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Chandra Nath Jha & Ors vs State Of Bihar & Ors

Supreme Court11 July 2011Deepak Verma · Dalveer Bhandari

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

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

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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