 100% grant from the Government since 1993; (iii) that the posts created on the establishment are computed amongst the sanctioned posts of the Water Resources Department; the control in respect of the management and the governance rest with high-ranking officers, i.e., Secretaries of the Government Department; (iv) the Regulations applicable to the Government employees relating to disciplinary matters as well as withdrawal of allowances like medical allowance, leave travel allowance, Regulations relating to grant of leave so also Regulations relating to disciplinary matters are uniform as in case of Government employees; (v) the Maharashtra Civil Services Rules are applicable to the Government emplo....
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....Department. However, in the said G.R. it is specifically observed that WALMI is an autonomous institution of the Government and 214 posts are sanctioned on fixed temporary establishment and 168 posts on converted temporary establishment. It further provides that as the posts are person-wise on the converted temporary establishment, the posts shall be abolished automatically, if the person retires or resigns or becomes vacant in any other way. It further provides that WALMI is an autonomous institution, the staff of it cannot be transferred anywhere. 9.2. 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. 10. In vie....
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....ri [(1996) 11 SCC 348], the claim to equality can be claimed when there is discrimination by the State between two persons who are similarly situated. The said discrimination cannot be invoked in cases where discrimination sought to be shown is between acts of two different authorities functioning as State Under Article 12. Thus, the employees of NWDA cannot be said to be "Central Government employees" as stated in the OM for its applicability. 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. This is more particularly, when the employees of such autonomous bodies are governed by their own Service Rules and service conditions. The State Government and the Autonom....
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....nces payable to the employees of WALMI are being paid out of the Consolidated Fund of the State and/or that the WALMI is getting grant from the Government are all irrelevant considerations, so far as extending the pensionary benefits to its employees is concerned. WALMI has to run its administration from its own financial resources. WALMI has no financial powers of imposing any tax like a State and/or the Central Government and WALMI has to depend upon the grants to be made by the State Government. 10.7. Now, so far as the observations made by the High Court that the amount available with WALMI and deposited with E.P.F. towards the employee's contribution itself is sufficient to meet the financial liability of the pensionary benefits to the employees and, therefore, there is no justification and/or reasonable basis for the State Government to refuse to extend the benefit of pension to the retired employees of WALMI is concerned, it is to be noted that merely because WALMI has a fund with itself, it cannot be a ground to extend the pensionary benefits. Grant of pensionary benefits is not a one-time payment. Grant of pensionary benefits is a recurring monthly expenditure and t....