Bombay High Court Orders BEST To Pay Remaining Rs 82 Crore Retirement Dues With Interest
On June 30, the Bombay High Court in Mumbai ordered the Brihanmumbai Electricity Supply and Transport (BEST) Undertaking to immediately disburse remaining retirement dues, including gratuity and pension, to retired employees along with interest. Rejecting financial constraints as an excuse, a division bench of Justices Girish S Kulkarni and Aarti A Sathe directed the public body to clear the outstanding balance of Rs 82 crore within two months.
The ruling came during a hearing on a batch of petitions filed by over 60 retired BEST employees. The petitioners were represented by senior advocate Gayatri Singh and advocate R D Bhat, who raised grievances over the non-payment of their statutory dues upon superannuation.
Expressing 'pain' and 'anguish' over the 'quite disturbing' delay, the bench criticized both the BEST Undertaking and the Brihanmumbai Municipal Corporation (BMC) for turning a blind eye to the issue. The court noted that retirement benefits are a legitimate entitlement and not a bounty.
The court warned that if payments are not disbursed after retirement for unwarranted reasons, it would hold the BEST General Manager and other officers liable for dereliction of duty and breach of the fundamental rights of employees guaranteed under Articles 14 and 21 of the Constitution.
During the proceedings, senior advocates Nikhil Sakhardande and Ashutosh Kumbhakoni, representing BEST and BMC respectively, informed the court that 92.10 percent of the outstanding dues had already been paid, leaving a balance of Rs 82 crore ready for disbursal.
The court observed that when the proceedings began a few years ago, the outstanding amounts were 'astronomical' due to a lack of financial resources within BEST and its 'overdependence' on the BMC. Following a court order in May 2024, 30 percent of the dues amounting to Rs 332.21 crore was paid, and another 65 percent of outstanding amounts were cleared after a December 2024 order.
BEST stated that out of a Rs 1,000 crore provision made by the BMC, only half had been disbursed to the undertaking. The High Court criticized this lack of planning, noting that the payment of retirement dues and salaries is a predictable expenditure that requires advanced estimation.
To compensate for the delays, the bench ordered BEST to pay at least 9 percent interest on the delayed amounts. The court concluded that no civilized society should leave public employees in an impoverished plight during their retirement years, subsequently disposing of the petitions.
