Summary
The Institute’s decision to fund a retirement-benefit scheme from its own resources did not impose pension liability on the Bihar Government. Past discretionary grants mentioning pension did not create an enforceable right to continuing assistance or justify mandamus. The statutory scheme did not require the State to meet that burden, and the Institute’s employees could not claim parity with State employees for this purpose.
Issues
- Whether statutory funding provisions, past pension-related grants or legitimate expectation required the State to finance the Institute’s pension scheme.
Provisions considered
- Sections 6, 8 and 9, Anugraha Narayan Sinha Institute of Social Studies Act, 1964The Institute controlled its funds; the mandatory annual maintenance contribution and discretionary additional grants did not impose a State obligation to fund the unapproved pension scheme. (¶¶ 3, 15–18)
Held
- The Board’s 1985 resolution expressly contemplated operation from Institute resources without a separate government grant. The scheme was neither approved by the State nor submitted for approval so as to impose its recurring financial burden on the Government. (¶¶ 6, 15–16, 23)
- Section 8 prescribed an annual maintenance contribution and discretionary additional sums for specified purposes, not the claimed recurring pension obligation. Pension expenses could be an application of Institute funds under Section 9 without becoming the State’s liability. (¶ 17–18)
- Budget provision and releases in earlier years remained voluntary grants. They could not be compelled by mandamus or establish an enforceable right to continued pension assistance. Past payment did not convert hope into a protected entitlement on these facts. (¶¶ 15–16, 19–22)
- The Institute’s retirement scheme did not bind the State, and its employees could not be treated as State employees to shift pension responsibility to Government. (¶ 23)
Result
State’s appeal allowed; Division Bench order set aside and writ petition dismissed. Pending applications disposed of.