Legal Dispute Over Retiral Benefits: Appellant College vs. Respondent Employee.
02 December 2024
Civil Appeals >> Civil & Consumer Law | Unpaid salary/bonus/gratuity >> Workplace/ Professional Related
Nutan Bharti Gram Vidyapith, a private college under the State Government's Grant-in-Aid scheme, appealed against orders from the Gujarat High Court concerning the payment of retiral benefits to a former employee, respondent no. 2. The respondent, dismissed for misconduct in 1994, eventually had his dismissal overturned and was reinstated. However, the college contested the liability to pay his retiral benefits, arguing that the State Government should bear this responsibility under relevant pension schemes.
The High Court originally directed the college to pay these benefits, which prompted the college to seek review. The State Government initially shared the responsibility but later argued that the college's prolonged litigation should not shift the financial burden onto the State.
After reviewing the circumstances, including the nature of the misconduct and the absence of jurisdictional issues in the college's actions, the appeals court ruled in favor of the college. It determined that the State Government is ultimately liable for the retiral dues, setting aside the previous High Court order that placed the burden on the college. The judgment underscores the principle that the provisions of the pension scheme must be followed, without exception based on the college's conduct.