Punjab and Haryana High Court Mandates Medical Reimbursements for Retired Employees

Court rules financial constraints cannot justify denial of medical benefits to retirees, reinforcing equality under Article 14.

In a landmark judgment, the Punjab and Haryana High Court has ruled in favor of retired employees, asserting that financial constraints cannot be a reason for denying legitimate medical reimbursement benefits. The case, titled "Gurcharan Dass v. State of Haryana," was presided over by Justice Harpreet Singh Brar, who emphasized the equality principle enshrined in Article 14 of the Indian Constitution.

The court's decision comes in response to a writ petition filed by Gurcharan Dass and others, retired employees of the Haryana Police Housing Corporation. The petitioners sought a writ of mandamus for the provision of medical reimbursement facilities, which were allegedly denied on grounds of the corporation's financial incapacity.

Justice Brar noted that the service conditions place retired employees at par with serving employees, and any differentiation between the two groups for medical reimbursements is untenable. The court referenced previous judgments, including a Division Bench decision and an affirmation by the Supreme Court, underscoring that financial hardship cannot justify the denial of such benefits.

The court highlighted that the corporation had not provided any legal basis for withdrawing or altering the medical reimbursement benefits prior to the petitioners' retirement. Moreover, the court criticized the corporation for attempting to create two artificial classes, serving and retired employees, which is a violation of Article 14.

In its judgment, the court directed the respondents to release the admissible medical reimbursement amounts within two months, failing which the amounts would accrue interest at a rate of 6% per annum from the date of default.

This ruling reaffirms the rights of retired employees to medical benefits and sets a precedent that financial difficulties cannot override constitutional protections of equality and fairness.

Bottom Line:

Retired employees cannot be denied medical reimbursement benefits on the grounds of financial constraints of the Corporation if such benefits are extended to serving employees.

Statutory provision(s): Article 14 of the Constitution of India, Articles 226/227 of the Constitution of India.

Gurcharan Dass v. State of Haryana, (Punjab And Haryana) : Law Finder Doc Id # 2820378