Court rules denial of medical benefits as arbitrary and discriminatory, mandating parity with serving employees.
In a landmark ruling, the Punjab and Haryana High Court has directed the State of Punjab to extend medical reimbursement benefits to retired employees of the Punjab State Cooperative Supply and Marketing Federation (Markfed) on par with their serving counterparts. The judgment, delivered by Justice Harpreet Singh Brar, emphasizes that denying these benefits violates Articles 14 and 21 of the Indian Constitution, which guarantee equality before the law and protection of life and personal liberty, respectively.
The case, filed under civil writ petition number CWP-7290 of 2026 by the Punjab Markfed Retired Employees Association, challenged the exclusion of retired employees from medical reimbursement benefits. The petitioners argued that the term "employees" under Rule 4.3 of the Punjab State Cooperative Supply and Marketing Federation Employees (Common Cadre) Service Rules, 1990, should include both serving and retired employees.
Justice Brar underscored that financial constraints cannot justify the denial of legitimate benefits. He cited precedents, including the Supreme Court's ruling in Housing Board Haryana v. Yatindra Kumar Gupta, which affirmed that retired employees are entitled to medical reimbursement akin to serving employees and state government retirees.
The court's decision mandates that the respondent federation treat retired and serving employees equally for medical reimbursement purposes, as outlined in Rule 4.3. The ruling aligns with judicial precedents that discourage creating artificial distinctions between serving and retired employees concerning medical benefits, deeming such practices unconstitutional.
The verdict is expected to set a significant precedent for similar cases across various state-controlled entities, reinforcing the legal principle that retirement should not translate into diminished rights or benefits.
Bottom Line:
Retired employees of a public federation are entitled to medical reimbursement benefits at par with serving employees under Rule 4.3 of the Punjab State Cooperative Supply and Marketing Federation Employees (Common Cadre) Service Rules, 1990. Denial of this benefit is violative of Articles 14 and 21 of the Constitution of India.
Statutory provision(s):
Articles 14 and 21 of the Constitution of India, Punjab State Cooperative Supply and Marketing Federation Employees (Common Cadre) Service Rules, 1990 - Rule 4.3
