Case Note & Summary
The judgment concerns four writ petitions filed by retired employees of the Municipal Corporation of Greater Mumbai (MCGM) seeking pensionary benefits. The petitioners, Shantaram Bhikaji Jadhav, Bhimsen Shivram Kamble, Dagdu Balu Sawant, and Sitaram Laxman Jadhav, had retired from service between 2014 and 2017 after serving for decades. Upon retirement, they were denied pension by the Corporation on the ground that they were not covered under the pension scheme. The petitioners contended that they were eligible for pension as per the rules and that the Corporation had arbitrarily denied their claims without any notice or opportunity of hearing. The Corporation argued that the petitioners were not entitled to pension as they had not opted for the pension scheme. The court examined the relevant provisions of the Mumbai Municipal Corporation Act, 1888, and the rules framed thereunder. It noted that pension is not a bounty but a right earned by an employee after rendering service. The court held that the Corporation could not deny pension without giving the petitioners a notice and an opportunity to present their case. The court directed the Corporation to consider the representations of the petitioners and pass reasoned orders in accordance with law, after affording them a hearing. The petitions were allowed with these directions.
Headnote
A) Service Law - Pensionary Benefits - Right to Pension - Pension is not a bounty but a right earned by service, and its denial must be based on valid grounds after following due process of law - The court held that the respondent Corporation cannot deny pension without giving notice and opportunity of hearing to the petitioners, and must consider their representations and pass reasoned orders (Paras 1-16).
Issue of Consideration
Whether the petitioners, retired employees of the Municipal Corporation of Greater Mumbai, are entitled to pensionary benefits under the Mumbai Municipal Corporation Act, 1888, and whether the denial of such benefits without notice or opportunity of hearing is arbitrary and violative of natural justice.
Final Decision
The court allowed the writ petitions and directed the Municipal Corporation of Greater Mumbai to consider the representations of the petitioners for pensionary benefits and pass reasoned orders after affording them an opportunity of hearing, in accordance with law.
Law Points
- Pension is a right
- not a bounty
- and must be granted in accordance with rules
- denial of pension without notice or opportunity of hearing violates principles of natural justice
- pensionary benefits cannot be withheld arbitrarily
- the employer must consider representations and pass reasoned orders.
