SHRI AGRAWAL SHIKSHA SAMITI Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) A short but important question is raised in both the petitions. The question is: Whether payment of gratuity to the employees of aided educational institutions in pursuance of Rule -82 of the Rajasthan Non -Government Educational Institutions (Recognisation, Grant -in -Aid and Service Conditions Etc.) Rules. 1993 (hereinafter to be referred to as the Rules) is an approved expenditure for the assessment of grant -in -aid? In other words, whether an aided educational institution is entitled to get proportionate grant -in -aid admissible to it under the Rules on the amount paid to its employees towards gratuity?

(2.) THE State Government vide its communication dated May 26, 1994. to the General Secretary, Managing Committee, Shri Agrawal College, Jaipur, has taken the view that payment of gratuity to an employee of the institution is not included in approved expenditure, as such, no grant -in -aid is payable on it. The decision on the question is likely to have far reaching consequences, having its effect on thousands of aided educational institutions in Rajasthan, extensive arguments were heard from both the sides.

(3.) ON the other hand, learned Counsel appearing for the State of Rajasthan, defended the decision of the State Government excluding gratuity amount from approved expenditure for the purpose of grand -in -aid. It was contended that the management of an institution is primarily responsible to pay salary and other benefits including the amount of gratuity, to its employees and it cannot take the plea that unless and until State compensates by contributing towards gratuity, it will not make payment to its employees. Learned Counsel further contended that it is a matter of policy decision by the State Government whether aided educational institutions should be given grant -in -aid on the gratuity and till such decision is taken administratively or by framing statutory regulations, the State Government cannot be made liable to pay grant -in -aid towards gratuity.