Bombay High Court Allows Retired Employees' Pension Claim Despite Non-Deposit of Management Contribution — Government Resolution Clause 3 Covers Employees Who Retired Before Scheme Introduction. Prior Court Directions in Writ Petition No. 1530 of 2010 Must Be Complied With; Rejection Based on Non-Deposit of Contribution Is Invalid.

High Court: Bombay High Court Bench: KOLHAPUR In Favour of Accused
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Case Note & Summary

The petitioners, three retired employees of the State of Maharashtra, challenged a communication dated 31st October 2023 from Respondent No. 3 rejecting their claim for eligibility under the Pension-Cum-Gratuity Scheme. The petitioners had retired upon superannuation—Petitioner Nos. 1 and 2 were appointed in 1971, and Petitioner No. 3 in 1980. The rejection was based on the ground that they had failed to deposit the management's share/contribution, and granting the benefit would cause a loss to the State Exchequer. The petitioners argued that their case was squarely covered by Clause 3 of the Government Resolution dated 23rd June 1999, which extends the scheme to employees who retired before its introduction. They also pointed out that this Court, in its order dated 12th October 2023 in Writ Petition No. 1530 of 2010, had specifically directed the respondents to extend the benefit to similarly situated employees. Despite these directions, the respondent refused compliance. The court, after hearing counsel for both sides, held that the rejection was unsustainable and contrary to the earlier court order. The court allowed the petition, quashed the impugned communication, and directed the respondents to extend the Pension-Cum-Gratuity Scheme benefits to the petitioners within a stipulated period.

Headnote

A) Service Law - Pension - Pension-Cum-Gratuity Scheme - Eligibility - Clause 3 of Government Resolution dated 23rd June 1999 - The petitioners, retired employees, challenged a communication rejecting their claim for pension on the ground of non-deposit of management's contribution. The court held that Clause 3 of the GR covers employees who retired before the scheme's introduction and are otherwise entitled, and the rejection was contrary to prior court directions. (Paras 1-3)

B) Service Law - Pension - Binding Effect of Prior Court Orders - Writ Petition No. 1530 of 2010 - The court noted that despite specific directions in its earlier order dated 12th October 2023, the respondent refused to extend the benefit. The court held that such refusal amounts to contempt and cannot be sustained. (Paras 2-3)

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Issue of Consideration

Whether retired employees who failed to deposit the management's share/contribution are entitled to the Pension-Cum-Gratuity Scheme under Clause 3 of the Government Resolution dated 23rd June 1999, and whether the respondent's communication rejecting their claim is valid despite prior court directions.

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Final Decision

The petition is allowed. The impugned communication dated 31st October 2023 is quashed and set aside. The respondents are directed to extend the benefit of the Pension-Cum-Gratuity Scheme to the petitioners within a stipulated period.

Law Points

  • Pension-Cum-Gratuity Scheme eligibility
  • Government Resolution interpretation
  • binding effect of prior court orders
  • estoppel against government
  • pension as continuing right
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Case Details

2026 LawText (BOM) (06) 122

Writ Petition No. 13279 of 2024

2026-06-30

Milind N. Jadhav, Nandes S. Deshpande

Mr. Abhishek Pungliya, Mr. Avinash Naik, Mr. Pravin V. Gaikwad

Dr. Jayawant Subhedar Chaudhari & Ors

The State of Maharashtra & Anr.

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Nature of Litigation

Writ petition challenging rejection of pension scheme eligibility

Remedy Sought

Quashing of communication dated 31st October 2023 and direction to extend Pension-Cum-Gratuity Scheme benefits

Filing Reason

Respondent No. 3 rejected petitioners' claim for pension on ground of non-deposit of management's contribution, despite prior court directions

Previous Decisions

Order dated 12th October 2023 in Writ Petition No. 1530 of 2010 directing extension of benefits to similarly situated employees

Issues

Whether the petitioners are entitled to Pension-Cum-Gratuity Scheme under Clause 3 of Government Resolution dated 23rd June 1999 despite non-deposit of management's contribution? Whether the respondent's communication rejecting the claim is valid in light of prior court directions?

Submissions/Arguments

Petitioners' counsel submitted that the case is covered by Clause 3 of the Government Resolution dated 23rd June 1999 and that the respondent ignored specific directions of this Court in Writ Petition No. 1530 of 2010.

Ratio Decidendi

Clause 3 of the Government Resolution dated 23rd June 1999 covers employees who retired before the scheme's introduction and are otherwise entitled; non-deposit of management's contribution cannot be a ground to deny pension when prior court directions mandate extension of benefits.

Judgment Excerpts

The petitioners challenge communication dated 31st October 2023 addressed by Respondent No.3 rejecting their claim for Pension-Cum-Gratuity Scheme eligibility on the ground of they having failed to deposit the management’s share/contribution and if so granted it would amount to a loss for the State Exchequer. Mr. Pungliya, learned counsel appearing for the petitioners, submitted that the petitioners' case is squarely covered by Clause 3 of the Government Resolution dated 23rd June 1999.

Procedural History

The petitioners filed Writ Petition No. 13279 of 2024 challenging the communication dated 31st October 2023. The court heard the matter on 16th June 2026 and pronounced judgment on 30th June 2026.

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