Orissa Khadi and Village Industries Board Employees Not Entitled to Pensionary Benefits: Supreme Court

07 May 2024 8:19 AM

By: Admin

In a recent judgment, the Supreme Court of India ruled that employees of the Orissa Khadi and Village Industries Board are not entitled to pensionary benefits on par with state government employees. The court emphasized that the employees of the Board, established as a body corporate with specific aims and objectives, cannot be equated with state government employees in all respects.

The judgment stated, "It remains indisputable that the Regulations of 1960 governing the service conditions of the employees of the Board specifically contain the stipulation in Regulation 52 that they shall not be entitled to pension. The cited decisions on behalf of the respondents cannot be read as overriding the said Regulation 52."

The court further observed that previous decisions regarding denial of pension and non-availability of financial resources could not be applied to the present case. The judgment highlighted the distinction between the employees of the Board and state government employees, emphasizing the need to maintain this distinction.

Furthermore, the court rejected the plea to exercise powers under Article 142 of the Constitution, stating that sympathy or sentiment alone cannot be a ground for passing an order contrary to legal rights. It emphasized that the existing Regulation 52, which specifically addresses the retiral benefits of the Board's employees, cannot be ignored.

Supreme Court allowed the appeal, set aside the impugned orders, and dismissed the writ petition filed by the Orissa Khadi and Village Industries Board employees.

Date of Decision: March 17, 2023

STATE OF ORISSA & ANR. vs ORISSA KHADI AND VILLAGE INDUSTRIES BOARD KARMACHARI SANGH