Tripti Narayan Singh vs Bihar Rajya Khadi Gramodyog Board and Others

Radha Mohan Pd., J.—Since in all these writ applications the question involved is common, with consent of the parties they have been heard together and are being disposed of by this common judgment and orders.

In all these writ applications the question involved is as to whether the Petitioners are employees of the Respondent Bihar State Khadi Gramuddyog Board (hereinafter to be called as "the Board") and are entitled for pensionary benefits. According to the Petitioner they are employees of the Board working in different Khadi Bhawans established by the Board in discharge of their function u/s 14 of the Bihar Khadi and village Industries Act, 1956 (hereinafter to be called as "the Act").

It is not disputed by the Respondent Board that the Bhawans were estabshed by the Board and the Board has overall control in the management of different Bhawans of the State. However, it submitted by the learned Counsel for the Respondent-Board that the payment of salary etc. of the employees of the Bhawans including that of the Petitioners were/are being made from the funds of the Bhawans and they were never paid (sic)y salary from the funds of the Board. It thus submitted that there is no liability the Board to pay the post retiral dues the employees of the Bhawans. In (sic)ly, the learned Counsel for the Petitioners submitted that Section 21 of said Act provides for creation of fund the Board. According to the said vision the Board shall have two a rate funds to be called the "Khadi Fund" and the "Village Industries Funds" and all grants and advances made to the funds from time to time, by the State Government for the purposes of development of Khadi or the development of village industries shall be credited to the Khadi Fund and all payments by the Board for and in respect of the Khadi and village industries shall be made from appropriate funds.

Admittedly the Bhawans were also established by the Board as Khadi Industries. As such the same is covered by the funds allocated to the Board under the said provision. This Court finds substance in the submission of the learned Counsel for the Petitioners. In absence of any dispute that the Board has administrative control over the establishment of the Bhawan the Board cannot escape the liability of paying the dues of the employees of the Bhawans.

The learned Counsel for the Petitioners in C.WJ.C. No. 213 of 1997 has shown that the Petitioner of the said case in fact, was appointed by order of the Board as contained in Annexure 1 along with 21 others and were asked to join at different Bhawans. It is true that in the said order it was mentioned that the pay and other allowances will be paid from the account of the Bhawans noted against their names, but that will not absolve the Board of its liability for paying the post retiral dues. From Annexure 1 to C.W.J.C. No. 1763 of 1996 it is evident that the Petitioner of the aforesaid case was communicated about his retirement with effect from 31.3.1995 on completion of 58 years of service by the Deputy Chief Executive Officer of the Board and vide Annexure 2 the Administrator of the Board informed the Petitioner of the aforesaid case about the deposits in his G.P.F. account.

Mr. Das, learned Counsel appear-King for the Respondent-Board fairly did not dispute that the Petitioners were employees of the Board. However, he submitted that the Board gets the entire fund for payment of such dues from the State Government pursuant to the Division Bench decision of this Court in the case of Bihar Rajya Khadi Gramudyog Board Karyakarta Sangh v. State of Bihar through the Chief Secretary Government of Bihar and Ors. C.W.J.C. No. 12124 of 1993 disposed of on 18.1.1996, and as the Government has not released the fundi the Board is facing difficulty in paying the dues of the Petitioners.

In the Division Bench decision of fine Court in the case of Bihar Rajya Khadi Gramudyog Board Karyakarta Singh (supra) it has been held that for I legitimate expenses incurred by the Respondent-Board in performance of statutory functions including the employment of officers and servants with the approval of the Government, the State Government is obliged to provide funds to the Board to meet the obligations. This Court also directed in the aforesaid decision that if funds which are being allocated year after year are not sufficient to meet those obligations, the State Government must allocate additional fund so as to enable the Respondent-Board to discharge its valid and legal obligations to pay the salaries and allowances to the officers and servants of the Board legally appointed with the approval of the Government. Accordingly, the State of Bihar was directed to make immediate steps to provide full funds to the Respondent- Board. The Board was also directed to prepare a detailed statement of account and submit the same to the State Government giving full particulars about the persons employed by it. It was also directed that the Board shall submit to the State Government well in advance to complete the requirement of fund with justification therefore, as required under Sections 16 and 24 of the said Act and the State Government shall allocate fund in such a manner that the Board does not find any difficulty in regularly paying salaries and wages to its officers and staff. Despite this, nothing has been brought on record to show that the Board ever sent requisition to the State Government for payment of the dues of the Petitioners except for general allocation of fund which cannot be appreciated. As per direction of the Division Bench it is the duty and function of the Board to prepare proper requisition for release of the fund from the State Government sufficiently in advance before retirement of a person, so that the employee should not suffer for want of fund for years together.

Accordingly, the writ applications are allowed with a direction to the Respondent-Chief Executive Officer of the Board to send a fresh requisition with respect to these Petitioners for release of funds to the State Government for payment of their post retiral dues within three weeks of the receipt/production of the copy of this judgment/order, whereupon the State Government shall release the funds in the light of the decision of the Division Bench of this Court within four weeks of receipt of requisition. The Chief Executive Officer is directed to pay the dues of the Petitioner forthwith on receipt of the fund from the State Government. There shall however, be no order as to costs.