STATE OF ASSAMversusBARAK UPATYAKA D.U. KARMACHARI SANSTHA
- Citation
- 2009 INSC 357
- Decided
- 17 March 2009
- Disposal
- Appeal(s) allowed
- Bench
- R V RAVEENDRAN
Holding
A cooperative society, even if classified as a 'state' under Article 12, remains an independent juristic entity and the state government is not liable to pay its employees' salaries merely because it provides grant‑in‑aid.
Summary
The State of Assam appealed against a Guwahati High Court order that directed the state to release grant‑in‑aid to the Cachar and Karimganj District Milk Producers' Co‑operative Union Ltd (CAMUL) so that the society could pay salaries to its employees. CAMUL, a cooperative registered under the Assam Cooperative Societies Act, 1949, was argued by the trade union representing its workers to be effectively a state entity because of pervasive government control, and therefore the government should be liable for the employees' wages. The Supreme Court held that even if CAMUL qualified as a "state" under Article 12, it remained an independent juristic entity and could not be identified with the state government; consequently, the government was not obligated to fund the society's salary obligations. The Court further clarified that interim orders, such as those in Kapila Hingorani cases, do not constitute binding precedents and that the state’s liability arises only under specific statutory or contractual obligations, not merely from grant‑in‑aid. Accordingly, the appeal was allowed, the High Court orders were set aside, and the writ petition was dismissed, leaving the employees to seek remedies against CAMUL under appropriate labour or cooperative legislation.
Issues considered
- The extent to which a cooperative society, even if deemed a 'state' under Article 12, can be treated as the state government for the purpose of liability to pay employee salaries.
- Whether a grant‑in‑aid provided by the state government creates a legal obligation for the state to continue funding the cooperative's salary obligations.
- The precedential value of interim orders, particularly those issued in Kapila Hingorani cases, in establishing state liability for employee wages.
Subjects
Judgment
[2009] 4 S.C.R. 467
STATE OF ASSAM A
V.
BARAK UPATYAKA D.U. KARMACHARI SANSTHA
Civil Appeal No. 6492 of 2002
MARCH 17, 2009
B
[R.V. RAVEENDRAN AND MARKANDEY KAT JU, JJ.]
Constitution of India, 1950 - Article 226 - Writ petition -
Directions issued to State Government to release grants to
Co-operative Society to enable it to pay salaries to employees
of Society - Justification of - Held: Co~operative society even c
if 'State' under Article 12, was independent juristic entity and
could not have been identified with or treated as State
Government - State government released grant-in-aid to
~
Society continuously for some years to meet its development
activities or salaries - It does not mean that State Government D
is to bear and pay salaries of employees for all times to come
- Employees have no right to get their salaries from State
Government - Appropriate remedy is under the iabour
legislation or Co-operative Societies Act - Assam Co-
operative Societies Act, 1949 - s. 43. E
Interim order - Precedential value of - Held: Precedent
is a judicial decision containing a principle, which forms an
authoritative element termed as ratio decidendi - Interim order
which does not finally and conclusively decide an issue cannot
F
be a precedent - Any reasons assigned in support of such
non-final interim order containing prima facie findings, are only
tentative and have no value as precedents - Precedent.
The question which arose for consideration in this
appeal was whether the High Court was justified in G
directing the State Government to sanction financial
assistance by way of grant-in-aid to Cachar and Karimganj
District Milk Producers' Co-operative Union Limited-Co-
467 H
468 SUPREME COURT REPORTS [2009] 4 S.C.R.
A operative society so as to enable it to pay the salary and
other emoluments of its employees.
Allowing the appeal, the Court
HELD: 1.1 Cachar and Karimganj District Milk
s Producers' Co-operativt; Jnion Limited (CAMUL) is a co-
operative society registered under those provisions of the
Assam Cooperative Societies Act, 1949. Section 85 of the
saij Act provides that every registered society ~hall be
deemed to be a body corporat~ by the r;:ime under which
c it is registered, with peroetual succession and a common
seal, and with power to hold property, to enter into
contracts, institute and defend suits and other le.gal
proceedings and to do all things necessary for the
purposes for which it was constituted. Therefore, CAMUL,
even if it was 'state' for purposes of Article 12 of the
0
Constitution of India, 1950, was an independent juristic
entity and could not have been identified with or treated
as the state government. [Para 5] [474-D-E]
1.2 Section 43 of the Act provides that notwith-
E standing anything contained in any law for the time being
in force, the State Government may grant loans or give
financial assistance in any form to any registered society.
