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2008(5) Supreme 117
Supreme Court of india
S.B. Sinha and V.S. Sirpurkar, JJ.
Kapila Hingorani & Anr. — Appellant
versus
State of Bihar & Anr. — Respondent
I.A. No. 21 of 2007 in Writ Petition (Civil) No. 488 of 2002
Decided on : 08-07-2008
(b)Constitution of India,1950 – Article 32 – PIL – In view of a writ petition pending in the High Court and dealing with a labour dispute not desirable in PIL, Court declining to make a final order. (Para 20)
(c)Contempt of Courts Act, 1970 – Section 12 – Contempt proceeding must be started as a last resort – Only because an incorrect statement had been made before the Court, initiation and consequent punishment of the officers guilty before the Court therefor, would not subserve any purpose. (Para 21)
2008(7) SCALE 484 - Relied upon.
Facts of the case :
1.The State of Jharkhand exercising its power under Section 85 of the Bihar Reorgnisation Act constituted a Corporation called “Jharkhand Hill Area Lift Irrigation Corporation” (‘JHALCO’) by notification no. 2580 with effect from 29.12.2001.
2.A public spirited lawyer initiated public interest litigation in this Court under Article 32 of the Constitution of India, inter alia raising a question regarding the liability of the Government of State of Bihar for payment of arrears of salaries to the employees of the said owned corporations, public sector undertakings and statutory bodies.
3.Supreme Court issued interim direction which were only to meet the exigencies which were then prevailing.
4.Two I.As. being I.A. no. 7 of 2004 and I.A. no. 9 of 2004 came to be filed. In I.A. no. 7 of 2004, a clarification was sought in respect of JHALCO with the prayer that JHALCO should be treated as a successor of BHALCO from 15.11.2000 onwards.
5.I.A. were filed which were disposed of by orders dated 13.1.2005, 16.7.2007 and 21.9.2007.
Finding of the Court :
Stage is not reached in the matter for a final order.
Result : Interim orders passed.
Judgment
V.S. Sirpurkar, J. —
1.In the instant Application, the petitioner seeks directions from this Court on the following:
(a)Direct the respondent State/JHALCO to immediately comply with the Order dated 13.1.2005 and pass the Order of absorption in JHALCO with respect to 213 employees listed in the letters issued by MD, JHALCO on various dates (annexed to the I.A.), pursuant to the Order dated 13.1.2005 leaving the employees who have died.
(b)Pass any other Order (s) as may be deemed fit and proper.
2.The short history for proper decision would be necessary.
History :
3.Original State of Bihar came to be divided into existing State of Bihar and State of Jharkhand by Bihar Reorganisation Act with effect from 15.11.2000. The State of Jharkhand exercising its power under Section 85 of the Bihar Reorgnisation Act constituted a Corporation called “Jharkhand Hill Area Lift Irrigation Corporation” (hereinafter called ‘JHALCO’) by notification no. 2580 with effect from 29.12.2001.
4.It may be recalled that there were press reports regarding the non-payment of salaries for long time resulting in starvation of the employees of this Corporation. It was also reported that one Chandan Bhattacharya, son of an employee of the Bihar State Agro-Industries Development Corporation tried self-immolation, which incident was widely reported in the press. Ultimately, the said Chandan Bhattacharya succumbed to the burn injuries. A public spirited lawyer initiated public interest litigation in this Court under Article 32 of the Constitution of India, inter alia raising a question regarding the liability of the Government of State of Bihar for payment of arrears of salaries to the employees of the said owned corporations, public sector undertakings and statutory bodies. The State of Bihar filed its counter affidavit and claimed that the salaries were being paid by the statutory authorities and further that all the salaries upto 30.9.2002 were paid in the case of 26 undertakings. In respect of some other Corporations, however, it was reported that large number of employees were not paid the salaries and huge arrears remained involving crores of rupees. In case of as many as 16 undertakings including Bihar Hill Area Lift Irrigation Corporation (hereinafter called ‘BHALCO’), it was also admitted that 14 employees had died in harness and 9 after retirement. However, it was totally denied that there was any suicide or death due to starvation of any of the employees of the corporation. After hearing the amicus curie, who was appointed by this Court as also the learned counsel who appeared on behalf of State of Bihar and Union ofIndia, and after considering the law in details, the Court issued the following interim directions in the matter on 9.5.2003:
“(i)The High Court may strive to dispose of all liquidation proceedings in respect of the government companies owned and controlled by the State of Bihar as expeditiously as possible. For the said purpose and/or purposes ancillary to or incidental therewith, it may pass an interim Order and/or Orders by way of sale and/or disposal of the properties belonging to such public sector undertakings and/or government companies or to take such measure or measures as it may deem fit and proper.
(ii)For the aforementioned purposes a committee not consisting of more than three members chaired by a retired High Court Judge or a sitting District Judge may be appointed who may scrutinize the assets and liabilities of the companies and submit a report to the High Court as expeditiously as possible preferably within three months from the date of constitution of the Committee. The terms and conditions for appointment of the said Committee may be determined by the High Court. All expenses in this behalf shall be borne by the State of Bihar.
(iii)The High Court shall be entitled to issue requisite direction/directions to the said Committee from time to time as and when it deems fit and proper.
(iv)The State for the present shall deposit
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