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2025 Supreme(HP) 1834

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Sandeep Sharma, J.
Shramja Munjal - Petitioner
Versus
State of Himachal Pradesh & Ors. - Respondents
CWP No.6995 & 14163 of 2024
Decided On : 15-12-2025

Advocates Appeared:
For the Petitioner:Mr. Surender Sharma, Advocate.
For the Respondent:Mr. Rajan Kahol & Mr. Vishal Panwar, Additional Advocates General with Mr. Ravi Chauhan & Mr. Anish Banshtu, Deputy Advocates General, Mr. Vikrant Thakur, Advocate, Ms. Archna Dutt, Advocate

Staff of 95% grant-in-aid colleges deemed akin to government employees for retiral benefits like gratuity and enhanced leave encashment; state bears 95% liability per precedents.

Headnote:(A) Payment of Gratuity Act, 1972 - Employees of government-aided colleges receiving 95% grant-in-aid - Entitled to gratuity, enhanced leave encashment at par with government college staff - Though not strictly government employees, akin to holding posts under state government for pay, allowances, pension, provident fund, gratuity - State estopped from denying benefits after partial payment and approvals - Gratuity limit enhanced to Rs.20,00,000/- w.e.f. 01.01.2016; earned leave to 20 days w.e.f. August, 2016. (Paras 8-11, 13-15)

(B) Grant-in-Aid Rules and notifications - University notifications enhancing benefits approved by state education authorities binding on state - Prior Division Bench and Supreme Court judgments affirm parity in service conditions, retiral benefits for aided institution staff. (Paras 9-10)

Facts of the case:
Petitioners appointed as lecturers in aided college receiving 95% grant-in-aid, served over 32-36 years till superannuation. Pay scales at par with government colleges. Partial gratuity of Rs.7,00,000/- paid by state; claiming balance/enhanced gratuity Rs.20,00,000/- and leave encashment for enhanced 20 days earned leave per year from August, 2016.

Findings of Court:
Respondents directed to release 95% grant-in-aid share towards enhanced leave encashment from August, 2016 till superannuation and balance enhanced gratuity; aided college to pay 5% share, with interest on delayed payments within two months.

Issues: Whether staff of 95% aided colleges entitled to statutory gratuity, enhanced leave encashment as government employees; state's liability for 95% share; binding nature of approved notifications.

Ratio Decidendi: Aided college teachers entitled to government-equivalent retiral benefits as their service conditions regulated by state; precedents hold them akin to government employees for monetary benefits; state liable for grant-in-aid portion after partial payments and approvals.

Result: Petitions allowed.

Table of Content
1. aided colleges' staff get govt-equivalent pay, leave via grant-in-aid. (Para 1 , 2 , 3 , 4)
2. dispute on gratuity/leave liability; state denies, college affirms. (Para 5 , 6 , 7)
3. aided teachers deemed govt employees for retiral benefits per precedents. (Para 8 , 9 , 10 , 11)
4. state estopped; liable for 95% share, bound by notifications. (Para 12 , 13)
5. enhanced gratuity payable w.e.f. 2016; payment directions issued. (Para 14 , 15)

JUDGMENT :

Sandeep Sharma, J.

Since common questions of facts as well as law are involved in both the above-captioned cases, this Court heard them together and the same are now being disposed of vide common judgment.

2. Relevant facts, which are otherwise common in both the cases, are that on 20.08.1987 and 17.08.1988, petitioners were appointed as Lecturer (Botany) and Lecturer (Chemistry), respectively, in respondent No.3/College, which was receiving Grant-in-Aid from the respondent State. In the year 1994, respondent No.3/College came within the purview of Himachal Pradesh Non-Government affiliated Colleges Grant-in-Aid Rules, 1994, as a result thereof, staff of respondent No.3/College started receiving 95% Grant-in-Aid, as a result thereof, their pay scales were brought at par with those of the teaching staff in Government colleges. On 09.09.2010, a notification was issued by respondent No.1, thereby revising the pay scale of teaching staff of the Government aided colleges on the pattern of Government colleges. Besides above, the designation of the Lecturers of different grades was also changed as Assistant Professors/ Associate Professors. Vide office order dated 01.03.2011 issued by respondent No.2, pay scale of 25 Lecturers/Associate Professors of respondent No.3-College was fixed in the Revised Pay Structure of Rs.37,400-67,000/- (Revised Pay Scale) + Rs.9,000/- (AGP). Petitioners also got benefit of aforesaid office order.

3. On 12.05.2016, representation was preferred by the President of teaching faculty of respondent No.3-College to respondent No.4, requesting therein to grant the benefit of enhanced earned leave, i.e. from 10 days to 15 days and 20 days. On 19.08.2016, communication was sent by respondent No.4 to respondent No.3, stating therein that the matter with regard to enhanced earned leave was discussed in the meeting of Executive Counsel held on 30.05.2016 and it was decided that the earned leave may be granted to the teaching staff of respondent No.3 as per the rules of the Department of Education, Government of Himachal Pradesh. Pursuant to the aforesaid decision taken by the respondent University, recommendations were made by the Director of Higher Education, vide communication dated 30.06.2022 (Annexure P-8) to the Principal Secretary (Education) to the Government of Himachal Pradesh to enhance the earned leave of the teaching staff of Grant-in-Aid (GIA) Colleges at par with the teaching staff of Government Colleges, i.e. 20 days in a calendar year.

4. Vide communication dated 11.08.2022, respondent No.4- University issued a notification, notifying therein that on the basis of recommendations of the Executive Council, earned leave of the teaching staff in Grant-in-Aid Colleges including respondent No.3, is enhanced to 20 days w.e.f the year 2022. However, aforesaid communication was subsequently amended vide notification dated 25.09.2023 (Annexure P-12) issued by the Registrar of Himachal Pradesh University, thereby extending aforesaid benefit of 20 days earned leave w.e.f August, 2016.

5. Precisely, the grouse of the petitioners, who have rendered more than 36 and 32 years of service, is that they ought to have been paid gratuity in terms of provisions contained in the Payment of Gratuity Act, 1972 as applicable to the employees of the State of Himachal Pradesh. Besides above, petitioners herein are also claiming benefit of notifications dated 11.08.2022 and 25.09.2023, whereby the benefit of earned leave to the extent of 20 days came to be extended to the G

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