Therefore, the fact that the state government had given
financial assistance in the form of grant-in-aid to CAMUL
F continuously for some years, either to meet its
development activities or for even meeting the salaries,
does not mean that state government is responsible to
bear and pay the salaries and emoluments of the
employees of CAMUL or other liabilities of CAMUL. Nor
G can the state government be made liable for extension of
financial assistance for all times to come, to cover the
payment of salaries of employees of CAMUL. If the
salaries are not paid, the remedy of the employees of
CAMUL is to proceed against CAMUL, in accordance with
H law, by approaching the forum under the appropriate
STATE OF ASSAM V. BARAK UPATYAKA D.U. 469
KARMACHARISANSTHA
labour legislation or the Co-operative Societies Act. But a A
trade union representing the employees of a co-operative
society cannot, by filing a writ petition, require the
Government to bear and pay the salaries of the employees
of the co-operative society, howsoever pervasive, the
control of the state government, over such society. Nor is B
any right created to demand the continuance of financial
assistance to a co-operative society, on the ground that
such assistance has been extended by the government,
for several years. The respondent has not been able to
show any right in the employees of CAMUL against the C
state government, or any obligation on the part of the state
government with reference to the salaries/emoluments of
employees of CAMUL either under any statute or contract
or otherwise. [Para 6] [474-G-H; 475-A-B-C-D]
1.3 A precedent is a judicial decision containing a D
principle, which forms an authoritative element termed as
ratio decidendi. An interim order which does not finally
and conclusively decide an issue cannot be a precedent.
Any reasons assigned in support of such non-final interim
order containing prima facie findings, are only tentative. E
Any interim directions issued on the basis of such prima
facie findings are temporary arrangements to preserve the
status quo till the matter is finally decided, to ensure that
the matter does not become either infructuous or a fait
accompli before the final hearing. [Para 10] [479-E-F] F
1.4 The observations and directions in Kapil
Hingorani (I) & (II) being interim directions based on
tentative reasons, restricted to the peculiar facts of that
case involving an extraordinary situation of human rights
violation resulting in starvation deaths and suicides by G
reason of non-payment of salaries to the employees of a
large number of public sector undertakings for several
years, have no value as precedents. It is clear that
directions were not based on legal right of the employees,
but were made to meet a human right problem involving H
470 SUPREME COURT REPORTS [2009] 4 S.C.R.
A starvation deaths and suicides. The interim directions
were also clearly in exercise of extra-ordinary power
under Article 142 of the Constitution. It is not possible to
read such tentative reasons, as final conclusions. If those
observations are taken to be a final decision, it may lead
B to every disadvantaged group or every citizen or every
unemployed person, facing extreme hardship,
approaching this Court or the High Court alleging human
right violations and seeking a mandamus requiring the
state, to provide him or them an allowance for meeting
c food, shelter, clothing, salary, medical treatment, and
education, if not more. That was not the intention of Kapila
Hingorani (I) & (II). The interpretation on the tentative
observations in Kapila Hingorani(I) & (II), that the
government would be liable for payment of salaries and
other dues of employees of the public sector undertakings
0
is rejected. [Paras 10 and 12) [479-G-H; 480-A-B-C; 480-
H; 481-A]
Steel Authority of India v. National Union Waterfront
Workers 2001 (7) SCC 1 - followed
E Kapila Hingorani v. State of Bihar 2003 (6) SCC 1; Kapila
Hingorani v. State of Bihar 2005 (2) SCC 262 - referred to.
1.4 The orders of the Division Bench and the Single
Judge of the High Court are set aside and the writ petition
F is dismissed without prejudice to the right of the
employees of CAMUL to take such action as is available
in law for redressal of their grievances. [Para 13) [481-B]
Case Law Reference
G
2003 (6) sec 1 Referred to. Para 7
2oos (2) sec 262 Referred to. Para 8
2001 (7) sec 1 followed. Para 11
CIVILAPPELLATE JURISDICTION: Civil Appeal No. 6492
H of 2002
STATE OF ASSAM V. BARAK UPATYAKA D.U. 471
KARMACHARISANSTHA
From the Judgement and Order dated 14:06.2001 of the A
Hon'ble High Court of Guwahati in W.A. no. 47 of 2001.
Avijit Roy, Ranjan Mazumdar, for the Appellant.
