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2001 Supreme(Pat) 885

PATNA HIGH COURT
Nagendra Rai and S.K.Katriar JJ.
Managing Director, B.S.T.B.Publishing Corporation Ltd.
Versus
Md.Sahabuddin
Letters Patent Appeal No. 1429 of 2001 ;
Decided On : SEPTEMBER 19, 2001

Headnote:Service Law-Pay Scale of Helpers-Fixation of-Corporation is under the control, purview of the Bureau-Bureau is competent to issue directions with regard to salary and service conditions of the employees of the corporation under Article 95 of the Article of Association-Approval of the Bureau is necessary for fixation or revision etc. of the pay scales of the corporation-Corporation is not competent to take a final decision.

       (Paras 19, 21, 24)

       

Judgment

Nagendra Rai, J.

1. The appeal is barred by limitation. Having taken into consideration the averments made in the limitation petition and hearing the parties, the delay in filing the appeal is condoned.

2. The matter relates to grant of revised pay scale to the Helpers employed in the Bihar State Text Book Publishing Corporation Ltd. (hereinafter referred as "the Corporation). Respondent no. 1, namely, Md. Sahabuddin, claiming himself to be the General Secretary of the Workers Union of the aforesaid Corporation, filed the writ petition out of which the present appeal arises, for a direction to the Corporation to implement its decision with regard to revision of pay scale of the Helpers in the pay scale of Rs. 950/- to Rs. 1400/-. The learned Single Judge by his order dated 28.7.2001, has allowed the writ petition and directed the Corporation to pay salary in the revised scale as per its own decision.

3. The facts leading to the present appeal are that the Corporation was registered as a Company under the Companies Act in the year 1965. According to the terms of the Memorandum of Association, the main object of the Company is to acquire and take over the business and other activities of the Government of Bihar relating to publication of text books together with all its assets, rights, privileges and liabilities and as the Government of Bihar may transfer to the Company and to carry on such business and activities and to exercise, perform and carry out such functions, powers and authority as may from time to time be given, assigned and directed by the Government of Bihar in that regard or with regard to any other like matter and objects.

4. The Company has framed Articles of Association, relevant provisions of which will be discussed in the latter part of the judgment.

5. The pay scale of the Helpers was Rs. 180/- to 242/-. According to the IVth Pay Revision Committee, the recommended scale was Rs. 400/- to 540/- but the Corporation granted the scale of Rs. 375/- to 480/- to the Helpers. Thereafter, the VIth Pay Revision Committee made recommendation and the scale of Helpers was fixed at Rs. 800/- to 1150/-. However, the Helpers demanded the pay scale of Rs. 950/- to 1400/-. It appears that the Board of Directors in the meeting decided to give them the aforesaid pay scale of Rs. 950/- to 1400/-, but as it was not competent to take a final decision in the matter without approval of the Administrative Department and the Bureau of Public Enterprises (hereinafter referred to as the Bureau), the Corporation requested the Chairman of the Bureau and the Administrative Department i.e. the Secondary, Primary and Adult Education Department, Government of Bihar, to grant the replacement pay scale of Rs. 950/- to 1400/- vide letters dated 11.11.1997 and 25.2.2000, copies of which were appended as Annexures A & B respectively to the counter-affidavit filed in the writ proceedings. No decision has been taken till date.

6. The case of the writ petitioner- respondent is that the Corporation is competent to take a final decision with regard to fixation of pay as well as revision of pay scales, and the Administrative Department or the Bureau has no control over the same. In support of the aforesaid stand, the writ petitioner- respondent has relied upon two letters annexed with the supplementary affidavit filed in the writ proceedings on 4.7.2000 as Annexures X and Y. Relying upon the two letters, the learned Single Judge has come to the conclusion that the Corporation is competent to take a final decision with regard to the revision of pay, and the State Government or the Bureau has no jurisdiction to interfere in the affairs of the Corporation.

7. The further case of the writ petitioner-respondent is that according to the Articles of Association of the Company, the Governor is empowered to issue directives and instructions with regard to function, conduct of business, affairs of the Company and other matters and not the State Government.


























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