LexSTATE OF JHARKHAND AND ANOTHER versus HARIHAR YADAV AND OTHERS
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A B [2013] 14 S.C.R. 904 STATE OF JHARKHAND AND ANOTHER v. HARIHAR YADAV AND OTHERS (Civil Appeal No. 10515 of 2013) NOVEMBER 22, 2013 [ANIL R. DAVE AND DIPAK MISRA, JJ.) Government Company - Liability of - Company owned by State of Bihar (BHALCO) - Non-payment of salary to its C employees - On bifurcation of the State of Bihar, the Company taken over by the State of Jharkhand and named (JHALCO) - Only some of the employees of BHALCO absorbed by )ha/co - Writ petition before High Court by employees seeking their absorption in JHALCO and payment D of their due salaries - Both the States denying their liability to pay the salary- Direction by High Court to JHALCO to pay the salaries and absorb the employees of BHALCO - In appeal, the States took the plea that appropriate remedy for the employees was under Companies Act and Industrial E Disputes Act - Employees conceded to forego their claim for absorption - Held: When a State is bifurcated, both the States and the Centre are required to take certain decisions under the Act and cannot leave the poor employees high and dry and suffer for no fault of theirs - The employees cannot be F directed to seek remedy under Companies Act or Industrial Disputes Act, 1947, since the problem in the present case, is of great magnitude affecting human rights and the purpose of living as enshrined u!Art. 21 of the Constitution - It is also not a case where services of employees have been retrenched G or terminated or posts have been abolished - It is not a case where the relief can be confined to the litigant-employees alone - Hence in view of the facts and circumstances of the case, direction to the States to pay the due salary to the employees with interest - Claim for absorption stands closed H 904 STATE OF JHARKHAND v. HARIHAR YADAV 905 - Bihar Re-organization Act, 2000 - s. 65 - Companies Act, A 1956 - Industrial Disputes Act, 1947. Constitution of India, 1950 - Preamble and Art. 12 - Government Companies - Duty of, as an employer - Held: The employer within the meaning of Art. 12 has a sacrosanct 8 duty to act in terms of the sacred objectives of social and economic justice - In a State of good governance, the Government cannot act like an alien - It has an active role to pay. A Government Company 'Bihar Hill Area Lift C Irrigation Corporation Limited' (BHALCO) was floated by the State of Bihar, and the Company was registered under the Companies Act, 1956. After bifurcation of the State of Bihar into State of Bihar and State of Jharkhand, by Bihar Re-organization Act, 2000, the assets and D liabilities of erstwhile BHALCO was merged/taken over by JHALCO (Jharkhand Hill Area Lift Irrigation Corporation Ltd.) and the State of Jharkhand. A writ petition was filed by the employees of E erstwhile BHALCO in the Jharkhand High Court claiming their absorption with JHALCO and also their past salaries, not paid to them by erstwhile BHALCO from the year 1995. In the meantime, a writ petition was filed before F Supreme Court in public interest, stating therein that the Government Companies and Public Undertakings in the State of Bihar had not paid salaries to their workmen and other employees for a long time resulting in deaths and miseries on large number of families, dependant on such G employees. BHALCO was also named as one of such companies. This Court issued number of directions including liquidation proceedings, formation of a Committee to scrutinize the assets and liabilities of the Companies and also directed State of Bihar to deposit Rs. H 906 SUPREME COURT REPORTS [2013] 14 S.C.R. A 50 crores before High Court for the purpose of payment of the salaries to the employees of the companies. The Committee was constituted as per the direction of this Court. State of Jharkhand took the stand before this Court that it was not the successor of BHALCO and was· B a newtCorporation and hence does not owe the liability. State of Bihar also denied its obligation. This Court directed the High Court of Jharkhal}d to dispose of the writ petition pending before it, determining the questions of final absorption, past salaries and the liability to pay c the same. Single Judge of High Court disposed of the writ .. petition, holding that in view of s. 65 of Bihar Reorganization Act, 2000, JHALCO is the same entity as BHALCO and hence the respondent/employees were' D entitled to be absorbed in the services of
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