Chandra Nath Jha & Ors vs State Of Bihar & Ors
- SCC(2011) 15 SCC 223
Ratio decidendi
The rule this decision rests on
When a private educational institution is taken over by the State Government pursuant to a notification specifying an effective date of takeover, the State's liability to provide benefits to employees of that institution, including altered pay scales applicable to Government employees, arises only from the date of actual takeover and not from the date of the notification or any earlier appointment. Where the State Government has already made certain payments to employees of a taken-over institution, the State cannot recover those amounts from the employees, though employees remain entitled to claim benefits only from the date the State's liability commenced.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
CIVIL APPEAL NO. 5342 OF 2011 (Arising out of SLP(C) No.17883/2007)
CHANDRA NATH JHA & ORS. Appellant(s)
VERSUS
STATE OF BIHAR & ORS. Respondent(s) WITH
CIVIL APPEAL NO. 5343 OF 2011 (Arising out of SLP(C) No.16155/2007)
O R D E R
1. Leave granted.
2. We have heard the learned counsel for the
parties.
3. The appellants were appointed prior to
29.1.1981 by the then Managing Committee of the
R.B.T.S. Homeopathic Medical College and Hospital,
Muzaffarpur. A Notification dated 29.1.1981 was
issued by the Health Department, Government of Bihar
to take over the private medical colleges with
effect from 1.4.1981. In the Notification dated
-2-
29.1.1981, it was made clear that these institutions
will be taken over by the Government of Bihar with
effect from 1.4.1981. Therefore, in our considered
view, the liability of the State Government would
arise from the date these private institutions were
taken over by the State Government i.e. with effect
from 1.4.1981.
4. In case of employees where some payments have
been made by the State Government, we direct the
State not to recover that amount from the employees.
In other cases, the employees would be entitled to
different pay scales only from 1.4.1981.
5. These appeals are disposed of with the
aforementioned observation and direction. Parties
are directed to bear their own costs.
.....................J (DALVEER BHANDARI)
.....................J (DEEPAK VERMA) New Delhi;
July 11, 2011.
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