EDUCATIONAL SOCIETY, TUMSAR Vs. STATE OF MAHARASHTRA

JUDGEMENT

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

(3.) 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: