SC| Legitimate expectation is not a wish or desire that can be demanded as a right

Supreme Court:

“The legitimate expectation is not a wish or a desire or a hope, therefore, it cannot be claimed or demanded as a right.”

The Bench of Dr DY Chandrachud and Hemant Gupta, JJ said this in the appeal against Patna High Court’s order in which the State of Bihar was directed to provide financial assistance for payment of the arrears as well as current pension to the employees of the Anugraha Narayan Sinha Institute of Social Studies, Patna.

The provision in question was Section 8(1) Anugraha Narayan Sinha Institute of Social Studies Act, 1964 which provides that the State Government is to contribute a sum of rupees two lacs in each financial year or such other sums for research or education work, publication, buildings and for proper maintenance and development of the Institute. It was argued before the Court that the State Government had been releasing Grant-in-aid including amount towards pension since the Board has passed the resolution in the year 1985. Hence, the contribution towards the amount of pension has created legitimate expectation of the employees of the Institute that they are entitled to pension at par with the employees of Patna University. Thus, the employees have legitimate expectations of receipt of pension from the State Government. Therefore, the order passed by the Division Bench of the High Court does not call for any interference.

The Court, however, disagreed with the said stand and explained the provision by stating:

“Sub-Section (1) of Section 8 of the Act mandates the State Government to contribute a sum of rupees two lacs in each financial year for the maintenance of the Institute, whereas, sub-Section (2) empowers the State Government to contribute from time to time, such additional sums as it may deem fit for special items of research or education work, publication, buildings and for proper maintenance and development of the Institute. Such payment for the special projects, is in discretion of the State Government in view of the object for which the grant is to be disbursed, but sub-Section (2) does not include disbursement of the amount of pension as the contribution is for limited purpose which is not recurring in nature.”

The Bench said that the resolution of the Board of the Institute to implement a retirement benefit scheme from its own resources will not bind the State Government to pay the amount of pension to the employees of the Institute. The employees of such Institute cannot be treated at par with the employees of the State Government nor the State can be burdened with the responsibility to pay pension to the employees of the Institute.

Stating that the payment of pension in the past will not confer an enforceable right in favour of the Institute or its employees, the Court held that the order of the High Court was not legally sustainable.

[State of Bihar v. Dr. Sachindra Narayan, 2019 SCC OnLine SC 108, decided on 30.01.2019]

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