The Hindu : Salary for Bihar Govt. staff: SC reserves order

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Saturday, Apr 26, 2003

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Salary for Bihar Govt. staff: SC reserves order

By Our Legal Correspondent

NEW DELHI April 25. The Supreme Court today reserved orders on a petition seeking a direction to grant interim relief to thousands of employees of 19 Government-owned corporations in Bihar who had not been paid their salaries for a number of years.

A Bench comprising the Chief Justice V.N. Khare and Justice S.B. Sinha reserved orders after hearing the Attorney-General, Soli Sorabjee, counsel for the petitioner, the Bihar Government, and the amicus curiae. The Bench expressed serious concern over the plight of the employees and said something should be done to prevent further starvation deaths.

The petitioner, Kapila Hingorani, alleged that non-payment of the salaries had led to starvation deaths of over 1,500 employees and pleaded the court to direct the Bihar Government to pay their salaries and at least some interim relief immediately.

Mr. Sorabjee said the State Government was the sole or majority shareholder in these corporations and it was liable to pay the salaries.

Referring to the submission of senior counsel for the Bihar Government, Shanthi Bhushan, that the Centre should share 80 per cent of the amount, Mr. Sorabjee said if such an argument was taken by all the other State Governments regarding their sick corporations, it would lead to a very disturbing scenario.

Mr. Bhushan contended that the Bihar Government had no liability towards payment of salaries of the employees of the corporations, which had become non-viable and suggested selling off the assets of all the sick units, under court supervision, and paying the salaries from the proceeds thereof.

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Salary for Bihar Govt. staff: SC reserves order