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2026 Supreme(Jhk) 614

IN THE HIGH COURT OF JHARKHAND AT RANCHI
M. S. Sonak, C.J., Rajesh Shankar, J.
The State of Bihar, through the Secretary, Water Resources Department, Patna (Bihar) - Appellant
Versus
State of Jharkhand – Respondent
L.P.A. No. 334 of 2024
Decided On : 12-05-2026

Advocates Appeared:
For the Appellant : Mr. S.P. Roy, G.A. (Bihar)
For the Respondent:Mr. Ratnesh Kumar, S.C. (L&C)-I, Mr. Amit Kumar Tiwari, Advocate

When an institution is functional, the administrative authority in control is liable for salary arrears. Authorities cannot evade this liability by raising unsubstantiated claims regarding employment status or institutional existence, particularly to delay payments to retired, ailing employees, as such conduct constitutes a failure of a welfare state.

Headnote:(A) Service Law - Arrears of salary - Liability of erstwhile administrative authority - Employees are entitled to salary benefits where an educational institution is proven to be functional and under the control of the authority during the period in question - Raising unsubstantiated pleas regarding the employment status of staff or the closure of an institution, particularly against vulnerable retired personnel, serves only to delay lawful dues and will not be countenanced by the court - Responsibility for payment rests with the administrative entity controlling the establishment during the relevant timeframe. (Paras 8, 9, 11, 14)

(B) Appellate Jurisdiction - Scope of interference - An appellate court will not entertain factual pleas that were not raised or pressed before the lower court, especially when such contentions are clearly contradicted by evidence - An order of a lower court will not be interfered with where findings are backed by material and no illegality or perversity exists. (Paras 10, 13, 16)

Facts of the case:
The case involves a dispute between administrative authorities regarding the responsibility to pay salary arrears and service benefits to six retired employees who served in an educational institution during a period of transition between regions. The appellant contested the liability, claiming the institution was closed and the employees were merely daily wagers. The respondents maintained that the institution was functional and the employees were entitled to their dues for the period under the appellant's control.

Findings of Court:
The court determined that the educational institution was indeed functional during the period from 1999 to 2007, as evidenced by students appearing for examinations. The findings of the lower court regarding the existence of the school and the entitlement of the employees were upheld as they were supported by material evidence. The court criticized the appellant for attempting to evade payment through spurious arguments that were not raised earlier.

Issues: The main issues were whether the educational institution was in fact closed during the specified period and which administrative authority held the liability for payment of salary and benefits to the employees.

Ratio Decidendi: The liability to pay salary and other benefits to employees rests with the administrative authority having control over the institution during the relevant period. Where evidence confirms the functionality of an institution, an authority cannot evade financial responsibility by raising late-stage, unverified claims of institutional non-existence or the employment status of staff, particularly when such conduct causes unnecessary hardship to retired personnel.

Result: Appeal dismissed; directed to make payments within four weeks.

Table of Content
1. introduction and procedural history of the appeal regarding salary arrears. (Para 1 , 2)
2. parties argument regarding liability and school functionality. (Para 3 , 4 , 5 , 6)
3. court determination on evidence of school existence and functioning. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
4. confirmation of lower court order due to lack of legal/factual error. (Para 15 , 16)
5. final order mandating salary settlement and non-compliance consequences. (Para 17 , 18 , 19)

JUDGMENT :

1. Heard learned counsel for the parties.

2. This appeal is directed against the learned Single Judge’s order dated 02.04.2024 allowing W.P. (S) No. 2933 of 2014 instituted by the respondents, whereby the appellant i.e., the State of Bihar was directed to release the amount of salary including benefits of pay revision for the period between 01.01.1999 and 2007 together with interest @ 6% per annum.

3. Mr. S P Roy, learned counsel for the appellant, forcibly submitted that the correspondence on record shows that the employees of the North Koyal Project High School, Mandal, Latehar, were never regularised and were only daily wagers. Therefore, he submits that there was no question of such teachers being entitled to payments on regular scale.

4. Mr. S P Roy was unclear about whether or not he was pressing the defence that was taken in the writ petition and it seems to be the only defence that was seriously pressed before the learned Single Judge i.e., the school at Mandal was closed or was not functioning according to the letter dated 24.03.2000, which was produced along with the counter affidavit. In any event, since that appears to be the only defence, which was taken and pressed before the learned Single Judge, we propose to deal with the said defence, as if, the same has now been urged as a ground in support of this appeal.

5. Mr. Ratnesh Kumar, learned S.C. (L&C)-I appearing on behalf of the State of Jharkhand, supported the impugned order based on the reasoning reflected therein. He submits that up to 2007, the school in question was under the control of State of Bihar and there was no justification for the State of Bihar for not releasing the salary and other payments for its teachers. He submits that after 2007, the State of Jharkhand has assumed full responsibility and has been paying the salary and other benefits to the employees. Accordingly, he submits that this appeal may be dismissed.

6. Mr. Amit Kumar Tiwari, learned counsel for the teachers i.e., the original petitioners in W.P. (S) No. 2933 of 2014 also urged dismissal of this appeal. He submits that in any event, there is some dispute between the States of Bihar and Jharkhand and the petitioners, who are Class-III and Class-IV employees and have now retired and are old and ailing, should not be made to suffer any further. He also urges that this appeal may be dismissed and payments, as directed, made at the earliest.

7. The rival contentions now fall for our determination.

8. At the outset, we note that the State of Bihar has pressed its might in this appeal only with an attempt to deprive six Class-III and Class-IV employees of certain financial benefits awarded to them by the learned Single Judge’s order. This is quite unfortunate.

9. From the dispute raised, it does appear that no serious fault is sought to be attributed to the Class-III and Class-IV employees, who have by now retired and are old and ailing, as observed by the learned Single Judge in the impugned order, but the dispute is between the States of Bihar and Jharkhand regarding the liability to pay. In such a situation, it is not quite fair that the employees’ misery is prolonged any further. The argument about these employees not being regularised or being daily wagers was sought to be supported by referring to a communication dated 03.06.2013 by the Executive Engineer, Auranga Construction Circle, Palamau. Based upon such a correspondence, there is no question of sustaining such a plea.

10. Crucially, the plea about

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