MANIKANT PATHAK Vs. STATE OF BIHAR

JUDGEMENT

(1.) A significant question of law arises for decision in these two writ petitions - Whether the State Government is liable to pay the salary and allowances of a Government Company.

(2.) In C.W.J.C. No. 1718 of 1994 the petitioners are the employees of the Bihar Finished Leathers Limited, a subsidiary company of the Bihar Leather Industries Development Corporation Ltd. In C.W.J.C. No. 5015 of 1996 the petitioners are the employees of the Bihar State Agro Industries Development Corporation Ltd. They, in substance, seek direction to the concerned Corporation for payment of salary etc., and a further direction to the State Government to make sufficient fund available to them (Corporations) to facilitate payment. Since the writ petitions involved pure question of law, it is not necessary to set out the factual details of the cases.

(3.) The respondents do not deny that the petitioners or, indeed, other employees of the two Corporations are entitled to payment of salary, etc. While the Corporations have taken the plea of non-availability of the adequate fund - generated either from its own resources or made available by the Government, the stand of the State is that the petitioners are the employees of the Corporations, which are companies incorporated under the Companies Act and the Government cannot be fastened with the liability.