Manoj Goel, Shovodeep Roy, Wajeeh Sahfiq, Brij Bhushan,
for the Respondent. B
The Judgement of the Court was delivered by
R. V. RAVEENDRAN J.
1. This appeal by special leave is filed by the State of
Assam aggrieved by the order dated 14.6.2001 passed by the c
Division Bench of the Gauhati High Court. By that order the
Division Bench upheld the order dated 23.12.1999 of the learned
Single Judge in Civil Rule No.2996/1995 allowing respondent's
writ petition and directing the state government to sanction
...
financial assistance by way of grant-in-aid to Cachar and D
Karimganj District Milk Producers' Cooperative Union Limited
('CAMUL' for short) so as to enable CAMUL to make regular
payment of monthly salaries, allowances as also the arrears to
its employees.
2. CAMUL is a society registered under the Assar.~ Co- E
operative Societies Act, 1949 ('Act' for short). Respondent, a
" Trade Union representing the workers of CAMUL, filed the said
writ petition (Civil Rule No.2996/1995) contending that the state
government formed and registered CAMUL as a co-operative
society to run its cattle development project; that its Board of F
Directors including the Managing Director (always a government
servant, on deputation) were appointed by the state government;
that the post of the Managing Director of CAMUL was declared
to be a post equivalent to a Head of Department under the state
government; that initially the entire staff of CAMUL were drawn G
on deputation from the Veterinary, Agriculture & Co-operative
Departments of the state government; that in a phased manner,
those employees were reverted back to their Parent
Departments and replaced by the staff appointed by CAMUL,
through a Selection Board set up by the state government with H
472 SUPREME COURT REPORTS [2009] 4 S.C.R.
·A representatives from the Central Government and National Dairy
Development Board; that state government sanctioned the
staffing pattern of CAM UL; that from the year 1982-83 onwards
the Government was extending financial assistance by way of
grants to CAMUL to meet the expenditure (including the
B expenditure relating to its employees); and that for the years
1994-95 though the state government had sanctioned financial
assistance in a sum of Rs. 7 lakhs as grant-in-aid, it was not
disbursed and consequently CAMUL did not pay the monthly
salaries to its employees from December 1994 onwards. It is
c contended that state government had all pervasive control over
the affairs and management of CAM UL and therefore it should
be treated as a department of government of Assam, though
registered as a co-operative society by lifting the corporate veil.
It was further contended that state government was responsible
D and liable to pay the salaries and emoluments of the employees
of CAM UL and it was not justified in withholding the grant amount.
The respondent union therefore sought a direction to the state
government to release the arrears of pay and allowances of
employees of CAMUL with effect from December 1994 and for
a direction to continue to pay the salary and allowances to the
E employees of CAM UL, every month in future. In addition to the
state government (respondent No.1) and its officers
(respondents 2 to 4), the Union of India (respondent No.5) and
CAMUL and its Managing Director (respondents 6 and 7) were
impleaded as parties to the writ petition.
F
3. The state government opposed the petition. It inter alia
contended that the grant-in-aid was extended for helping CAMUL
in its different development activities; that under a centrally
sponsored scheme, between 1981 to 1986, the earmarked
G amount was released on 50:50 basis by central and state
government with 70% loan component and 30% as grant
component; that though the loan component was not repaid by
CAMUL, the state government continued the grant-in-aid for
purposes of development activities; that the state government
had also provided Rs.43.60 lakhs for developing the milk-
H
STATE OF ASSAM V. BARAK UPATYAKA D.U. 473
KARMACHARI SANSTHA [R. V. RAVEENDRAN J.]
processing infrastructure of CAMUL; that despite such A
assistance, CAMUL became defunct and stopped all its
activities and thereafter the Silchar Town Milk Supply Project
was being run by the state's dairy development department itself;
that at no time, the state government made any commitment or
agreed to bear the salaries of employees of CAMUL or any B
other similar societies; that CAMUL had to generate its own
funds and resources to pay the salaries of its staff; and that as
there was no relationship of employer and employee between
the state government and the employees of CAM UL, it was not
responsible to bear or pay any amount towards the salaries of C
the employees of CAMUL.
