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2025 Supreme(HP) 1007

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA 
VIVEK SINGH THAKUR, SANDEEP SHARMA, JJ.
Udham Singh Chaudhary - Petitioner
Versus
State of HP & Others - Respondents
Review Petition No. 47 of 2020
Decided On : 10-01-2025


Advocates Appeared:
For the Petitioner:Mr. Rajnish Maniktala, Sr. Advocate with Ms. Bhushree Jain.
For the Respondents:Mr. Varun Chandel, Additional Advocate General.

Employees superannuated before the takeover of educational institutions by the State cannot claim gratuity and leave encashment from the State as those liabilities remain with the private institution.

Headnote:(A) Education Act - Sections concerning the management and regulation of privately run educational institutions - Notification No. EDN-A-Kha(16)-2/2005 regarding the takeover of Maharaja Sansar Chand Memorial College and liabilities regarding staff - The State has assumed responsibility for the liabilities of the private college post-takeover. (Paras 2-5, 10, 18)

(B) Employment Law - Principles regarding superannuation and the entitlement to retirement benefits for employees of educational institutions taken over by the State - Employees superannuated before the government takeover are not entitled to gratuity or leave encashment from the State. (Paras 6, 11-12)

(C) Judicial Precedent - Principles pertaining to the finality of judgments and the effect of judicial pronouncements on employment status and benefits - Past judgments that determine service status and benefits must be respected and enforced. (Paras 14-16)

Facts of the case:
The petitioner, a former lecturer at a private college taken over by the State, sought review of earlier judgments that denied him retirement benefits post-takeover, despite a previous ruling extending his service status until the takeover date.

Findings of Court:
The court asserted that the petitioner is to be deemed as still in service until the date of the college takeover and thus entitled to retirement benefits from the State.

Issues: The main issue revolved around the petitioner's entitlement to retirement benefits after being superannuated before the college's takeover.

Ratio Decidendi: The court concluded that there is no error in previous rulings, confirming the petitioner's right to retirement benefits based on modified recognition of his service until the takeover date.

Result: Petition allowed; State directed to pay the retiral benefits due to the petitioner.

Table of Content
1. review petition for prior judgment. (Para 1)
2. notifications regarding college takeover. (Para 2 , 3 , 4)
3. transfer of property and liabilities to government. (Para 5 , 6 , 7)
4. claim for retiral benefits after superannuation. (Para 8)
5. state's challenge on payment responsibilities. (Para 9 , 10 , 11 , 12)
6. service status until specific date affirmed. (Para 13 , 14)
7. entitlement despite omission from employee list. (Para 15 , 16)
8. no modification to previous judgment. (Para 17)
9. state responsible for payment of retirement benefits. (Para 18 , 19)

JUDGMENT :

Vivek Singh Thakur, J.

This petition has been preferred by the petitioner for reviewing the judgment dated 7th January, 2020 passed by the Division Bench of this High Court in LPA No. 244 of 2010 titled State of HP vs. Udham Singh Chaudhary vide which judgment of learned Single Judge dated 12th June, 2010 passed in CWP(T) No. 8686 of 2008 titled Udham Singh Chaudhary vs. State of HP has been set aside.

2. Respondent No.5 is the Maharaja Sansar Chand Memorial College, Thural, District Kangra (in short ‘MSCM College’) earlier being run as a private college by its Managing Committee but subsequently same was taken over vide Notification No. EDN-A-Kha(16)-2/2005(Thural), dated 9th November, 2005 issued by the Department of Education, which reads as under:-

“NOTIFICATION

The Governor, Himachal Pradesh is pleased to order the taking over of Maharaja Sansar Chand Memorial(MSCM) College, Thural, Distt. Kangra with immediate effect.

Further, the terms and conditions regarding taking over the services of Personnel and the assets/liabilities etc.will be notified separately…...”

3. Vide a separate Notification No.EDN-A-Kha(16)-2/2005(Thural) dated 18th October, 2016 issued by the Department of Higher Education, services of teaching and non-teaching staff of Erstwhile MSCM College Thural were taken over in the following terms:-

“NOTIFICATION

The Governor, Himachal Pradesh is pleased to order the taking over of services of Teaching and Non-Teaching staff of Erstwhile MSCM Thural, Distt. Kangra w.e.f. 9.11.2005 i.e. the date of taking over of the college as per UGC guidelines, R&P Rules and terms and conditions of taking over of staff of private college notified vide Notification No.Chha(15)-3/86-Shiksha-Ka dated 25.8.94. The details of Teaching and Non-Teaching staff is at Annexure-1.”

4. The relevant portion of the terms and conditions contained in Notification No. Cha.(15)3/86-Shiksha Ka-Shimla, dated 25th August, 1994, referred in Notification dated 18.10.2016, reads as under:-

“NOTIFICATION

The Governor of Himachal Pradesh is pleased to frame following terms and conditions for taking over privately amongst colleges in the Pradesh (affiliated) including teaching and non teaching staff:

(1)

(a) That privately managed colleges are permanently affiliated to the Himachal Pradesh University and are recognized by the Department of Education for grant in-aid. However, the State Govt may take over temporarily / provisionally affiliated Colleges by the H.P. Govt also and state shall also take appropriate steps for its permanent affiliation from the University to make it eligible for various U.G.C grants.

(b) The managing Committee of the colleges shall transfer the endowments funds at present pleaded to the concerned University, to the government Colleges Fund.

(2) The Managing Committee concerned shall transfer to the Govt all moveable and immoveable property (Building. Grounds, fields, Gardens and other landed property funds and all others assets attached with the college as standing in the name of the Management/officials of the management.

(3) The Departmental Inspection Committee appointed by the Government will ensure that staff, moveable and immovable property (including building and play grounds) are in accordance with their norms fixed by the Departments.

(4) The amalgamated fund and fees etc and other college funds shall be transferred to the Education Deptt are drawn on loan

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