The Supreme Court has observed that the employees of a body corporate under a state government cannot be treated in a similar manner as employees of the state government.
This observation was made by the court while stating that employees of Orissa Khadi and Village Industries Board are not entitled to pension on a par with government employees.
The decision was arrived at based on the reasoning that the service conditions are governed by specific regulations under the Orissa Khadi and Village Industries Board Regulations, 1960 (‘Regulations, 1960’) which specifically states that the employees shall not be entitled to a pension.
The respondents’ arguments were based on the reasoning that pension is paid for services rendered in the past and not as charity or gratuitous payments, which was dismissed on the grounds of the existence of a specific condition under the regulation, which cannot be devolved from by the judiciary.
