IMPORTANT POINT
When a teacher is terminated by aided school management without following statutory rules requiring involvement of Government officials, Government will not be liable to pay back wages if termination is set aside.

JUDGMENT

A.K. SIKRI, J.

Leave granted.

2. This appeal raises a short but significant question of law. Appellants herein is a society running a school. Said school is an aided institution which is provided aid to the extent of 100% by the State of Maharashtra (respondent No.1). The aid includes the element of salaries that is payable to the Teachers and other staff employed by the school.

3. Services of respondent No. 4 were terminated by the appellants-society. This termination order was challenged by respondent No. 4 by filing an appeal in the School Tribunal, Nagpur which was pleased to set aside the termination with direction to reinstate respondent No. 4 and also pay back wages for the intervening period. Order of the School Tribunal was upheld by the High Court as the appellants and respondent No. 4 entered into a settlement whereby the appellants agreed to abide by the same. As per the direction of the School Tribunal, which has attained finality, respondent No. 4 is to be paid back wages. The issue is as to who is to ultimately bear this financial burden, namely, whether appellants are supposed to pay the back wages to respondent No. 4 out of its own pocket or is it to come from the coffers of the State which is granting financial aid to the school.

4. The detailed factual backdrop in which the said issue has come up for discussion needs to be traversed at this stage:

Appellant No. 1 Educational Society, Tumsar is the registered society, registered in the year 1983 under the Societies Registration Act. It is registered in the year 1983 under the provisions of Bombay (now Maharashtra) Public Trusts Act, 1950 having its registration PTR No. F-896(B). The trust is formed with object of spreading education. Appellant No. 1 Society is running appellant No. 3 school which is on 100% grant in aid by the Government of Maharashtra. Appellant No. 1 initiated departmental enquiry against its employee, respondent No. 4, who was working on the post of the Assistant Teacher in appellant No.3 school and was also acting as Incharge Headmaster for a short period. Respondent No. 4 was terminated vide order dated 20.09.2010. Respondent No. 4 was appointed on sanctioned post as per the provisions of Section 5 of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977 and Rules, 1981.

On 28.04.2011, the termination order was challenged by the respondent No. 4 before the School Tribunal, Nagpur. The School Tribunal, Nagpur was pleased to set aside the said termination order in Appeal No. A-56/2010 with a direction to reinstate the respondent No. 4 and pay back wages. The relevant portion of the direction given by the School Tribunal in this behalf reads as under:

“ORDER

1. The appeal is allowed.

2. The termination order of appellant dated 20.09.2010 issued by the respondent No. 2 as President of respondent No. 1 is hereby quashed and set aside being illegal and contrary to law.

3. The respondents no. 1 and 3 are hereby directed to reinstate the appellant as Assistant Teacher in the said college with full back wages and all service benefits within one month from the date of order.

In the consequences, the respondent nos. 1 and 3 shall pay the cost of Rs.5,000/-to appellant and bear its own costs.”

Respondent Nos. 1 to 3 in the said appeal are the appellants herein. In the appeal filed by respondent No. 4 herein, the Education Officer (Secondary), Zila Parishad, Nagpur was also impleaded as 4th respondent. However, there is no specific direction to respondent No. 4 to pay the aforesaid back wages.

On 02.06.2011, the appellants challenged the said order of the School Tribunal in Writ Petition No. 2704/2011. During the course of hearing of the writ petition, in view of the respondent No.4's retirement, appellants settled the matter with respondent No. 4 and filed a Joint Pursis dated 28.06.2011 based on out of court settlement and respondent No. 4. The said Joint Pursis, which was taken on record and petition di