Summary
The Supreme Court upheld 5 June 1995 as the commencement date of a newly introduced pension scheme for Himachal Road Transport Corporation employees. Retirees who had already received contributory provident-fund benefits before that date did not form the same class as employees covered by the new scheme. The chosen date corresponded to Cabinet approval and was not arbitrary merely because the notification followed later. The High Court’s extension of the scheme to earlier retirees was reversed.
Issues
- Whether excluding employees who retired with provident-fund benefits before Cabinet approval of a new pension scheme was discriminatory.
Provisions considered
- Article 14, Constitution of IndiaThe distinct position of earlier provident-fund retirees and the scheme’s Cabinet-approval date supplied a valid basis for the commencement cut-off. (¶ 15-20)
Held
- This was the introduction of pension, not revision of an existing pension benefit. Employees who retired earlier had received the provident-fund benefits then applicable and were not similarly situated to those remaining in service when the pension scheme commenced. (¶¶ 13, 15, 19)
- The cut-off corresponded to Cabinet approval. The later notification’s limited retrospective effect did not require extending the scheme to all former employees; financial implications were legitimate considerations in introducing a new benefit. (¶ 19-20)
- The High Court overlooked both the explanation for the date and the factual distinction from authorities concerning liberalisation of existing pensions. Its extension of the scheme could not stand. (¶¶ 19, 21-22)
Result
Corporation’s appeal allowed; High Court judgment set aside and the union’s writ petition dismissed. No costs.