Ayurved Vikas Mandal vs State Of Gujarat
- Neutral2017 INSC 898
Ratio decidendi
The rule this decision rests on
When an aided college is converted to self-financing status at the request of its management, subject to conditions imposed by the government that employees shall be continued, the government is bound by those conditions and cannot escape liability to absorb such employees merely on the ground that it would set a precedent or affect direct recruitment, particularly where the government has previously agreed to similar absorption in comparable cases. Where an institution's conversion to self-financing status was expressly made conditional upon the continuation or absorption of existing employees, the government cannot rely on the mere technical status of the institution as grant-in-aid to avoid honoring the undertaking given at the time of conversion.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO(S). 12683 OF 2017 [@ SPECIAL LEAVE PETITION (C) NO. 15463 OF 2016]
AYURVED VIKAS MANDAL Appellant(s)
VERSUS
STATE OF GUJARAT & ORS. Respondent(s)
WITH
CIVIL APPEAL NOS. 12684-12685 OF 2017 [ @ SPECIAL LEAVE PETITION (C) NOS. 35066-35067 OF 2016 ]
J U D G M E N T
KURIAN, J.
CIVIL APPEAL NO(S). 12683 OF 2017 [@ SPECIAL LEAVE PETITION (C) NO. 15463 OF 2016]
1. Leave granted.
2. The appellant is before this Court, aggrieved by
the Judgment dated 02.05.2016 passed by the High
Court of Gujarat at Ahmedabad in Letters Patent
Appeal No. 125 of 2016 in Civil Application No. 13039
of 2015. The issue pertains to absorption of 23
members of the staff of the 2 nd
respondent-institution. After hearing the learned
counsel for some time, this court passed the Signature Not Verified following order on 31.07.2017 :- Digitally signed by JAYANT KUMAR ARORA Date: 2017.09.22 16:42:15 IST Reason:
“The issue raised in these two petitions
pertains to the fate of 23 teachers who
had been working in an aided college.
2 In 2012, it appears, there was a
decision to convert the college to
self-financing.
According to the learned counsel for the State, the condition was that the employees of the institution should be continued as such and only on that condition the permission was granted.
According to the employees, they have not been continued in the institution nor have they been absorbed in Government service, as directed by the High Court.
Learned counsel appearing for the State submits that in case the direction of the High Court is implemented that will set a wrong precedent and it will also affect the chances of direct recruits.
However, it is pointed out that in similar cases, the Government had agreed for absorption of such employees.
Be that as it may, we direct the State Government to get instruction as to whether the State would be in a
position to absorb these 23 employees without the judgment being treated as a precedent.
List on 18.08.2017.”
3. In response to the order, an affidavit has been
filed on behalf of the State on 07.09.2017.
Paragraph 4 of the affidavit reads as follows :- 3
“I say and submit that the State Government has taken up the matter of accommodating 16 employees of the trust in the available vacancies of other Grant in Aid Ayurveda Colleges of the State and it has been finally decided by the government that the 16 employees of the trust shall be accommodated in the Grant in Aid Ayurveda Colleges situated at Surat and Jamnagar as 7 employees are already retired. This decision has been taken on the condition that the trust shall pay the Salaries and Allowances of all the 16 employees from the date on which the trust has stopped paying the salaries till the date on which the State will absorb the employees in other Grant in Aid Ayurveda Colleges while the salaries and allowances of 7 employees shall be paid by the trust from the date on which the trust has stopped paying the salaries till the date of retirement. The pension papers of these employees shall be prepared by the trust, if not prepared and shall be forwarded to the Petitioner No. 2 office who in turn shall take necessary actions to sanction the same. The Statement showing the details of 16 employees of the trust to be absorbed in other Grant in Aid Ayurveda Colleges and 7 employees of the trust who have retired is annexed herewith and marked as Annexure R/1 & R/2” 4
4. We find that the Government has taken a very fair
stand, though Mr. Rakesh Khanna, learned senior
counsel, has very vehemently contended that the
second respondent will not be in a position to pay
the arrears of salary, as stated in the Affidavit.
