4 min readMumbaiJul 6, 2026 01:30 PM IST
Expressing “pain” over the “quite disturbing” delay in payment of gratuity and pension amounting to crores of rupees to retired employees of the Brihanmumbai Electricity Supply and Transport (BEST) Undertaking, the Bombay High Court last week ordered immediate disbursal of the remaining dues along with interest and said the authorities cannot take the “excuse of financial constraints.”
The court said the delay reflected the “inability”, “total neglect” and “reluctance” of “one of the most successful and prestigious public bodies” like the BEST Undertaking, which is “under the umbrella” of “one of the largest municipal corporations (BMC)” to discharge its obligations. It was “anguished” by the conduct of the authorities.
It warned that if, for unwarranted reasons and through no fault of any employee, the payments are not disbursed after superannuation, it would hold the BEST General Manager and its officers liable “for dereliction of duty and for breach of the fundamental rights of employees guaranteed under Article 21 and 14 of the Constitution to receive their retirement dues.”
A bench of Justices Girish S Kulkarni and Aarti A Sathe on June 30 ruled on a batch of pleas by over 60 BEST employees, argued through senior advocate Gayatri Singh and advocate R D Bhat, raising grievances over non-payment of gratuity, pension and other dues on their superannuation and seeking disbursal with interest at the earliest.
The HC observed that when the proceedings commenced a few years ago, the outstanding amounts due to the petitioners were “astronomical”. It said the reason for non-payment was “nothing but lack of financial resources with the BEST Undertaking and its “over dependence” on Brihanmumbai Municipal Corporation (BMC)”. It noted that after the May 2024 order, 30 percent of dues amounting to Rs. 332.21 crore was paid and, after the December 2024 order, nearly 65 percent of the outstanding amounts were cleared.
Senior advocates Nikhil Sakhardande and Ashutosh Kumbhakoni, for BEST and BMC respectively, informed the HC last week that 92.10 percent of the outstanding dues had been paid and the balance Rs 82 crore was ready for disbursal. BEST said that of the Rs. 1,000 crore provision made by BMC, only half was disbursed to the undertaking. The HC directed BEST to immediately disburse the Rs 82 crore within two months.
The HC noted that retirement dues by the BEST Undertaking to ex-employees “can in no manner be considered to be a bounty” as they are their statutory “legitimate” entitlement and they “should not have been made to knock the doors of the court.”
Story continues below this ad
It ordered BEST to pay at least 9 percent interest for delays and criticised BMC and BEST for “turning a blind eye” to the issue.
“There is something amiss. This appears to be becoming a norm with the Municipal bodies which depicts a total mismanagement. Payment of the retirement dues or, for that matter, salaries is a well estimated expenditure, for which a deeper and advanced estimation and provision needs to be made. Even on such basic attributes, there is no planning, which itself is unacceptable,” the bench observed.
Warning of action against BEST top officials, the HC observed, “There cannot be any excuse whatsoever including financial constraints, if a systemic, robust and justice oriented approach is taken by all the stakeholders.”
Expressing concern over BEST Undertaking’s approach, it said it affected the “basic dignity” and “livelihood in sunset years of life” of retired employees. “No civilised society can expect a public employee to be left in such a subjugated and impoverished plight,” the bench said and disposed of the pleas.
Stay updated with the latest – Click here to follow us on Instagram
