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SUPREME COURT OF INDIA
Dhananjaya Y. Chandrachud, Hemant Gupta, JJ.
The State of Bihar & Another – Appellants
Vs.
Dr. Sachindra Narayan & Others – Respondents
Civil Appeal No. 884 of 2019 (Arising out of S.L.P (C) No. 18502 of 2018)
Decided On : 30-01-2019
(1993) 3 SCC 499; (2006) 8 SCC 381 – Relied upon
Facts of the case:
27 petitioners (respondents 1 to 27 herein), filed writ petition in the High Court for a direction to the respondents (appellants herein) to pay the arrears as well as current pension on the month to month basis which has been stopped from the month of January 2014.
The Writ Petition was dismissed holding that the resolution of the Board dated 15.02.1985 was inconsistent with the Act and Rules, therefore, the writ petitioners were not vested with any legal right. Correspondingly, there is no legal obligation on the State to pay and that a writ of mandamus cannot be issued to the authority of the State to act contrary to law. It was also held that, the payment of pension/family pension by the State for the last few years is an illegality, the same cannot be directed to be perpetuated by an order of the Court.
However, an intra Court appeal was allowed.
Finding of the Court:
The employees of such Institute cannot be treated at par with the employees of the State Government nor the State can be burdened with the responsibility to pay pension to the employees of the Institute.
Result: Appeal allowed, writ petition dismissed.
JUDGMENT :
Hemant Gupta, J.
The present appeal is directed against an order passed by the Division Bench of the High Court of Judicature at Patna on 13.03.2018 whereby the Writ Petition was allowed directing the appellant to provide financial assistance for payment of the arrears as well as current pension to the employees of the Anugraha Narayan Sinha Institute of Social Studies, Patna (Institute).
2. The Institute is incorporated by the Anugraha Narayan Sinha Institute of Social Studies Act, 1964, (Act). The Institute has a perpetual succession and a common seal. The Chairman of the Board of Control is a nominee of the State Government. The State Government is also to nominate two persons of eminence in consultation with the Chairman; whereas, the others are ex-officio members such as Vice-Chancellor of Patna University, another Vice-Chancellor to be nominated by the State Government other than that of Patna University in rotation in alphabetical order as per names of Universities; two representatives of the Indian Council of Social Science Research, New Delhi; one representative of the University Grants Commission; one faculty member not below the rank of a Professor and a Secretary to the State Government in the Department of Education and in the Department of Finance.
3. In terms of Section 6 of the Act, the Board is the supreme governing body of the Institute and is to exercise all the powers of the Institute. Section 8 mandates the State Government to contribute a sum of rupees two lacs in each financial year for the maintenance of the Institute and such other sums as it may deem fit for special items of research or education work, publication, buildings and proper maintenance and development of the Institute. Section 9 of the Act provides for establishment of Institute Fund, whereas, Section 10 deals with the budget of the Institute. Section 16 of the Act empowers the Board to make rules not inconsistent with the provisions of the Act, whereas, Section 17 empowers the Board to make regulations consistent with the Act and the Rules framed thereunder. The relevant provisions of the Act read as under:
"6. Functions of the Board.- (1) The Board shall be the supreme governing body of the Institute and shall exercise all the powers of the Institute.
(2) Subject to the provisions of this Act the Board shall, in particular-
(a) hold, control and administer the property and the funds of the Institute;
(b) determine the form, provide for the custody and regulate the use of the common seal of the Institute;
(c) determine and regulate all matter concerning the Institute;
(d) administer any funds placed at the disposal of the Board for specific purposes;
(e) create posts and appoint officers and other employees of the Institute and define their duties and provide for the filling of temporary vacancies:
Provided that no post the total emolument of which exceeds Rs. 1,000 per month shall be created without the previous sanction of the State Government;
(f) have power to accept transfers on behalf of the Institute of any movable or immovable property to and for the purposes of the Institute.
xxx xxx xxx
8. Payment to Institute.- (1) The State Government shall contribute to the institute a sum of two lakhs of rupees in each financial year for the maintenance of the institute.
(2) The State Government may contribute from time to time such additional sums to the Institute as it may deem fit for special items of research or educational work, publication, buildings and for the proper maintenance and development of the Institute.
9. The Institute Fund.- (1) There shall be established a Fund to be called the Anugraha Narayan Sinha Institute Fund which shall be vested in the Institute to which shall be credited-
(a) the balance, if any, standing to the credit of the Anugraha Narayan Sinha Institute of Social Studies, Patna, on the date of commencement of this Act;
(b) all moneys contributed to the Institute by the State Government;
(c) all moneys received by or
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