DEVENDRA KUMAR SINGH versus ADMINISTRATOR, BIHAR COOP. MKT. UNION LTD. AND ANR.

DEVENDRA KUMAR SINGH versus ADMINISTRATOR, BIHAR COOP. MKT. UNION LTD. AND ANR.

An employee's legal right to salary cannot be denied merely due to lack of funds or disputes between the public sector undertaking and the State; a declaration of right is separate from execution difficulties. Division Bench erred in reversing Single Judge's order which recognized this right.

Parties
Appellant: Devendra Kumar Singh; Respondent: Administrator, Bihar Coop. Mkt. Union Ltd.; Respondent: State of Bihar
Jurisdiction
India
Judgment Date
25 April 2006
Procedural Posture
Civil Appeal / Final Decision on Appeal From Division Bench Judgment
Outcome
Appeal allowed; Division Bench judgment set aside; Single Judge order restored.
Legal Topics
Public Sector Undertakings, Payment of Salary, Legal Right to Salary, Constitutional Obligations of State, Writ Jurisdiction
Service Law Constitutional Law Public Sector Undertakings Payment of Salary Legal Right to Salary Constitutional Obligations of State Writ Jurisdiction

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Parties

Devendra Kumar Singh

Appellant

Administrator, Bihar Coop. Mkt. Union Ltd.

Respondent

State of Bihar

Respondent

Procedural Posture

Civil Appeal / Final Decision on Appeal From Division Bench Judgment

Legal Issues

  1. 1 Whether the employee is legally entitled to payment of salary despite employer's inability to pay
  2. 2 Whether the High Court's writ jurisdiction can be enlarged to make general directions against the State

Ratio Decidendi

An employee's legal right to salary cannot be denied merely due to lack of funds or disputes between the public sector undertaking and the State; a declaration of right is separate from execution difficulties. Division Bench erred in reversing Single Judge's order which recognized this right.

Court Disposition

Appeal allowed; Division Bench judgment set aside; Single Judge order restored.

Orders

  • Division Bench judgment of Patna High Court set aside.
  • Respondent No. 2 to bear cost of appeal; Counsel's fee assessed at Rs. 5000.