4. The learned Single Judge allowed the writ petition. He
held that the State Government through its Veterinary Department
undertook the Integrated Cattle Development Projects (!CDP)
in various districts of Assam; and as a part of the said project, D
an ICDP block was created at Ghungoor, Silchar in Cachar
district; that 32 cooperative societies of Milk Producers were
established and CAM UL was formed as an Apex Body of those
co-operative societies; that the Dairy Development Department
of the state government had been providing grant-in-aid E
earmarked in the state budget every year to CAM UL; that the
state government failed to offer any explanation or reason for
stopping the grant-in-aid from 1994; that the Dairy Development
• Project at Silchar was purely a state government scheme and
as that Project has not been discontinued and as there was no
decision to barring CAMUL from receiving grant-in-aid which F
was being granted from 1982-83 till 1994, the state government
could not deny the grant-in-aid amount. Consequently, the
learned Single Judge directed release of the grand-in-aid for
paying monthly salaries and allowances along with arrears to
the employees. The said order has been affirmed by the Division G
• Bench which is under challenge in this appeal by special leave.
The only question that arises for consideration is whether the
High Court was justified in directing the state government to
release grants to CAMUL, so as to enable CAMUL to pay the
salary and other emoluments of its employees. H
474 SUPREME COURT REPORTS [2009] 4 S.C.R.
A 5. The various averments of the respondent in the writ
petition, about the all pervasive financial, administrative and
functional control of CAMUL by the state government, even if
assumed to be true, may at best result in CAM UL being treated
as 'state' within the meaning of that expression under Article 12
B of the Constitution of India. If it is a 'state', in case of violation of
any of the fundamental rights of its employees, by CAM UL as
employer, the employees were entitled to claim relief against
CAM UL, by taking recourse to a writ petition under Article 226
of the Constitution of India. But the fact that a corporate body or
c co-operative society answers the definition of 'state' does not
make it the 'state government', nor will the employees of such a
body, become holders of civil posts or employees of the state
government. 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. CAMUL
0
indisputably is a co-operative society registered under the •
provisions of the Assam Cooperative Societies Act, 1949.
Section 85 of the said Act provides that every registered society
shaJI be deemed to be a body corporate by the name under
which it is registered, with perpetual succession and a common
E seal, and with power to hold property, to enter into contracts,
institute and defend suits and other legal proceedings and to
do all things necessary for the purposes for which it was
constituted. Therefore, CAM UL, even if it was 'state' for purposes
of Article 12, was an independent juristic entity and could not
F have been identified with or treated as the state government. In
the view we have taken, it is not necessary in this case to examine
whether CAMUL was 'state' for purposes of Article 12.
6. Section 43 of the Act provides that notwithstanding
G anything contained in any law for the time being in force, the
State Government may grant loans or give financial assistance
in any form to any registered society. Therefore, the fact that the
state government had given financial assistance in the form of
grant-in-aid to CAMUL continuously for some years, either to
meet its develop1 nent activities or for even meeting the salaries,
H
STATE OF ASSAM V. BARAK UPATYAKA D.U. 475
KARMACHARI SANSTHA [R V. RAVEENDRAN J.]
does not mean that state government is responsible to bear A
and pay the salaries and emoluments of the employees of
CAMUL or other liabilities of CAMUL. Nor can the state
government be made liable for extension of financial assistance
for all times to come, to cover the payment of salaries of
employees of CAM UL. If the salaries are not paid, the remedy B
of the employees of CAM UL is to proceed against CAM UL, in
accordance with law, by approaching the forum under the
appropriate labour legislation or the Co-operative Societies Act.
But a trade union representing the employees of a co-operative
society cannot, by filing a writ petition, require the Governmentc
to bear and pay the salaries of the employees of the co-operative
society, howsoever pervasive, the control of the state
government, over such society. Nor is any right created to
demand the continuance of financial assistance to a co-
operative society, on the ground that such assistance has been
0
extended by the government, for several years. The respondent
has not been able to show any right in the employees of CAM UL
against the state government, or any obligation on the part of
the state government with reference to the salaries/emoluments
of employees of CAM UL either under any statute or contract or
~heMise. E
7. The learned counsel for the respondent contended that
the same issue arose for consideration in Kapila Hingorani v.
State of Bihar reported in 2003 (6) SCC 1 (for short 'Ka pila
Hingorani /') and the issue has been answered in their favour. F
Reference is invited to the following question, which was set
down as one of the questions arising for consideration in that
case:
Whether having regard to the admitted position that the
government companies or corporations referred to G
hereinbefore are 'State' within the meaning of Article 12 of
the Constitution of India, the State of Bihar having deep
and pervasive control over the affairs thereof, can be held
to be liable to render all assistance to the said companies
so as to fulfil its own and/or the corporations' obligations H
476 SUPREME COURT REPORTS [2009] 4 S.C.R.
A to comply with the citizens' rights under Article 21 and 23
of the Constitution of India?
