The Hindu : SC comes to rescue of Bihar Govt. employees

Online edition of India's National Newspaper
Saturday, May 10, 2003

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SC comes to rescue of Bihar Govt. employees

By Our Legal Correspondent

NEW DELHI MAY 9. In a major relief to thousands of employees of Government undertakings and corporations in Bihar, the Supreme Court today ordered the State to deposit Rs. 50 crores within two months with the Patna High Court for disbursal to the employees who were not paid salaries for several years.

A Bench, comprising the Chief Justice V.N. Khare and Justice S.B. Sinha, passed the interim order on a public interest litigation petition filed by Kapila Hingorani, advocate, who highlighted the plight of over 88,000 employees working in various corporations without salaries since 1993.

She brought to the court's notice that employees of 19 corporations were the worst affected and over 1,500 employees had died of starvation and sought the court's immediate intervention. The Bench directed the Bihar Government to deposit Rs. 50 crores in two instalments of Rs. 25 crores a month for the purpose.

The High Court was directed to dispose of all liquidation proceedings in respect of Government corporations owned and controlled by the Government as expeditiously as possible and pass interim orders for the sale and disposal of the properties thereof for utilisation of the same towards the payment of salaries. The Bench said, "the High Court shall see to it that the sum so deposited and or otherwise received from any source including by way of sale of assets of the Government companies and public sector undertakings be paid proportionately to concerned employees, wherefore, the parties may file their claim before it".

Further, "the High Court, however, in its discretion, may direct disbursement of some funds to the needy employees on ad hoc basis so as to enable them to sustain themselves for the time being," the Bench said. The rights of the workmen should be considered in terms of Section 529 of the Companies Act.

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