WHAT DID THE SC SAY?
In Maharashtra State Financial Corporation Ex-Employees Association & Ors. v. State of Maharashtra & Ors., the Supreme Court held that those employees who retired under the Voluntary Retirement Scheme (VRS) are not at pari passu with those who retired after achieving the age of superannuation in the context of pay revision.
A Division Bench comprising Justices Aniruddha Bose and S. Ravindra Bhat noted that for the purposes of pay revision, employees retired under VRS have to be kept in a separate category from other employees.
WHAT IS THE CASE ABOUT?
In this case, a civil appeal was filed challenging the decision of the Bombay HC wherein the petitioner had challenged a decision of the State of Maharashtra which denied the benefit of revision of pay scales to the employees of the Maharashtra State Financial Corporation (MSFC) who either retired or died between the period of 01.01.2006 to 29.03.2010.
The appellants challenged this decision on the grounds of it being arbitrary and discriminatory.
CONTENTIONS OF THE APPELLANT:
The appellants contended that they were in continuous service, and had received all the benefits of interim revision which were pending finalisation of pay scales.
It was further contended that those who continued in service after 01.01.2006 but retired before 29.03.2010 and also those in employment on and after 29.03.2010, belonged to the same category with the only basis of difference being the duration of service.
OBSERVATION OF THE COURT AND DECISION:
The Ld. Court noted that employees retiring under VRS and employees retiring after attaining age of superannuation cannot be placed under the same category.
The Court allowed the appeal to the extent that those who retired from the services of MSFC between 2006 and 2010, and legal heirs of those who passed away during that period, are entitled to claim arrears based on pay revision.