MHADA employees have no right to claim pension: Bombay High Court

The Bombay High Court on Wednesday dismissed a petition filed by employees union of Maharashtra Housing and Area Development Authority (MHADA) seeking pension from the government on superannuation.

A division bench of justice VM Kanande and justice AK Menon rejected the plea filed by MHADA Sevanivrutta Karmachari Seva Sangh, observing that "Though MHADA is created under an Act, it is not entirely an autonomous body and it cannot take decisions as they have to be approved by the government, especially those related to salary and pension. The state had not approved of the resolution passed by MHADA, allowing a pension scheme for its employees."

The order affects all MHADA employees, except 20, who were directly absorbed from the government and retired as employees of the board. The employees pleaded that MHADA had already passed a resolution deciding to grant pensionary benefits to the workers who had joined after November 1, 2005. However, the state had not granted approval to this proposal.

It was further argued that the state had adopted Civil Service Rules, which provides for payment of monthly pension on superannuation. Since MHADA has adopted the service rules then its employees were eligible for the benefit.

Advocate general Darius Khambata said that it is not a legal right of the employees to get pension. Whether to give pension or not is a matter of policy decision for the state. Moreover, if the state decided to give pension to MHADA employees, then it may have to give such benefit to the employees of other state government organisations or state corporations.

The court rejecting the plea agreed with the state and said, "Right to claim pension is available to employees if the provisions under the statute or rules or there is a contract between the parties. It cannot be claimed as a matter of right."