Having submitted before the High Court that the
Government will absorb the 23 employees, there is no
point in turning round on that instruction furnished
before the High Court; it is submitted.
5. Having heard Mr. Preetesh Kapoor, learned counsel
appearing for the State, we find it difficult to
appreciate the contentions advanced by him. True,
the second respondent institution was a grant-in-aid
college. However, it is on the request of the
Management that the Government agreed to convert it
into a self financing college, subject to certain
conditions.
6. In that background, we are of the view that this
case needs to be disposed of in terms of the
affidavit, as extracted above, making it further
clear that this Judgment is passed in the very
peculiar facts of this case and the same shall not be
treated as a precedent.
5
7. Mr. Rakesh Khanna, learned senior counsel,
submits that in view of the paucity of funds for the
Management, they may be permitted to sell/mortgage a
portion of their land so as to comply with the
directions regarding payment of arrears of salary of
the 23 employees upto 31.10.2017 . In case, for
payment of salary for the abovementioned 23
employees, if the Trust is required to mobilize funds
by disposing of / mortgaging the property, it will be
open to them to do so by completing the formalities
as required under the Trust deed.
8. The appeal is, accordingly, disposed of with a
further direction to the State to act in accordance
with the affidavit, as above, and do the needful
within four weeks from today.
9. The entire arrears, as required in the affidavit,
to all the 23 employees shall be cleared within three
months from today. We make it clear that there shall
be no further extension of time for this purpose.
10. Within the said period of three months, the
pension papers of 7 retired employees shall also be
forwarded to the Government so as to enable the
Government to process the sanction. 6
CIVIL APPEAL NOS. 12684-12685 OF 2017[@ SPECIAL LEAVE PETITION (C) NOS. 35066-35067 OF 2016]
1. Leave granted.
2. In view of the Judgment passed in Civil Appeal
No. 12683 of 2017, as above, these appeals are
disposed of.
.......................J. [ KURIAN JOSEPH ]
.......................J. [ R. BANUMATHI ]
New Delhi;
SEPTEMBER 12, 2017.
7
ITEM NO.4 COURT NO.5 SECTION III
S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS
PETITION FOR SPECIAL LEAVE TO APPEAL (C) NO. 15463 OF 2016
AYURVED VIKAS MANDAL Appellant(s)
VERSUS
STATE OF GUJARAT & ORS. Respondent(s)
(PERMISSION TO FILE ADDITIONAL DOCUMENTS)
WITH
SPECIAL LEAVE PETITION (C) NOS. 35066-35067 OF 2016 (III)
Date : 12-09-2017 These petitions were called on for hearing today.
CORAM : HON'BLE MR. JUSTICE KURIAN JOSEPH HON'BLE MRS. JUSTICE R. BANUMATHI
Counsel for the parties Mr. Rakesh Kumar Khanna, Sr. Adv.
Mr. Neeraj K. Gupta, Adv.
Mr. Sudhir Naagar, Adv.
Mr. Ranjeet Singh, Adv.
Mr. Harin P. Raval, Sr. Adv.
Mr. Anirudh Sharma, AOR Mr. Abhaid Parikh, Adv.
Ms. Divya Anand, Adv.
Mr. Nipun Saxena, Adv.
Mr. Preetesh Kapoor, Adv.
Mrs. Hemantika Wahi, AOR Ms. Jesal Wahi, Adv.
Ms. Puja Singh, Adv.
Ms. Mamta Singh, Adv.
UPON hearing the counsel the Court made the following O R D E R
Leave granted.
8
The appeals are disposed of in terms of the signed
non-reportable Judgment.
Pending interlocutory applications, if any, stand disposed of.
(JAYANT KUMAR ARORA) (RENU DIWAN) COURT MASTER ASSISTANT REGISTRAR
(Signed non-reportable Judgment is placed on the file)
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