Constitutional Law

No pensionary discrimination between retiring employees

  • Article 13: Equality before the law and equal protection of the law

In a case related to the grant of pensionary benefits to retired employees, the court held that no discrimination could be made between employees who retired before or after a certain date. The court stated that the discrimination based on the date of retirement was invidious, and the benefits of the Pay Revision Committee could not have been denied to the appellants. The court rejected the State’s contention that the matter relating to the grant of pensionary benefits vis-à-vis the revision in the scales of pay stands on a different footing. In another case, the classification by which the formula of pension was given a lower rate of revised pension to those retiring prior to 01.01.1996 as compared to those retiring later was held to be discriminatory. The court stated that such a classification had no nexus with the object and purpose of the grant of benefit of revised pension, and Article 14 of the Constitution of India ensures to all equality before law and equal protection of laws.

MAHARASHTRA STATE FINANCIAL
CORPORATION EX-EMPLOYEES
ASSOCIATION & ORS. …APPELLANT(S)
VERSUS
STATE OF MAHARASHTRA & ORS. …RESPONDENT(S)
decided by the Supreme Court of India on Feb 2, 2023