Case Note & Summary
The petitioners, two former employees of Maharashtra State Oil Seeds Commercial & Industrial Corporation Ltd. (MOSICOL), retired on attaining the age of superannuation on 31.07.2008 and 31.12.2008. A Government Resolution dated 02.03.2010 made the 5th Pay Commission pay scales applicable to MOSICOL employees with effect from 1st January 1996, but excluded those who did not participate in a voluntary retirement scheme and instead received dues under the Winding Up Act of MOSICOL. The petitioners, who had not participated in any voluntary retirement scheme, claimed entitlement to the revised pay scales and consequent enhancement of pension, contending that their exclusion was discriminatory and violative of Articles 14 and 16 of the Constitution. The State and the Corporation opposed the claim, asserting that the 5th Pay Commission was introduced as part of a package to induce voluntary retirement and not as a routine pay revision; accordingly, only those who opted for voluntary retirement were entitled, and the petitioners, having retired earlier, could not claim. The High Court examined the object of the resolution and held that the pay commission scales were made applicable to provide an inducement to serving employees to seek voluntary retirement, thereby reducing employee strength. The scheme constituted a package for voluntary retirement, distinct from ordinary pay revision. Since the petitioners had already retired on superannuation before the resolution took effect, they could not participate in the scheme, and the classification was not arbitrary or discriminatory. The writ petition was dismissed without costs.
Headnote
A) Service Law - Retirement Benefits - Application of Pay Commission Recommendations - Constitution of India, 1950, Articles 14, 16 - The dispute concerned the entitlement of employees who retired on superannuation in 2008 to arrears of salary and pensionary dues based on 5th Pay Commission pay scales extended to MOSICOL employees by Government Resolution dated 02.03.2010. Held that the resolution introduced the pay scales as a package for voluntary retirement to induce serving employees to opt for it, not as a general pay revision; thus, only those who participated in the voluntary retirement scheme could benefit, and employees already retired before the resolution had no right to claim. The exclusion did not violate Articles 14 and 16. Petition dismissed. (Paras 4-7)
Issue of Consideration
Whether retired employees are entitled to arrears of salary and pension as per the 5th Pay Commission scales made applicable by Government Resolution dated 02.03.2010 when they retired before the scheme and did not participate in voluntary retirement?
Final Decision
Writ petition dismissed. No order as to costs.
Law Points
- Application of pay commission recommendations as part of voluntary retirement scheme is distinct from ordinary pay revision
- only employees in service who opt for voluntary retirement are entitled to benefits
- exclusion of already retired employees does not violate Articles 14 or 16
Case Details
2018 LawText (BOM) (10) 159
WRIT PETITION NO. 4345 OF 2011
R. K. Deshpande, Vinay Joshi
V.A. Kothale for petitioners; Chakotkar, Advocate holding for V.G. Wankhede for Respondent Nos. 1 and 2; A. Chutake, AGP for Respondent No.3
Eknath Gulabrao Khate, Haribhau Dharmaji Jethe
Maharashtra State Oil Seeds Commercial & Industrial Corporation Ltd. and others
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Nature of Litigation
Writ petition claiming declaration and direction for payment of arrears of salary and pension as per 5th Pay Commission scales
Remedy Sought
Declaration that petitioners are entitled to arrears of salary and pensionary dues as per 5th Pay Commission pay scale, and direction to release arrears with enhancement of pension
Filing Reason
Petitioners, retired employees, were denied revised pay scales under Government Resolution dated 02.03.2010 making 5th Pay Commission applicable to MOSICOL employees, allegedly discriminatory
Previous Decisions
Matter earlier dismissed in default and restored; on 15.10.2018, court ordered that if counsel fails to appear next, petition shall be dismissed in default with costs
Issues
Whether the petitioners, who retired prior to the issuance of Government Resolution dated 02.03.2010 making 5th Pay Commission applicable, are entitled to arrears of salary and pension as per the revised pay scales?
Submissions/Arguments
Petitioners argued that exclusion of those retired before 02.03.2010 from the benefit of 5th Pay Commission is discriminatory and violates Articles 14 and 16, relying on Supreme Court decisions.
Respondents contended that the 5th Pay Commission was made applicable as part of a voluntary retirement package scheme, and employees who retired before introduction are not covered; petitioners did not participate in the scheme and were paid under the Winding Up Act.
Ratio Decidendi
The application of the 5th Pay Commission scales to MOSICOL employees through Government Resolution dated 02.03.2010 was a package scheme for voluntary retirement, intended to induce serving employees to opt for voluntary retirement, not an ordinary pay revision. Therefore, employees who had already retired on superannuation before the scheme's introduction could not claim its benefits, and the exclusion did not violate Articles 14 and 16 of the Constitution.
Judgment Excerpts
the object of making 5th Pay Commission applicable is to provide an inducement to the employees in service to seek voluntary retirement so as to reduce the strength of the employees. In short, the payment as per the 5th pay Commission constitutes a package scheme for voluntary retirement
The petitioners having retired from service on attaining the age of superannuation prior to introduction of such scheme with effect from 02.03.2010, the question of their participation in the scheme on 02.03.2010 does not arise.
Procedural History
Writ petition filed, earlier dismissed in default and restored. On 15.10.2018, court directed that if counsel for petitioners fails to appear, petition shall be dismissed in default with costs. On 24.10.2018, petitioners' counsel did not appear; court proceeded to decide on merits. Petition dismissed.
Acts & Sections
- Constitution of India, 1950: Article 14, Article 16
- Winding Up Act of MOSICOL:
