Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Government Liability for Salaries - The liability of the government to pay salaries to contractual workers depends on the scheme and the nature of the employment relationship. In some cases, where schemes are approved and funded by the government, it has been held that the government may be liable to pay salaries if the scheme explicitly or implicitly mandates it, especially if funds are allocated for salary payments ["Tade Nidak VS State of Arunachal Pradesh - Gauhati"]. However, in instances where the employment is under a self-finance or self-scheme model without direct government funding for salaries, the government is generally not liable. For example, when a department runs a scheme on a self-finance basis or when the scheme is not financially feasible, the government has clarified that it is not responsible for salary payments ["Amarjit Barman, S/o. Sri Kanak Barman VS State Of Assam, Represented By The Principal Secretary To The Govt. Of Assam Co-Operative Department - Gauhati"], ["PRABIR SENGUPTA Vs STATE OF CHHATTISGARH - Chhattisgarh"].
Scheme Feasibility and Financial Constraints - Many sources emphasize that schemes operated on auto finance or self-finance models are subject to financial viability. If such schemes are not feasible, the government is not obligated to continue salary payments, especially if no funds are allocated explicitly for this purpose. For instance, the self-finance scheme for courses or departments states that if it is not feasible to run the course, services including salary payments would automatically end ["ANNIKA SINGH VS STATE OF U. P. - Allahabad"]. Similarly, schemes that rely on contributions or are designed to be self-sustaining explicitly state that continuation depends on financial viability ["A. Mohanarangam VS State of Tamil Nadu Represented by its Secretary to Government, Chennai - Madras"], ["PRABIR SENGUPTA Vs STATE OF CHHATTISGARH - Chhattisgarh"].
Specific Cases and Judicial Viewpoints - Courts have distinguished between employees directly funded by government schemes and those employed under self-financed or contractual arrangements. When funds are not allocated for salaries or when employment is under a contractual scheme without direct government funding, the government is not liable for salary payments ["Tade Nidak VS State of Arunachal Pradesh - Gauhati"], ["Amarjit Barman, S/o. Sri Kanak Barman VS State Of Assam, Represented By The Principal Secretary To The Govt. Of Assam Co-Operative Department - Gauhati"]. The liability often rests with the employing agency or the scheme managing body, especially if the scheme explicitly states that salary payments are not the government's responsibility ["Sushil Kumar vs Govt. of NCT of Delhi - Delhi"].
Analysis and Conclusion:Based on the provided sources, the government’s liability to pay salaries to contractual workers in schemes run on auto finance or self-finance models is conditional. If the scheme is approved, funded, and explicitly provides for salary payments, the government may be liable. Conversely, if the scheme is self-financed, non-feasible, or explicitly states that salary payments are not the government’s responsibility, the government is generally not liable to pay salaries. The key factor is the scheme’s funding mechanism and contractual terms, as courts have consistently held that liability depends on the scheme’s provisions and financial arrangements ["Tade Nidak VS State of Arunachal Pradesh - Gauhati"], ["Amarjit Barman, S/o. Sri Kanak Barman VS State Of Assam, Represented By The Principal Secretary To The Govt. Of Assam Co-Operative Department - Gauhati"].
In today's economy, many government-backed schemes operate on self-finance or auto-finance models, relying on their own revenues rather than direct public funding. But what happens when these schemes hit financial roadblocks? A pressing question arises: will the Government be liable to pay salaries to contractual workers in case the scheme run on auto finance or self finance model is not financially feasible?
This issue affects thousands of contractual employees in education, rural development, and other sectors. While no single precedent mandates universal government liability, courts have provided nuanced guidance. This post analyzes key legal principles, court rulings, and exceptions to help you understand the landscape. Note: This is general information based on case law and not specific legal advice. Consult a lawyer for your situation.
The government's obligation to pay wages or benefits to contractual workers is not absolute. It typically depends on the scheme's nature, statutory provisions, and specific court rulings. [
#GovtLiability #SelfFinanceSchemes #LaborLawIndia
When the matter stood situated thus, the Department took up steps for preparing a Scheme for regularising the services of as many number of employees as financially feasible. The department concerned has, accordingly, prepared the Scheme, which, admittedly, stand approved by the Government. ... The Department of Finance, Government of Arunachal Pradesh, shall, if necessary, allocate separate/ special fund for this purpose. The whole exercise relating to payment of #HL....
Therefore the fact that the CAMUL may answer the definition of "state" does not mean that the State Government is liable to bear and pay the salaries of its employees. 13. ... This decision of the Government, not to advance any grant-in-aid to the ASCU has not been challenged and in fact, there is no scope to challenge as such, as the Society or its Board of Directors is responsible to manage its own funds to run the ASCU and also ....
The University further stated that the department of Psychology is being run by D.P. Vipra College on self finance scheme and no grant-in-aid is being given to the teachers for the department of Psychology. ... or the College do not want to run. ... The correspondence which is sought to be quashed is dated 26.03.2019 purports that the Principal has reported that since the comparative number of students have reduced drastically in the Psychology over past years, therefore, it would #HL_....
The Self Finance Scheme also provides that if it is not feasible to run the course under the Self Finance Scheme then the course shall be closed and the services of the teaching and non teaching staff appointed on contract basis would automatically come to an end. ... It is not disputed that in terms of the various Government Orders, the petitioner was appointed on contract basis under the #HL_STA....
not be denied their due remuneration on the principle of “equal pay for equal work” as their duties were comparable with the teachers of other such schools for disabled schools run by the Government or under the control of Armed Forces. ... In order to fulfil these talks, the Government has framed the Scheme, as extracted above. The Government is providing the financial support under this Scheme. There are so many such institutions, which are catered....
not be denied their due remuneration on the principle of "equal pay for equal work" as their duties were comparable with the teachers of other such schools for disabled schools run by the Government or under the control of Armed Forces. ... These teachers and other staff are not paid same salaries as are paid to their counterparts in Government schools. 15. ... On this basis, the submission was that these volunteers, i.e., the respondent No.4 to 28 were only entitle....
These teachers and other staff are not paid same salaries as are paid to their counterparts in Government schools. 15. ... Not only Asha School is not run on profits, no fee or hardly any fee is charged from the students. But for some grant given by the Union of India, it may not even be possible for AWWA to run this Asha School. ... He further argued that having regard to the laudable objections of Disability Act when the G....
The Division Bench in that case held that even if the scheme under which the Insurance Company is not liable to pay, because of the relationship of the Insurance Company with the Claimant is purely contractual, the State is bound to reimburse the claim. ... They have subscribed to the Government towards the said fund, which was in vogue by issuance of G.O.Ms.No.18 Finance (Allowance-1) Department, dated 09/01/1992, modified through G.O.Ms.No.141 #HL_....
Furthermore, the 14th Finance Commission do not permit utilization of fund towards salaries/honorarium of existing employees, permanent and contract which would include wages to causal workers. ... However, the Panchayat and Rural Development Department sought the instructions of the Finance Department with regard to the payment of fixed wages and casual workers and in reply, the Finance (Economic Affairs) Department informed that the PRIs are treated as 3rd tire Loca....
required for pay & wages after pay revision. ... He accordingly submits that in view of the aforesaid constitutional mechanism, no liability can be fastened upon the State Government to pay salaries of the persons serving with the Municipalities. ... The State Government in the Housing and Urban Affairs Department as well as the Finance Department are also directed to play an active role for an overall and lasting resolution of the issue of payment of salari....
Thereafter, another Government Order, i.e. the G.O. dated 17.1.2006 was issued, which also contained similar provision, however such provision contained in the G.O. dated 17.1.2006 was amended on 11.1.2008 and the tenure of such appointments was fixed at five years with a provision for renewal for another five years, if work and conduct was good. The first Government Order for contractual appointments of lecturers under the self-finance scheme was issued on 9.5.2000, which referred about the tenure of such appointment as being three or five years. No doubt, the appointment ....
Department in Mohammad Hasan Post Graduate College, District Jaunpur on contractual basis under the self finance scheme. It is submitted that her appointment was duly approved by the Vice Chancellor vide order dated 27.2.2008 and appointment was made for the period of 3-5 years with a condition that the petitioner will complete her Ph.D/NET/SLET by 30.6.2009. 4. According to the petitioner, she was appointed as Lecturer in B.Ed. It is the case of the petitioner that under the Government orders relating to teachers’ appointed under the self financing scheme, it is provided t....
From the decisions cited by the learned counsel appearing on behalf of the petitioner, it could be seen that G.O.Ms. Such clarifications issued by the State Government are in tune with the march of medical science. No.556, Finance (Salaries) Department, 8.11.2004, should be read as a clarification issued to G.O.Ms.No.400, Finance (Salaries) Department, dated 29.8.2000, and the other government orders providing certain medical benefits, under the Tamilnadu Government Employees Health Fund Scheme.
A tri-party agreement was executed between the appellant, Housing Board, as well as the Bank and thereafter instalments were paid by him as demanded by the Housing Board for construction of the house. As per the Scheme, the houses were to be sold either under Self Finance Scheme or under Hire Purchase Scheme. The appellant herein, got himself registered for a house to be purchased under Self Finance Scheme. 2. It is not in dispute that the respondents/C.G. Housing Board constructed few houses in Kabir Nagar Colony, Raipur developed by it.
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