IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Abhilasha Kumari, J.
Khambhat Taluka Sarvajanik Kelvani Mandal - Appellants
Vs.
Rekhaben H. Pandya and Ors. - Respondent
Special Civil Application Nos. 2322, 2323 of 2011, 3065 and 3066 of 2012
Decided On : 11-08-2016
Ordinance 120E - Termination of College Employees - Ordinance 120E of the Gujarat University requires the management of an affiliated college to pay compensation, provident fund dues, and other lawful dues to retrenched staff. The Tribunal found that the college did not follow the procedure under Ordinance 120E and directed the college to pay salary to the employees. The High Court quashed the directions to pay salary, upheld the finding of non-compliance with Ordinance 120E, and directed the college to pay the remaining compensation with interest.
Fact of the Case:
The case involved four petitions related to the termination of employees from a college run by a trust. The employees sought salary, retiral benefits, and other allowances after the college's closure. The trust challenged the orders of the Gujarat Affiliated Colleges Services Tribunal, which directed the trust to pay salary to the employees.
Finding of the Court:
The High Court found that the college did not follow the procedure under Ordinance 120E and upheld the finding of non-compliance. The court quashed the directions to pay salary and directed the trust to pay the remaining compensation with interest. The court rejected the employees' claim for salary and other benefits after the termination of their services.
Issues: The issues involved the non-compliance with Ordinance 120E, the entitlement of employees to salary and benefits after the college's closure, and the legality of the termination of employees' services.
Ratio Decidendi: The court held that the employees were only entitled to the compensation under Ordinance 120E and not to any salary or allowances after the termination of their services. The court also upheld the finding of non-compliance with Ordinance 120E and directed the trust to pay the remaining compensation with interest.
Final Decision: The High Court partly allowed the trust's petitions, quashed the directions to pay salary, upheld the finding of non-compliance with Ordinance 120E, and directed the trust to pay the remaining compensation with interest. The court rejected the employees' claim for salary and other benefits after the termination of their services.
Abhilasha Kumari, J.
1. Leave to amend the memorandum of Special Civil Applications Nos. 2322 of 2011 and 2323 of 2011 so as to add Article 227 of the Constitution of India is granted. The necessary amendment be carried out forthwith.
2. In this group of four petitions, two petitions, namely, Special Civil Application Nos. 2322 of 2011 and 2323 of 2011 have been filed by Khambhat Taluka Sarvajanik Kelavani Mandal Trust ('the Trust' for short) which runs educational institutions, under the provisions of Articles 226 and 227 of the Constitution of India, challenging the orders of the Gujarat Affiliated Colleges Services Tribunal ('Tribunal' for short) dated 15.11.2010, passed in Applications Nos. 62 and 63 of 1999, whereby the applications filed by the first respondents in both the petitions, who were employed in a College run by the Trust, have been allowed.
3. The other two petitions, being Special Civil Applications Nos. 3065 of 2012 and 3066 of 2012, have been filed by the employees. The petitioner in Special Civil Application No. 3065 of 2012, Shri Melabhai R. Rabari, has prayed that the Trust may be directed to pay the legal dues for 34 (29+2+3) years' as retiral benefits, gratuity and Provident Fund, with interest at the rate of 18% and, further to pay the arrears of salary and difference of pay-scale for the period from 01.01.1996 to 31.05.2003, with all benefits and, further, to start family pension. Ms. Rekhaben S. Pandya, the petitioner in Special Civil Application No. 3066 of 2012, has prayed that the Trust may be directed to pay (18+9) = 27 years' retiral benefits, gratuity and Provident Fund with interest at the rate of 18%, and to pay all arrears of salary, higher pay-scale and other benefits, for twenty-seven years.
4. As the issues involved in all the four petitions are intrinsically interconnected, it is necessary to decide all the petitions altogether, by a common judgment. Hence, learned counsel for the respective parties have addressed common arguments for all the petitions.
5. In order to put the issues involved in the respective petitions in proper perspective, a brief factual background would be necessary.
5.1 The Trust, which is the petitioner in the above-mentioned two petitions and respondent in the petitions filed by the employees, is registered under the Bombay Public Trusts Act, 1950. It was running a Law College, namely, C.V. Shah Law College ('the College' for short) in Khambhat, since the year 1979. The said College was affiliated to Gujarat University. Shri Melabhai R. Rabari was working as a Peon in the said College since 07.06.1970 and Ms.Rekhaben S. Pandya was working as a Clerk since 01.07.1987. The Bar Council of India passed an order dated 20.08.1996, withdrawing the recognition to the College. Pursuant thereto, the Bar Council of Gujarat also withdrew its recognition to the College by an order dated 22.04.1998. In view of the above, the affiliation granted by the Gujarat University respondent No. 3 herein was cancelled and the College was required to be closed down. The Management of the College issued Show-cause Notices to both the employees dated 09.03.1999, for terminating their services, as it was not possible to continue any of the staff members due to the closure of the College. The services of the employees were terminated by separate orders dated 13.04.1999. The employees, therefore, approached the Tribunal by filing the above-mentioned applications, stating that the Trust had not followed the procedure under Ordinance 120E of the Gujarat University while closing down the College. They sought appropriate directions to be issued to the Trust to pay salary and allowances continuously to them. The above applications were allowed by the impugned orders passed by the Tribunal directing the authorities "to pay the salary to the applicants for the above-mentioned period". Aggrieved by the above order of the Tribunal, the Trust has approached this Court by filing the above-mentioned t
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