Anugraha Narayan Sinha Institute of Social Studies Act, 1964:
ss. 6, 8, 9 and 10 – Payment of Pension – To the employees of the Institute incorporated under the Act – Responsibility to pay – Whether on State Government – As per resolution dated 15.02.1985, the Board of the institute implemented retiral benefits which were to be paid by the Institute from its own resources – Pension was paid to the employees after the resolution, but was stopped from January 2014 – Writ petition seeking direction for payment of pension and arrears thereof – Petition dismissed by High Court holding that State was not obliged to pay the pension in view of the resolution – In intra-court appeal Division Bench of High Court held that the State was obliged to pay the pension – On appeal, held: The resolution of the Board of the Institute to implement the retirement benefit scheme from its own resources will not bind the State Government to pay the amount of pension – The provision of payment of pension in the Budget of the State Government was a voluntary act, and not enforceable by a Writ of Mandamus – Release of grant is in the discretion of the grantor and cannot be forced by the grantee – Obligation to bear the amount of pension by the State Government is not mandated either by s. 8 or s. 9 of the Act – Payment of pension in the past, will not confer an enforceable right in favour of the Institute or the employees.
Administrative Law:
Legitimate Expectation – Held: Legitimate expectation is one of the grounds of judicial review, but unless a legal obligation exists, there cannot be legitimate expectation – It is not a wish or a desire or a hope and hence cannot be claimed as a right. Allowing the appeal, the Court
HELD: 1. The resolution of the Board of the Institute to implement a retirement benefit scheme from its own resources will not bind the State Government to pay the amount of pension to the employees of the Institute. The employees of such Institute cannot be treated at par with the employees of the State Government nor the State can be burdened with the responsibility to pay pension to the employees of the Institute. [Para 23][762E-F]
2. Section 6 of the Anugraha Narayan Sinha Institute of Social Studies Act, 1964 empowers the Board to create posts and to hold, control and administer its property and the funds, but the post carrying an emolument of rupees one thousand per month or more cannot be created without the previous approval of the State Government. Though the proviso to Section 6(2) of the Act requires approval of the State Government in respect of creation of post carrying pay of more than Rs.1000/-, but the intention is that any financial expenditure of recurring nature would require the approval of the State Government. Therefore, if the amount of pension exceeds rupees one thousand per month, the same could not be claimed from the State Government as a right without approval. The State Government cannot be called upon to bear the burden of the pension as such scheme was not approved or even sought for. The provision of payment of pension in the Budget of the State Government is a voluntary act not enforceable by a writ of mandamus. The release of grant is in discretion of the grantor and cannot be forced by the grantee. [Para 15][758-A-D]
3. It is true that in certain financial years as per documents on record, the amount of pension was specifically mentioned while granting grant to the Institute, but such amount is in discretion of the State and cannot be enforced by a writ of mandamus. There is no obligation on the State to disburse the grant towards the pension amount in terms of the Act or the Rules or even in terms of the resolution of the Board. [Para 16][758-E-F]
4. Sub-Section (1) of Section 8 of the Act mandates the State Government to contribute a sum of rupees two lacs in each financial year for the maintenance of the Institute, whereas, sub-Section (2) empowers the State Government to contribute from time to time, such additional sums as it may deem fit for special items of research or education work, publication, buildings and for proper maintenance and development of the Institute. Such payment for the special projects, is in discretion of the State Government in view of the object for which the grant is to be disbursed, but sub-Section (2) does not include disbursement of the amount of pension as the contribution is for limited purpose which is not recurring in nature. [Para 17][758-F-H]
5. The money contributed to the Institute by the State Government is one source of the fund of the Institute. Section 9(3) of the Act provides that the funds shall be applied towards meeting the expenses of the Institute including expenses incurred in exercise of its powers and discharge of its functions under the Act. Therefore, the retirement pension scheme, at best can be treated to be a part of obligation of utilization of funds of the Institute but such obligation to bear the amount of pension fund is not on State Government as it is not mandated either by Section 8 or Section 9 of the Act. [Para 18][759-A-B]
6. It is not correct to say that the State Government has provided funds for payment of pension for the last many years, therefore, the Institute and the employees of the Institute have legitimate expectation to receive the amount of pension. A pious hope even leading to moral obligation cannot amount to a legitimate expectation. The legitimacy of an expectation can be inferred only if it is founded on the sanction of law or custom or an established procedure followed in regular and natural sequence. [Paras 19, 20][759-C-D]
Union of India & Ors. v. Hindustan Development Corporation & Ors. (1993) 3 SCC 499 : [1993] 3 SCR 128; Ram Pravesh Singh and Others v. State of Bihar and Others (2006) 8 SCC 381 : [2006] 6 Suppl. SCR
512 – relied on.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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