KAPILA HINGORANI & ANR. versus STATE OF BIHAR & ANR.

Citation: [2008] 10 S.C.R. 195 · Decided: 08-07-2008 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Disposed off

Judgment (excerpt)

[2008] 10 S.C.R. 195 
J. ~ 
KAPILA HINGORANI & ANR. 
A 
v. 
STATE OF BIHAR & ANR. 
(I.A. No. 21 of 2007 in Writ Petition (Civil) No. 488 of 
2002) 
"'""' 
B 
JULY 8, 2008 
[S.B. SINHA AND V.S. SIRPURKAR, JJ.] 
Bihar Reorganisation Act, 2000 - ss. 65 and 85 - Divi-
" 
sion of original State of Bihar into existing State of Bihar and 
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c 
State of Jharkhand - Bihar Hill Area Lift Irrigation Corpora-
tion-(BHALCO) operating in State of Jharkhand -Constitution 
of Jharkhand Hill Area Lift Irrigation Corporation-(JHALCO) -
Non-payment of salaries to employees - Publi9 interest liti-
~ 
gation before Supreme Court - Direction to State of Bihar to 
D 
meet the liability of salaries of employees - Meanwhile, ad-
vertisements by JHALCO for absorption of employees of erst-
while BHALCO with the condition that such employees would 
forego their earlier claim - Out of 389 applications, only 302 
employees found eligible and absorbed - Interim applications 
E 
- By order dated 13. 1. 2005, direction issued fqr absorption of 
employees of BHALCO who opted for employment without any 
undertaking at this stage - Non compliance - On interim ap-
plications, held: Order dated 13.01.2005 would have been 
, >( 
enforced by initiating contempt proceeding - Initiation thereM 
and consequent punishment of officers guilty, on basis of in-
F 
. correct statement would not subserve any purpose, thus such 
--; 
is desisted -
In view of. the pendency of writ petition in 
Jharkhand High Court by employees claiming absorption as 
a/so past salaries, High Court directed to dispose of the writ 
l 
petition at the earliest - It would determine. the question of G 
I~ ~. 
final absorption, past salaries and liability to pay the same. 
The original State of Blhar was divided into existing 
State of Bihar and State of Jharkhand by the Bih~r 
195 
H 
196 
SUPREME COURT REPORTS 
[2008] 10 S.C.R. 
A Reorganisation Act, 2000. Thereafter, the area of opera-
tion of Bihar Hill Area Lift Irrigation Corporation-(BHALCO) 
fell within the boundaries of Jharkhand. The State of 
Jharkhand constituted Jh~rkhand Hill Area Lift Irrigation 
Corporation-JHALCO, with effect from 29.12.2001. There 
B were allegations that the salaries of the employees of the 
said corporation were not paid for a long time which re-
sulted in starvation of the employees. Thereafter, a PIL 
was filed under Article 32 of the Constitution. On 
09.05.2003 this Court issued interim direction against 
c State of Bihar to meet the liability of salaries of employ-
ees of State Corporation and also directed the Central 
Government to take decision as regard division of assets 
and liabilities. The High Court was directed to dispose of 
all liquidation proceedings in respect of the government 
0 
companies owned and controlled by the State of Bihar. 
Meanwhile, on 27.3.2003 and 31.7.2003 JHALCO issued 
advertisement for absorption of employees of erstwhile 
employees/workmen of BHALCO which was subject to 
the condition that such employees had to forego their 
earlier claims of the unpaid salaries. 398 applications were 
E filed for employment by employees of BHALCO, out of 
which 302 were found eligible and were absorbed. On 
13.8.2004, this Court issued directions to the State Gov-
ernment, to take decision regarding the division of assets 
and liabilities of the government companies/public sec-
F tor undert~kings in terms of provisions of s·tate 
Reorganisation Act, 2000. 
Thereafter, I.As were filed. On 13.1.2005, this Court 
passed an order to absorb the employees of BHALCO 
G who opted for empl~yment without any undertaking at 
this stage and the I As were disposed of. I.A. No.11 /2005 
and I.A. No.13/2005 were filed for modification/clarifica-
tion of Order dated 13.1.2005. JHALCO was directed to 
file the· status report. State of Jharkhand contended that 
pursuant to order dated 13.1.2005, 398 workman of 
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KAPILA HINGORANI & ANR. v. STATE OF 
197 
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BIHAR &ANR. 
BALCO were asked to report for duty within three weeks A 
but only 302 turned up and were absorbed, •though 158 
employees were found surplus. On 16.07.2007, this Court 
issued directions to the State for bearing the expense of 
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... 
those employees who were critically ill. In view of the statel 
ment made by counsel for the State of Jharkhand, the B 
court held that no direction would be passed with regard 
to absorption of those who d

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