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2014 Supreme(UK) 383
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Sudhanshu Dhulia, J.
Pantnagar Vishwa Vidhyala Lekha Foram &Ors. - Petitioners
Vs.
Vice Chancellor of the Govind Ballabh Pant Agriculture and Technology University & others - Respondents
Writ Petition (S/S) Nos. 49 of 2011, 949 & 1274 of 2013
Decided On : 01.04.2014
Mr. Ganesh Kandpal, Mr. Anurag Bisaria, Advocate, present for the petitioner
Mr. Sharad Sharma and Mr. Rajendra Dobhal, Mr. Rajendra Dobhal, Mr. G.D. Joshi, Senior Advocates assisted by Mr. Pradeep Chamiyal and Ms. Vandhna Singh, Advocates, present for the University.
Mr. Ghanshyam Joshi, Mr. Sharad Sharma, Mr. Pradeep Chamiyal, Advocate, present for respondent.
The main legal point established in the judgment is the requirement for consent in mergers involving external entities and the consequences of unilateral absorption by an organization.
Headnote:
Merger - Krishi Vigyan Kendra - U.P. Agricultural University Act, 1958 - Condition No. 8 II, 8XIV and XV, MOU between ICAR and University - Condition 7 (vii) - Order dated 28.04.2003 - Illegal merger - Consequential affect to status and condition of service - Employees' status and condition of service - Administrative and Financial Control of University - ICAR's funding - Administrative control over KVK staff - Diversion of work - Unilateral absorption by University - Special equity in favor of respondent No. 4
Fact of the Case:
The case involved a dispute regarding the merger of 'Krishi Vigyan Kendra' (KVK) with the University and its consequential affect on the status and condition of service of the employees.
Finding of the Court:
The court found the merger of KVK with the University to be illegal as it lacked consent from ICAR and affected other University employees. However, it acknowledged a special equity in favor of one employee who had been continuing as an employee of the University since 2003 and allowed the University to pursue the matter with ICAR for rectification.
Issues: The main issue was the legality of the merger of KVK with the University and its impact on the employees' status and condition of service.
Ratio Decidendi: The court held that the merger was illegal due to lack of consent from ICAR and the unilateral absorption by the University. It also emphasized that no benefit could be granted to the petitioners relying on the illegal merger.
Final Decision: The court held the merger to be illegal, dismissed the writ petitions relying on the merger, and allowed the University to pursue rectification with ICAR for one employee.
Sudhanshu Dhulia, J.
1. Heard Mr. Anurag Bisaria, Mr. Ganesh Kandpal and Mr. Ghanshyam Joshi, learned counsel for the petitioners, Mr. Sharad Sharma, learned Senior Advocate assisted by Mr. Pradeep Chamiyal, learned counsel for respondents, Mr. Rajendra Dobhal, Senior Advocate assisted by Mr. G.D. Joshi, learned counsel for the University and perused the record.
2. All these writ petitions, which are being decided by single order raise a common issue, which is as to whether “Krishi Vigyan Kendra” (hereinafter referred to as “KVK”) which was a project with the University, namely, “Govind Ballabh Pant University of Agriculture and Technology” (hereinafter referred to as University), actually merged with the University in 2003. In case, it is a merger, as it is being alleged by the petitioners what would be the consequential affect to their status and condition of service will be the further determination.
3. The University was created by a Statute known as “U.P. Agricultural University Act, 1958. The University is under full Administrative as well as Financial Control of the State Government. Earlier it was in the State of Uttar Pradesh now it is in the State of Uttarakhand. The salaries, allowances and perks etc. of the University are being funded by the State exchequer. There are various categories of employees in the University including Teachers, Accountants, Clerks, Class-IV employees etc. Since University specialized in the filed of Agriculture, it also undertakes a number of projects under which employment is given to persons. The project with which we are presently concerned is a project known as “Krishi Vigyan Kendra” (in short ‘KVK’), which is a project established by the Indian Council of Agricultural Research (hereinafter referred to as “ICAR”). ICAR is a Government of India body, devoted to the field of agricultural research in the country and is totally funded by Government of India. ICAR runs various projects all over the country. In this process it has opened some projects which are known as “KVK” which are under the University for this a Memorandum of Understanding (in short “MOU”) was signed between the ICAR and the University. A MOU between them has been annexed as Annexure No. 2 in the WPSS No. 949 of 2013.
4. In the said MOU, ICAR is referred to as “Council” and University is referred to as “Grantee”. The petitioners in WPSS No. 949 of 2013 rely upon Condition No. 8 II, 8XIV and XV, which reads under:-
“8. (ii) All staff of KVK shall be borne on the establishment of grantee only. The administrative control over the staff employed under the scheme, therefore, shall vest in the host institution. The placement of staff working in the project after the termination of the project shall be the sole responsibility of Grantee (second party) without having any liability on the Council.
(iii) …..
(iv) ……
(v) ………………
(xiv) Accounts of KVK will be maintained separately by the grantee institution. Separate audit certificates will be submitted in respect thereof.
(xv) The Council will not be liable to bear any expenditure on pension contribution and/or leave salary contribution or any other retirement benefits incurred or committed by the grantee, in lieu of the CPF/GPF etc.”
5. As we shall see in a while from the above provisions as well as the other provisions in the MOU, persons who are appointed in the project at KVK in the University, continued to remain the employee of ICAR, in whichever capacity they were appointed, however, for the day to day Administrative Control on such employees was with the University i.e. the Grantee.
6. Another condition on which the reliance placed by the University is 7 (vii), which reads as under:-
“7 (vii) Not to divert/transfer/terminated any scientist, technical and office staff of KVK for any other work other than that of Krishi Vigyan Kendra.”
7. For reasons best known to the University and its Board of Management, a decision was taken by it on 28.04.2003 by which certain posts i.e. Assist
