LAWS(PAT)-2007-5-25

BIHAR STATE FINANCIAL Vs. BIHAR STATE FINANCIAL

Decided On May 10, 2007
BIHAR STATE FINANCIAL CORPORATION KARAMCHARI FEDERATION Appellant
V/S
Bihar State Financial Corporation And Ors Respondents

JUDGEMENT

(1.) Heard learned Counsel for the petitioner, learned Counsel for the respondents. Bihar State Financial Corporation as well as learned Counsel for the State.

(2.) The issue is a limited one. The question is whether the Corporation has due statutory authority to effect wage revisions of its employees And whether the State Government has due powers to stay the same

(3.) Thing would have rested at that but it seems that the Board of Directors had been a bit indiscreat while offering revised pay scales to its employees. Some of the scales offered turned out to be higher then State Government employees. Their decision caused heart burning in the State Government. Respondent Corporation have tried to explain the situation by stating that the posts and the duty which the employees of Corporation carried out there was no comparative post or pay scale available in the State Government by which the Corporation could have been guided. In this background the State Government and the Bureau of Public Enterprises, the so called body, which is supposed to exercise some kind of control over state Corporations issued directions not to implement the new pay scales. This directive came to be challenged by filing writ applications. However the sum and substance of this dispute was that the employees of the Corporation were sort to be denied revised pay scale. The battle carried on. The matter did not rest in the files of the State Government and because of the same the matter came to be challenged before High Court. On the order of this Court passed in C.W.J.C.No. 3925 of 1992 and C.W.J.C.No. 2744 of 1992 dated 25.11.1992 the Corporation was given liberty to pay salary etc. on the Standing Order 8/91-92 dated 6.1.1992.