Case Note & Summary
The petitioner, Prakash Parshuram Mavlankar, was employed with the erstwhile Haffkine Institute, a government entity under the State of Maharashtra, from 5th June 1965 to 31st August 1975. In 1975, the State bifurcated the Institute and created Haffkine Bio Pharmaceuticals Corporation Ltd. (respondent no. 1), a government company. The petitioner was transferred to this company along with other employees. He retired from the company on 30th June 2005 after completing 40 years of service. Upon retirement, he claimed pension from the government for his initial service period (1965-1975) and from the company for the remaining period. The respondents denied his claim, relying on a Government Resolution dated 17th October 1967, which stated that employees transferred to government companies would not be entitled to government pension unless they opted to retain it. The petitioner challenged this denial, arguing that he was never given an option to retain government pension and that the resolution was not applicable to him. The court examined the facts and legal principles, noting that pension is a right and not a bounty. It held that the Government Resolution of 1967 could not be applied retrospectively to deny pension to the petitioner, especially since he was not given any option at the time of transfer. The court also found that similarly situated employees had been granted pension, and denying the same to the petitioner would be arbitrary and violative of Article 14 of the Constitution. The court allowed the petition, directing the respondents to compute and pay pension to the petitioner from the date of his retirement, with arrears and interest at 6% per annum.
Headnote
A) Service Law - Pension - Transfer from Government to Government Company - Petitioner served Haffkine Institute (Government) from 1965 to 1975 and was transferred to Haffkine Bio Pharmaceuticals Corporation Ltd. (government company) without option to retain government pension - Court held that pension is a right and cannot be denied merely because of transfer, especially when the employee did not opt for a different pension scheme - Government Resolution of 1967 cannot be applied retrospectively to deprive the petitioner of pension (Paras 1-28). B) Constitutional Law - Article 14 - Arbitrary Denial of Pension - The denial of pension to the petitioner while granting it to similarly situated employees violates Article 14 - The court directed the respondents to compute and pay pension to the petitioner from the date of his retirement (Paras 20-28).
Issue of Consideration
Whether the petitioner, who was transferred from a government institute to a government company, is entitled to pension from the government despite the transfer, and whether the Government Resolution dated 17th October 1967 can be applied to deny such pension
Final Decision
The petition is allowed. The respondents are directed to compute and pay pension to the petitioner from the date of his retirement (30th June 2005) with arrears and interest at 6% per annum within three months.
Law Points
- Pension is a right
- not a bounty
- and must be protected upon transfer to a government company unless the employee opts out
- Government Resolution of 1967 cannot be applied retrospectively to deny pension
- Article 14 of the Constitution prohibits arbitrary denial of pension
