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2022 Supreme(Online)(Guj) 1937

HIGH COURT OF GUJARAT
BHARGAV D. KARIA, J
MANISH G. GAGWANI – Appellant
Versus
STATE OF GUJARAT – Respondent
R/SPECIAL CIVIL APPLICATION NO. 6243 of 2008 | R/SPECIAL CIVIL APPLICATION NO. 15163 of 2010 | R/SPECIAL CIVIL APPLICATION NO. 9022 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 1159 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13011 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13012 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13013 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13014 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13015 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13016 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13017 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13018 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13019 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13020 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13021 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13022 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13023 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13024 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13025 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13026 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13027 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13028 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13029 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13030 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13031 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13032 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13033 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13034 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13035 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13036 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13037 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13038 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13039 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13040 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13041 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13042 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13043 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13044 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13045 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 13046 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 22865 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 22866 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 22867 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 22868 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 22869 of 2017 | R/SPECIAL CIVIL APPLICATION NO. 22870 of 2017



Advocates:
For the Appellants/Petitioners: MR GAUTAM JOSHI, MR VYOM H SHAH, MR KB PUJARA, MR RAJESH O GIDIYA, MR JEET Y RAJYAGURU
For the Respondents: MR KM ANTANI, MR JAYNEEL PARIKH, MR MEET THAKKAR, MR H.S. MUNSHAW, MR DEEPAK N KHANCHANDANI, RULE SERVED

Pension rights constitute property and cannot be denied arbitrarily; employees with requisite service and contributions are entitled to such benefits under law.

Headnote:(A) Constitution of India - Right to Property - Pension schemes administered by municipal authorities must follow legal stipulations and cannot be denied arbitrarily based on funding issues. (Paras 1-2, 24-27)

(B) Justiciability of pension rights - Right to receive pension is recognized as a property right and cannot be withheld without authority of law. (Paras 20, 24)

(C) Equal treatment of employees - Similarity in treatment between pensionable and non-pensionable employees must be assured, without arbitrary distinctions affecting entitlements. (Paras 19, 22)

Facts of the case:
Employees of Bhavnagar Municipal Corporation were denied pension and retirement benefits on grounds of lack of state funding, despite consistent contributions to a General Provident Fund by the employer. (Paras 5-6)

Findings of Court:
Employees are entitled to pension and retirement benefits after completing requisite service, regardless of the municipality's funding challenges. Respondents must process pension claims within a specified time frame. (Paras 27-28)

Issues: The primary issue was whether employees who contributed to the GPF are entitled to pension and retirement benefits despite municipal objections related to funding.

Ratio Decidendi: The court ruled that the right to pension constitutes a property right and cannot be arbitrarily denied; prior legal precedents supported the employees' entitlement to pension benefits based on their contributions. (Paras 20, 22, 24)

Result: All petitions allowed; respondents directed to finalize pension cases and ensure payments with interest. (Paras 27-28)

Table of Content
1. condonation of delay and procedural motions approved (Para 1 , 2 , 3)
2. petitions for pension and benefits by municipal employees (Para 4 , 5)
3. cites previous rulings on pension eligibility (Para 7 , 8 , 9 , 10 , 11 , 12)
4. arguments against pension claims based on policy (Para 14 , 15)
5. existence of eligibility criteria for pension benefits (Para 19)
6. previous decisions support pension claims (Para 20 , 21 , 22 , 23)
7. decision mandates pension be paid with interest (Para 26 , 27 , 28)

JUDGEMENT

1. Civil Applications for bringing legal heirs on record and Civil Applications for condonation of delay are filed in Special Civil Application Nos.13014/2017, 13023/2017, 13037/2017 and 13038/2017.

2. Considering the averments made in Civil Applications for condonation of delay, the same are allowed and delay caused in preferring the Civil Applications for bringing legal heirs on record is ordered to be condoned. Civil Applications for delay are disposed of accordingly.

3. Civil Applications for bringing the legal heirs on record are also allowed and disposed of. Cause title be amended accordingly of the respective Special Civil Applications.

4. All these petitions are filed by the employees of Bhavnagar Municipality Corporation claiming pension and retirement benefits. As common questions arise for consideration, these petitions were heard analogously and are being disposed of by this common judgment.

5. The petitioners were employees of either erstwhile District Panchayat, Bhavnagar or Bhavnagar Municipality. The petitioners are denied pension and other retirement benefits by the respondents authorities on the ground that the petitioners are not entitled to such benefits because grant was not received from the State Government for payment of such benefits and the pension scheme of the Government is not applicable because the entire expenses would have to be borne by the Bhavnagar Municipal Corporation and therefore, the employees of Transport Division and Nagar Prathmik Shikshan Samiti were denied the benefits of the pension scheme.

6. Heard learned Senior Advocate Mr. Gautam Joshi assisted by learned Advocate Mr. Vyom Shah, learned advocate Mr. K.B. Pujara, learned advocate Mr. Jeet Y. Rajyaguru, and learned advocate Mr. Rajesh O. Gidia for the petitioners, learned advocate Mr. H.S. Munshaw for the respondent Bhavnagar Municipal Corporation, learned advocate Mr.Deepak N. Khanchandani for the respondents and learned Assistant Government Pleaders Mr.

K.M. Antani, Mr. Jayneel Paikh and Mr. Meet Thakkar for the respondent State.

7. It was submitted by the learned advocates for the petitioners that the petitioners were members of General Provident Fund (GPF) Scheme and GPF Contributions were being deducted by the respondent Municipality from their salary from time to time until their services came to an end and therefore, the petitioners were entitled to pension and other retirement benefits.

8. Reliance was placed on the decision of the Division Bench of this Court in case of Chief Officer v. Mohmad Irshad Husenbhai Baloch (judgment dated 3.02.2011 passed in Letters Patent Appeal No.214/2011 and other allied matters) reported in 2011 SCC OnLine Guj 856 as well as the decision of Division Bench of this Court in case of Una Nagar Palika v. Chandrikaben w/d Bhurabhai S. Bhamat and others (judgment dated 6.12.2015 passed in Letters Patent Appeal No.1067/2015 and allied matters) reported in 2105 SCC OnLine Guj

6302. It was submitted that both these decisions were confirmed by the Hon’ble Supreme Court in decision in case of State of Gujarat v. Jayaben reported in 2013 SCC Online SC 1327 as well as decision in case of Una Nagar Palika v. Kaliben Balubhai Makwana reported in (2019) 12 SCC 340 respectively.

9. Reliance was also placed on the decision of Division Bench of this Court in c










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