Autonomy of an institution under specific rules and resolutions can override general government circulars regarding employee benefits.

Both the writ petitions relate to the same cause of action where the same order is under challenge. For the sake of convenience, facts of WPS No. 595/12 are being noticed herein.

2. Heard counsel for the parties.

3. Petitioners in both the writ petitions are said to be doctors working in Ranchi Institute of Neuro Psychiatry & Allied Sciences (RINPAS), Kanke, Ranchi, have approached this Court seeking quashing of letter dated 29th December 2011 issued by the Under Secretary, Department of Health, Medical, Education and Family Welfare, Government of Jharkhand, whereunder non practicing allowance paid to the petitioners, has been stopped in view of the resolution of the Finance Department contained in letter dated 9th May 2001 whereunder, such benefit has been stopped in respect of doctors working under the Health, Medical, Education and Family Welfare Department with effect from 01st March 2001.

4. The petitioners' contention is that RINPAS is an autonomous institution governed by the Ranchi Manasik Arogyashala Rule, 1994 which was notified as per the directions passed by the Hon'ble Supreme Court in the judgment rendered in the case of Rakesh Chandra Narayan vs. State of Bihar & others 1994 Supp. (3) SCC 478. Petitioners have been appointed pursuant to the advertisement at annexure-1 issued by the RINPAS on various teaching and non-teaching posts of medical category. As per the service conditions therein including the resolution of the 38th Managing Committee Meeting of the RINPAS held on 20th July 2007 (Annexure-4), all employees of the RINPAS who have been availing the benefit of non practicing allowance since 1995, have been allowed to avail the same thereafter. It is further pointed out that such non practicing allowance will be paid at par with similar allowance granted to the doctors of the Central Institute of Psychiatry, Ranchi (CIP) which is a Central Government Institute. The benefit has however been suddenly stopped on issuance of the impugned direction by the Department of Health, Medical Education and Family Welfare, Government of Jharkhand based upon the finance department resolution. The Health Department has taken a plea that on the basis of audit objection and in view of finance department circular of 2001, the impugned letter has been issued as similar benefit has been stopped in respect of doctors working under the Health Department, Government of Jharkhand.

5. On the last occasion, in view of the stand taken by the respondent Health Department, the respondent RINPAS were also directed to file their considered response which has been filed thereafter. The RINPAS has inter-alia taken a stand that the Managing Committee of the RINPAS has got all the powers in terms of the direction of the Hon'ble Supreme Court on general financial issue. However, it has been stated that the Institute has been paying non practicing allowance @25% till December 2011 to all the doctors appointed by RINPAS and the same has been stopped in compliance of the letter issued by the Department of Health, Medical, Education and Family Welfare, Government of Jharkhand based upon finance department letter dated 9th May 2001. They have also stated that the Managing Committee in its meeting held on 20th July 2007 had agreed to continue the system of paying non-practicing allowance to the doctors of RINPAS on CIP pattern.

6. In the aforesaid background of stand taken by the respective parties, on perusal of Rules of 1994 which are also part of the judgment rendered by the Hon'ble Supreme Court in the case of Rakesh Chandra Narayan (Supra), it appears that Ranchi Manasik Arogyashala has been declared to be an autonomous institution with its Management vested in the Managing Committee which consist of members namely, Divisional Commissioner, Ranchi as its Chairman, District Magistrate, Ranchi, Superintendent of Police, Ranchi, Health Secretary, Government of Bihar, West Bengal and Orissa and two non officials nominated by the Government of Biha