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1986 Supreme(Pat) 236

U.P.SINGH
Chotanagpur Chamber Of Commerce Singhbhum Chamber Of Commerce And industries – Appellant
Versus
State Of Bihar – Respondent


Judgment

U.P.Singh, J.

1. Since common question of law are involved in both the writ applications, they have been heard together and are being disposed of by this common judgment.

2. The principal point is that the Government of Bihar in revising Variable Dearness Allowance (VDA) at 4 paise per point of increase in the cost of living index per day has exceeded its jurisdiction and authority. In C.W.J.C. No. 910 of 1981 (R), the Notification of the Government of Bihar dated 24th February 1981 (Annexure I) has been challenged, whereby it has revised the Variable Dearness Allowance (VDA) at 4 paise per point of increase in the cost of living index per day. Earlier VDA was fixed at 2 paise per point of increase in the cost of living index per day. As a result of the said revision of VDA, on the basis of the said notification, neutralisation will be more than 100% and, therefore, it is challenged that in revising VDA, the Government has exceeded its jurisdiction.

3. The effect of the said notification on the computation of VDA is explained on the basis of the figures disclosed by the Respondents in paragraph 7 of the counter affidavit. Hence the figures are not disputed. To take an illus





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