Hon'ble MATHUR, J.—By communication dated 8.11.2011 the Principal Secretary to the Government of Rajasthan, Department of School & Sanskrit Education (Group-5), Jaipur issued necessary instructions to the Director, Elementary Education, Bikaner; Director, Secondary Education, Bikaner and the Director, Sanskrit Education, Jaipur relating to pay fixation of the employees working with non-government educational institutions in the pay-scales prescribed under the Rajasthan Civil Services (Revised Pay) Rules, 2008 (hereinafter referred to as 'the Rules of 2008'). The instructions so given are :-

(1) The pay fixation of teaching and non-teaching staff of the non-government educational institutions in the Pay Rules of 2008 be made w.e.f. 01.9.2006 in the same manner as applied to the Rajasthan government servants. The arrears accruing as a consequent to fixation of pay in the Revised Rules of 2008 w.e.f. 2006 shall not be borne by the State Government. The non-government educational institutions shall be liable to make payment of such arrears from their own financial sources.

(2) The pay of the employees of the non-government educational institutions employed in State service as per the provisions of Rajasthan Voluntary Rural Education Service Rules, 2010 should also be fixed under the Rajasthan Civil Services (Revised Pay) Rules, 2008 w.e.f. 01.9.2006, however, but in view of the undertaking given by them as per Clause (vii) of Rule 5 of the Rajasthan Voluntary Rural Education Service Rules, 2010 no liability to make payment of arrears shall be borne by the State Government - may that be relating to pay, selection grade, career progression or career advancement scheme. The payment of such arrears shall be borne by the non-government educational institutions where the employee concerned was working prior to joining State service.

In view of the instructions referred above, the non-government educational institutions are liable to make payment of arrears of pay, selection grade, career progression or career advancement scheme to their existing employees as well as to the employees who are now in employment of the State Government as a consequent to application of the Rajasthan Voluntary Education Service Rules, 2010. This batch of writ petitions is preferred by the non-government educational institutions to challenge the decision of the State Government referred in the communication dated 8.11.2011.

2. To understand the controversy involved in these petitions, it shall be appropriate to refer to certain relevant provisions and other connected facts.

Rajasthan Non-Government Education Institutions Act, 1989 :

To provide for better organization and development of education in non-government educational institutions in the State of Rajasthan, the Rajasthan State Legislature enacted “Rajasthan Non-Government Education Institutions Act, 1989”. The Act was brought into force on 01.1.1993.

Chapter-III of the Act pertains to aid, accounts and audit relating to non-government educational institutions. As per Section 7 of the Act, grant of aid by the State Government is available to the recognized non-government educational institutions. The may cover such part of the expenditure of the institution as may be prescribed. The aid against salary of the employees of an institution cannot be used for any other purpose. The Sanctioning Authority may stop, reduce or suspend aid on breach of any of the terms and conditions prescribed for such grant.

Section 16 of the Act provides that the State Government may regulate recruitment and conditions of service including the conditions relating to qualification, pay, gratuity, insurance, age of retirement, entitlement of leave, conduct and discipline of persons appointed as employees of the aided institutions.

As per Section 29 the scale of pay and allowance except compensatory allowance with regard to the employees o

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