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2025 Supreme(Online)(Kar) 25913

KARNATAKA HIGH COURT
M. NAGAPRASANNA, J
MS. AMRUTHA M. – Appellant
Versus
STATE OF KARNATAKA – Respondent
WRIT PETITION No.9924 OF 2024 (GM-RES)



Advocates:
For the Appellants/Petitioners: SRI ADITYA CHATTERJEE, A/W SMT.AKSHITA GOYAL
For the Respondents:SMT.PRATHIMA HONNAPURA, AAG FOR R-1 AND R-3; SRI M.R.C.RAVI, SR.ADVOCATE A/W SRI PRASHANTH B.R., ADVOCATE FOR R-2

The court affirmed that reducing educational assistance for construction workers' children erodes legitimate expectations and violates welfare statutes, necessitating adherence to prior benefits established under the law.

Headnote:(A) Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 - Section 22; Cess Act, 1996 - Notification dated 30-10-2023 challenged - Petitioners, children of registered construction workers, seek educational assistance - Impugned notification reduces assistance from ₹35,000/- and ₹30,000/- for post-graduate courses to ₹10,000/- - Court emphasizes protection of legitimate expectation and rights under social welfare legislation - The impugned notification is quashed and the previous notification of 2021 prevails, ensuring educational assistance is dispensed fairly. (Paras 10, 18, 20, 27)

(B) Legitimate Expectation - Doctrine of legitimate expectation considered regarding welfare benefits - The reduction of benefits without proper justification against the principles of social justice is impermissible. (Paras 21, 22)

(C) Financial accountability - The court directs the Board to account for welfare funds and emphasize proper allocation towards beneficiary welfare, ensuring all decisions honor the welfare of construction workers. (Paras 19, 27)

Facts of the case:
Petitioners challenged an amendment to educational assistance for children of registered construction workers, with claims based on previous notification entitling them to higher amounts that were unjustly reduced.

Findings of Court:
The court holds that the notification's retroactive application violates the principles of transparency and public welfare; directs reinstatement of previous funding levels and forwards the need for proper monitoring of welfare funds.

Issues: The main questions addressed were the lawful amendment of welfare benefits and the justifications for reducing assistance.

Ratio Decidendi: The court found that the state's actions eroded legitimate expectation and violated statutory provisions for welfare.

Result: Writ Petition is allowed; the impugned notification was quashed, and educational assistance shall adhere to the previous statutory provisions.

Table of Content
1. parties involved in the educational assistance dispute (Para 1 , 2 , 3 , 4)
2. arguments regarding entitlement and financial constraints (Para 5 , 6 , 7 , 8)
3. court's analysis of legislative intent and statutory provisions (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. legitimate expectations and welfare rights under the law (Para 19 , 20 , 21 , 22 , 23)
5. final decision to quash the impugned notification and order compliance (Para 24 , 25 , 26 , 27)

CAV ORDER

Petitioners 1 to 5 are before this Court calling in question the Notification dated 30-10-2023 and consequently to allow the application dated 13-08-2021 of 2021 Notification to few of the petitioners and have also sought several other incidental prayers.

2. Before embarking upon consideration of the issue on its merits, I deem it appropriate to notice the protagonists in the petition. The 1st petitioner is the daughter of the 2nd petitioner who is a registered construction worker and the 3rd petitioner is the daughter of the 4th petitioner, again a registered construction worker. The 5th petitioner is the Karnataka State Building and other Workers Federation (hereinafter referred to as ‘the Federation’ for short)

3. Facts adumbrated are as follows:

The 1st petitioner is a student of Master of Business Administration enrolled in Apoorva Institute of Management Studies and currently is in her 3rd semester. The 3rd petitioner is a student in Law enrolled in Visveswarapura College of Law and is in her third semester of law. Both the aforesaid petitioners are the children of registered construction workers. The children of construction workers were, in terms of the notification of the year 2021, entitled to certain amount of educational assistance at the rate of ₹35,000/- per semester. This notification comes to be amended and the impugned notification comes to be issued on 30-10-2023 reducing the amount of assistance for educational purposes to 10,000/- contrary to what was earlier prevailing at ₹30,000/- and ₹35,000/- as the case would be, be it for graduation or post-graduation. Petitioners 1 and 3, daughters of petitioners 2 and 4 applied for grant of educational assistance as was prevailing earlier. This comes to be turned down on the strength of the impugned notification dated 30-10-2023. It is this action, on the strength of the aforesaid notification of the State, that has driven the petitioners to this Court in the subject petition.

4. The respondents are, the State through the office of the Commissioner of Labour, the 1st respondent; the Karnataka Building and Other Construction Workers Welfare Board (hereinafter referred to as ‘the Board’ for short), the 2nd respondent and the Ministry of Labour, State of Karnataka, the 3rd respondent.

5. Heard Sri Aditya Chatterjee, learned counsel appearing for the petitioners, Smt. Prathima Honnapura, learned Additional Advocate General appearing for respondents 1 and 3 and Sri M.R.C.Ravi, learned senior counsel appearing for respondent No.2.

6. The learned counsel appearing for the petitioners would vehemently contend that the action of the respondents is in violation of scheme of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (hereinafter referred to as ‘the Act’ for short). The impugned notification cannot have retrospective application after the children got into education and legitimate expectation is shattered in the case at hand is his submission. The defence of the Board as projected by the learned senior counsel, as non-availability of fund, is erroneous and contrary to the record. He would contend that the Board is over-spending on administrative expenditure, and under- spending on welfare scheme. He would further contend that deposit of welfare funds that come into the coffers of the Board is ₹6700/- crores and the Board has invested it in fixed deposits in violation of orders of the Apex Court. He would seek to place reliance upon severa

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