Reference is also invited to the following observations of
this Court in considering the said question :
B "30. The government companies/public sector
undertakings being "States" would be constitutionally liable
to respect life and liberty of all persons in terms of Article
21 of the Constitution of India. They, therefore, must do so
in cases of their own employees. The Government of the
State of Bihar for all intent and purport is the sole
c shareholder. Although in law, its liability towards the
creditors of the company may be confined to the shares
held by it but having regard to the deep and pervasive
control it exercises over the government companies, in
the matter of enforcement of human rights and/or rights of
D the citizen to life and liberty, the State has also an additional
duty to see that the rights of employees of such
corporations are not infringed.
31 . The right to exercise deep and pervasive control would
in its turn make the Government of Bihar liable to see that
!
E the life and liberty clause in respect of the employees is
fully safeguarded. The Government of the State of Bihar,
thus, had a constitutional obligation to protect the life and
liberty of the employees of the government-owned
companies/corporations who are the citizens of India. It
F had an additional liability having regard to its right of
extensive supervision over the affairs of the company.
33. The State having regard to its right of supervision
and/or deep and pervasive control, cannot be permitted
to say that it did not know the actual state of affairs of the
G State Government undertakings and/or it was kept in the
dark that the salaries of their employees had not been
paid for years leading to starvation death and/or
commission of suicide by a large number of employees.
Concept of accountability arises out of the power conferred
H on an authority.
STATE OF ASSAM V. BARAK UPATYAKA D.U. 477
KARMACHARI SANSTHA [R. V. RAVEENDRAN J.]
34. The state may not be liable in relation to the day-to- A
day functioning of the companies, but its liability would
arise on its failure to perform the constitutional duties and
functions by the public sector undertakings, as in relation
thereto lie the State's constitutional obligations. The State
acts in a fiduciary capacity. The failure on the part of the B
state in a case of this nature must also be viewed from the
angle that the statutory authorities have failed and/or
neglected to enforce the social-welfare legislations
enacted in this behalf e.g. Payment of Wages Act,
Minimum Wages Act etc. Such welfare activities as C
adumbrated in part IV of the Constitution of India
indisputably would cast a duty upon the state being a
welfare state and its statutory authorities to do all things
which they are statutorily obligated to perform."
Reference is invited to the fact that this Court directed the D
Bihar government to release Rs.50 crores and deposit it with
the High Court for disbursing salaries of employees of
government corporations/companies. The contention of
respondent is that the direction of the High Court, is in
consonance with the said view. E
8. The learned counsel for the respondent also relied upon
the following observations in Kapila Hingorani vs. State of Bihar
- 2005 (2) SCC 262 (for short 'Kapila Hingorani //') :
"26. We, therefore, do not appreciate the stand taken by F
the State of Bihar now that it does not have any
constitutional obligation towards a section of citizens viz.
the employees of the public sector undertakings who have
not been paid salaries for years.
L 27. We also do not appreciate the submissions made on G
behalf of the State of Bihar that the directions issued were
only one-time direction. In clause 4 of the directions, it
was clearly stated that the State for the present shall deposit
a sum of Rs. 50 crores before the High Court for
disbursement of salarfes to the employees of the H
478 SUPREME COURT REPORTS (2009] 4 S.C.R.
A corporations. Furthermore, the matter had been directed
to be placed again after six months."
This Court also issued further interim directions to State
of Bihar to deposit a further sum of Rs.50 crores and State of
Jharkhand to deposit a sum of Rs.25 crores to meet the arrears
8 of salaries of Public Sector undertakings.
9. We have carefully examined the said two decisions. The
two decisions are interim orders made in a writ petition under
Article 32 of the Constitution. The said orders have not finally
c decided the issues/questions raised, nor laid down by any
principle of law. The observations extracted above as also other
observations and directions are purely tentative as will be
evident from the following observations in Kapila Hingorani (/)
D "We, however hasten to add that we do not intend to lay
down a law, as at present advised, that the State id directly
or vicariously liable to pay salaries/remunerations of the
employees of the public sector undertakings or the
government companies in all situations.
E We, as explained hereinbefore, only say that the state
cannot escape its liability when a human rights problem of
such magnitude involving the starvation deaths and/or
suicide by the employees has taken place by reason of
non-payment of salary to the employees of public sector
F undertakings for such a long time.
