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2023 Supreme(Ori) 326

ORISSA HIGH COURT: CUTTACK
B.R.SARANGI, J.
Dr. Dhiren Mohanty - Petitioner
Versus
State of Odisha and others - Opp. Parties
W.P(C) NO. 18445 OF 2020
Decided On : 27-01-2023

Advocate Appeared:
For the Petitioner:Mr. J.K. Rath, Sr. Advocate along with M/s. D.N. Rath, P.K. Rout and A.K. Saa, Advocates
For the Opp. Parties :Mr. A.K. Mishra, Addl. Government Advocate

The authority for withdrawing salary payments in aided institutions lies with the Governing Body; actions taken outside this authority violate the principles of natural justice and the legality of procedural law.

Headnote:(A) Orissa Education Act, 1969 - Section 7-D - Writ petition challenging action of suspending grant-in-aid - Petitioner was a Reader in an aided educational institution whose grant-in-aid was arbitrarily withdrawn without authority of law and in violation of natural justice. (Paras 1, 5, 38)

(B) Authority - Competency - The authority that initiated the suspension was neither the prescribed authority nor did it have the jurisdiction to impose such penalty as it relates explicitly to institutions and not individual employees. (Paras 10, 12, 36)

(C) Compliance - Legal principles indicate that proper procedure must be followed by the authority in disciplinary matters, violating these principles renders the action unlawful. (Paras 8, 9)

Facts of the case:
The petitioner was employed as a Reader and faced a wrongful suspension of salary due to alleged irregularities in student admissions at his institution, which the fact-finding committee found unsubstantiated.

Findings of Court:
The court found the respondent authority's actions arbitrary, quashing the suspension of the petitioner’s salary and directing the prompt release of his dues.

Issues: The court addressed whether the authority had the jurisdiction to withdraw individual salaries under Section 7-D and the legality of the actions taken against the petitioner.

Ratio Decidendi: The court concluded that only the Governing Body owns the authority to employ such sanctions against employees of aided institutions, and actions taken without following due procedure or proper authority are invalidated.

Result: Writ petition allowed, orders quashed, and immediate financial rectification mandated.

Table of Content
1. petitioner's employment and grant-in-aid suspension. (Para 1 , 2)
2. allegations against the petitioner and communications. (Para 3)
3. petitioner's counsel challenges the illegality of actions. (Para 4)
4. court's consideration and hearing processes. (Para 5)
5. questions for legal determination by the court. (Para 6 , 7)
6. statutory provisions concerning grant-in-aid. (Para 8 , 9)
7. interpretation of legislative intention regarding institutions. (Para 10 , 11 , 12 , 13)
8. competency and disciplinary authority in educational institutions. (Para 14 , 15 , 16)
9. legal principles on statutory interpretation. (Para 17 , 18 , 19)
10. jurisdiction and exercise of statutory powers. (Para 20 , 21 , 22 , 23)
11. interpretations regarding statutory powers and requirements. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
12. findings on the allegations and procedural fairness. (Para 32 , 33 , 34 , 35)
13. natural justice principles in administrative actions. (Para 36 , 37)
14. court's decision to quash proceedings and order restitution. (Para 38 , 39)
15. writ petition outcomes and conclusion. (Para 40)

Judgment :

B.R.SARANGI, J.

The petitioner, who was working as a Reader in S.V.M. Autonomous College, Jagatsinghpur, being an approved teaching staff of an aided educational institution, has filed this writ petition to quash order no. 7542 dated 15.02.2020 passed by opposite party no.2 under Annexure- 1 suspending the payment of government grant-in-aid in favour of the petitioner with immediate effect until further orders; the order passed by the opposite party no.5 vide memo no.0662 (3)/2000 dated 19.02.2020 under Annexure-3 where a communication has been made pursuant to the order dated 15.02.2020 under Annexure-1 that the payment of grant-in-aid towards salary and other purposes of the petitioner is hereby suspended from the month of February, 2020 until further orders; and the letter no. 21955/HE dated 02.07.2020 passed by the opposite party no.2 vide Annexure-9 withdrawing the grant-in-aid released in favour of the petitioner towards salary and other purposes with effect from February, 2020 as per Section 7 - D of the Orissa Education Act, 1969. The petitioner has further prayed for direction to the opposite parties to release the salary component as per the grant-in-aid released in favour of the petitioner as expeditiously as possible.

2. The factual matrix of the case, in a nutshell, is that the petitioner was duly appointed and joined as Lecturer in Commerce by the Governing Body of Sarala Mohavidyalaya, Rahama on 13.01.1986. The appointment of the petitioner was approved by the Director Higher Education, vide order no. 15925 dated 03.04.1997, and accordingly he was extended with 1/3rd salary component with effect 01.06.1991, 2/3rd of the salary component with effect from 01.06.1993 and full salary cost with effect from 01.06.1995, in accordance with the provisions contained in Rule-9 of the Orissa Education (Recruitment and Conditions of Service of Teachers and Members of Staff of Aided Educational Institution) Rules, 1974 (hereinafter to be referred as “1974 Rules”), which have been framed by the legislatures under Section 10 (1) of the Orissa Education Act, 1969. The pay of the petitioner was revised in accordance with the Pay Revision Rules made by the State Government from time to time for the employees of the aided institutions. The petitioner was brought into the cadre of Lecturers of aided educational institution in accordance with Orissa Aided Educational Institutions (Employees Common Cadre and Inter Transferability) Rules, 1979. While the petitioner was continuing as a Lecturer in Sarala Mohavidyalaya, he was transferred to S.V.M. College Jagatsinghpur on 17.07.1999 in accordance with Inter- transferability Rules, 1979. Thereafter, the petitioner was promoted to the post of Reader with effect from 01.06.2014.

2.1 While the petitioner was so continuing, the State Government in the Higher Education Department introdu

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