Introduction:
The Bombay High Court bench of Justice Nitin Jamdar and Justice M.M. Sathaye recently held that Shreemati Nathibai Damodar Thackersey (SNDT) Women’s University must take immediate steps to secure funds and establish a corpus to implement the 7th Pay Commission for its retired employees. This directive came in response to a series of writ petitions filed by retired employees who had not received retirement benefits as per the 7th Pay Commission.
Arguments:
The Petitioners, represented by Mr. Ajit Kenjale, argued that the University’s failure to implement the 7th Pay Commission deprived them of their rightful benefits, causing financial distress. They highlighted that the current pensionary benefits under the 6th Pay Commission were inadequate, especially with the disparity in the dearness allowance, which stood at 164% for current employees but only 142% for retirees. The Petitioners stressed that the University’s inaction violated their rights and urged the court to mandate immediate implementation of the revised benefits.
The University, represented by Ms. Disha Vardhan, acknowledged the applicability of the 7th Pay Commission but cited financial constraints as the reason for the delay. They assured the court that efforts to secure funds were underway, with a target to fulfill the obligations by June 2025. The University’s counsel argued that financial preparedness was necessary to meet these commitments without jeopardizing other operational needs. They also indicated that innovative fundraising measures were being explored to bridge the financial gap.
Observations by the High Court:
The High Court critically examined the University’s stance, underscoring the importance of proactive measures to secure funds. The court referred to the Maharashtra Public Universities Act 2016, which mandates the welfare of employees and the upholding of educational standards. The court emphasized that the University, as a statutory body, must ensure financial readiness to implement pay commission recommendations without waiting for external pressures or litigation.
The court highlighted that the University’s failure to act promptly on the 7th Pay Commission’s implementation was untenable. The court cited the Supreme Court decision in Mahatma Gandhi Mission v. Bhartiya Kamgar Sena, which emphasizes the responsibility of institutions to explore innovative fundraising means to meet financial obligations. The court found the University’s timeline of June 2025 unacceptable, particularly given the immediate needs of its retirees.
Court’s Judgement:
The Bombay High Court directed SNDT Women’s University to commence payment of pensionary benefits, including the revised dearness allowance, as per the 7th Pay Commission from July 1, 2024. The court also mandated the creation of a structured installment plan for paying arrears to ensure timely and phased payments. The court’s decision underscores the necessity for educational institutions to proactively manage their financial responsibilities and safeguard the welfare of their employees.