Summary
The Supreme Court upheld pension relief for the municipal employees on the undisputed service and GPF facts, rejecting the Municipality’s attempt to distinguish directly appointed employees from those absorbed from a Panchayat. The earlier Gujarat decision covered their cases. The Municipality was directed to verify and finalise the pension cases and release the amounts within four months.
Issues
- Whether direct appointment by the Municipality distinguished these employees from the beneficiaries of the earlier pension decision.
- Whether the State circular relied on by the Municipality defeated the pension claims.
Held
- The earlier Gujarat decision covered the claims. The employees had served the Municipality until retirement or death, had more than ten years’ service and were GPF members whose contributions the Municipality regularly deducted. On these undisputed facts, the distinction between direct recruits and employees absorbed from a Panchayat did not justify denying pension. (¶ 19–25)
- The State circular relied on by the Municipality had not been filed before or considered by the High Court. It did not resolve this controversy because it concerned Panchayat employees who subsequently became municipal employees. (¶ 26–28)
- The appeals were dismissed. The Municipality had to finalise the respondents’ pension cases after proper verification and release the pension amounts within four months. (¶ 29–30)
Result
Appeals dismissed; Municipality to verify and finalise the respondents’ pension cases and release the amounts within four months.