This order shall be subject to any order that may be passed
subsequently or finally."
'
The position is further made clear in Kapila Hingorani (II)
G as under:
"We make it clear that we have not issued the
aforementioned directions to the States of Bihar and
Jharkahand on the premise that they are bound to pay the
salaries of the employees of the public sector undertakings
H
STATE OF ASSAM V. BARAK UPATYAKA D.U. 479
KARMACHARI SANSTHA [R. V. RAVEENDRAN J.]
but on the ground that the employees have a h-uma.n right A
as also a fundamental right under Article 21 which th~.
states are bound to protect. The directions, which have
been issued by this Court on 9.5.2003 as also which are
being issued herein, are in furtherance of the human and
fundamental rights of the employees concerned and not B
by way of an enforcement of their legal right to arrears of
salaries. The amount of salary payable to the employees
or workmen concerned would undoubtedly be adjudicated
upon in the proper proceedings. However, these directions
are issued which are necessary for their survival." c
It is thus clear that directions were not based on legal right
of the employees, but were made to meet a human right problem
involving starvation deaths and suicides. But in the case on
hand, relief is claimed and granted by proceeding on the basis D
that the employees of corporations/bodies answering the
definition of 'state' have a legal right to get their salaries from
the state government. In fact Kapila Hingorani (/) and (//)
specifically negative such a right.
10. A precedent is a judicial decision containing a principle, E
which forms an authoritative element termed as ratio decidendi.
An interim order which does not finally and conclusively decide
an issue cannot be a precedent. Any reasons assigned in
support of such non-final interim order containing prima facie
F
findings, are only tentative. Any interim directions issued on the
basis of such prima facie findings are temporary arrangements
to preserve the status quo till the matter is finally decided, to
ensure that the matter does not become either infructuous or a
.• . fait accompli before the final hearing. The observations and
G
directions in Kapil Hingorani (/)and(//) being interim directions
based on tentative reasons, restricted to the peculiar facts of
that case involving an extraordinary situation of human rights
violation resulting in starvation deaths and suicides by reason
of non-payment of salaries to the employees of a large number
H
480 SUPREME COURT REPORTS [2009] 4 S.C.R.
A of public sector undertakings for several years, have no value
as precedents. The interim directions were also clearly in
exercise of extra-ordinary power under Article 142 of the
Constitution. It is not possible to read such tentative reasons,
as final conclusions, as contended by the respondent. If those
B observations are taken to be a final decision, it may lead to
every disadvantaged group or every citizen or every unemployed
person, facing extreme hardship, approaching this Court or the
High Court alleging human right violations and seeking a
mandamus requiring the state, to provide him or them an
C allowance for meeting food, shelter, clothing, salary, medical
treatment, and education, if not more. Surely that was not the
intention of Kapila Hingorani (/) and (//).
11. What clearly holds the field at present is the principle
o laid down and reiterated by the Constitution bench of this Court
in Steel Authority of India v. National Union Waterfront Workers
2001 (7) SCC 1 wherein this Court categorically held :
" We wish to clear the air that the principle, while
discharging public functions and duties the government
E companies/corporations/societies which are instrumen-
talities or agencies of the government must be subjected
to the same limitations in the field of public law -
constitutional or administrative law - as the government
itself, does not lead to the inference that they become
F agents of the Centre/state government for all purposes
so as to bind such government for all their acts, liabilities
and obligations under various Central and/or State Acts
G
or under private law."
(emphasis supplied] . .
12. We, therefore, reject the interpretation put forth by the
respondent, on the tentative observations in Kapila Hingorani(I)
and (//), to contend that the government would be liable for
H payment of salaries and other dues of employees of the public
STATE OF ASSAM V. BARAK UPATYAKA D.U. 481
KARMACHARI SANSTHA [R. V. RAVEENDRAN J.]
sector undertakings. We are of the considered view that the A
decision of the High Court cannot therefore be sustained.
13. We, accordingly allow this appeal, set aside the orders
of the Division Bench and the learned Single Judge of the High
Court and dismiss the writ petition without prejudice to the right
8
of the employees of CAMUL to take such action as is available
in law for redressal of their grievances. We may also add that
this decision will not come in the way of state government
formulating any scheme or extending any relief or benefit to the
employees of CAMUL or other similarly situated persons.
N.J. Appeal allowed.
'
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